Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-15

investigate and report on questions Of
vital interest to agriculture, such as
land utilization.
The law thus calls for organized
action by producers in solving their
economic problems, a program we be-
lieve to be sound and workable. The
Government is definitely committed to
the support of agricultural cc-opera-
ton. Congress determined the program
and the Farm Boards job is to help
farmers make it effective for their
industry.
Two Phases to Work.
There are two phases to the worl.
of the Farm Board which might be
broadly described as the longtime pro-
gram and temporary measures to deal
with emergencies. The former is by
far the more important since it seeks,
through organized effort on the part
of the producers, to get agriculture on
a permanently sound financial basis.
In the latter class are the wheat and
cotton sterilization operations growing
out of the present business depression.
Perhaps due to the fact more publicity
has been given to the sterilization
activities than to the major efforts of
the board in helping to develop an or
ganiZed agriculture, there has been
tendency on the part of the public,
particularly business men, to judge our
work on the temporary measures rather
than the activities designed to correct
the basic ills Of the farming industry.
Such sterilization operations are con-
templated in the act and their use
undoubtedly has resulted in minimizing
the i'll effects of the worldwide eco
nomic stagnation on the price of cur
a. YipYIItiIrnI aOY11rnOdifinc They have
served as a steadying influence for the
country as whole and are carrying a
part of the surplus burden in the period
required by our wheat and cotton farm
ers to make the necessary adjustments
in productions. Any loss which may be
sustained in these operations are being
compensated for many times over in the
benefits, not only to our agricultural
producers but to the public generally.
The longtime program seeks through
organized action of producers to bring
about these two results: first, the de-
velopment of a marketing system. that
will return to the farmer the full
market value Of his product, based on
supply and demand conditions; second,
an adjustment of production, both
quantity and quality, to the potential
consumer demand.
NO-OptEdGtNG
To accomplish the first, the Farm
Board is helping farmers to develop
national cooperative marketing pro-
gram. 1t aids them in forming local
cooperative associations where there
are none; in expanding those already
set up and in unifying the sales actiVt-
ties of co-operatives handling the same
commodity, Whether the central sales
agency is national, regional or local de-
ponds upon the marketing requirements
of the particular commodity. With
such an agency the producer gains
bargaining power through control of
volume, and the agency is in position
to engage in sound merchandising pol
icies that should get for its members
the full market value, of their products
to the consumer. Thus far co-opera-
tives with Farm Board assistance have
set up seven national cooperative sales
agencies. including grain, cotton, wool
and mohair, livestock, beans, pecanS
and sugar beets. Similar sales agencies
for other commodities probably will be
later by co-operatives han
ding them.
In some commodities efforts have
been centered on developing regional
sales agencies. This is particularly true
VI ddAf DIOuuCGS. NOtlly buAo NECh IllE
Farm Board recognized the sixth re-
gional association for this commodity,
an organization representing 100000
producers in Is states.
Before the board approves central
sales agency for commodity, whether
national, regional or local, it makes
sure that the set-up is a sound one
from a business standpoint and that
the management is competent SO long
as these agencies borrow Government
money, the requirement is made that
their policies and management shall be
to the board Their services
are open to all farmers on an equitable
basis. Once a central agency is recog-
nized, the board deals with co-opera-
tives handling that commodity only
through the central.
Agency Always Interested.
With such central sales organizations
the producer has in the market an
agency that is interested at all times in
seeing that the price paid for his prod
uct fully reflects what 1t Is worth to the
consumer. Under the old system, with
farmers selling their crops individually,
there is no regulation Of the flow to
market to prevent gluts and consequent
price declines; grading as to quality is
left to someone else with the resulting
profit going to him instead of the pro-
Queer; speculative trading is encour-
aged and biggest profits are made by