GENERAL FARM PROGRAM 1229 



Mr. Murray. I would like to know why it was that in 1943 when 

 we had a 458,000,000-bushel crop of potatoes in the United States and 

 our ex-chairman, Judge Marvin Jones, handled the support program 

 for $21,000,000. In 1948 under the same law with a 445,000,000- 

 bushel potato crop we are faced with a $220,000,000 deficit in the 

 potato program. Do you know the answer to that? 



Mr. McIntire. No, I do not, sir. 



Mr. Pace. Thank you very much, Mr. Mclnthe. 



The committee, some weeks ago, had a day's hearing on the potato 

 program. I am advised that those hearings have not yet gone to the 

 printer. In connection with the hearing this morning and Mr. 

 McIntire 's testimony, I now want to offer for the record, at his request, 

 a letter I received from Mr. Harold E. Bryant, chairman of the 

 potato division of the United Fresh Fruits and Vegetable Association, 

 to be inserted in this record at this point. 



(The letter referred to is as follows:) 



United Fresh Fruit & Vegetable Association, 



Washington 9, D. C, June 3, 1949. 

 Hon. Stephen Pace, 



Committee on Agriculture, 



House of Representatives, Washington, D. C. 



Dear Mr. Pace: I have just learned that your subcommittee is to begin hear- 

 ings on June 6 on the question of the practicabiUty of production payments as a 

 means of supporting prices on several farm commodities, including potatoes. I 

 regret that I cannot appear before your committee at this time, and shall appre- 

 ciate it if you will make this letter a part of your record. 



Although I am general manager of the Maine Potato Growers, Inc. of Presque 

 Isle, Maine, a cooperative marketing association of 2,000 grower members, I am 

 addressing you today primarily as chairman of the potato division of the United 

 Fresh Fruit and Vegetable Association, a national association of distributors of 

 fresh fruits and vegetables, with headquarters in Washington, D. C. 



On May 4 you extended to me the courtesy of appearing before your committee 

 in connection with proposals made by the Secretary of Agriculture concerning 

 methods of supporting prices for farm commodities. The substance of my 

 testimony then was that we favored continuing the present legislation under which 

 potato prices are supported at not less than 60 percent of parity in order to give 

 that legislation a fair trial. The 1949 crop is the first year under the 60 percent 

 support program. We wish to reaffirm that position at this time. We believe it 

 is desirable to have flexibility, within definitely prescribed limits, as provided in 

 the present law in order that there will be definite assurance of price supports for 

 potatoes. 



With respect to the use of production payments for potatoes, it is difficult to 

 express an opinion without knowing the specific requirements of the potato price 

 support program. Such requirements as a matter of practice are not usually 

 known until they are announced by the Department of Agriculture. For example, 

 it is important to know what regulations would be imposed upon both production 

 and marketing as a condition to production payments, and also the methods to be 

 used in determining the amount of and the procedures for administering such 

 payments. 



Among other things, we are afraid that a production payment program might 

 lead to the development of marketing quotas which we believe would be difficult 

 to enforce and impractical to attempt to use in the support of potatoes. 



The Congress and the Secretary of Agriculture have taken an important step 

 in bringing about adjustments from a wartime to a peacetime basis by lowering the 

 support level. That action should be given a full opportunity to demonstrate its 

 eftectiveness. In connection with that action, we believe also that full use should 

 be made in the price support program of marketing agreements and orders to 

 regulate the flow of potatoes to market and to divert to other uses such quantities 

 as the market may not absorb at support prices. 

 Very truly yours, 



Harold E. Bryant, 

 Chairman, Potato Division, 

 United Fresh Fruit and Vegetable Association. 



