I think, gentlemen, that we certainly have heard about a lot of milk. We have certainly heard a lot about milk in upstate New York. I want to assure you that we have a lot of potatoes on Long Island. I will eliminate reference to any page in this statement which you gentlemen have already heard and get down to the statement referring to the number of farms in our county, which is approximately 1,000. On those farms there are some 1,200 growers who will this year grow an acreage of 50,000 acres, and have produced some 15 million bushels of potatoes. The plight which these men find themselves in is one of disaster. Approximately 400 growers are faced with extinction. We do not know the exact number. There are about 400 other growers who will certainly have to revise their borrowing schedule come 1956. And there are approximately one-third of the number who can stand another year or two of low prices. The condition which prevailed on Long Island in August was that we had a labor situation there in our warehouses. We have some 32 dealers who handle this crop. The early crop did not move from the island as normally, leaving the north side of the island, which is the riverhead to orient section, that area which does not have sufficient storage to store this crop, completely at a standstill. In other words, potatoes did not move in that area. So that the crop which normally moved in July and August did not move. And in some cases this crop is still in the ground. When the market did open, it opened up around 50 cents a hundredweight, which is 30 cents a bushel. Getting that down to 1 hundredweight, the average crop approximately 200 bags to the acre, would give those growers an approximate income of $100. The cost sheet which you have there shows the very lowest cost of production on the island at around $335, which does not take into consideration the depreciation and many other items which could be put in there. So the approximate loss, based on potatoes which have been sold to date is $200 per acre. The price today on the island is $90 on cobblers and on Katahdins is $115. The CHAIRMAN. Have you ever checked the price to the consumer in the New York stores? How much do they pay there? Mr. TALMAGE. The A. & P. yesterday were getting 48 cents for 10 pounds. The CHAIRMAN. That is $4.80. And you are getting what on the farm? Mr. TALMAGE. We are paying the growers $1.15 for Katahdins. We do not know what the ultimate outcome will be of the potatoes in storage. One-third of the total crop, perhaps as high as 5 million bushels, is in storage. Those men are hoping, but we are encountering loss from rot, stem end trouble, which is taking in some cases whole bins, and have to dump it. So it is a rather gloomy picture. These men are thoroughly discouraged. The CHAIRMAN. You are giving us the problem. Have you anything to suggest as to the solution? Mr. TALMAGE. There will be meetings coming along on the island. We have no definite statement coming from any group yet. My own idea would be a program with a floor with rigid bushel allotments, comparing it somewhat to an open road. Here is an open road. The man has money to buy an automobile, but he does not go out and get that automobile and drive it on the road, regardless of lights. He buys his car. When he comes to a stop light, he certainly stops. I think the condition is similar in the potato business. The man with the capital and the land to grow these potatoes, with all due respect to him, it is a free country, but you have a lot of younger growers, a lot of inbetween people who have held on. Our section is approximately a 50-acre proposition. In other words, 50 acres, 60 acres of potatoes, a family-sized farm. Many of these men, that is all they know. They want to stay there. They feel that in fairness to everyone there should be some sort of limit. The other potato program was not entirely satisfactory. I helped administer that somewhat. I repeat that it was not entirely satisfactory. I think that our farmers generally are getting to a point where they want to work with the Government, the various agencies of the State and the United States Department of Agriculture people, to work out an honest-to-goodness program. I believe through a National Potato Council that that will be forthcoming. I know that a lot of time and thought is going to be given to it in the immediate future. I know that you gentlemen are thoroughly aware of the workings of the National Potato Council. I feel that out of that in Chicago will come the foundation of a permanent and lasting program which I believe will help our growers. The CHAIRMAN. When will the council meet? Mr. TALMAGE. I think it is the 28th and 29th in Chicago. The CHAIRMAN. Of this month? Mr. TALMAGE. Yes, sir. The CHAIRMAN. All right. I presume they will offer some suggestions? Mr. TALMAGE. Yes, sir, I think so. Senator AIKEN. Mr. Talmage, had the unions not refused to handle your potatoes, what price could you have gotten for them last July and August? Mr. TALMAGE. It is a little bit dubious if we could have gotten too much more. You had the overlap in Delaware and Jersey which was not cleaning up, which was going on the market. You had that terrific heat wave which did cut the consumption of potatoes tremendously. Senator AIKEN. During the time that you could not deliver your potatoes to the New York market, and this would be, I expect, in September, did Maine potatoes move in and take over some of your markets? Mr. TALMAGE. No. Senator AIKEN. Because you could not deliver? Mr. TALMAGE. No. Senator AIKEN. I heard that report. Mr. TALMAGE. Maine has only come on in the last week or two with about 150 acres a day. They