Evening star., 1949-04-25
braIlnan Hits Back
hFarln Plan Critics
On Cost Estimates
By MoIcoIm Lomborne, Jr.

On Cost Estimates
By Moleolm Lomborne, Jr.
Secretary of Agriculture Bran
nan today hit back at critics OF
his new farm program for ''reck-
less estimates" of costs to operate
the plan. and asserted they were
assuming a severe" depression
He told the House Agriculture
Committee that ION the contrary
the whole proposal Is designed
to help avoid . depression by
maintaining reasonable farm In
come.
Some people may be planning
on depression, but the Govern
ment Of the United States must
plan otherwise" the Secretary de-
ciared. by action OF Congress
we are committed to a policy Of
promoting maximum employment
production and purchasing power
In my opinion a strong farm pro-
gram Is essential of that policy
No Overall Cost Figure.
Secretary Brannan outlined the
administrations new plan to the
committee before the House tool
It's To-day Easter vacation. The
members asked him then to come
back after the holiday with figures
on the probable cost.
He said today he is unable to
give the committee an overall
estimate of the cost of his pro-
gram, although some Republicans
have charged it would cost as
much as $4,000, 100000 a year in
subsidies.
MIR. Brannan said the Nations
economy 'is so complex and
dynamic that it has never been
possible to make accurate dollar
estimates in advance OF price sup
port operations" Then he re-
minded the committee:
mo program can cost more over
. period Of years than the Con-
gress makes available"
He added that an absolute figure
without comparisons Is bound to
be misleading" and would give
ammunition to the enemies OF
price support legislation.
Prefers Prevention.
He warned at another point,
however, that any program in
which the public investment is
small is going to be IAN Ineffective
program at the very time strong
program is needed"
Mr.. Brannan said that If 1t is
assumed that there will be a de-
preston, farm surpluses and city
unemployment will force programs
of straight relief and very likely
some form of food stamp plan
which could be very costly.
I'm my opinion, an equal amount
of money used for production
payments Ito farmersl would be
much more effective in supporting
farm prices and would keep us on
the side of preventing depression
rather than waiting for 1t to de-
velop," he declared.
Mr.. Brannan's plan would per-
NIT agriculture prices to- drop At
will with resultant benefits TO the
consumer. Farmers. on the other
hand, would receive : payments
from the Government to make up
the difference between the market
price and a guaranteed floor" to
the producers.
Gives Examples of Cost.
The Secretary gave a number Of
examples of how the plan would
work and offered estimates on the
cost to certain commodities. ,, As
suming an annual reduction goal
Of 10000, ,000,000 pounds of hogs,
Mr.. Brannan said that the Gov
ernment might have to pay out
$230,000, 900 in the event 1.000.-
100000 pounds of hogs failed to
sell at the current priceesupport
level.
He then went on to point out
that pork cannot be kept in stor-
age in good condition for more
than year and that the Gov
ernment would not be able to sell
the pork in the American market
because it would break the sup
port price:
THE. Government would be
faced with q total loss of the
$3.50, ,000. 900, plus carrying and
disposal charges. less whatever
could be realized from sales to
off-shore customers" he said.
Denies Amy Recommendation"
Under his plan, the same amount
of money could be paid to farmers,
he added. and would reduce the
market price of hogs by about Z
per cerft. The Secretary also took
note Of charges that his program
would result in RECOMMENDATION"
of farmers. '1t should be clearly
understood that the only so-called
Government controls involved in
my recommendations are those
which limit the amount of the
Governments commitments to
farmers" Mr.. Brannan asserted.
The Secretary Also insisted that
his proposals called for "abso-
lutely no form of authority OF
control not contemplated" by the
Agricultural Act of 1948, which
is scheduled to go into force next
January /.
He also insisted that his plan
was less restrictive than any leg
islation thus far enacted by Con-
gress because ut offers more en-
couragement to the abundant
consumption and production oi