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<br />fraction of a cent. It is unfair to say that the farmer is the one <br />that has been subsidized. Farmers by and large still have as large <br />a mortgage on their farms as they had twenty-five years ago. They <br />have increased their production by more efficient operation. .Because I <br />they are competitive with their neighbor farmers, they are selling <br />their products cheaper than they should. The consumer should be paying ~. <br />a lot larger portion of his income for farm products. We don't have <br />any hungry people in this country. It was brought out at the hearings <br />at Phoenix that they would much rather see surpluses than have it be <br />'che other ,'lay. And I think we are all this ,'lay. I think that there <br />is an unfair bias in this report against irrigated agriculture. <br /> <br />Mr. Stapleton: Quincy, do you agree with Larry's statement that this <br />repayment philosophy is somewhat difficult to argue with? <br /> <br />Hr. Cornelius: The soil bank program, which Larry points out, is <br />mainly a program which t~,es care of the eastern states and non- <br />irrigated type agricul'cural states could be eliminated. The report <br />says that they should not have this program in the East and develop <br />more irrigation land in the West. Out here we can't afford to put <br />high value irrigated farms under the soil bank program. The only <br />lands that are in the soil bank program in Colorado are the marginal <br />and nonproductive lands. It isn't the high productive lands that are <br />under it. <br /> <br />~tr. Stapleton: Do you believe that the direct beneficiaries of irri- <br />gation projects should pay the full cost? <br /> <br />Itr. Cornelius: I see nothing wrong with assistance from pOlffer revenues. <br />Power as a part of reclamation projects has been extremely valuable <br />in meeting the energy needs of this country. I do believe that <br />beneficiaries of programs for conservation and flood control works <br />should be paid by those beneficiaries. <br /> <br />i~r. Sparks: You are all acquainted with the fact that some elements <br />of reclamation projects do pay interest, and some do not. Any power <br />feature or municipal or industrial water of reclamation projects I <br />bears interest, but the agricultural part pays no interest. That is <br />what they are talking about here regarding a subsidy for irrigation. <br />Actually, we live in a world of subsidies. The federal government is <br />subsidizing virtually everything we do, highways. railroads, aircraft <br />industry, welfare, assis'cance to the aged, education, eb::., OUt of each <br />dollar spent in the United States annually for subsidies, the recla- <br />mation subsidy is less than one-tenth of one cent. Yet, it is getting <br /> <br />-9- <br />