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Mr. Randolph voiced opposition to the promotional aspects of title V. He felt that the present Alabama State promotional program, under auspices of growers rather than the Federal Government, would conflict with the proposed promotional section of title V. Mr. R. Wilson pointed out that the southwest area is opposed to that section of title V setting forth deductions for promotion at 144 percent. He wanted it made clear that the Southwest is in favor of such a promotional program at lower percentage deductions, possibly not to exceed 1 percent. After discussion, Alabama and Georgia wished to be recorded as opposed to the promotional aspects of title V as presented. Florida voted neutral on the matter. North Carolina and Virginia representatives were in favor of the provision as set forth.
Mr. R. Wilson stated that the Southwest desired that all remaining deductions provided for in title V, except promotion, be made strictly on an area basis. Mr. Duncan disagreed with this theory saying that he felt that all areas should assist each other in paying the costs of price support program on peanuts Mr. Thigpen agreed with Mr. Wilson's suggestions in part but suggested that possibly it might be better to base deductions not only on areas but by types. He stated that past history has shown a tendency for Runner peanuts to produce over and above demand while Spanish has failed to produce sufficient quantity to meet demands. Mr. Randolph stated that Alabama is opposed to deductions by areas for two reasons: (1) Such a program could not be sold to the growers. (2) Although some economic justice is presented in the plan, in Mr. Randolph's opinion the fact that many Runner peanuts are crushed is a main factor in preventing the necessity of crushing other types. Mr. Thigpen presented for discussion his tentative thinking on a two-price system on peanuts. differing somewhat from a similar plan used several years ago. Such a plan might possibly provide for a farmer to grow a certain number of quota acres peanuts, plus a certain number of additional acres to be sold at an oil stock price. Since this plan would increase the possible surplus tonnage in any given year, some additional deduction would of necessity be taken from the amount the farmers received to finance the cost of such diversion.
Mr. Rawlings pointed out that if the national acreage allotment should remain at 1,6 00 acres the proposed 5 percent deduction would not be sufficient to finance the program. He added that additional arithmetic computations would be necessary to determine the percentage of increase necessary but that he estimated it would likely be in the vicinity of 10 percent.
Mr. Braswell stated that it is necessary to have legislative authority for the reductions of acres in order that supply may be brought in line with demand. If this is not done, the farmer will, of necessity, suffer in the long run. It is for this reason that he has advocated and still advocates a reduction in acres as proposed in section 2 of the bill under discussion.
A general discussion was held concerning the slight increase in producer advance value per ton of peanuts at set forth in the bill. Mr. Randolph's opinion was that any substantial increase in prices will affect adversely the consumption of peanuts at the commercial level. Mr. Braswell pointed out that history has proven that although price supports were lowered on wheat, the cost to the consumer has continued to rise.
Mr. Thigpen commended the group on the discussions for the day and opinioned that the group had reached a greater degree of agreement than possibly realized. He said that he felt the group agreed that eventually some sort of self-financing plan would be essential to the peanut industry and that such a plan might necessitate higher dollar value deductions or fewer acres allotted. He said that he felt that consensus of opinion of the group was that promotion is important although perhaps to a lesser degree than presently proposed percentagewise. He thought that further study might be given to the deduction by areas and/or type plan as he felt a plan of this sort had considerable merit.
Mr. Randolph stated that in his opinion the people of Alabama are not presently ready to accept a self-financing plan. Mr. Wilson, of Georgia, stated that he was in agreement with Mr. Wingate's earlier statements to the effect that any acreage or type increase should be made across the board for all areas.
(e) Section 6 of the proposed bill was briefly discussed. It had earlier been tentatively decided that the proposed bill would be based on scale 108 and, in line with that thinking, sections 6 and 7 of the proposed bill would be eliminated.
