Evening star., 1933-07-19
FARM HEADS PLAN
ACRE REDUCTIONS
Wallace Told This Years
Crop Will Fail to Solve
Surplus Problems.
BY the Associated Press.

By the Associated Press.
With word from Secretary Of Agri-
culture Wallace that this years wheat
crop, the smallest since 1893, would
fail to solve the problem of surpluses
and that production control was needed
farm administrators are going ahead
with their acreage reduction program
They announced yesterday that by
August l, they would have arrange
ments complete for the campaign to
obtain agreements from farmers to re-
duce their acreageS up to &c per cent
during the next two years in return
for cash payments, tWo-thirds Of which
would be made soon after farmers
sign up.
Administrators said the campaign had
increased prospects of success because
of the short crop. They asserted that
the reduced yields in most growing
areas had left numerous farmers who
depend on growing wheat for their
livelihood with such small harvest pros
poets that they would be unable to bene-
fit from the recent swift price increases.
Wallace said the reduction in Ameri-
can wheat supplies resulting from the
small crop would still leave a surplus
on hand because Of the heavy supplies
still unconsumed from former years.
He showed no confidence in prospects
Of an early increac1 in export business,
sought by American delegates to the
London Wheat Conference, asserting
that there is no basis for anticipating
any new outlet" for large tonnageS of
the grain.
''One more year of an average con-
tinued wheat acreage would undo all
the improvement in the wheat situation
which has resulted from this years
short crop. and American wheat pro-
ducers would be plunged once more into
an era of disastrously low purchasing
power for their crop" Wallace said.
He said the determination to pro-
ceed with the wheat plan lis not based
upon an arbitrary decision but upon
the facts of the economic position Of
wheat"
The 1882 wheat crop was unusually
small BY feeding enormous quantities
of this cheap wheat to livestock We
were able to keep the surplus from in
creasing tduring the past season. The
1888 crop will be even smaller. We
are now faced with the cheering pros
pect for the first time since 1926. Of
ending the year with smaller stocks on
hand than when we entered it.
Unless the acreage for the 1884 crop,
however. is held in check, the surplus
will mount again when the next crop is
harvested, and the prices may be ex-
p-cted to reflect increased paintings as
early as this Fall, when Winter soWings
are complete.
Because our prices are far above our
export level. exports will be small. A
liberal estimate calls for 10000 900
bushels for export shipment. On the
basis of the most liberal estimates. total
disappearance Of stocks may be ex-
pressed in 660 100000. leaving a carry
over of 200 0000000 bushels July l. 1884" "
Such a level of Stocks, Wallace said,
would be satisfactory if there was any
guarantee that it would not increase
Immediately Without the wheat plan,
he said that growers will certainly in
crease their wheat acreage sharply this
Fall and next Spring" and that even
with no increase an average yield next
year would produce normal crop Of
$50 900 900 bushels.