Milford chronicle., 1933-05-19
FaofS Compiled by c. A. McCUE
Nczvark, Dclazcarc .

paying rentals or by making direct
benefit payne nts. This would be inn
mediate relief. with only the partic-
ipating producers receiving the
benefits.
Cotton growers who reduce their
acreage at least 80 per cent can be
given an option contract for an
equivalent amount of cotton. from
! stocks now owned by the Federal
Government-more than two million
bales. If cotton prices rise, the
grower may have his optioned cot
ton sold, and take the profit. In no
case would the grower be liable for
losses incurred in holding this cot
ton. This plan may be used either
alone. or in conjunction with rental
or other benefits for land taken out
of cultivation.
The Secretary may also arrange
and be a party to trade agreements
among producers and professors
through which it may be possible TO
pay higher prices for the commOdi-
ties.
The Act specifies certain common
tiles as basic" They are wheat,
cotton, field corn, hogs, rice. tobac-
co, and milk and its products. These
commodities are listed as basic"
because when their prices change.
they strongly influence the prices OF
other agricultural products. They
are also listed as basic because there
is an exportable surplus of each dne
except dairy products, and dairy
products swing precariOusly back
and forth, at present, from an export |
to an import basis. The world price
received for the expOrtable surplus |
the domestic price OF
any commodity.
These commodities pass through
manufacturing processes" of vari-
Gus sorts as they are prepared for
human use. Their production and
distribution can be regulated as they
pass through these channels.
The Secretary is empowered to
decide what method of adjusting
should he applied to a
given commodity, when 1t shall be
applied. and how much the compen-
sating payments to farmers shall be.
He may make these decisions only
after hearings at which producers.
and distributors are rep
resented. =.
Compensating payments are made
Inly to farmers who adjust their1
production TO balance the world de-
nand for their commodity. This
limits tie extra benefits of the plan
o farmers who cooperate in it. and
prevents others from sharing IN
hose extra benefits. 1t is the induce
nent offered to farmers to join i'll
he plan. 1t takes the place OF any
coercion of compulsiOn. ' ..
Previous plans have sought only
O raise the market prices OF farm
PRODUCTS. They have not distinguish
ID between cOOperatOrs and non CO.
operators, and they have encouraged n
armers to increase their production
n order to get as much as possible
,f the increased market price. Trey
ave not struck at the root of the
roblem-cver-prOductiOn. !
Farmers who participate in this I
irogram, and those who do not par.
icipate. sell their products at the t
amc market price. Those who do f
then, receive an addi- c
ional payment. The others do not. 5
The maximum amount of the pay Z
rents is limited in the Act. They Il
ould not he more than enough to v
lake the total return that the far v
Ter receives for his product equal c
buying value to the average price [
e received during the five years be- f
,re the World War. This is the t
pre-war price parity" referred to in u
le Act. II does not necessarily c
lean a price the same as II was be- II
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