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Our agriculture is varied and we can grow many crops and produce livestock in abundance, all of which will be needed in a long-range program as our population increases and our farmers become fewer in numbers.

Much has been said about small farmers. Certainly a farmer who has ability should be provided the tools in the form of adequate credit to convert the small unit into a larger unit that could be made economically sound.

We continue to approve an expanded program for research and education. Many farmers through commodity organizations are making contributions to research and education, but limited income is so widely scattered they must rely more or less on Government for more of this program.

We continue to support rural roads and truckline-highway systems, REA, and farmer cooperatives. Farmers must preserve the right to do collectively for themselves what they can't do alone.

The growing and protection of timber should be encouraged. Adequate appropriation for research to control insects and diseases in our forests should be provided.

One of our youngest agricultural enterprises in Mississippi is the production of tung oil. This was encouraged by the Government during the war years to produce sufficient amount of high-grade oil for defense needs. Today importation of these oils is a very serious threat to these producers.

We thank you again for the privilege of appearing. We know you gentlemen have a Herculean task, but have every confidence in your ability to solve the problems.

The CHAIRMAN. Are there any further questions?
Thank you ever so much.
Mr. STEVENS. Thank you.

The CHAIRMAN. The next is Mr. George Bazemore and Mr. M. M.
Kimbrell.
STATEMENT OF M. M. KIMBRELL, VICE PRESIDENT, GEORGIA

BANKERS ASSOCIATION, THOMPSON, GA.

Mr. KIMBRELL. Mr. Chairman, my name is M. M. Kimbrell. I am the executive vice president of the First National Bank of Thomson. I represent this morning the Georgia Bankers Association, of which organization I am also the vice president and chairman of the executive council.

I have with me Mr. George M. Bazemore. Mr. Bazemore is the president of the First National Bank of Waycross, and his bank is maintaining one of the outstanding farm-service programs in the entire Nation. We express to you our genuine appreciation for being heard this morning and our views on this very important subject.

Georgia, of course, is still predominantly an agricultural State and, as the trustees of its economic resources, the bankers of Georgia are tremendously interested in the welfare of its farm people.

During the last few years we have seen tremendous changes come in Georgia, particularly in the cash cost to the farmer for operating. Farming is no longer the industry here where there is a low cash cost for his labor involved.

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has, I believe, fostered some legislation along that line. The evidence produced before the committee that handled this indicated that to build these dams upstream as you suggest would cost many billions of dollars, but I believe it is a safe investment and a good investment, and I presume you think so, also.

Mr. KIMBRELL. Yes. We think the legislation was intelligently conceived and enacted and that a boost to that for additional work on the watersheds for additional pastures, for additional farm ponds, maintenance of that water at the source, reforestation in many of those areas that are not suitable for other purposes, is indeed one of the fine investments in improvement that can be made. .

I would like to inject one other point we think deserving. That is additional research. Frankly, with the farm industry today, the amount of money that is being spent for research, much is very, very small in comparison to that being spent by industry. We would like very much to urge and encourage expansion of the amount of funds that can be spent for research of various kinds in the utilization of farm products and actually new techniques and new procedures that the farmer may be able to use on his own operation.

The CHAIRMAN. You spoke of rigid price supports and commodities. Would you limit that to the basics as is now the case or would you add any others to the program? Mr. KIMBRELL. Quite frankly, Mr. Chairman

The CHAIRMAN. You are a businessman and a banker. I don't suppose you till the soil; you do not have a farm of your own? Mr. KIMBRELL. Yes; I have some farm interests.

The CHAIRMAN. Have you any suggestions along that line? We have a lot of other farmers throughout the country who grow things other than wheat and corn and cotton and who would also like to get the same relief you are now asking for. What is your view on that?

Mr. KIMBRELL. My view on that, Mr. Chairman, would be that we are pressed so at this moment with the basics that I should think that we should try to take one problem at a time and try to work out a better arrangement with the basics and maybe we can take care of the fringes.

