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ADD

JUNE 3, 1954

REVISED:
MAY 10, 1960

DECEMBER 12, 1970

Printed for the use of the Committee on A

U.S. GOVERNMENT PRINTING OFF

51-617

WASHINGTON : 1970

FOREWORD

COMMITTEE ON AGRICULTURE

W. R. POAGE, Texas, Chairman JOHN L. MCMILLAN, South Carolina,

PAGE BELCHER, Oklahoma, Vice Chairman

Ranking Minority Member THOMAS G. ABERNETHY, Mississippi CHARLES M. TEAGUE, California WATKINS M. ABBITT, Virginia

MRS. CATHERINE MAY, Washington FRANK A. STUBBLEFIELD, Kentucky WILLIAM C.WAMPLER, Virginia GRAHAM PURCELL, Texas

GEORGE A. GOODLING, Pennsylvania MASTON O'NEAL, Georgia

CLARENCE E. MILLER, Ohio THOMAS S. FOLEY, Washington

ROBERT B. MATHIAS, California ELIGIO DE LA GARZA, Texas

WILEY MAYNE, Iowa JOSEPH P. VIGORITO, Pennsylvania

JOHN M. ZWACH, Minnesota WALTER B. JONES, North Carolina

THOMAS S. KLEPPE, North Dakota G. V. MONTGOMERY, Mississippi

ROBERT D. PRICE, Texas B. F. SISK, California

JOHN T. MYERS, Indiana BILL ALEXANDER, Arkansas

KEITH SEBELIUS, Kansas BILL D. BURLISON, Missouri

MARTIN B. MCKNEALLY, New York ALLARD K. LOWENSTEIN, New York WILMER D. MIZELL, North Carolina JOHN R. RARICK, Louisiana ED JONES, Tennessee

JORGE L. CÓRDOVA, Puerto Rico JOHN MELCHER, Montana

Resident Commission et
Mrs. CHRISTISE S. GALLAGHER, Chief Clerk

LACEY C. SHARP, General Counsel
HYDE H. MURRAY, Associate Counsel

L. T. EASLEY, Staff Consultant

Since the beginning of our Nation we have e subsidies to better effectuate policies designed to

The concern of the House Committee on Agr ject stems from the current belief held by subst population that in our economy Federal subsidie: or exclusively, on agriculture.

With this misconception in mind, the commit to review, update, and enlarge studies made earli published in 1954 and 1965. This new committ data collected and published in 1965 by the Economic Committee, as well as current, fa information gathered from various Governme agencies. This latest study has been directed b (M.A., M. Phil.), who is scheduled to receive of history and international politics next Februi

Several conclusions may readily be drawn material in this publication. The reader should definition of a subsidy, like that of beauty, var whose eye is focused on the object under scru calls a subsidy may be considered properly d another man. That being so, the following point

Virtually all segments of the American eco subsidies, either directly or indirectly. Benefits the public in most instances, even though th directly to the producer of a commodity or the Postal subsidies, for example, benefit those recei as those who have posted items at less than the a Those using the railroads, airlines, and shipping 1 from the subsidies which have been paid out to services are maintained. There can be little que billion which annually has been going to support meant less costly food and fiber to the American wise would have had to pay that sun, and mori the marketing-distribution chain. Since the fa time, labor, and dollar investment is barely enou in business, and since he receives roughly only a dollar spent on groceries, it is likely that the nat have been boosted much more than $3.5 billion costs been assessed at the retail level. There's th who dances must pay the fiddler." Those who e either entirely at the retail level or partly throug ent domestic and international economic systems approach seems to provide a greater abund commodities.

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CONTENTS

So long as the farmer must buy his equipment and supplies in a
Government-protecteil market, and hire labor at pay scales enforced
with Government laws and regulations, it would seem necessary that
he, too, receive a degree of Government financial backing in his efforts
to meet the Nation's nutritional needs. Moreover, it should be kept
in mind that many nations of the world subsidize agricultural opera-
tions, even though their crops are produced with low standard of
living labor, and that the American farmer successfully meets such
competition only because of his advanced technology and use of costly
fertilizers and other chemicals which have resulted in high yields per
acre. The sales abroad of U.S. farm commodities is a vital factor in
maintaining a dollar balance of payments in international trade. These
sales could not continue at their present level were our farm subsidies
withdrawn.

Therefore, it is hoped the facts and figures concerning Government
subsidies published in this committee print are widely read. We
think such a reading would result in better understanding of the
economic problems of the American farmer, and a conviction that the
financial support he receives from his Government is both earned and
justified.

W. R. Poage, Chairman.

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