grades of wheat out of the people's way-we are loaded the same way with cotton. We have a lot of sorry cotton in the loan.

I think we need to do a lot of work on our grading system and get our stored commodities like wheat, cotton, and other things so we will have a real marketable commodity in there and not put heavy loans. on these sorry commodities.

Senator SCHOEPPEL. I agree with you, and I am glad to hear you note that.

Do you feel that a good loan differential in favor of the good milling grades of wheat, or in cotton the good grades of cotton, should all command a higher loan value, thereby discouraging the production of the lower or poorer grades?

Mr. WINGATE. Well, I would say put your good grades in at a fair price, but I would discourage the low with lower loans.

Senator SCHOEPPEL. Your organization would have no objection to that?

Mr. WINGATE. Not a bit, sir.

Senator SCHOEPPEL. Have you had any difficulty down here about the very marginal type of farmer, that with these acreage cuts he is cut so low that he is moving out of the farm economy?

Mr. WINGATE. Yes, sir.

Senator SCHOEPPEL. Would you, or do you advocate any minimum consideration that should be given to that individual whether he be cotton, rice, wheat, corn, or any of these other types of farmer that fall into that classification? In other words, should we have a minimum before starting to cut acreages?

Mr. WINGATE. Let me say my organization is not on record to stop any minimum and I don't mind saying what I think myself about it. I want to say this: I think this soil bank program that we were talking about a while ago will put us in a position that these small farmers can sell something besides basic commodities and get some money out of it. He can take 2 or 3 cattle or a few hogs and sell other commodities and get something out of it if those prices are right and that is what we should do.

I think that will help that small farmer, but on that small acerage I can only give you this: the experience they have had in burley, and they really were sick over that. They started out on that several years ago with a minimum acreage and now they are all down to the mini

mum acreage.

The CHAIRMAN. I am glad to note so many Congressmen and Congresswomen from Georgia are here. I wish to say that on our trip so far, we have before us today the largest number of Congressmen from any State. We are very much pleased with that.

In addition to the ones I mentioned a moment ago we have Congresswoman Blitch, Congressman Pilcher, and my good friend, Congressman Preston.

Mr. WINGATE. On that small acreage deal I would like to come back to that. One thing that will help these small-acreage fellows is if we can get premeasurement of acres. We have a world of small farmers and you go out and he measures his acreage and he can't get it just right. And no criticism; I am not inclined to criticize somebody. They are doing the best they can. But you get a man to come out there from ASC and measure it and get a second one to measure it and you can get some people that think they really know and measure it, and

they will all get different measurements. That farmer is tired plowing under and so he plows up and tries to keep from running over and it is cutting his acreage all along. It is cutting his acreage.

If we could get this acreage premeasured and staked off and penalties for farmers after that, and let them go back to see if it is planted, you would help us keep from losing very much needed acreage that we are losing.

The CHAIRMAN. Is it not a fact that on a lot of the controlled acres, a farmer plants a little more so that in the event that what he plants does not come up he can plow it up?

Mr. WINGATE. No, sir.

The CHAIRMAN. We have a different situation in other parts of the country.

Mr. WINGATE. Not one out of a thousand will do it here in this State. We are trying to be honest and do our part and we are losing

acres.

The CHAIRMAN. We have had evidence to indicate that in many States in the planting of wheat it is common practice to plant much more acreage than that which is allocated and then later on plow it up. You say that is not the practice in Georgia?

Mr. WINGATE. No, sir.

The CHAIRMAN. Whatever acres the farmer thinks is the correct measurement is what he plants?

Mr. WINGATE. That is right.

The CHAIRMAN. Then he takes a chance that the acreage he measured will correspond with the measurement that will be made by whoever does it later?

Mr. WINGATE. That is right.

The CHAIRMAN. Now, I am very anxious for this committee to obtain from you, if you will, any other plans as to the disposition of this surplus. You mentioned, and we are in agreement, that the State Department has been in the way and that they do not want to hurt, as it were, the economy of other countries by dumping our cotton. Mr. WINGATE. That is right.

The CHAIRMAN. Now, do you not believe that it is a matter that is really in the hands of the President? Do you not think he is the one, if he would only tell the Secretary of State to do it, it would be done? Mr. WINGATE. No question; and I don't believe you can pass a law and get it signed. În other words, if the President vetoes it-I think you are just up against that and you will have to decide that

later.