One other point I should like to make and that is the actual technical assistance, if you want to call it that, to the farmer today. We have referred several times this morning to that small farmer and he is still a very vital part of our economy. He must either make for himself a living or he must become one of the members of the breadline. We must support him in some other socialistic way. It is our thought that this small farmer might be given more technical assistance on his own farm in a field-by-field basis, given some of the advantages of any research or any new techniques that are developed and he himself would become more proficient in the use of the acres that are available to him.

The CHAIRMAN. Is that not done through your extension service in Georgia?

Mr. KIMBRELL. Yes, and to a fine degree. We think it needs tremendous expansion. There are some pilot counties now in this State and I think the representatives of the extension service, or even those individuals from those counties where the efforts are maybe 5 or 6 times that in the normal county-the results have been tremendous. Our agriculture is varied and we can grow many crops and produce livestock in abundance, all of which will be needed in a long-range program as our population increases and our farmers become fewer in numbers.

Much has been said about small farmers. Certainly a farmer who has ability should be provided the tools in the form of adequate credit to convert the small unit into a larger unit that could be made economically sound.

We continue to approve an expanded program for research and education. Many farmers through commodity organizations are making contributions to research and education, but limited income is so widely scattered they must rely more or less on Government for more of this program.

We continue to support rural roads and truckline-highway systems, REA, and farmer cooperatives. Farmers must preserve the right to do collectively for themselves what they can't do alone.

The growing and protection of timber should be encouraged. Adequate appropriation for research to control insects and diseases in our forests should be provided.

One of our youngest agricultural enterprises in Mississippi is the production of tung oil. This was encouraged by the Government during the war years to produce sufficient amount of high-grade oil for defense needs. Today importation of these oils is a very serious threat to these producers.

We thank you again for the privilege of appearing. We know you gentlemen have a Herculean task, but have every confidence in your ability to solve the problems.

The CHAIRMAN. Are there any further questions?
Thank you ever so much.
Mr. STEVENS. Thank you.

The CHAIRMAN. The next is Mr. George Bazemore and Mr. M. M. Kimbrell.

STATEMENT OF M. M. KIMBRELL, VICE PRESIDENT, GEORGIA

BANKERS ASSOCIATION, THOMPSON, GA.

Mr. KIMBRELL. Mr. Chairman, my name is M. M. Kimbrell. I am the executive vice president of the First National Bank of Thomson. I represent this morning the Georgia Bankers Association, of which organization I am also the vice president and chairman of the executive council.

I have with me Mr. George M. Bazemore. Mr. Bazemore is the president of the First National Bank of Waycross, and his bank is maintaining one of the outstanding farm-service programs in the entire Nation. We express to you our genuine appreciation for being heard this morning and our views on this very important subject.

Georgia, of course, is still predominantly an agricultural State and, as the trustees of its economic resources, the bankers of Georgia are tremendously interested in the welfare of its farm people.

During the last few years we have seen tremendous changes come in Georgia, particularly in the cash cost to the farmer for operating. Farming is no longer the industry here where there is a low cash cost for his labor involved.

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To illustrate, the average investment today or total investment in farm machinery and equipment in the State of Georgia is something like $525 million. A comparable figure in 1932 would have been about $31 million. Total farm income in that year would likely have been about $100 million. Last year, 1954, saw a drop in farm income of about $50 million; drop in 1 year.

What I am trying to say is that the farmer today is buying so much of the items that it requires to produce his crop. Actually the Department of Agriculture estimates that about two-thirds of the items he uses in production are purchased out of the stores. It means if he is going to have the funds with which to continue to operate there must be some cash income, sustained cash income from the items he has to sell.

We, of course, at that point are tremendously interested in seeing that there be no sharp drops and breaks in his total farm income such as we have seen more recently. It is forcing even the efficient operator to turn to other endeavors. It is requiring him to do many jobs that he would not like to do as an efficient farm operator.

It brings us to the point that the banks of this State, if they are to continue to finance as they want to do, there must be some reasonable assurance to the farmer that his income will not continue to suffer such sharp ups and downs.

