AGRICULTURAL RELIEF

439
Mr. KiLcore. I think it should be stabilized just as nearly the
cost of production as possible, so they would not have to sustain
ruinous {osses, and yet not sufficiently high, Mr. Fort, to cause too
much increased production.

Mr. Fort. Do you think if they stabilized it at cost of production
they should stabilize it at the cost of production per pound of a
19,000,000-bale crop.

Mr. KiLcore. Let us call it 18,000,000; we have never had a
19,000,000-bale crop.

Mr. Fort. Eighteen million?

Mr. KiLGorE. State your question again.

Mr. Fort. say, if they were to stabilize it at the cost of production
should they stabilize it at the cost of production per pound for an
18,000,000-bale crop?

Mr. KiLGore. I do not know what the board would do.

Mr. Fort. No; but should they? I am asking that.

Mr. KiLcore. My own thought is, no; if they produced that much
it should be below the cost of production.

Mr. Fort. If the cost of production of an efficient producer, the
man who really produces cotton at what it is worth, the economical
value——

Mr. KinGore. You are bringing in a definition of “efficient
producer’ that we might not agree on, you know. But if we say
average cost of average production I think we could talk with some-
thing pretty definite in mind.

Mr. Fort. Under your view in the Haugen bill we would stabilize
below the cost of production of the high-cost producer?

Mr. KiLGoreg. Prices would naturally be stabilized below the cost
of production for the high-cost producer.

Mr. Fort. Then it really comes down to the question as to whether
the cost of an efficient producer is the fair average cost to the producer,
or whether the cost of the high-cost producer is to be used as a guide
in order for us to decide whether this Crisp bill definition is too
high for a stabilization bill.

Mr. KiLeore. I say, I do not know what you mean by efficient
producer; what your term would include. But if you will use the
term average cost of average production, we can arrive at what that is.

Mr. Forr. I agree with you it is a very definite formula.

Mr. KiLGore. Average cost of average production is reasonably
definite, and that would take in the average man, not only the high-
cost man or the low-cost man, but the average fellow.

Mr. Fort. And such a definition as that would be your definition
as to what the Haugen bill should operate at—the average cost of
average production; in other words, the price that would not bring
in the marginal land producer and would hold production somewhere
within the bounds where there is a real economic demand for the
crop; that is your idea of it?

Mr. KiLGore. Yes.

Mr. Fort. Well, it has been my impression, from talking with
Judge Crisp, that that was his idea. It may be that the language
does not exactly fit in with your view.

Now, another question, doctor: Assuming we did stabilize at 16
and 17 cents. That could not be done on a 16.000,000 or 18.000.000
bale crop, could it?