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

A 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:

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.

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 indebted-
ness was $7.1 billion. Figures received earlier in these hearings indi-
cate 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.

The 355 million acres on which crops were planted in this country in 1955 is about 2 percent less than 1952 acreage. For certain commodities there have been large reductions in acreage allotments in past few years. For example, cotton acreage in cultivation as of July 1, 1952, was 27.1 million and dropped to 17.5 million acres as of July 1, 1955, a reduction of over 35 percent. During this same period, corn acreage dropped from 82.4 million to 81.6 million. Wheat acreage likewise dropped from 78.3 million to 58.3 million, a decrease of over 25 percent.

COMPARISON OF CCC INVENTORIES FOR 1952 AND 1955

In reviewing the various developments in our agricultural situation during your 3 years of service as Secretary, we should take a look at the number and value of commodities in the hands of the Commodity Credit Corporation. As of December 31, 1952, when you took over control of the Department, CCC inventories totaled a little over $1 billion. As of December 31, 1955, these holdings had increased to over $6 billion.

As to specific commodities, the record is as follows:

You will recall that for 3 years I have pointed out that you had authority to sell these commodities in world trade through normal channels for dollars. Until 1954 you would not offer any commodities for sale. Finally, in 1954 the Department offered 137 million pounds of peanuts, 369 million pounds of cottonseed oil, 70 million pounds of linseed oil, 9 million pounds of flaxseed, and small quantities of several other commodities, and you sold them for dollars for $92,914,102. In 1955 you finally added limited amounts of butter, dried milk, whey,

corn, rice, wheat, barley, grain sorghums, oats, rye, and soybeans, and sold them for dollars.

During this period you refused to offer cotton in world trade for dollars at competitive prices, resulting in the biggest holdings of cotton ever held off the market by any country in history, reaching the total of 8 million bales.

Only on January 1, 1956, would you offer any cotton. Then you said you would offer only 1 million bales of the shortest stable, 8-inch. I am pleased to note your experience apparently proves the soundness of my views, for in the month of January 1956, you sold 600,000 of the total 1 million bales you announced you would sell in the next 6 months. On the 28th day of February, in 59 days, you had sold the last bale of the million offered.

During this 3 years you held United States commodities, with the exceptions mentioned, thousands of farm families were put off the farms and out of homes, 55,000 by your cotton acreage reductions in 1955 alone. Foreign acreage increased as fast as our farmers were cut back.

While you held our commodities off world markets by refusing to sell competitively, and cut our farmers' acreage, foreign production under your convenient price umbrella increased as follows:

INCREASED FOREIGN AGRICULTURAL PRODUCTION

During the 4-year period ending with the crop year 1954–55, foreign countries increased production of all the basic commodities-cotton, wheat, corn, rice, tobacco, and peanuts-over 1950-51 levels.

Based on the most recent information available for the crop year 1954-55, the increases were approximately as follows: Cotton, 5.1 million bales, 28 percent; wheat, 329 million bushels, 6 percent; corn, 403 million bushels, 19 percent; rice, 29 billion pounds, 13 percent; tobacco, 457 million pounds, 9 percent; and peanuts, 1,360,000 tons, 14 percent. These increases are substantial. The increase of 28 percent in cotton production is particularly significant when it is realized that United States production declined 16 percent from almost 16.5 million bales in 1953-54 to an estimated 13.9 million bales in 1955–56. While it is impossible at this time to forecast the world's 1955-56 crops, such information as is available indicates a further substantial increase over 1954-55 on at least two of the major basic commodities, cotton and wheat, possibly as much as 1.5 million bales on cotton (6) percent) and 440 million bushels on wheat (7 percent).

Land devoted to production of these two commodities in 1955-56 is expected to be substantially more than in 1954-55 by nearly 2 million acres on cotton and 15 million acres on wheat. This is in addition to an increase in 1954-55 over 1950-51 levels of almost 10 million acres on cotton and 46 million acres on wheat.

Other increases are as follows: Corn, foreign production up 403,500,000 bushels.

Dairy products, foreign countries up 740 million pounds for cheese and 66 million pounds for dried milk.

In 1954 United States exports of cheese dropped from 47.5 million pounds to 5.4 million pounds.

United States-produced canned milk dropped out and the Netherlands increased exports 125 million pounds above 1950.

COMPARATIVE PERSONNEL STATISTICS FOR THE DEPARTMENT OF AGRICULTURE, 1953 AND 1957

In February 1953 you inherited a Department with about 60,000 employees, leading to a public announcement over your signature that the Department of Agriculture was a big, overgrown, sprawling bureaucracy of 20 agencies and bureaus. The press described it as follows:

The United States Department of Agriculture, largest of the Nation's civilian agencies, swollen to a huge bureaucracy of 20 agencies and bureaus in the last 20 years.

Later it developed that this was released in your name by your assistant, a Mr. Davis, formerly with the Cleveland Plain Dealer, a newspaper which had fought the farm programs for years. Mr. Secretary, you seem to be still having trouble with people signing your

name.

At the time you took over there was an Under Secretary and one Assistant Secretary in the immediate Office of the Secretary. In the 1957 budget you have an Under Secretary, three Asistant Secretaries, and four other top assistants in your office.

Now let us compare the figures under your present budget with 1953:

Further, let us compare your present budget figures for various programs with the so-called Truman budget of 1954 and your subsequent revision of that year.

COMPARISON OF BUDGETS DURING PERIOD 1954-57

1 Includes $850,000 for rural development program in supplemental bill, 1956. 2 Includes $350,000 in 1956 supplemental bill.

NOTE. In addition, Agricultural Act of 1954 authorized $15 million advance from CCC for 1955 and 1956.

I hope this greatly expanded budget for 1957 is not because of the election this year but because you have had a change of heart.

REPORT ON 1956 APPROPRIATION BILL

Mr. Secretary, last year this committee pointed out that you had unlimited authority to sell CCC farm commodities in world trade at any competitive price essential to move them.