GENERAL FARM PROGRAM 1223 



to set support prices from 60 to 90 percent of parity, be retained; 

 that any price support be contingent upon compliance %vith acreage 

 goals and also marketing agreements, wherever workable, and that, 

 if practical, a program to make possible the use of compensatory 

 payments or production payments be developed and made available 

 to the Department for use, if necessary, to effect comphance with 

 production programs. 



In making those recommendations, the national potato council had 

 in mind that such administrative measures as acreage goals, marketing 

 agreements, and, if practical, production payments would be fitted 

 into and made an integral part of an over-all program which would 

 operate within the framework of a support-price program of from 60 to 

 90 percent of parity. 



The council does not believe that any one of these administrative 

 measures could be taken out and set up alone as a substitute for the 

 60-percent price-support program now on trial. They were endorsed 

 as possible administrative penalties and rewards to be used as needed 

 and in unison in an effort to obtain better compliance with the pro- 

 duction program. 



The national potato council believes that all of the administrative 

 controls it has recommended, when enacted by Congress and properly 

 administered by the Department of Agriculture, will result in a long- 

 time farm program for white potatoes that is fair both to consumers 

 and to producers. 



As has been pointed out, this program is just now getting started 

 on the 1949 crop. We believe the program is sound and urge the 

 Congress to continue it essentially as it is, at least luitil it can be given 

 a chance to prove itself. 



Secretary Brannan himself advised this subcommittee on Monday 

 of this week (June 6, 1949) that it would not be feasible nor fair to 

 potato producers to attempt to apply a production payment program 

 to potatoes on the 1949 crop. 



We are pleased that the Secretary has made this decision. We agree 

 that it would be inadvisable to abandon the 60-percent price-support 

 program that has been worked out for -white potatoes in favor of some 

 untried plan at this time. 



We believe that the 1949 program, with support at only 60 percent 

 of parity, will demonstrate to the Congress that potato producers 

 themselves are striving for a workable program at lowered cost to the 

 Government. 



In addition, the 1949 trial of 60 percent should give potato producers 

 and the Congress some idea of the trend that might be expected so that 

 this same program would warrant further operation in 1950 and 

 possibly in years ahead. 



I would like to supplement this statement with the comment, for 

 your information, that under the Marketing Agreements Act the po- 

 tato industry has voluntarily been working toward the effective use of 

 that act and that approximately 75 percent of the commercial produc- 

 tion of potatoes are operating under marketing orders; that approxi- 

 mately 10 percent, in addition, of the commercial production is now 

 in the process of developing marketing orders. So that there is a 

 reasonable possibility that 85 percent of the commercial production 

 •of this country will be operating under marketing orders very soon, 

 some of it applicable to the 1949 crop — some of the newer orders. 



91215 — 49— ser. v, pt. 6 7 