did not move before. Senator AIKEN. They did not move in on you at that time? Senator AIKEN. Here is another thing that I would like to know. Why is it that on the commodity market potatoes are quoted at $2.06 a hundred, yet you have to sell them for 69 cents a bushel? Do the stores actually pay those futures prices? This is for November potatoes. I noticed $2.05 or $2.06 a hundred. That certainly represents the cost of growing and probably just a little over, but you do not get it. You cannot get it. Mr. TALMAGE. That is right. I have a son-in-law who works for the A. & P. which is certainly a reputable outfit. They are moving a tremendous volume from our area and paying, of course, the same competitive price. Their markup on 1 day's operation in the plant in which he works, just on 10 pounds alone, 70 cents per bag, is about $2,800-markup over and above what they pay the store. Senator AIKEN. They can point to the futures price, November potatoes, as justification for that markup? Mr. TALMAGE. Then of course, they took those potatoes through their own stores-I do not know what markup that was. Senator AIKEN. Do not these reports coming out in the New York Times every day-potatoes, $2.05 a hundred-hurt you? Mr. TALMAGE. It certainly does. Senator AIKEN. And gives every dealer an invitation for an unwarranted markup? Mr. TALMAGE. We are putting potatoes on the piers in New York today at $1.65 f. o. b. That is United States No. 1 size. Senator AIKEN. It struck me last spring that there was unmerciful speculation in potatoes, as well as in onions. If there is anything under Heaven that can be done about it, I should like to know it. If the farmer is getting 69 cents per bushel for potatoes, there is no reason why the consumer should pay 7 times that. The CHAIRMAN. This is not peculiar to potatoes. You have a lot of other products for which the farmer gets little or nothing, and the consumer pays through the nose. Senator AIKEN. Speculation is getting out of hand in several commodities. The CHAIRMAN. I want to thank you. Your entire statement will be made a part of the record at this point. (The prepared statement of Mr. Talmage as is follows:) Long Island has an area of 1,373 square miles with a population of more than 4,900,000 people, which is approximately 40 percent of the total population of New York State. Long Island is the only salt-water section of the Empire State. It produces and markets seafood to the extent of $3 million annually. This includes edible fish to the extent of 34 million pounds, some 6 million pounds of oysters or 13 percent of the total value of all oysters produced in United States waters, 10 percent of all hard and soft clams and its bay scallops, which epicures pronounce the best run into a half-million-dollar industry. We wish to present for your consideration facts concerning the major agricultural county of the island [Suffolk] and one of the largest food-producing counties in our Nation. Our income is secured from many products and the statement often heard that we are dependent for our income only upon the potato crop is untrue. Suffolk County has been blessed with a soil and climate that is remarkable. Potatoes by their nature and growth requirements fit into nature's scheme here to perfection. Through the years, our growers have learned how to grow and handle potatoes efficiently and they have large investments in machinery, buildings, and equipment. Our county grew 4,200 acres of potatoes in 1875; 10,000 acres in 1900, and approximately 21,000 acres in 1920; 55,000 acres in 1955. Many of these years were not gainful but always was present the urge to grow potatoes because of the exceptionally good quality, growers' knowledge of the crop, and their accessibility to markets. Contrast this record with that of newcoming sections where quality is poor and growers are remotely removed from market. Many of these sections have diverted from other basic and nonbasic crops that they grow to more advantage. Suffolk County's total assessed realty valuation amounts to more than $315 million, its farm valuation to more than $54 million, which, according to the Suffolk County Farm Bureau, is one-third greater than the combined value of all farms in North and South Dakota and Nevada. The average Long Island farm produces $135 per acre annually compared to State annual farm average of $21 per acre. Suffolk County is the third largest potato-producing county in the United States growing annually some 15 million bushels of excellent quality potatoes. Its dairy farms produce annually $4 million worth of milk, its duck farms $7 million worth of ducks, the broiler farms $4 million, and the sale of eggs and poultry reaches a total of $2 million. The average Suffolk County farm is a family-size operation-the county goal in 1948 was 47,585 acres on 1,000 farms. The average value of this land is from $500 to $600 per acre and the minimum investment for machinery and equipment on the average size farm is at least $15,000. On September 10, I wrote Governor Harriman of the seriousness of our Long Island potato situation. Perhaps as many as 400 of our 1,200 Long Island potato men are insolvent as of today. Since 1924 on cost accounts farms just over one-third of the years have shown a profit. With costs mounting by leaps and bounds our young farmers are faced with a dilemma and this year of all years with practical elimination-some of them have sold their entire crop and find less than one-third to pay their bills. Some are holding their entire crop. To break even they need $2 per hundreweight. The November 18 cash price is $0.54 a bushel for Cobblers and $0.69 for Katahdins. Older men who have