1224 GENERAL FARM PROGRAM 



That, we believe, is a demonstration on the part of the industry 

 that we are very much interested and concerned in the question of 

 the per-capita consumption of potatoes; that the industry is volun- 

 tarily regulating its marketing methods to make available to the 

 people the best of the crop; that the industry, through research, is 

 exploring the use of byproducts of potatoes and that in some areas — 

 and I am particularly proud to point to Maine — they tax themselves 

 by virtue of an industry tax within the State, thereby raising funds 

 to promote the potato industry as a whole, and Maine in particular, 

 of course, through the further use of potatoes and to improve the 

 consumption factor. 



The potato industry is rather proud of this progress in the market- 

 ing agreement work to effectively use the best portion of our crop, 

 and we have offered continuously in our discussion that this type of 

 procedure should be followed and encouraged by the Department as 

 a part of the over-all price support program. 



Mr. Pace. As I understand, Mr. Mclntire, your recommendation 

 would be that the 1949 potato program proceed as is. 



Mr. McIntire. Right. 



Mr. Pace. Without any change in the method of support. 



Mr. McIntire. Right. 



Mr. Pace. But you are recommending that the production pay- 

 ment method be authorized as one of several other methods of 

 handling the support of potatoes? 



Mr. McIntire. Right. 



Mr. Pace. Along with the goals, marketing agreements, fluctua- 

 tion of price-support level, and so forth? 



Mr. McIntire. Exactly. 



Mr. Pace. And you do not now recommend that it be provided in 

 1950 until you see further what happens on the 1949 crop? 



Mr. McIntire. Exactly. 



Mr. Pace. Is that about right? 



Mr. McIntire. That is about right. 



Mr. Pace. One other question. I was intrigued by the statement 

 of yours that industry is taxing itself for research, and so forth. 

 Was that done by voluntary agreement or by State law? 



Mr. McIntire. That is done by State law. 



Mr. Pace. The general assembly levies a tax on the potato growers 

 to establish a fund to be used in research work? 



Mr. McIntire. The growers in Maine— and it is not peculiar to 

 Maine, although Maine led the idea; there are other States, including 

 Idaho and Oregon I believe 



Mr. Pace. What is the tax on the grower; is it on the basis of the 

 poundage of potatoes? 



Mr. McIntire. The tax on the growers is on the per-barrel basis 

 of the sold commodity, on the commodity as it is sold on a per-barrel 

 basis, which is our unit, of approximately 3 bushels. 



Mr. Pace. Who collects the tax- — the buyer? 



Mr. McIntire. The buyer collects the tax and remits it to the 

 State tax collector's office. 



Mr, Pace. What is the total in Maine, approximately? 



Mr, McIntire. In Maine, it has totaled approximately 115 to 

 120 thousand dollars a year, at least. 



Mr. Pace. Are there any questions? 