(f) Section 8 of the proposed bill was reviewed briefly. Mr. R. Wilson posed the following question concerning section 8: "What is the opinion of the group as to the effect the ad-on provision will have on the chances of the proposed bill
to pass Congress ?” Mr. Rawlings replied that the add-on provision can be solidly defended since the resulting total would only be up to a maximum of 90 percent of parity, as compared to up to a maximum of 100 percent of parity in the case of certain other commodities. Mr. Rawlings and Mr. Griffin both stated that they felt this type provision is essential to secure grower votes for the bill. Discussion brought out that in the final analysis the cost of this proposed program is shifted from the Federal Government to the ultimate consumer.
Mr. Boyd suggested that each delegation go back home and sell the entire program as it presently stands in total. Mr. Braswell suggested that more work should be done by the group individually and possibly at a later meeting toward compromising points of disagreement.
Mr. Rawlings suggested that each area solidify a proposed bill encompassing the aspects desired; then present such a plan to the appropriate Congressmen for their study but not to be presented for a public hearing before a subcommittee. Mr. R. Wilson voiced agreement with Mr. Rawlings' suggested plan. Mr. Braswell stated that he again felt that any peanut bill must be a part of an overall farm plan. He is opposed, however, to agreeing that the bill not be introduced this season. He suggests, alternately, that the bill which each area comes up with, or an overall compromise for all areas, be put before an Agricultural Subcommittee with the definite understanding that it is not to be pushed out alone but is only to be a part of an overall farm bill.
Mr. Griffin again stated that he is definitely opposed to introducing any peanut bill this season for any public hearing.
It was agreed that representatives from each area would continue to work toward a desired proposed bill. If a meeting with the other two areas is desired in order to facilitate compromises, Mr. Rawlings is to be contacted relative to setting up a meeting. It was further suggested that insofar as possible the same personnel should attend each meeting so that all will be familiar with background discussions and provisions. It was lastly agreed that Mr. Rawlings, if and when a later meeting of all three areas is desired, will contact one person in each area relative to the meeting.
Ross WILSON, Acting Secretary.
1958 Letter No. 33
Macon, Ga., March 13, 1958. To: County officers in peanut producing counties and GFBF commodity comA through discussion and question period followed and the group voted unanimously the following resolution :
mittee. From: Troy Barton, legislative director. Subject: Results of Peanut Meeting, Monday, March 10.
Upon call of the Georgia Farm Bureau, peanut producers from all over Georgia, with producer representatives from Florida and Alabama, met at Radium Springs to decide and chart a course of action on peanut legislation that may be introduced in this session of the Congress.
The GFBF has not proposed any legislation for this session but has had to give considerable thought and time to a proposed bill by the peanut and hog associations of Virginia and North Carolina. These two organizations have worked on a bill for the past 3 or 4 years which, from all study, seems to benefit their States more than other areas.
President Duncan presided at this meeting and opened by giving a brief report on meetings held recently and especially a meeting held in Washington relating to peanut legislation. He stated that everyone in attendance at the Washington meeting intimated that they could not go along with the Virginia and North Carolina proposal and everyone agreed it would be wise to call meetings by States of producers to make final decision.
Mr. Duncan asked Steve Pace; Walter Randolph, president, Alabama Farm Bureau; Cyril Boyd, representing Florida Farm Bureau; H. B. Wilson, chairman, GFBF peanut commodity committee; J. H. Wyatt, secretary, GFBF peanut commodity committee; and D. W. Brooks, general manager, CPA, to discuss their opinions of any legislation or the proposed bill subject to be introduced anytime.
PEANUT PRODUCERS SESSION MONDAY, MARCH 10, RADIUM SPRINGS, GA., CALLED INTO SESSION BY THE GFBF Whereas the peanut producers of Georgia, with producer representatives from Florida and Alabama, in a meeting at Radium Springs, Ga., March 10, called by the Georgia Farm Bureau believe, after thorough discussion and study, that the proposed legislation on peanuts by the Virginia and North Carolina peanut associations appears to be most untimely; and
Whereas the peanut problems of all areas are more or less the same and these problems should be thoroughly studied and discussed before any changes are made in the now existing law and in this proposed legislation we find many areas of disagreement and because of the many uncertainties involved: There. fore, be it
Resolved, That it is the opinion of this group of producers, representing the growers of Georgia and neighboring States, that no legislation of any kind should be introduced in the Congress at this time; and be in further
Resolved, That attempts be made to work our differences and if any effort is made to present any bill to the Congress on peanuts at this time the Southeast area would be compelled to vigorously oppose such legislation.