It is therefore our feeling that he is unable to cope with weather conditions, there is nothing in the world he can do about that, there are so many other variable factors involved that he cannot control. It does seem, though, a very reasonable request that the return he gets from his crop once he has been able to produce it, his farm products, that he have some reasonable assurance of what he will be able to get in the way of price.

For that reason we are very anxious to see continued firm price supports for farm products.

We recognize that as perhaps relatively temporary. We realize that continuing price supports may not be the whole answer. We think that there must be some long-range program of a more permanent nature. We speak of surpluses and yet when we realize that maybe half the world, half the population of the world, tonight will go to bed hungry it may not be a question of surpluses. It may more properly be that of markets, distribution, the finding of and bringing together under satisfactory circumstances those people who need and our people who have to sell. It would seem that in that field, in the field of market as a long-range viewpoint, much can be done. Actually we are of the opinion that our export markets, our export picture could use an awful lot of emphasis.

Quite frankly, we are of the opinion that we could sell more of our commodities or so far as an outright gift, if that is necessary, to the free countries of the world.

The CHAIRMAN. Mr. Kimbrell, in that connection, do you not think any sales of cotton we make abroad may have to be subsidized by the Government?

Mr. KIMBRELL. Senator, I hate to hear the word “subsidize” continue to be used in connection with the farmer. It is still that word, I guess.

The CHAIRMAN. You use your own. What term would you give it? Mr. KIMBRELL. I firmly think that the farmer was called on to produce these items during the war. I think that actually he deserves maybe a bonus for his performance under rather trying circumstances.

The CHAIRMAN. Concede that the farmers of Georgia and the farmers of Louisiana cannot possibly grow cotton as cheaply as they can in Mexico; is that not true? Mr. KIMBRELL. I accept that. The CHAIRMAN. The same thing prevails in Brazil ? Mr. KIMBRELL. Yes, sir.

The CHAIRMAN. Other countries in South America that produce the same products as we do.

What device would you use in order to sell cotton produced by our people in competition with cotton that is produced under circumstances such as I have described in Mexico and Brazil where they use peon labor that are paid much less than our people and their standard of living may be 50 percent under ours; how would you meet that situation? You say you do not want to use the word "subsidy." Let us say a little payment by the Government for purchase of the cotton and let the Government pay the difference. Do you have any plan to submit on that? Mr. KIMBRELL. Yes.

The CHAIRMAN. You are a banker and you look like a man who could give us that information.

Mr. KIMBRELL. I would think that the Government, of course, has every right today—I doubt if we will be able to sell to those countries—but as I intimated a moment ago we would be very much in favor of the Government even giving the cotton if it were necessary to certain areas that are not producing cotton today, particularly for low-grade cottons; that is, also offering that total number of bales we declare surplus and get it out of our stocks.

In this operation that the farmer has carried on in recent years to build up our huge supply and also to win two world wars, there has been an awful lot of mining of the soil. It is our feeling still that the No. 1 problem is that of markets, disposing of these in such ways as we think can be accomplished.

On the other hand, for the use of some of the land that is left we feel that there has been a rapid deterioration of the soil and water resources of our country. We feel that a tremendous amount of effort might be made in that direction. It seems to make sense that we give a lot of thought to maintaining the fertility of the major portion of our soil.

The CHAIRMAN. In carrying out your suggestion, would you do it by way of soil-conservation payments as we now do it?

Mr. KIMBRELL. Yes, sir; I think that actually we are just sort of scratching the surface in that regard, though. For instance, along the borders of our own State at the Clark Hill project, at the Hartwell Dam, Buford, Fort Gaines, expenditures of from fifty to a hundred million dollars in each of those locations, it would seem that that is on the dam itself. It also seems that if it is good business to make those investments, which I think it is, that upstream where the water is reaching the farmer's soil it would be very good if we continued to make some upstream investments for improvement.

The CHAIRMAN. I am glad to note Congress has done that and in fact both Senators from Georgia, particularly the junior Senator who

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