The border vidette., 1933-05-20
FARM ADJUSTMENT ACT

| u0nC ACC, 10 Tol0V0 L00 oXlSL
ing national economic emergency
by increasing agricultural pur
chasing power" Widespread
and vivid rural interest has been
aroused over this legislation
which is a pioneer in the field OF
economic endeavor. Altho most
sections of Arizona have practi
cally completed spring paintings
interest in the nature of steps to
be taken is evident. How this
Act will affect Arizona is not yet
clear" Director P. a. Ross stat
ed today. when the Secretary
announces rulings these will i'm
mediately be released to the
press of Arizona through the
Arizona Extension Service. An
attempt will be made to show
how such rulings will affect farm
operations in this state .
| There are three distinct titles
or sections to the law, making it
an omnibus" measure to save
time in legislation. The first
part is the production control and
benefit payment section; the sec
ond part is the agricultural ere
dts law; and the third part is
the national financial and cur
recy measure. The first part is
administered by the department
of Agriculture. the second part
by the Farm Credits administra
ton, and the third part lies at
the discretion of President Roose
velt and his Treasury aides.
Under the production control
section, commonly referred to as
the Farm Act, at least three
broad means for securing proper
adjustment of domestic produc.
ton of basic farm com modities
to meet world demand levels and
to attain fair returns for agri
culture are provided. The Sec.
retary may use one or all of
them. They are briefly: (D Acre
age production of the basic agri-
cultural commodities by rental
and benefit payments to farmers;
| ~ payment of allotment benefits
the domestic portion Of crop ia
return for agreements covering
specified crop reduction; or (3)
| the use of marketing agreements
with professors and handlers of
basic farm commodities so that
higher prices will 60 to farmers
under a guaranteed system of
production control and fair play.
For cotton growers special op
ton deals are provided.
The basic commodities found
in the law are wheat, cotton,
field corn, rice. tobacco, hogs,
and milk and it's products.
Wheat. cotton, aud milk and
its products are of most import
ance to Arizona. On all com
modities named except tobacco
and milk the base period for
figuring necessary price levels to
reach equality in farm buying
power Is 19O4.14 On tobacco
aud milk products the base
period is from 1919 %.
To meet the cash payments
required to reimburse farmers
for acreage reductions and crop
control to needful amounts, the
Federal Government has 500,
100000 in hand for immediate
use; but later on the sums paid
out of the Treasury will be re
stored by means of processing
tax. This processing tax will
be levied, assessed and collected
by the internal revenue depart
ment upon the first domestic
processing of each basic com
modify, including imports pro
cessed in this country. The TAX
will be levied gradually and
kept within reasonable bounds,
always subject to the control OF
the Secretary and based on cur
rent conditions of supply and
rate of consumption.
The agricultural credits sec.
ton amends the Federal Farm
Loan Act and provides for issu.
ance OF bonds for the redemption
and refnancing Of farm mort
cages. the reduction of interest
and principal, and also for the
| quidation Of joint stock land
bank business in an orderly
manner. This particular section
with all its points Of adjustment
aud relief are under tie Farm
Credits Administration, in charge
of Henry Morganthau, Jr. Am.
pie local machinery will be in
force to meet individual prob
lens and claims.