Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-02
MINNESOTA PLAN HELPS
a STATES WEATHER SLUMP
New Markets Developed and Buying
Power and Income Raised in Farm
r. Rebellion Started in 1921.


crop" :.
The story Of the Minnesota plan; e.
told to President Hoover In Washing
ton, was repeated before ex-President
Calvin Coolidge at Northamnton, b.
fore the American Federation of Adver-,
Using Clubs, the National Credit Mems
Convention, the United States Cfam-r
Der Of Commerce. And from the series
has come the plan to urge the spread
OF the applicable portions Of the Min (,
nesota Plan in other sections of the
country where cash crop farming in its
unbusinesslike aspects is still the
foundation of economic self-suf1ciency.
1t started with an educational plan.
Minnesota and the Northwest were
overplanted in wheat after the war.
The patriotic cry for bread for the Army T
swelled the acreageS devoted to grains.
And the 1922 landslide Of wheat prices
threatened ruin to the whole North
west. The country banks failed IN
waves as stated, every second bank go
ing under. That was 1921. The 1881
depression has, If anything, been more
severe and more prolonged. But the
Northwest Is coming through 1t in good
fashion. Except for localized drouth
areas, there will be no distress on
Northwestern farms this Winter.
was to educate the city and town
businessman to cooperate with the
farmer to build better agriculture.
There could be no real prosperity with
out a prosperous agrarian population.
Headed by the Tribune's editors, all p
agencies were united in cooperative
educational work. Federal, State and
county institutions and employees
preached the need for live stock and
dairy farming.
Cheap grains mean low feed costs
and better returns on live stock. The
country newspapers joined and pub
lished feature articles provided from
Minneapolis to show the way to both
town and farm. Boys clubs and girls
clubs were aided in their program.
Speakers were sent to every village and
community. Every Sunday the general
progress of the campaign was reported
In a full page article in the Tribune
by Charles F. Collision, national farm
authority, who was hired by Mr.. Murphy
to head up the campaign. The lessons
were soon made clear to the farmers.
But who was to pay for the live
stock, the high grade COWS, purebred-
bulls, the sheep and the pigs to &C.
complish the shift from cash crops?
Eastern Groups interested.
President Coolidge took a hand. He
aided in interesting Eastern bankers
and railroad and insurance groups
with large stakes In the Northwest.
The bankers and business men of New
York, Detroit, Chicago and the North
west all joined in and pledged
$4,000, 900 toward a loan fund to be
used to buy cattle and sheep for the
busted farmers. Then the War Finance
Corporation agreed to lend up to
500, 000, 900 additional capital. So the
Agricultural Credit Corporation Of
Minneapolis came into being. First it
stopped the bank failures. The mere
cured the encouragement Of the terri
tory.
To get a loan, a farmer needed to
be a good moral risk, have pasturage
and shelter for the live stock. The
banks could not lend more on farm
mortgages because the depression Of
1921 had so impaired farm values.
And these live stock loans were not be.
lieved safe. But once the fund began
and the bankers saw them being paid
back In less than the three years they
were made for, out Of profits from the
live stock, the banks began to make
similar loans. The fund directly has
helped $4,000 farmers and together
with the loans by the banks, probably
a fifth Of the farmers have been car.
ried over the hump by these loans
As the results in increased farm
earnings and buying power began to
be evident, herd Improvement was
stressed. Ten scrub COWS giving 100
pounds Of butterfat q year yield the
farmer but sl35 for his years work.
butterfat earns its owner $138.
Mr. MlfFThu SauS that NJ fhM
100000 cows In America today, q
third are not earning their keep. II
they were butchered the American
farmer would save $3.50, o00, 900 in feed
alone. He has himself specialized in
HolStein-Fresian COWS and has the
prize herd of the Northwest. So it
was natural for him to be interested
in starting purebred sire campaigns.
And he has bull-selling units working
ing the bull right to the farmers farm
and selling him at nominal profit to
raise herd production standards.
Whereas raw grains and cotton vary
radically in price. finished products
such as dressed poultry, butter. eggs.
and meats, hold relatively firm. For
example the June IS, 1881, United
States Farm Price Index shows fruits
and vegetables at ia. meats at 81,
as contrasted with the f1ve-year pre-
war level Of 100. Grains are down to
81 and wheat is at the lowest price in
the generation. Yet, because the
farmer owns his cooperative creamery,
he gets back 81 cents out of the whole
sale butter dollar, whereas the wheat
farmer gets but % cents Of the retail
bread dollar. The reason Is that there
are so many more steps between the
wheat grower and the consumers
breakfast table. whereas the only thing
between the butter at the creamery
and the table is a ride.
And so the Minnesota Plan has
weathered its first 10 years and is
starting into its second. It is DIVERSE
flcation. 1t is herd improvement It
is crop rotation. 1t is skilled labor and
skilled labor's wages on the farm as
against unskilled labor Of the wheat
and single crop farmer.