Our dairymen are well aware of the decline in income, higher costs of production, and the burden of surplus, which has resulted, in part, from accelerated production at a rate which has exceeded the increase in demand.

Recently an industrywide program was started to promote increased fluid milk consumption through organized effort, known as New Hampshire Milk, Inc. It is a voluntary organization supported by contributions from producers on the basis of 2 cents per hundredweight on total deliveries, and distribution on the basis of 1 cent per hundredweight on fluid sales in New Hampshire. This is evidence that we believe in trying to help ourselves.

The present unfavorable economic position of agriculture and the dairy farmers and industry in particular is of great concern today to many, both within and without the industry. We are certain many solutions will be advanced before the next session of Congress, and some of these are currently being expressed.

Present and past Federal agricultural programs have not lived up to expectations. We do not believe that there is, or can be, any one plan which can be a cure-all.

We believe that the economic welfare of agriculture is of prime and sufficient importance to the strength and welfare of our Nation, that it should be the responsibility of the Congress to approach the problems of agriculture on a bipartisan basis.

In considering the problems of the dairy industry we hold the following opinions as to the areas the Federal Government can help:

1. Continue to support and encourage the development of farmer cooperatives. 2. Continue the principle that double taxation as it applies to cooperatives, and determined by the 1951 Congress, is inherently wrong. If such principle does not apply to owners of corporations, then the logical solution of such inequity is not to add an additional tax on owner-members of a cooperative, but to relieve or remove double taxation on corporations.

3. The Agricultural Marketing Act should be continued.

4. Continue flexible price supports for manufactured dairy products, with continued flexibility to the point where production of surplus destined for Government warehouses is discouraged.

5. We are opposed to production controls or market quotas on milk and dairy products as being too complicated and difficult to be administered on an equitable basis.

6. Continue the support of, and provide adequate Federal funds to, land-grant colleges and agricultural experimental stations for important research projects in the field of production, distribution, and marketing of dairy products, which will provide long-range benefits to all peoples.

7. We believe that Federal funds must be made available in amounts sufficient to carry out the brucellosis program as rapidly as possible to a successful conclusion.

New Hampshire was the first in New England, and the second in the United States, to become an accredited area for Brucellosis eradication. Our dairymen are particularly interested that areas adjacent to New Hampshire likewise become accredited as rapidly as possible.

8. We believe that increased consumption of milk and dairy products by military establishments and Veterans' Administration should be continued and expanded.

9. We recommend the continuance of the special school milk program on a permanent basis.

10. We urge Congress to provide sufficient funds to insure adequate enforcement of legislation now in effect to protect consumer and dairy interests from dishonest and misleading labeling, advertising, and merchandising of substitutes for dairy products.

11. We believe that an aggressive promotional program on National, State, and local levels, to increase the consumption of fluid milk and dairy products, is necessary-and that all producers should contribute to the necessary funds required.

We further believe that provisions should be made for joint contributions by distributors, and that our marketing orders should be broadened sufficiently to permit adequate and stable financing by those supplying the markets.

12 Our 12th point we advance with no fear of contradiction or controversy. Remember that you, too, never outgrow your need for milk. For continued

good health, and the vigor and vitality that goes with it, to meet the rigors of the coming session in tackling the problems of agriculture, drink at least three glasses of milk a day. Encourage your fellow members of Congress to do likewise, thereby setting an example to the citizenry of our Nation, with the end result that the problems of burdensome surplus would soon become insignificant. And from thrifty New England is a further reminder that, milk and dairy products are your best food buy.

Mr. FITTS. I believe I have one more. This does necessitate a little comment. This is a report being handed in by the fruit and vegetable growers of our State. They have had difficulty during the harvest season in obtaining labor.

The CHAIRMAN. Whose statement is that, sir?

Mr. FITTS. This is made by Donald McLeod, president of the New Hampshire Horticultural Society. He is here in case you wish to make any inquiry direct of him, but we thought that we would save some by my reading it.

For instance, let me say that during the harvest season this year, you know we had an approaching hurricane. We had a lot of apples that had to be harvested quickly. We tried to get labor from Prince Edward Island, Nova Scotia, in Canada. It could not be done. There was too much redtape to unsnarl. So the apples were on the ground before they could be harvested.

The CHAIRMAN. What would you suggest now?

Mr. FITTS. Some of this redtape be unsnarled, sir, somewhere along the line. I wish someone would look into it. When we need 500 apple pickers from Canada, we do not have to spend 2 weeks and an act of Congress to get them.

The CHAIRMAN. That will have to go before another committee. Mr. FITTS. Yes, sir; that is right.

The CHAIRMAN. We will be glad to bring it to their attention.

Mr. FITTS. I will leave that statement with the reporter.

