If no protection is provided and we were to become dependent upon foreign countries as a source of food supplies, the day may come when they will dictate to our country and its citizens the price we will have to pay for food. As a result of this, we may become so dependent upon foreign countries that this will affect every other aspect of our living conditions.

The imports of fresh fruits and vegetables is increasing so rapidly every year that, as a result, we are discouraging our people from entering the fields of agriculture. Eventually, this will happen to many other departments of agriculture, i.e. the production of corn, grains, cattle, etc., and this would seriously jeopardize the whole economy. This is not something which will occur in 1 or 2 years, but could perhaps in 10 to 20 years, and if so, it would be almost impossible to rebuild this segment of our economy.

Thank you, Mr. Chairman, for this opportunity to present our viewpoints on a very serious problem affecting the future of the greenhouse tomato industry in the United States and for the opportunity to have our testimony included in the proceedings of this hearing.

The CHAIRMAN. Thank you very much for coming to the committee. (The following statements were received for the record:)

STATEMENT SUBMITTED ON BEHALF OF CALIFORNIA FIG INSTITUTE AND CALIFORNIA DRIED FIG ADVISORY BOARD BY RON KLAMM, MANAGING DIRECTOR, CALIFORNIA FIG INSTITUTE, MANAGER, CALIFORNIA DRIED FIG ADVISORY BOARD

This Statement is being submitted on behalf of all Dried Fig Producers and Processors in California who produce and market 100% of California's and the United States' Dried Fig Production. It is the recommendation of these two groups that the California Dried Fig Industry be excluded from any legislative or other measures which would serve to have a detrimental affect upon an already depressed Specialty Crop Industry and that either the existing tariff rate of 41⁄2 cents per pound on dried figs and 5 cents on fig paste be increased or some form of import limitation be established as a means of developing an orderly market at a stabilized price.

AREAS OF UNITED STATES DRIED FIG PRODUCTION

The Dried Fig Industry of California and the United States is concentrated in the San Joaquin Valley with Fresno, Madera and Merced Counties producing approximately 98% of the total tonnage. The balance of the commercial production is located in the Secramento Valley, although most growers in this area have indicated that, out of economic necessity, their trees will be removed within the next several years and the acreage devoted to more profitable crops.

BEARING AND NON-BEARING ACREAGE TRENDS

The California Dried Fig Industry, which has a history dating back to 1769, has historically accounted for 100% of the United States Dried Fig Production. From a maximum of 47,000 bearing acres in 1930 there has been a continual downward trend to the point where present bearing acreage, as estimated by the California Crop and Livestock Reporting service, is 16,540 acres. Between 1930 and 1968 there were two sharp periods of acreage decline. The first such period occurred between 1930-36, when the reduction was approximately 10,000 bearing acres; the second period occurred between 1948-52, with the decrease being 8,000 bearing acres. In the last 15 years the rate of decline has been at a more moderate rate with reduction totaling approximately 8,500 acres. Detailed statistical information on California acreage trends, for the past 30 years, is shown in Table 1..

TABLE 1.-CALIFORNIA FIGS BY VARIETIES-BEARING AND NONBEARING ACREAGE, 1938-68

Primary reasons for these periods of decline can be attributed to sharp periodic price reductions in farmer returns, greatly increased production costs, skyrocketing land values, urbanization pressure and, most important, sizeable tonnages of low priced foreign fig paste entering the United States Market. To further illustrate the adverse effect these conditions have had upon the Dried Fig Industry in California, the number of active fig growers, according to official Dried Fig Advisory Board Records, declined over 65% between 1954 and 1968. During the last 10 years the reduction rate was even more pronounced, exceeding 55%. This illustrates that it is no longer economically feasible for the socalled "small farmer" to depend upon the production of Dried Figs for his livelihood.

Although there is information available to indicate that fig trees have been known to produce for up to 100 years, there is general agreement in the California Dried Fig Industry that after approximately 35-40 years, production begins to decline at an accelerated pace. This indicates that a sizeable percentage of the present bearing acreage is approaching this critical period and unless there is some indication of higher grower returns, this acreage will be removed and replaced with more profitable crops.