borrowed for one reason or another find themselves in complete chaos, nearing the border line of insanity or self-destruction. Under the so-called Benson plan for Long Island there is practically no help. We have no starch factory. Our nematode restrictions require stock feed to be shipped in paper bags. Even though our production has been cut, Maine for the third year in a row, with constantly increased production continues to get a good share of section 32 funds which, as I understand it, are supposed to be spread evenly to all areas, especially those cutting their acreage. It is my firm belief that you men as lawmakers should give ear to this serious situation. As man to man and as I see the challenge, it will take the honest combined efforts of our National Potato Council, the State and national Departments of Agriculture and as many honest farmers as we can persuade to take part to solve this problem. It is a matter of economics. It is fundamental to our society to solve it. Time is of the essence. While much time and much money is being spent to solve our world problems we have one here at home with our potato farmers which in my estimation is second to none. You men on the Senate Agricultural Committee, one of the most powerful committees on earth, have within your grasp the great opportunity to lead us out of this threatened bondage into an era of equality with other businessmen, into an era when the farmer is not the forgotten man but right up at the front in peace as well as war. To that end may we all unite-Democrats and Republicans— to get the farmer an equal place in our great economy. POTATO FARM INFORMATION Number of farms: 1,010 Acres of cropland: 78,000 Average value per acre: $600 to $1,000 Average value farm equipment: $15,000 Detailed costs of growing acre potatoes on average Long Island farm, season 1955 Acre cost of irrigation on average Long Island farms, season 1955 The committee will stand in recess until 1:15 o'clock. (Whereupon, at 12:45 p. m., the committee recessed, to reconvene at 1: 15 p. m. this day.) AFTERNOON SESSION The CHAIRMAN. The committee will please come to order. I submit a statement for the record by James P. Daniels, Mayor of Middleburg, N. Y., that was to be read by Mr. Grove Chris, supervisor, Schoharie County. (The prepared statement of Mayor Daniels is as follows:) This memorandum is submitted in accordance with a notice of public hearing to be held by the United States Senate Committee on Agriculture and Forestry, in Utica, N. Y., November 19, 1955. It is submitted in behalf of Schoharie County, the Schoharie County Soil Conservation District, towns of Fulton, Middleburg, Schoharie, Esperance, Conesville, Gilboa, and Blenheim, the villages of Middleburg, Schoharie, and Esperance, all located in the county of Schoharie, State of New York. The Schoharie watershed comprises an area of about 925 square miles, lying on the southerly side of the Mohawk River about 30 miles west of the Hudson River. The Schoharie River flows northerly through the center of Schoharie County and the Schoharie watershed and empties into the Mohawk a short distance west of the city of Amsterdam at Fort Hunter. The general topography of Schoharie County consists of a deep, rather narrow valley through which flows the Schoharie River and along which are located some very fertile, valuable flatlands classified as Barbour, silt loam, and sandy loam; the lower lands toward Esperance as Chagrin, silt loam and sandy loam. This very valuable land has not in the past been put to its best use but in recent years a marked improvement has been made by more intensive dairy and truck farming. This is due to the recognition of the soil capability, improvement of our highways, and education of the farmers by the various farm agencies. The valley is narrow and the mountains and hills on either side are comparatively steep so that the Schoharie River is known as an extremely flashy stream. The runoff is rapid. The valley floor at Schoharie, which is the county seat, is 611 feet above sea level, while the mountains reach to a height of over 3,000 feet. The general height of the highland area is about 2,000 feet. A number of fairly large tributary streams flow into the Schoharie from the east and the west. The watershed, generally speaking, is about 25 miles wide. The Schoharie River is approximately 75 miles long. There are no dams or other artifiicial structures across the Schoharie River at any point except the Gilboa Dam, erected by the city of New York as a part of its water supply system at Gilboa, N. Y., about 50 miles upstream from the mouth of the river. This dam forms the Schoharie Reservoir, a body of water about 5 miles long, out of which the water is drawn through the Shandaken Tunnel into the Esopus Creek and thence through the Catskill aqueduct into the city of New York. The Gilboa Dam, however, is of little help in checking floods because it is the practice of the city of New York to close the tunnel during periods of high water because of the turbidity of the water and the danger of increasing flood conditions in the area of Phoenecia, and so the entire streamflow of the Schoharie is thus permitted to flow in its natural channel, north, into the Mohawk. During the dry periods, when nearly all the water is diverted by the city of New York by the aforementioned dam and tunnels, the Schoharie streambed becomes overgrown with brush and trees which allows deposits of gravel and other debris to accumulate. These deposits, in time, entirely fill the streambed. in some sections, and result in the river jumping its banks and the cutting of new channels, spreading destruction upon the farmlands. |