Table 9. Government Support Price Levels for Nev/ Hampshire and Maine, 



1949-50. Sacked, graded, f.o.b., cwt. 



Month Maine New Hampshire 



September $1.55 $1.80 



October 1.55 1.80 



November 1.70 1.95 



December 1.90 2.15 



January 2.10 2.35 



February 2.15 2.40 



March 2.20 2.45 



April 2.20 2.45 



crease the competitive advantage of Maine producers. The large propor- 

 tion of potatoes handled by wholesalers has enabled them to take advantage 

 both of carlot rates and a lower priced source of supply. To this extent, 

 local market outlets were disrupted, and their renewal will depend more 

 than ever upon future merchandising practices and price and quality com- 

 petition with Maine. 



The continuation of price support for potatoes in 1950 is to be related 

 to the production control programs adopted. A method of controlling 

 supplies of perishables is by marketing agreements and orders. Under 

 this system a committee representing producers in a state or region develops 

 a policy for marketing potatoes with due consideration for consumer de- 

 mand, grades, and price. On the basis of this committee's recommendations, 

 the U. S. Secretary of Agriculture may then regulate the shipment of partic- 

 ular grades, sizes, or qualities of any or all varieties of potatoes. He may 

 also regulate the shipment of potatoes by establishing minimum standards 

 of quality and maturity. 



In order to safeguard these regulations, all potatoes shipped ^ must be 

 inspected by an authorized representative of the Federal State Inspection 

 Service or such other inspection service as the Secretary of Agriculture shall 

 designate. Permission to ship potatoes for seed, export, manufacture, feed, 

 0-- other purposes under this agreement may be obtained at the discretion 

 of the Secretary or his representative. By these measures the quantity and 

 grade of potatoes maarketed can be controlled to prevent oversupply and to 

 reduce the need for government price support. 



The necessity for inspection before sale as an attempt to improve grades 

 is an additional check on the quantity sold by each grower. The amount of 

 inspection needed will depend upon the quantity of potatoes and the time 

 of sale. If small amounts are sold through the year, the inspection service 

 will be busy. If the major sales are made at digging time, then inspection 

 service must be sufficiently large to cover the region in a short space of 

 time. The cost of such regulations to the state or region should be related 

 to the benefits to be gained by producers and consumers irrespective of 

 whether or not there is government price support and procurement. The 

 marketing agreements and orders are means at the disposal of producers 



i"to transport, sell, or in any other way to place potatoes in the current of commerce within the 

 production area or between the production area and any point outside thereof." Agricultural Marketing 

 Agreement Act, 1937. 



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