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conte hat they are correct, the income of the farmers in Colorado is at least I $2 percent more in 1957 than in 1956. Those figures are correct. at thMr. BRANNAN. Sure. s. I Mr. Hill. Now, they did that under what you say is all bad. What 3 rert I am trying to say is-you have come up here, not as an uninformed se te person, and I have listened to the statement that you have made, and for what you say is that the farmers are not able to pay their bills.

Now why is it that in Colorado and the West there has been substantial increase in farm income in 1957 over 1956 ? In Colorado the

increase was 52 percent in 1957 over 1956 in net farm income. In xcrete Wyoming the increase for the same period was 24 percent, in Nevada

18 percent, in Montana 12 percent, in Utah 10 percent, and in New tr.- Mexico 2 percent. All these States had an increase in net farm income ity in 1957 over 1956. Why is it true?

It is because of the fact that we did not have the controls over liveg stock, we have not had them, and we are getting from 35 cents to 37 it cents per pound for cattle and we are getting more than 20 cents per pound for hogs.

Does that not tend to prove that this came about because of not to having Government controls over the livestock industry, because of

the fact that they have not been weighted down by price control at the Federal level?

Only once in my lifetime can I recall when cattle and hog prices were higher; it might be true that they were, but I don't recall. And so it seems to me to prove beyond the shadow of a doubt that we must have flexibility in the market place.

On page 7 you do mention something that I am interested in, and it is something that we should do something about. You have had that chance and you did not do it. You did nothing about the very thing that my good friend Mr. Anfuso has been talking about, that is, the unnecessary processing or handling between the farmers and the consumers. This creates the disparity between the price that the farmer gets and the price that the consumer pays. This is what Mr. Anfuso's subcommittee has been working on.

Were you the new Secretary of Agriculture when the dairy industry organized the milkshed, I don't recall-yes or no?

Mr. BRANNAN. Sure, there were many established

Mr. Hill. The milkshed has been taking over and we as consumers are not benefiting and we pay a terrific price for a quart of milk. Of course, it is good milk but the dairyman gets little benefit from a price rise on retail milk.

Mr. BRANNAN. And there has been no “up,” Mr. Congressman, it has always been sliding down, hasn't it?

Mr. HILL. Well, it has always been sliding up for the consumer. I am a consumer of milk and I know and I am not talking without information.

I am a member of the Small Business Committee as is Mr. Roosevelt. I am on that committee with him. We went to Kansas City to hold hearings on the price structure in regard to a price war on milk.

Now, who did we have there? We had 150 people testify and there was 1 dairyman who milked cows: Who were these folks ? They were all processors using the farmers' product to make a living and then they were wondering why we did not protect them, each and every one of them and that is exactly what we have been doing.

Now, what are you going to do about that? I go along with that one paragraph of your statement and that is the only one. The farm producer needs the control of his products farther along the line toward the consumer. You have done nothing to get rid of the unnecessary processors,

Mr. Poate. Well, I am glad that we were able to cover at least that one paragraph.

I am sorry but it is 11 o'clock. I do not want to cut you off. I wish that Mr. Brannan were going to be with us again to explain this bill to us, but unfortunately he is not. We have to adjourn into an executive meeting right now because it is 11 o'clock.

Mr. Hagen. Is Mr. Brannan coming back? Mr. Poage. No, I do not believe he is, but Mr. Roosevelt and Mr. McGovern will be here available for further discussion on the bill.

Mr. McGOVERN. May I say one thing on behalf of Mr. Roosevelt and myself!

I can assure the committee that if we have another opportunity of coming back we will try to discuss this as much as we can in nonpolitical terms because we are not trying to place the blame for the present predicament of agriculture on anybody.

We simply want to work with the committee and come up with the kind of a program that will benefit the farmers of this country. We would very much appreciate the opportunity of coming back and answering questions about the specific portions of the bill.

Mr. PoAGE. Well, we want to go into it and I wish we could do that now, but we cannot. I am very much obliged to you gentlemen.