The CHAIRMAN. Are there any other suggestions you have, Mr. Wingate?

Senator EASTLAND. Let me ask a question there.

Mr. Wingate, I agree we have to keep controls. I want to ask you this question: We were under acreage controls back in the 1930's. They were taken off in 1943. What was the surplus of cotton at that time?

Mr. WINGATE. They were taken off in 1943?

Senator EASTLAND. Or the 1944 crop.

Mr. WINGATE. The surplus of cotton at that time was about 10 million bales.

Senator EASTLAND. Was it not 13 million bales?

Mr. WINGATE. It was a staggering surplus, I know. We took them off before 1943, didn't we?

Senator EASTLAND. We took them off in 1943 for the crop of 1944. Mr. WINGATE. Yes, we had so much we let controls stay on while the war was on. What was the surplus?

Senator EASTLAND. Was it not around 13 million bales?
Mr. WINGATE. I wouldn't say it wasn't.

While he is looking it up I will say we were blessed with surpluses when these two wars came

on.

Senator EASTLAND. I think we can use this surplus as a blessing. The CHAIRMAN. World War II and this little skirmish we had in Korea, which was also a war in my humble judgment, took some of the cotton, too.

Senator EASTLAND. Is it not true that up until that time under controls we had built up the biggest surplus in history at that time? Mr. WINGATE. Yes, sir.

Senator EASTLAND. Now we have been under controls in 1954 and 1955.

Mr. WINGATE. Yes, sir.

Senator EASTLAND. How much have we added to the surplus in those 2 years?

Mr. WINGATE. We have added, we are adding nearly 2 million bales this year and we added about 2 or 3 last year-2 or 212.

Senator EASTLAND. We have a surplus now of over 14 million bales, right at 14 mililon bales, of which the Government at the end of this cotton year will own 11 million bales.

Mr. WINGATE. I don't believe they figure there will be a surplus of 14 million.

The CHAIRMAN. The estimate is we will have a carryover of 14 million bales at the end of this cotton year.

Mr. BROOKS. Between 14 and 15.

Mr. WINGATE. I will say we added 3 million bales this year, then. Mr. BROOKS. That was due, one of the main reasons our exports will fall off.

Senator EASTLAND. About 2 million bales. Now, does that not show that while we have got to keep controls that the emphasis has to be on expanded markets for cotton and selling it and getting it used up?

Mr. WINGATE. I am in agreement. Part of my recommendation on this plan is to help us get a law passed that will allow the farmers, say the cotton producers, to call for referendum and let them vote and see if they want to assess themselves say, a cent a pound, a dollar a bale, $15 million this year, for research and promotion.

Senator EASTLAND. Have you any figures on the difference in the competitive position in the United States between cotton and rayon? Mr. WINGATE. Well, rayon is really making inroads on us. Senator EASTLAND. I know it is making inroads.

Mr. WINGATE. What do you mean?

Senator EASTLAND. Have you any figures as to the competitive advantage that rayon has over cotton, if any? I do not know.

Mr. WINGATE. The rayon people are spending approximately $60 million a year on research on synthetics and cotton-that takes in all-cotton about 12.

Senator EASTLAND. Do you have figures on rayon's competitive advantage on cotton price wise?

Mr. WINGATE. They have a little advantage.

Senator EASTLAND. Do you think we have to meet that?

Mr. WINGATE. I have it here. 1945 the per capita consumption of all fibre was 29.6 pounds of which 22.2 pounds was cotton, 4.7 pounds man-made fibers; in 1954 the per capita consumption was 32.6 pounds of which 21.8 pounds was cotton, 8.2 pounds man-made fiber.

Per capita consumption increased by 3 pounds; cotton decreased 0.4. Man-made fiber increased 3.5 pounds per capita.

They are making inroads, but one of the main reasons, Senator, is that we are not promoting and doing the research to push our

cotton.

Senator EASTLAND. That has a lot to do with it, but I ask you if you have any figures on the advantage pricewise?

Mr. WINGATE. Yes, sir; and we are going to have to sell cotton on its demand. You can produce cotton cheaper than we can or I

can.

Senator EASTLAND. I have not been able to do that. I have read it. Mr. WINGATE. I know about your farm. I am not going to argue with the Senator.

