Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1921-08-03
PRESENT STATE FARM
PROBLEMS TO CONGRESS
Minnesota Farm Bureau Federation
Takes Battle of Farmers To
National Capitol

The Minnesota Farm Bureau fedora
ton, after long study Of the conditions
confronting the farmers of the north
west, has prepared a statement of it's
views on the situation. This statement
it respectfully offers to you, as chair
man of the joint committee of the house
and senate, to inquire into agricultural
conditions and suggest remedies, in the
hope that it may be of some assistance
to your committee in it's investigation,
and may help you in obtaining remedies
now urgently needed.
The Minnesota Farm Bureau fedora
ton is made up of $4,000 farmers, one
half of the agricultural producers Of
the state. These $4,000 farmers pro-
~duce crops valued at approximately a
quarter of a billion dollars. We know
that the statements to follow express
their unanimous opinion of the present
difficult situation confronting agricul-
ture.
Any statement setting forth the gen
eral situation must apply with equal
force to virtually all farming communi-
ties. Violent defiation has forced
the market value of the farmers crops
below the actual cost of production in
many instance So drastic has been the
process of deflation that although the
total production of Minnesota's ten
principal crops in 1920 exceeded 1919
production by II per cent, the 1920
crops were worth 1914 ,428,0 900 less than
those Of ten crops in 1919. These fig
ures are based on statistics Of the bur-
eau of crops estimates of the United
States department of Agriculture.
Specific Problems
The specific problems in which the
farmers of Minnesota are most vitality
concerned are problems of agricultural
financing, transportation, foreign COM
petition, efficient marketing, and taxa
ton. The first four of these fall under
the broad head of distribution. None
involve production; although produc-
ton itself may become seriously in
volved if proper remedies for existing
conditions are not found and applied.
If the farmer must borrow money in
increasing amount and at relatively
high rates of interest in order to make
an inadequate income balance the ac-
tual cost of production and living, he
will be compelled to curtail operations,
to operate with less capital, to use less
help and buy less equipment. The III
evitable result Of such process is less
efficient production. The consumer as
we'll as the producer will be the SUI
ferer.
As an example of the effect Of the
present situation on the development
of agriculture, we cite the fact that
approximately 800 pedigreed bulls,
which in the normal course of agricul-
tural development would now be the
basis of new pure bred herds in the
northwest, remain in the hands of mem
bers of the Minnesota Hereford Breed
ers associa ton because farmers of the
northwest lack the funds to buy. This
statement is vouched for by J. S. Jones,
secretary Of the association.
Suggested Remedies
Under the subjects heretofore out
lined, we respectfully suggest for the
consideration of the committee certain
remedies which we believe absolutely
vital to agriculture, through vigorous
unified action of all branches Of the
federal government properly concerned
A. Finance. Credit facilities must
be adjusted to the needs of agricultural
production and distribution.
terest rate of federal farm loan bonds
and joint stock land bank bonds from
S to 51@ percent, without increasing the
interest rate charged on loans to far
mers. Such legislation, we believe, will
make these securities more readily
marketable and provide more funds for
agricultural loans.
2. Increasing the limit on federal
farm land bank loans to individuals
from $4,000 to $4,000.
Furthermore, we hold equally imper-
ative the establishment of adequate re-
discounting facilities, either through
the federal reserve system, the federal
farm land bank system, or some other
agency to be established, to extend
credit to individual farmers on farm
products stored in bonded warehouses
or otherwise properly safeguarded.
B. Transportation. Railroad freight
rates must be reduced to a level that
will restore the movement of the neces-
sites Of life, before the farmers pur-
chasing power can be restored or the
consumer can be benefited by the de-
cline in the original selling price OF
farm products.
Freight Rates
Freight rates have been increased tC
the point where they have set up an
actual blockade between producer and
consumer; present rates are an embar
go on the distribution of the necessities
Of life; they are directly responsible 70,
actual destruction and gross waste OF
food, as well as for reducing the farm
er's income at the same time that they
increase the cost of food to the con
sumer. j. ..l..a#
Specific evidence in support Of these
statements is offered as follows: -;
OF 28,888 Minnesota farmers who
were asked the question, 'Will you be
able to ship materially larger amount
of farm products if freight rates are
materially reduced" 27,943 answered
Eyes" and only 945 said mo" .-
When oats were selling at Is cents q
bushel at st. Lawrence, So. Dakota, this
summer, and corn was selling at the
L. 4