APPROPRIATIONS FOR 1957 2TYHMLO00 HEARINGS BEFORE THE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS EIGHTY-FOURTH CONGRESS SECOND SESSION SUBCOMMITTEE ON DEPARTMENT OF AGRICULTURE AND RELATED JAMIE L. WHITTEN, Mississippi, Chairman FRED MARSHALL, Minnesota CHARLES B. DEANE, North Carolina WILLIAM H. NATCHER, Kentucky H. CARL ANDERSEN, Minnesota Ross P. POPE, Staff 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) SOIL CONSERVATION SERVICE AGRICULTURAL CONSERVATION PROGRAM SERVICE 72013 Printed for the use of the Committee on Appropriations UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1956 DOCUMENTS COMMITTEE ON APPROPRIATIONS CLARENCE CANNON, Missouri, Chairman GEORGE H. MAHON, Texas ANTONIO M. FERNANDEZ, New Mexico PRINCE H. PRESTON, Georgia OTTO E. PASSMAN, Louisiana LOUIS C. RABAUT, Michigan SIDNEY R. YATES, Illinois WILLIAM H. NATCHER, Kentucky JOHN TABER, New York RICHARD B. WIGGLESWORTH, Massachusetts H. CARL ANDERSEN, Minnesota ERRETT P. SCRIVNER, Kansas EARL WILSON, Indiana GLENN R. DAVIS, Wisconsin BENJAMIN F. JAMES, Pennsylvania GERALD R. FORD, JR., Michigan EDWARD T. MILLER, Maryland KENNETH SPRANKLE, Clerk and Staff Director A6 84th DOCUMENTS DEPARTMENT OF AGRICULTURE APPROPRIATIONS FOR 1957 MONDAY, APRIL 30, 1956. STATEMENT OF THE SECRETARY WITNESSES HON. EZRA TAFT BENSON, 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 Billion $14.0 1952. 1955 (estimate) Reduction --- 10. 6 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) 790 changed to your flexible parity. The prices then and now compare as A comparison of the index value of prices received by farmers shows 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. COMPARISON OF FARM DEBT AND INVESTMENT STATISTICS, 1953-56 At the time of your appearance the total farm mortgage indebted- |