Senator EASTLAND. I am just asking you for some information. Frankly, I do not know.

Mr. WINGATE. I am trying to tell you the figures, and the best I have are from Dr. Mack Horne whom I consider one of the most outstanding economists in this Nation on cotton, and the lowest production cost he has been able to figure out is 211⁄2 cents a pound in the far west in your irrigated, completely mechanized area. It comes down. In our section in Georgia it costs us on an average, for mechanized farming, 30 cents a pound.

Senator, if we go out to compete with synthetics pricewise and don't take advantage of the real advantage we have of a commodity that they can't touch if we will stay in that, we are lost here in Georgia.

Senator EASTLAND. I think there is a lot of merit in that statement, but I am trying to get in the record what rayon's advantage is pricewise, just a statement of fact. What is it? Do you know the figures? Mr. WINGATE. No, sir; I don't know. But it is 3 or 4 cents a pound. Senator EASTLAND. Is it not true that if the per capita consumption of cotton in the United States leveled off and we retained the same per capita consumption we have got right now that every 5 or 6 years, domestically we would consume a million more bales of cotton due to the increased population of the country?

Mr. WINGATE. That is right.

The CHAIRMAN. Proceed, Mr. Wingate.

Mr. WINGATE. I believe with this research program I am talking about it will allow farmers to step in and if they want to assist their own commodities by research and promotion I think that will be a wonderful way to help move some of our commodities out of the way. Now, Senator, I could go on across the board a little further on this soil bank business. Somebody asked the question the other day: What would you do out west where they rent land from the Government for grazing? He can't take out Government land, but if he is grazing so

many acres, a thousand head of cattle, he can cut to 800 or 900, whatever is his percentage and that would grow more grass and better grass on that land.

It will help the wheat man, the grain sorghum man. It will help all of us, this soil bank program, and there is no way to get the job done without the Government helping us. And I think it can be done that way.

The CHAIRMAN. I would like to repeat the question I asked a while ago. Assuming we were to take out of production 10 percent of the acreage or 40 million acres, you would still have the controls on? Mr. WINGATE. Yes, sir.

The CHAIRMAN. And what would be the minimum acreage that you would set aside for cotton production for this coming year?

Mr. WINGATE. I would say set aside, I wouldn't set aside any more than has been set aside.

The CHAIRMAN. I hope not. You would have to do less, probably. Mr. WINGATE. I would give as much acreage as you are giving right now.

The CHAIRMAN. In the probability of producing the same?

Mr. WINGATE. No, sir, because we won't. I would just gamble my neck we won't do this again in quite a few years. We could come up easily with 9 million bales next year. We are doing a big job here but you let old man weather come in and he can show you a thing or two. We are up to a bale an acre. It can change.

My idea is we have to produce something on these farms to live on. And the acreage that we have is set up on the basis of a 5 year's average to produce 10 million bales. We know our consumption is not going down. That should reduce it. I say I wouldn't go below that.

The CHAIRMAN. Mr. Wingate, have you any plan to offer as to diverted acres? What would you do with those?

Mr. WINGATE. Your soil bank business will take care of them. The CHAIRMAN. I am talking about the acres that are diverted from cotton. Would you want to let a farmer plant that diverted acreage to whatever he desires?

Mr. WINGATE. Senator, we misunderstand each other about my plan because the soil bank plan, if you take 400 million out I don't mean that man to take that out and then a whole lot more.

The CHAIRMAN. Let us be specific. Suppose a farmer had 500 acres of cotton he planted last year.

Mr. WINGATE. Yes.

The CHAIRMAN. This year it becomes necessary to cut him a hundred What would you do with that hundred acres?

acres.

Mr. WINGATE. If your soil-bank business is in operation and-what is the trouble? I thought you were going to ask me a question. The CHAIRMAN. I am asking for an answer.

Mr. WINGATE. Let us say that man has a thousand acres and he has got 500 acres of cotton and the soil bank business is in and he has a hundred acres out. That is 10 percent of cultivation that is out and he has to cut a hundred acres on his cotton. He is even with the board. The CHAIRMAN. Let us say he cuts 200 acres. What do you do with the extra land? You understand my question?

Mr. WINGATE. Yes, sir.

The CHAIRMAN. What would you do with such diverted acres as may be necessary to cut back on any of these basics?