Keaton Cox of Mitchell County, moved the adoption of the above resolution, seconded by H. B. Wilson and carried unanimously.
Below are some reasons, voiced by producers, why no legislation should be introduced in the Congress at this time.
(1) Farm leaders believe it to be the thinking of many Congressmen and Senators that if a peanut bill were to be introduced this year that the entire peanut program may be killed.
12) National administration leaders have been quoted as saying the peanut program has cost the Government more money than was spent on missiles during the entire period of the last Democratic administration.
(33Too much disagreement between peanut producing areas on proposals such as--
(a) Lowering of the national allotment below the 1,610,000 acres. (GFBF opposes any reduction while Virginia and North Carolina hog and peanut associations favor.)
(6) Allotting peanut acres by types. (GFBF opposes while Virginia and North Carolina hog and peanut associations favor.)
(c) Raising of a national fund of 5 percent of price per ton to promote. advertise, provide research, and help pay CCC losses. (GFBF opposes on grounds that the State can do a better job of this than the Federal Government.)
(d) Redefining "carryover" in the definition of normal supply to provide that the carryover be increased from 15 to 27 percent. (GFBF opposes this feature, at this time, even though by doing this would increase the support price by about 2 percent-by agreeing to this, at this time, would no doubt encourage a bill to also include points (a), (b), and (c) abore which would harm the producers of Georgia.)
(e) Lowering from 108 to 102 percent the supply percentage in figuring support prices. As you know when supply exceeds 108 percent of a normal - upply the flexible price support program goes into effect. The lowering to 102 percent would do nothing but reduce the level of support. (GFBF opposed this proposal while Virginia and North Carolina hog and peanut
associations favor.) The Southwestern Peanut Shellers Association have requested the U'SDA to grant an increase in Spanish peanuts for 19.58. The USDA is holding a hear ing on this request March 14. Copy of a telegram your GFBF sent Mr. Jim Thigpen in opposition to this request is reproduced below: J. E. TILGPEN,
Director, Oils & Peanut Division, Commodity Stabilization Service,
USDA, Washington, D. C.: Permit the GFBF to oppose vigorously the application set for hearing Friday, March 14, on application requested by Southwestern Peanut Shellers Associa: tion for increase in acreage allotment of Spanish peanuts.
First our organization is opposed to any increase in acreage on a type basis. Secondly, the Southwest now has acreage allotments equal to almost one
third of the national acreage allotment, which should be ample for the production of all Spanish needed during 1958–59 marketing year.
Increased allotments would result only in the production of a surplus of Spanish peanuts, which would depress the market for growers and substantially increase the losses of CCC. Their request is fantastic, unreasonable, and wholly without justification.
John P. DUNCAN, Jr.,
President, Georgia Farm Bureau Federation. Mr. RAWLINGS. I would like to say that apparently the bill hadn't been studied too closely, and in the first year definitely the growers will make a very definite contribution toward paying the cost of the program.
I would like to state, too, that I did not state this morning that increasing the allowance for carryover in computing normal supply would raise the support price to 90 percent of parity.
Mr. PACE. I certainly want to withdraw that statement.
Mr. RAWLINGS. I think the arithmetic we have will have about a 2percent effect on it, and I am a little taken back that the friends who have stood before for a 90-percent price support program on peanuts now stand up against every feature of the bill which will help achieve a 90-percent program.
Also we were encouraged to do like the growers were doing in the Southeast, in having their own deduction. I feel that our friends are a little thoughtless there because I believe they know that for approximately 10 years growers in Virginia have been doing that very same thing and for an appreciable number of years the growers of North Carolina have. In fact, we spent many hours with the grower groups in the Southeast, Steve, helping them with the bylaws, furnishing them material, copies of our State legislation, and being of any assistance we could. So we have been at that about 10 years in our area and I think the record should show that.