(The prepared statement of Donald McLeod, president, New Hampshire Horticultural Society, Milford, N. H., is as follows:)

LABOR SHORTAGES A PROBLEM IN HARVESTING FRUITS AND VEGETABLES The development of equipment the past few years used in production practices of fruits and vegetables as pest control, application of fertilizers, brush removal, planting, weeding, mowing, and pruning has greatly reduced the amount of labor needed for these operations. The air-blast sprayer has made a one-man job out of pest control where only a few years ago, 2 and 3 men were required to operate a machine. Mechanical fertilizer spreaders, buckrakes for removing brush, compressed-air pruners, tractor-drawn seeders and cultivators. are some of the machines that have greatly reduced the amount of labor necessary in these operations.

Harvesting of fruits and vegetable crops, however, does not lend itself to mechanization. One of the big problems of the grower at harvesttime is to obtain sufficient labor for the efficient harvesting of such crops as apples, potatoes, tomatoes, beans, corn, and other vegetable crops.

Experience over a period of years has shown that the New Hampshire grower cannot obtain sufficient local labor to harvest a number of seasonal crops. For example, the shortage of labor in 1955 for harvesting apples became so serious that some growers were unable to harvest only one-fifth of their McIntosh crop before it fell to the ground. Several applegrowers are seriously considering cutting their orchards down because of the problem in getting labor for harvest. There is no incentive to work all summer, to invest in fertilizers and spray materials, and produce a good crop and then not be able to harvest it. The executive committee of the New Hampshire Horticultural Society requests that the present restrictions on nonemmigant foreign labor be eased to facilitate the importation of labor for harvesting seasonal crops. The present laws are so complicated as to make it impractical to attempt to obtain

foreign labor on a short time notice or even when a request is made at a reasonable time ahead. This should be administered at State level.

WEATHER FORECAST

Weather has a major influence on the production and harvesting of farm crops. A better knowledge of weather conditions as far in advance as is possible to forecast would aid the farmer in the more economical production of his crops. For example, in the control of apple scab it is necessary to have the foliage and fruit protected during wet periods of 9 hours or more in order to prevent infection. Accurate information on the length of rainy periods during the scab infection period would make it possible for the grower to plan a more effective and economical scab control program.

The executive committee requests that the United States Weather Bureau be given a large enough appropriation to provide personnel for special agricultural weather forecasts.

DIAGNOSING PLANT ILLS

The problems of determining the fertilizer requirements or diagnosing the troubles of abnormal trees or plants is often difficult or impossible because of insufficient information about the symptoms that result from minor element deficiencies or unbalanced nutrition. For example, was the small leaves and

poor growth of twigs last spring and summer on apple trees and the excessive drop of McIntosh apples this fall caused by minor element deficiencies, by excessive bloom last spring, or by drought?

There is need for better methods of diagnosis. The leaf analysis method for determining the mineral requirements of plants was thought to be the answer a couple of years ago, but is losing support today.

Research work on the causes and diagnosis of abnormalities in trees and plants other than those caused by fungus and bacterial diseases and insects is desired.

MARKETING

The marketing of fruits and vegetables is as much of a problem to the farmer today as is production.

The production of such varieties of apples as McIntosh, that require careful handling and the demand for higher quality products has made the cold storage as necessary for the applegrower as the spray machine. Small applegrowers whose business is not large enough to warrant the investment in a cold storage, are finding it more and more difficult to market their product, since the wholesaler or retailer will not accept common storage apples later than a few weeks after harvest. For this reason, the small grower finds it necessary to dump his crop on the market at harvesttime, oven causing an oversupply, a demoralized market, and returns below the cost of production. The most recent trend in marketing certain fruits and vegetables as apples, and carrots, for example, is prepackaging. Some of this service is being done by individual farmers. It requires an added investment in bagging equipment and grading and storage space, and also a packing room suitable for allwinter packing, and a volume of produce large enough to supply his customers for the normal marketing period of a product.

What to do with offgrade produce is also a real problem.

Most growers feel that it is necessary to market offgrade apples in the regular fresh-fruit channel because there is no outlet for processing or as a byproduct except for a small amount for juice and vinegar. There is a need for research work on the uses for these offgrade apples.

Many retailers of fruits and vegetables prefer a uniformly packaged product rather than to prepackage their own. Such a service is not available in many towns in New Hampshire. Should the grower attempt to supply such a service? Can farmer cooperative equipped to prepackage and market directly to retail stores successfully take on such a service? Someone will be doing it. If farmers or farmer-controlled organizations could, they would have an opportunity to supply a better product to the consumer and to have a say in the retail price.

The demand for more and more services on the part of the consumer has increased the cost of produce to the consumers, while less and less of the consumers' dollars are received by the producers. Today the producer receives only 43 cents of the consumers' food dollar. The growers are being continu

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ally told that they will have to produce more efficiently. How efficient will the farmer have to get in production to stay in business with the present methods of marketing?

Some research work on the part farmers or farmers' cooperatives should take in the new developments in marketing their crops is certainly needed at this time.

