Evening star., 1962-01-31

Initiation of this program is
necessary for the 1868 crop
year. As in the case Of feed
grains, it would be subject to
approval by a producer referen-
dum.
Cotton
I recommend that the
Secretary Of Agriculture be
given authority to:
/. Establish the acreage al
lotment at a level which would
produce the cotton needed for
domestic use and such portion
of the cotton exports as he
may determine.
2. Authorize growers to ex-
ceed their farm acreage allot-
ment by up to 80 percent, with
the cotton produced on the ad-
ditional acreage to be mar
keted under a plan which will
net the grower approximately
the world market price.
Dairy Products
Milk and dairy products con-
stitute one Of our most import
ant sources Of nutrients. They
are also one of our most valu-
able farm products, bringing
twice the cash income of the
basic crops.
Incomes Of dairy farmers
were improved by the bill
passed by Congress late in 1860
to increase the support price
for milk from $3.06 to 1922 per
hundred pounds and by in
crease in the support price
last March to $3.40 per hun
dred pounds for the current
marketing year. ~
Unfortunately, milk producers
now face a serious setback. An
unexpected decline in the con-
sumption Of milk during the
past year, amounting to nearly
3 billion pounds, will result in
Government expenditures this
year Of approximately $500
million to support the prices of
dairy products. There is no
evidence as yet that this decline
in consumption will be reversed
in the year ahead. Under the
present law, the Secretary of
Agriculture Is not authorized
to set the price support rate
for milk above rs per cent of
parity unless, necessary in
order to assure an adequate
supply" Under this law, in the
present supply situation, the
reduced support price must be
announced for the marketing
year beginning next April /.
Such a reduction in milk
price supports will gravely i'm
pair the incomes of milk pro-
ducers. 1t will not, however,
succeed in reducing Govern
ment expenditures to a reason
able and justifiable level. Even
at rs per cent of parity-the
minimum level specified in the
present law-Government costs
for supporting prices Of dairy
products will probably exceed
$440 million next year, as pro-
fduction continues to exceed
consumption.
New legislation to correct the
shortcomings of the present
dairy price support laws is,
therefore, urgently required, for
the benefit Of both farmer and
taxpayer. I recommend passage
by the Congress of legislation
which will: Ca Maintain the
income of the dairy farmers by
establishing support prices of
up to 80 per cent of parity
under a supply management
program, and (b) reduce the
budgetary expenditures for the
dairy price support program to
the cost Of acquiring dairy
products needed for domestic
welfare and foreign assistance
programs. up to maximum OF
$500 million per year, plus the
costs incurred in the special
milk and school lunch pro-
grams.
Each milk producer would be
assigned a marketing base
equal to his marketings of milk
in 1861. His marketing allot-
ment for the current year
would reflect a percentage OF
his base proportionate to his
share of the estimated COM
mercial demand and the guam
titles needed for Government
programs in the national inter-
est. Producers who market milk
in excess of their allotments
would pay surplus marketing
fees on such milk, which would
be used to purchase and dis
pose of the surplus products
produced from excess milk.
Milk producers would be
provided an opportunity to vote
upon this program in a refer.
endum. In the event the milk
! producers reject this program
: a support price would be es.
tabliShed at such a level as tt
: limit budgetary expenditures
to $500 million a year. Author.
ity is also requested to include
supply management provisions
in Federal milk marketing or.
:, ders when desired by mill
: producers in markets regulated
under such orders.
While this legislation Is be.
t ing considered and implement.