The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-12-07
Farm Board Would
Boost Farm Income
Recommends Congressional Ac-
ton to Attain Such End in
Special Report
NO Definite PLAN GIVEN
System Should Be Self.Sustain-
ing and Regulate Acreage
and Quantities

Washington, Dec. 7.-(R)-Congres-
sional action to increase the income
Of the American farmer by elevating
the general level Of agricultural prices
to q par with other commodities was
advocated Wednesday by the farm
board.
This multi-pronged problem was as
signed to congress in a special report
on legislative recommendations which
said the boards sterilization opera
lions were powerless to achieve this
end.
No hint as to the boards. ideas on
the form of such legislation was given
except that the process should pay
the costs, If any, on q continuous and
self-sustaining basis" and provide an
effective system for regulating acre
age or quantities sold, or both"
The board also urged that 1t be au-
thorized to compromise debts now
owned by farm cooperative associa-
lions, and be provided either with adj
ditional money for the use of cooper
atives or empowered to borrow funds
on its own bonds or debentures for
that purpose.
Assets Arc $l4O,000,OOO
Net assets Of the boards $500, 600, 900
revolving fund were placed at $l40.-
100000 when all outstanding loans
are appraised on q conservative basis. "
Except for the necessity of setting
aside $43,00OO00 to cover the boards
equity In wheat and cotton turned
over to the Red Cross" the report
said. 1.-THE present value Of the re-
volving fund would be $l83,000,000.
these amounts are left after de.
Quoting all losses on account OF sta
bilization operations, and setting aside
liberal reserves against possible losses
on loans now outstanding to coopera-
tive associations"
Along with the legislative recon.
mendations, the board transmitted to
congress its annual report which laid
down a five-fold program for boosting
the agricultural income. It advocated
general reduction in international
trade barriers and readjustment q
AGRICULTURAL debts by agreement
among debtors and creditors.
Lists Recommendations
Holding that the present low prices
Of farm products must In general be
ascribed to other causes than heavy
surpluses, the board said any remedial
plan should include:
81. fastening business recovery IN
the United States, thereby increasing
returns from products sold In the do
mestic market.
q. Steps to initiate recovery In in
ternational trade, thereby strength
ening foreign demand for expor:
products.
"3. Reimbursement Of taxes, inter-
est, and principal payments, freight
rates and other fixed charges which
enter into the farmers expenses and
now abnormally depress the share
which he receives Of the final retail
price.
II. Further strengthening and ex-
banding Of cooperative organization to
reduce the expenses Of marketing and
increase the producers share OF con-
sumer's dollar.
IS. Efforts. through cooperative
marketing associations or IN other
ways, to secure a better adjustment
between the quantities produced and
the needs Of the market"
Explaining that to help raise the
level Of farm incomes, devices other
than sterilization are required" the
report on legislation added:
Urges Two Principles
TN the light Of the experience with
stabilization over the last three years,
the board recommends that any new
legislation be based on the following
two principles, which have been DEM
onstrated by experience to be essen
tial for effective relief:
II. Prices can not be raised unless
someone pays the cost. The new plan
must be self sustaining, with con-
tinuous method Of covering the costs
prices Of other products are now
40 per cent above the prices at which
farm products are selling. II the new
method raised prices to domestic con-
sumers to the level Of prices OF other
commodities, that would not be giving
farmers an unfair advantage"
e. Prices can not be kept at fair
levels unless production Is adjusted to
meet market demands. Many farm
products now are being produced in
quantities In excess Of those which
the market will take. Higher prices.
without regulation or production.
would stimulate still more overpro-
duction.
ANY method which provided high
er prices and did not include effective
regulation Of acreage or Of quantities
sold, or both, would tend to increase
the present SURPRISES and soon break
down as q result.
ITO be Of lasting help. any plan
must provide q system Of effective
regulation, 20 that our millions Of
farmers can plan and adjust their
production on q dependable basis. In
stead Of competing blindly with each
other"