GENERAL FARM PROGRAM 1227 



Mr. McIntire. In our opinion, no. It could do a part of it, 

 perhaps. In other words, sir, we are taking the position, that if 

 found practical, in the trial runs, that it may be used in other com- 

 modities. We are not asking that that be used on the 1949 crop, 

 but asking that it not be used. 



Mr. Andresen. What difference would it make if they used it as a, 

 trial run or continued the present program? If things go like they did 

 last year, most of you men and the potato growers in Maine and Long 

 Island will be selling your potatoes to the Government. 



Mr. McIntire. I would like to say that as far as the potato pro- 

 gram is concerned, we are placing a good deal of reliance on the level 

 of support this year. Ws are placing a good deal of reliance on the cut 

 in acreage across the country this year, particularly in the major 

 producing areas. 



Mr. Andresen. That has not been very great so far. Through the 

 Southern States the yields have increased as against last year. 



Mr. McIntire. I do not mean to correct you, sir, but I think that 

 North Carolina's yield per acre is running undsr last year. 



Mr. Andresen. I do not have those figures here, but l4.hink you 

 will find North Carolina is about 4 percent in yield over last year. 

 But we will not discuss that because I am getting at this: Do you not 

 want people to get cheap potatoes? The theory of the Brannan plan 

 is that all of the potatoes that are produced will be sold in the open 

 market at the supply-and-demand price. You say that you do not 

 want that kind of a program. Do you want the Government to step 

 in and buy surplus potatoes in addition to getting these compensatory 

 payments? 



Mr. McIntire. We have endorsed the idea, sir, that with marketing 

 orders the off-grades and sizes would be removed from the market and 

 put into diversion outlets of one type or another. In Maine we use 

 our starch factories for diversion outlets. By so doing, the orders 

 would give to the consumer the best of the crop. 



I am sure you are familiar with the fact that the orders are not 

 operable when the level of price reaches parity, which we feel has a 

 very definite effect of stabilizing the market and would avoid Govern- 

 ment purchases of the best of the crop. You are familiar, I am sure, 

 with the fact that purchases this year so far have been confined in large 

 part to the off-grades and sizes. 



As to getting cheap potatoes, it is the opinion of the potato industry 

 that the best of the potatoes should be made available to the consumers 

 and that the market should not be loaded with the off-grades and sizes 

 in any good marketing program. 



Mr. Andresen. So you suggest that in addition to the payments 

 to producers the Government should step in and buy the culls and take 

 more low-grade potatoes off the market? 



Mr. McIntire. Our premise is that with the assistance of the 

 marketing orders the major portion, and m some years virtually all, 

 of the removal will take care of the price factor on the No. I's by 

 removing the off-grades and sizes, that the level in price will be at 

 approximately the support level, and particularly in the idea of a low 

 support level. I think the potato industry perhaps has led a bit in 

 the matter of time in asking that its program of support be at a low 

 level. I think that in the records of the House Agriculture Com- 

 mittee on the hearmgs that were held in the rm*al areas — and I say 