Social security tax deductions becomes a burden on the small producer (one who cannot justify a bookkeeper). Seasonal labor fluctuates a good deal on farms. At harvesttime, for instance, some of our applegrowers may have 300 to 400 listed on their payroll. Some pick for only a day or two and others stay the entire season. The problem of how and when to deduct the social security tax is a real one. Should the grower deduct from each payment? If this is done and the employee earns less than $100, then the tax must be refunded. Should the deduction be made when $100 has been earned? This requires some accurate booking; otherwise, the grower may find he will have to pay the whole tax if the employee quits working before the tax is collected.

It is desirable to have less complicated requirements for the collection of social security taxes. Maybe the minimum amount earned should be raised, or deductions should be made on all earnings regardless of size and no refunds required.

A few of the problems regarding the efficient production and marketing of fruits and vegetables in New Hampshire are (1) obtaining sufficient labor to harvest seasonal crops; (2) getting better localized agricultural weather forecasts; (3) finding ways to diagnose orchard ills, especially those resulting from unbalanced nutrition; (4) knowing about the future trends in marketing of agricultural products and how the farmer can obtain a larger share of what the consumer pays and (5) simplification of the social security tax deductions where labor is hired for working in the production and harvesting of seasonal crops for short periods of time.

Mr. FITTS. For the rest of my time I would like to have you call on the remaining people listed. Some of them, I believe, have gone home. Mr. Holmes is not here. I think the rest of the men are here. You can cross Mr. Henry Stevens off. You can cross Mr. Phelps off. Mr. Cole would like to make a statement of his own. I think Mr. Connor would.

Senator HOLLAND. The witness has directed us to cross certain ones off the list. I think the record should show they are here.

Mr. FITTS. You asked if this statement is agreeable to them. The CHAIRMAN. Those are the ones I have mentioned from New Hampshire. Is there anyone else?

Mr. FITTS. Mr. James Cole reported to me this morning of Litchfield. He is a large vegetable grower.

The CHAIRMAN. Is he on the list here?

Mr. FITTS. He is not; but he should be called on, sir. He has a report which I think will interest you people.

The CHAIRMAN. Is that all?

Mr. FITTS. I think that is all.

The CHAIRMAN. Are you present, Mr. Stevens? You heard the commissioner, the statement made here, are you in accord with what he stated?

Mr. HENRY STEVENS, New Hampshire Poultry Growers Association.

I concur with his statement.

The CHAIRMAN. Thank you, sir.

Mr. William Phelps, do you concur in the statement made by the commissioner?

Mr. WILLIAM PHELPS, Manchester Dairy System. That is right. The CHAIRMAN. All right, thank you, sir.

Mr. Donald McLeod. Do you concur?

Mr. DONALD MCLEOD, president, New Hampshire Horticulture Society. I do concur with the commissioner.

The CHAIRMAN. Thank you.

Mr. Stacey Cole, do you desire to add anything more to what has been stated? If so, we will be glad to hear you.

STATEMENT OF STACEY W. COLE, WEST SWANZEY, N. H.

Mr. COLE. Mr. Chairman and gentlemen:

I have a brief statement that I should like to make. My name is Stacey W. Cole. I am a poultryman, primarily. I have some cows and some pigs in West Swanzey, N. H.

There are many fields in which Federal Government can assist farmers, and should. Among them are education and research, regulatory procedures such as inspection of quality and grades of farm products, protection of farmers against unscrupulous buyers and the protection of the public as well as the farmer against deceit. I am for these in general; they are essential. But I am going to speak of what I think of the Government's job in setting farm prices.

The role of Federal Government so far as prices are concerned should be to help achieve stability. Some adjustments in quantities of various farm goods produced are needed frequently.

Government should continue to help by furnishing reliable information as to trends in production.

It should avoid forecasting prices because forecasting of higher prices unnecessarily stimulates production. Forecasting of lower prices gives buyers a tool to depress prices.

The CHAIRMAN. Would you mind an interruption?

Mr. COLE. No.

The CHAIRMAN. We had quite a lot of testimony at a few places to the effect that if the Government were ably to gather information as to the amount of a commodity on hand and let that be known to the farmers of the Nation, and let them more or less take cognizance of that they could plan their crops accordingly.

Mr. COLE. That is in line with my statement that the Government should continue to help.

The CHAIRMAN. That is what I gathered.

Mr. COLE. As to trend.

The CHAIRMAN. As to the trend; in other words, it was stated before the committee that if the Government were able to let producers, let us say of wheat, corn, or any product, know how much you have on hand and how much the market could consume, to let them judge as to what to plant, as to what to produce in that area, do you think that the farmers could be induced to gear their production to meet whatever the Department would suggest is necessary and more or less on their own, that is, without compulsion or without incentives?

Mr. COLE. I am a firm believer in allowing the farmer to make as many of the decisions as possible on his own. I am quite confident that the farm people today are more cognizant of trends in production. They also are beginning to become more familiar with quality, and to a greater extent the markets can be judged by the individual farmers, I feel, a lot more effectively than they can be by some agency. The CHAIRMAN. You feel that if we had more information from the Department as to needs and what should be planted in order to meet