The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1929-10-31
FARM BOARD LENDS
FULL GRAIN VALUE
Action Is Most Drastic and
Far Reaching Since World
War Days
PRICE AT PROFIT LEVEL
If Money Available Is Not
Sufficient Congress Will Be
Asked for More

Chicago, Oct. 26.--The federal
farm board Saturday made the
most far reaching move since the
price fixing of war days for the
Sterilization of the wheat market
and maintenance of wheat prices
on levels of profit to the farmers.
when it announced it's program Of
wheat loans to cooperative market
ing organizations-a program
which, effective Immediately, plede-
es the board to lend up to the full
market price of wheat in official
storage on farms or in elevators.
There is no limit to the amount
that will be so loaned to co-opera-
tives on wheat in storage for their
members. The farm board has
nearly $100,0O0,0OO available in cash
from the $150,OO0,0OO appropriated
by congress as Fart of it's authoriz-
ed sterilization fund of $500, 600, 900.
Also, whenever necessary the board
will ask congress for more money,
according to it's formal announce
mentt made public by Alexander
Leggs, chairman.
AS it is estimated that the total
quantity of wheat controlled TODAY
by farmer-owner co-operatives and
their members is nearly 1O0OOO,OOO
bushels, it means that the wheat
growers of the United States can
borrow at once more than $780,
100000, if such a sum is needed to
finance them while they are hold
ing grain for higher prices. And
whatever additional sums are need
ed will be secured promptly by the
farm board from the unexpended
balance remaining in the authoriz-
ed $500,0oO,000 revolving fund.
Even more significant, however, is
the fact that announcement of the
loan program is equivalent to an
assurance by the farm board that
wheat prices will not go below the
figures set up for maximum loans,
which figures are based accurately
on the market quotations prevail
ing today, Saturday. =
In the northwest, the farm board
will loan up to what is equivalent
to basis of $1.25 bushel on No.
1 northern wheat, the contract
grade on the trading floor at the
Minneapolis Chamber of Commerce
as and when delivered in Mime
apolis. This means that north
west farmer, through his local or
state cooperative association, can
borrow from the farm board an
amount equal to SIPS bushel on
wheat that grades No. 1 northern,
less freight from his local shipping
point to Minneapolis.
For practical purposes, this
amounts to warranty that
northwest farmer will not have to
sell his wheat at price of less
than $1.25 bushel, F. o. B. Mime
apolis, unless he warts to. If he
does not belong to p cooperative
unit and wants to join, he can do
so. Even if he remains outside the
cooperative fold, he will not have
to unload his wheat On low mar
ket, since every wheat farmer in
the United States stands to benefit
directly or indirectly from the price
sterilization program of the farm
board.
The announcement of the new
wheat loan arrangement by the
farm board was made toward the
close of it's two-day conference with
the 16 members of the organization
committee of the farmers national
wide agency formed last July to
finance the local and state cooper
atives of the country, market their
grain for them and exercise a stab
ilizing influence on prices OF wheat
and other grains.