I thank you.
Mr. ABBITT. Let me ask you just this question, if I may. Approximately what has been the percentage of reduction in price to the peanut producers in the last 2 years, reduction from 90 percent?
Mr. RAWLINGS. We have gone from 90 to 82 percent of parity and we have had a 10-percent bite already on modernized parity and we will take more.
Mr. ABBITT. Who has taken that reduction ?
Mr. RAWLINGS. The growers. And if we get everything we have talked about in the bill as you introduced it, we won't be back with the return to growers of what it was before those two things started working on us, and in the next place, all during those years, the type of things farmers have to back to produce peanuts continues to go up.
Mr. ABBITT. Do you know of any reflection of that reduction to the ultimate consumer of the peanut product ?
Mr. RAWLINGS. I do not. We were encouraged about the modest increase in consumption, but it wasn't mentioned that in the last 2 or 3 years we have had 2 or 3 very big operators come into the peanut business, particularly in peanut butter. Procter & Gamble and Best Foods. There has been an advertising program carried on on those brand names. The only study we have authoritative at all on the
effective price of the farm level on the consumption of peanuts is a study of 1952, a 1-percent cut in price of farm level that could only be expected to increase consumption by four-tenths of 1 percent. So you see how the farmer comes out when you carry that on for a few months.
Mr. ABBITT. What did you say the total reduction was that you take?
Mr. Rawlings. It is a combination of going from 90 percent of parity to 82 percent of parity plus a 10-percent further price cut on two 5-percent bites on modernized parity and we have got right near that much more to go on modernized parity at 5 percent a year.
I will tell you this. When you get through with modernized parity alone, it will take approximately some $40 a ton off the support price of peanuts if we still had a 90-percent program. That is approximately correct; isn't it, Steve?
Mr. Pace. Yes. It has been pretty heavy, that modernized parity.
Mr. RAWLINGS. I wanted to get that in the record. We are not up here asking for something we think is unreasonable or something we think we have to apologize to anybody about.
Mr. ABBITT. Mr. Chairman, I would just like to introduce the chairman of the Virginia ASC Committee, Mr. Delmar Carr. He doesn't care to make a statement, but he is from the peanut area and is doing a splendid job in his effort to help the farmers of Virginia.
Mr. McMillan. Stand up and give the reporter your full name and whom you represent.
Mr. ABBITT. And Mrs. Carr, his charming and gracious wife. Mr. McMILLAN. We will be glad to hear you at this time.
Mr. Carr. Mr. Chairman and Mr. Abbítt, I want to thank you for the recognition. I have no statement. It is a pleasure to be here
Mr. McMILLAN. Thank you. You have a mighty good Congress
The committee will hold these hearings open for other meetings at a later date and consider all the statements that have been made here today. If we want to call you in later, we will certainly do it. We will certainly have a report from the Department sometime in the near future, and will take further action on this bill at a later date.
The committee will stand adjourned until the call of the Chair.
(The following statement was submitted to the subcommittee and without objection by the chairman is inserted in the record:)
STATEMENT OF MARSHALL BALLARD, JR., PRESIDENT, AMERICAN TUNG OIL
Mr. Chairman and honorable members of the committee, my name is Marshall Ballard, Jr., of Lumberton, Miss. I am president of the American Tung Oil Association, and a member of the board of directors of the National Tung Oil Marketing Cooperative and of the Tung Research & Development League. Membership in these three organizations produce two-thirds or more of the total United States production of tung oil annually. Like all other officers and directors of our three organizations, I am a tung grower; and like the great majority of tung growers, my life savings, and all that I have and own are wrapped up in the tung industry. I speak to you therefore not as a professional attorney, nor as a hired lobbyist, but as a plain farmer who will succeed or fail in the tung industry during the coming years.
At this time, I am serving as chairman of the committee on miscellaneous commodities of the National Conference of Commodity Organizations. Represented on my committee are such commodities as peanuts, tobacco, sugar,