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SUBCOMMITTEE ON DEPARTMENT OF AGRICULTURE AND RELATED

AGENCIES APPROPRIATIONS
JAMIE L. WHITTEN, Mississippi, Chairman
FRED MARSHALL, Minnesota

H. CARL ANDERSEN, Minnesota
CHARLES B. DEANE, North Carolina WALT HORAN, Washington
WILLIAM H. NATCHER, Kentucky CHARLES W. VURSELL, Illinois

Ross P. POPE, Staf Assistant to the Subcommittee

PART 4

STATEMENT OF THE SECRETARY
APPLICATION OF ATOMIC ENERGY IN RURAL ELECTRIFICATION

PROGRAM
AGRICULTURE RESEARCH SERVICE (AMENDMENTS TO THE BUDGET)

COMMODITY STABILIZATION SERVICE

SOIL CONSERVATION SERVICE
AGRICULTURAL CONSERVATION PROGRAM SERVICE
LANGUAGE CHANGES AND GENERAL PROVISIONS

STATEMENTS OF MEMBERS OF CONGRESS

Printed for the use of the Committee on Appropriations

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1956

72013

DOCUMENTS

COMMITTEE ON APPROPRIATIONS

CLARENCE CANNON, Missouri, Chairman GEORGE H. MAHON, Texas

JOHN TABER, New York HARRY R. SHEPPARD, California

RICHARD B. WIGGLESWORTH, Massachusetts ALBERT THOMAS, Texas

BEN F. JENSEN, Iowa MICHAEL J. KIRWAN, Ohio

H. CARL ANDERSEN, Minnesota W. F. NORRELL, Arkansas

WALT HORAN, Washington JAMIE L, WHITTEN, Mississippi

GORDON CANFIELD, New Jersey GEORGE W. ANDREWS, Alabama

IVOR D. FENTON, Pennsylvania JOHN J. ROONEY, New York

JOHN PHILLIPS, California J. VAUGHAN GARY, Virginia

ERRETT P. SCRIVNER, Kansas JOHN E. FOGARTY, Rhode Island

FREDERIC R. COUDERT, JR., New York ROBERT L. F. SIKES, Florida

CLIFF CLEVENGER, Ohio ANTONIO M. FERNANDEZ, New Mexico EARL WILSON, Indiana PRINCE H. PRESTON, Georgia

GLENN R. DAVIS, Wisconsin OTTO E. PASSMAN, Louisiana

BENJAMIN F. JAMES, Pennsylvania LOUIS C. RABAUT, Michigan

GERALD R. FORD, JR., Michigan SIDNEY R. YATES, Illinois

EDWARD T. MILLER, Maryland FRED MARSHALL, Minnesota

CHARLES W. VURSELL, Illinois JOHN J. RILEY, South Carolina

T. MILLET HAND, New Jersey
ALFRED D. SIEMINSKI, New Jersey HAROLD C. OSTERTAG, New York
JOE L, EVINS, Tennessee

FRANK T. BOW, Ohio
HENDERSON LANHAM, Georgia
CHARLES B. DEANE, North Carolina
JOHN F. SHELLEY, California
EDWARD P. BOLAND, Massachusetts
DON MAGNUSON, Washington
WILLIAM H. NATCHER, Kentucky
DANIEL J. FLOOD, Pennsylvania
WINFIELD K, DENTON, Indiana
JAMES C. MURRAY, Illinois

KENNETI SPRANKLE, Clerk and Staff Director

A6

84th

vi3 DOCUMENTS

DEPT. DEPARTMENT OF AGRICULTURE APPROPRIATIONS

FOR 1957

MONDAY, APRIL 30, 1956.

STATEMENT OF THE SECRETARY

WITNESSES

HON. EZRA TAFT BENSON, SECRETARY OF AGRICULTURE
TRUE D. MORSE, UNDER SECRETARY OF AGRICULTURE
EARL L. BUTZ, ASSISTANT SECRETARY OF AGRICULTURE
ERVIN L. PETERSON, ASSISTANT SECRETARY OF AGRICULTURE
MARVIN L. MCLAIN, ASSISTANT SECRETARY OF AGRICULTURE
KENNETH L. SCOTT, DIRECTOR, AGRICULTURAL CREDIT SERVICES
RALPH S. ROBERTS, ADMINISTRATIVE ASSISTANT SECRETARY OF

AGRICULTURE
R. L. FARRINGTON, GENERAL COUNSEL, DEPARTMENT OF AGRI-

CULTURE
DON PAARLBERG, ASSISTANT TO THE SECRETARY OF AGRICULTURE
JOSEPH C. WHEELER, DIRECTOR OF FINANCE AND BUDGET OFFICER,
DEPARTMENT OF AGRICULTURE

Mr. WHITTEN. The committee will come to order. Mr. Secretary, this makes the fourth year that you have appeared before our subcommittee to present your program for American agriculture, together with your justification for funds which you recommend for the operation of the Department.

COMPARISON OF FARM PRICES AND COSTS IN 1952 AND 1955

At the time you first appeared before this committee as Secretary of Agriculture, February 1953, you indicated that farm prices and income were on the way up because of the confidence the American farmers had in President Eisenhower and your farm views. I told you then that, in my opinion, flexible parity meant lower prices and would seriously hurt the American farmer. Subsequent events, unfortunately, seem to indicate that I was right, for today the comparison is as follows:

NET FARM INCOME

1952
1955 (estimate)

Billion $14. 0 10. 6

Reduction

3.4 I have reviewed the tables of farm prices you placed in the record at that time, February 1953. In the meantime you have had the law

(1407)

changed to your flexible parity. The prices then and now compare as follows:

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1 comparison of the index value of prices received by farmers shows that it was higher in December 1952, when you took over, than it is today, after 3 years of your tenure. It is as follows:

INDEX VALUE OF PRICES

December 1952.
December 1955_

269 223

Reduction (17 percent)--

46 Farm prices averaged about 96 percent of parity in December 1952 as compared to 80 percent in December 1955. During this period the farmers' share of the national income has decreased from around 7 percent to about 5 percent. In other words, farm income has dropped about 24 percent in the past 3 years, whereas the income of the rest of the Nation has increased some 14 percent during the same period.

PERCENT OF PARITY

December 1952_
December 1955 ---

Percent

96 80

FARMERS' SHARE OF NATIONAL INCOME

Percent

7 5

1952 1955.

Farm income dropped 24 percent in the past 3 years.
Other income increased 14 percent in the past 3 years.

COMPARISON OF FARM DEBT AND INVESTMENT STATISTICS, 1953–56 At the time of your appearance the total farm mortgage indebtedness was $7.1 billion. Figures received earlier in these hearings indicate that this indebtedness reached a total of $9 billion in January 1956, an increase of nearly $2 billion. During this same period total farm investment has remained virtually the same—$166 billion in January 1953, as compared with $167.6 billion in January 1956.

FARM DEBT

January 1953_
January 1956_-

Billion $7.1 9.0

Increase

1.9

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