(Thereupon, at 11:05 a. m. the committee retired into executive session.)

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H. R. 10514, H. R. 11189, and H. R. 11753

MARCH 31, 1958

Printed for the use of the Committee on Agriculture

Serial ZZ

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1958

23885

COMMITTEE ON AGRICULTURE
HAROLD D. COOLEY, North Carolina, Chairman

W. R. POAGE, Texas, Vice Chairman
WILLIAM S. HILL, Colorado, Ex Officio Member of All Subcommittees
GEORGE M. GRANT, Alabama

CHARLES B. HOEVEN, Iowa E. C. GATHINGS, Arkansas

SID SIMPSON, Illinois JOHN L. MCMILLAN, South Carolina

PAUL B. DAGUE, Pennsylvania THOMAS G. ABERNETHY, Mississippi RALPH HARVEY, Indiana CARL ALBERT, Oklahoma

PAGE BELCHER, Oklahoma WATKINS M. ABBITT, Virginia

CLIFFORD G. MCINTIRE, Maine JAMES G. POLK, Ohio

WILLIAM R. WILLIAMS, New York CLARK W. THOMPSON, Texas

ROBERT D. HARRISON, Nebraska PAUL C. JONES, Missouri

HENRY ALDOUS DIXON, Utah JOHN C. WATTS, Kentucky

WINT SMITH, Kansas HARLAN HAGEN, California

OTTO KRUEGER, North Dakota LESTER R. JOHNSON, Wisconsin

CHARLES M. TEAGUE, California VICTOR L. ANFUSO, New York

DONALD E. TEWES, Wisconsin ROSS BASS, Tennessee

ALBERT H. QUIE, Minnesota
COYA KNUTSON, Minnesota

DELEGATES
W. PAT JENNINGS, Virginia
D. R. (BILLY) MATTHEWS, Florida

E. L. BARTLETT, Alaska
JOHN A. BURNS, Hawaii

RESDENT COMMISSIONER

A. FERNÓS-ISERN, Puerto Rico
Mrs. MABEL C. DOWNEY, Clerk
HYDD H. MURRAY, A88istant Clerk
JOHN J. HEIMBURGER, Counsel
FRANCIS M. LEMAY, Consultant

CONTENTS

H. R. 10514. A bill to transfer to the Secretary of Agriculture certain

alcohol-producing facilities of the United States, to require him to

produce alcohol from surplus agricultural products and certain corn and

wheat, to provide for the disposal of such alcohol, and for other purposes--

H. R. 11189. A bill to provide for the transfer to the Department of

Agriculture of a certain Government-owned alcohol plant, for the pur-

chase and use of grains in connection with the operation of such plant,

and for other purposes -

H. R. 11753. A bill to provide for the transfer to the Department of

Agriculture of a certain Government-owned alcohol plant, for the pur-

chase and use of grains in connection with the operation of such plant,

and for other purposes.

Statement of

Berger, Walter C., Division of Commodity Stabilization Service,

executive vice president of the Commodity Credit Corporation..

Jensen, Hon. Ben F., a Representative in Congress from the Seventh

Congressional District of the State of Iowa

Johnson, Joseph G., engineer and owner-operator of the plant under

consideration, accompanied by Leroy Welsh, Chairman of the

Commission on Increased Industrial Use of Alcohol; Lewis Smith-

berger, grain dealer and elevator operator, Stanton, Nebr.; and

Sidney Caughey, United States Department of Agriculture

Miller, Hon. Ă. L., a Representative in Congress from the State of

Nebraska..

Thone, Charles, administrative assistant to United States Senator

Roman Hruska...

Thye, Senator Edward J., of Minnesota-

Weaver, Hon. Phil., a Representative in Congress of the First District

of the State of Nebraska.

Additional data submitted to the committee by-
Department of Agriculture:

Report of the task group on industrial alcohol from grain of the

Presidential Commission on Increased Industrial Utilization of
Agricultural Commodities, April 25, 1957..-

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