In view of the surplus conditions present in numerous other agricultural commodities, we do not believe it is in keeping with the American way of thinking

to sacrifice an entire industry, which would be the case should a tariff reduction on Dried Figs or Fig Paste occur and, thereby, further contribute to these surpluses.

TABLE 2.-CALIFORNIA DRIED FIGS: BEARING ACREAGE, PRODUCTION, YIELD, AND FARM VALUE, 1938-68

Sources: Col. 1-Federal-State Crop Reporting Service; cols. 2 and 4-see table 8; cols. 3 and 6-computed.

PRODUCTION

It should be pointed out that a comparison of total acreage and merchantable production figures will, in most years, show very little correlation. This is due mainly to the fact that from the time of planting, a fig tree will require approximately 7 or 8 years before it can be considered as bearing.

Dried Fig Production in California reached its peak in 1947 when the merchantable tonnage totaled 30,550 and since that time there has been a continuous, although somewhat erratic downward trend. Between 1947 and 1957 merchantable production declined approximately 11,500 tons and the 1964-68 average (Table 3) shows a further decrease from the 1957 figure of approximately 4,300 tons. The 1969 merchantable production is now being estimated at less than 14,500 tons, a reduction of about 2,300 tons or 14% within a five year period.

It is a known fact that California Agriculture has, for a number of years, been forced to pay higher wages than other states and considerably more than our foreign competitors. Wages for field labor in the California Fig Industry increased from 20 cents per hour in 1930 to a minimum of $1.65 per hour in 1970.

In an effort to keep labor costs at a minimum, many California Fig Growers are turning to mechanization wherever possible. Unfortunately, this is not the solution to all labor problems since the only cultural procedure that can be mechanized, to any extent, is harvesting. Even mechanical harvesting has certain draw-backs; namely, substantial investments for harvesting and soil preparation equipment.

Additional costs of proper pruning, soil preparation, etc., nullify any labor savings in harvest. Mechanical harvesting is mainly a method of reducing peak labor demands and provides possible security against a complete lack of labor supply.

Using information reported by the Foreign Competition Branch of the Foreign Agricultural Service, Table 4 points out that field labor rates in California in 1970 were approximately 7 times greater for men and nearly 14 times greater for women than comparable wages in Portugal-the largest supplier of foreign fig paste to the United States.

TABLE 4.-COMPARISON OF AGRICULTURAL WAGE RATES IN FIG PRODUCING COUNTRIES OF THE WORLD'

3 Does not include State and Federal taxes, pension payments, and group medical payments made by employer. These equal approximately 37 percent of the base wages.

Source: Foreign Competition Branch, Fruit and Vegetable Division, U.S. Department of Agriculture, Foreign Agricultural Service.

Table 4 also discloses that while fig processors in the major foreign fig producing countries are paying .21 to .26 cents per hour, California Processors must pay a rate ranging from $2.83 to $3.28 per hour, exclusive of all fringe benefits.

When fringe benefits are added, wages for packing house employees in the Dried Fig Industry of California average approximately $4.00 per hour. Such fringe benefits in other countries are non-existent.

Using the most recent cost analysis work sheet of the California Dried Fig Industry, prepared by the Extension Service of the University of California, and revising only the 1963 labor figures to coincide with present rate and computing the Portuguese labor at .20 cents an hour, which in all likelihood is about average considering men and women, reveals the following:

California's present field labor costs are over 8 times greater than those in Portugal.

Although this comparison has been based on the Fig Industry in Portugal, the wage rates in the other fig producing countries of the world-Spain, Turkey and Greece-as exhibited in Table 4 are basically very similar.

As an illustration of how labor costs in this country could result in an even wider spread than previously indicated, we are outlining below the various steps in the production and processing of figs, as used in Fig Paste, practiced in this country and as we understand, it is practiced abroad. Cultural practices among growers in this country vary slightly and processing practices among California Packers may also vary. However, this presentation is closely representative of United States Cultural and Processing Practices. The foreign part of this tabulation is as accurate as we can derive from eye witness accounts and from various statements made by factors in the Foreign Fig Industries. It can, therefore, be