Evening star., 1933-10-18

years, with similar tax of 80 cents q
bushel on corn producing from $50 000,-
900 to $40, 100000 Corn growers will
receive an additional $40 0,000, 900 from a
fund provided in the national recovery
act.
The plan is expected to benefit from
a million and a half to two million
farmers. who must slash hog production
by 25 per cent and corn acreage by 20
per cent.
A tax on floor stocks Of pork and
pork products held by meat professors
and wholesalers also will 60 into effect
Novemb \ S.
Victory for Packers.
1t was reported today that PACKERS.
who protested the eventual tax rate Of
50 per 100 pounds on hogs liveweight.
won a victory through agreement OF
administrators that the tax at the start
will be so cents per hundredweight.
The packers contended their floor
stocks are high. 1t Is estimated that
present storage supplies amount to about
SOC, 600, 900 pounds.
If the tax at the beginning had been
50 the levy on floor stocks would have
been four times as high. Under present
plans the 50-cent rate will remain In
effect for at least 80 days. then increased
gradually, reaching the maximum of 81
on February /.
The floor stocks Of retailers will be
exempt from the levy for the first 80
days. If retailers have products on
hand after that date acquired before
November they will be subject to
taxation.
Another part of the program. still
undecided. may involve leVylng pro-
ceSsing tax on cattle to finance purchase
of surplus animals for distribution as
food to the needy.
Cattlemen will determine this policy,
Wallace said, adding that he would con-
fer with them in coming weeks.
Distribution Plan Vast.
From SAC, 900 900 to s45 900 900 Of the
hog tax receipts will be used to buy
swine for distribution to the needy.
About an equal amount Will be spent py
the Emergency Relief Administration on
a basis calling for dollar matching.
Receipts from the processing taxes on
hogs and corn, the transfer from the
N. r. A. fund and the amount which
the Relief Administration will spend
will be distributed in this way:
Forty millions to meet the cost OF the
recent hog buying program.
Eighty to ninety millions to buy swine
for distribution to the needy.
One hundred fifty millions as rentals
to farmers for leaving portions OF their
corn land idle.
Two hundred millions as benefits to
hog growers for curtailing their output.
Campaigns to obtain contracts from
farmers to curtail their corn ana nog
output will be started within lew
weeks. The campaign will center IN ~
Middle Western States-Ohio. Illinois
Indiana. Missouri. Kansas. Nebraska,
Iowa. South Dakota, Minnesota and
Wisconsin.
All Farmers May Join.
These produce by far the largest
portion of the two products, but farm
ers in other States, who desire to join
the program will be eligible. County
corn-hog production associations Will
be formed In the case OF hogs, Wal
lace will determine the Nations needs
and then prepare allotments by coun-
ties. which will be broken down into
individual farmer allotmentS by the
county associations.
Benefits will be paid corn farmers In
the form Of a rental of 80 cents per
bushel on the preceding three-year av-
erage production per acre of the con-
tracted acreage, providing the grower
agrees to reduce his acreage not less
than 20 per cent Of the average acreage
grown during the past three years
This provision will apply to the crop
planted and harvested next year. A
similar plan, varying if the supply sit
uation is changed, will be employed
In 1885.
Adjusted payments OF SIS per head
will be paid hog farmers on Is per cent
of the average number of hogs far
rowed on the farms of contracting pro-
ducers and sold by each during the
past two years. providing the farmer
reduces the number of his litters Is
per cent. as well as hogs sold. The
first payment of 81 per head will be
made on acceptance Of the contract
81 on September /, 1884, and 50 on
February l, 1885.
Allotments for States.
Using information already available
at the Agriculture Department, each
State will be allotted for the purpose
of determining payments.
THAT number of acres Of corn which
represents its proportion of the total
corn production for the Nation. County
same basis In relationship to the State
ana allotments to individual farmers
by the County Control Association and
published in county newspapers.
THAT number of sowS to farrow
litters ,farrowed and numbers to be
marketed which will be proportionate
to the corresponding totals for the
United States. County allotments will
be determined on the same basis as the
State. Individual allotmentS will be
made by the County Control Association
and publication will be made in the
same manner as on corn"
In the case of corn, two-thirds of the
rental payments will be paid as soon a:
possible after acceptance of the con-
tract by Wallace. The remainder
minus local administrative cost. will
be paid on evidence of fulfillment o1
contract after August /, 1884 Tht
7rower who fails to carry out his con.
, act and the terms of his lease will for.
teit his final payment and also will be
| required to surrender the initial pay.
ment.
Based on Wheat Cotton Plan.
The plan for both corn and hogs
with variance due to the nature OF the
product and marketing methods. /.
| based on the voluntary domestic allot.
ment plan being employed for wheat
and also for next years cotton reduction
program. The large purchases contem-
plated for relief purposes represent ar
| innovation and were undertaken al
| the suggestion of President Roosevelt.
The Commodity Credit Corporation
chartered in Delaware, was organized
to carry out President Roosevelt's pro-
gram for making loans to cotton
| growers.
Lynn P. Talley, assistant to the di-
rectors Of the Reconstruction Finance
Corporation, was named president;
Oscar Johnston. director of finance fol
the Farm Administration, vice presi-
dent, and j. E. Wells, jr., assistant CO.
operative bank commissioner Of tht
Farm Credit Administration. secretary
1 fpna