492

AGRICULTURAL RELIEF
Mr. Caverno. Yes. The bill fails of its purpose unless it raises
the price more than the equalization fee. But in taking the cotton
crop like the year 1925, where 16,000,000 bales of cotton sold for
$300,000,000 less than 14,000,000 bales, certainly a board which
would have financed the taking care of that surplus could have
increased enormously the amount that the cotton grower received.

Mr. Jongs. We have had a good deal of discussion ‘about wheat.
There is a considerable amount of wheat grown in my section, and
I was wondering how you arrived at this equalization’ fee. You
have been talking about the amount of it. We have an 800,000,000
bushel crop as a rule and export approximately 200,000,000. The
fee that is levied to take care of any losses on the exportation, in the
discussions that have been going around the table have not, it seems
to me, taken into consideration the 80,000,000 bushels of wheat
which the department figures show that this country uses for feed.

Mr. CaveErNo. You mean in processed wheat?

Mr. JonEs. Some in dried and some in mixed form. It is fed in
the form of mixed bran, it is fed in the form of wheat mixed with
other feeds, it is fed some as straight wheat, fed to chickens and fed
to livestock.

Mr. CaverNo. That wheat is just exactly in the same class as the
rest that stays in the domestic market.

Mr. Jones. The farmer feeds it himself largely, the feed I am
talking about.

Mr. CavERNO. You mean made out of his own wheat?

Mr. Jones. He uses the wheat on the farm, feeds it to chickens,
mixes it and feeds it to hogs—we have fed it on my father’s farm
many times, soaked the pure wheat in water and fed it to the hogs.
Then there are some eighty-odd millions used for seed. Has that
been figured out in taking care of this?

Mr. CAVERNO. Yes.

Mr. Jones. And then, of course, the farmer uses his normal per-
centage of the flour which, of course, he would not get advantage of.
because it would be offset by the increased value of the flour.

Mr. Caverno. That would not be taken into account.

Mr. Jones. You think all of these things would be taken into

consideration in figuring this offset?

Mr. CAVERNO. Yes, sir; they have been.

Mr. Jonks. That would take practically another 2,000,000 bushels;
that would leave about 600,000,000 bushels with which to pay the
the 200,000,000 bushels losses.

Mr. Caverno. That which is fed the livestock straight and re-
served for seed does not come into the transaction at all.

6 Mr. Jones. I was wondering if you had eliminated that in your

gures.

Mr. Caverno. That has been eliminated.

Mr. Jones. And you still claim that 12 cents to be sufficient.

Mr. KincHELOE. You put it at 15, one year in and one year out.

Mr. Jones. Fifteen cents would pay for that?

Mr. Caverno. The farmer's price will be $1.27 on the Liverpool
price of a dollar.

Mr. KiNcHELOE. The chairman said wou'd it be $1.50.

Mr. Caverno. He took the freight into consideration and I did
not. When it gets to the processor the price jumps up to the American