Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1933-08-03

ment Act has led to propaganda in
grain trade and business circles
that the wheat farmer now has the
parity price since wheat has crossed
81.
The base price on which parity
is to be established is 8S.4 cents
on the farm-average price 1909
1914-but this doesn't mean II
will remain at 1874 cents IL the
things farmers buy go up in price
For the period used by Secretary
Wallace TO determine the amount
of the 30-cent processing tax MAY
15-June 15). the average price Of
wheat was only So cents, or almost
80 cents below pre-war parity. II
things which farmers buy should
increase to the 1926 level (which
is the level desired by business
the parity price of wheat would
rise from the base price of 1874
cents to $1.33 on the farm. Unless
wheat prices rose in proportion, the
processing tax in that case would
be increased in order TO give
farmers the parity price, or {1.3s
for their wheat.
In other words. the compensa.-
ing payments are intended TO be
sufficient in 1888, 1884 and 1885
to give the wheat farmer who comes
in on the plan the parity price for
his wheat. These payments guar.
antee to him that his wheat will
have the same relative PURCHASING
power as before the war, irrespec
tive of the price he may get for it.
They also serve as a sort of crop
insurance since the cooperating
farmer will receive payment on his
allotted bushelage even If his crop
is a complete failure due to drouth
hail or other causes.
Many questions were asked at
the Fargo meeting. Some of them
were along the line of those
answered by Secretary Wallace In
our last issue. Others touched on
different phases of the plan. Let
us summarize the questions ana
Mr.. Wilson's W to them.
@. Do a11orments follow the land
or the mani
A. The land. That is, If a tenant
changes farms or a farm is sold
the allotment stays with the farm.
@. In the case of a tenant, who
gets the payments7
A. The tenant ii he rents for
cash. If a share renter. payments
will be divided as crops are divided
under the lease.
@. Is wheat exchanged for flour
at the local mills exempt from the
30-cent processing taxi
A. Yes. Farmers may get their
W wheat ground without payment
OF tax.
q How about bootlegging !
fIour7
A. 1t may prove just as danger
GUS as failing to pay al income tax.
The Internal Revenue Department
collects the tax.
@. How can a young farmer who
wants to start raising wheat on
new ground get an allottment7
A. He can't
@. What about the man whe
didn't grow any wheat in 1890
80?
A. He has no production on which
to base an allotment
@. Doesn't this penalize the man
who has decreased acreage.
A. No. The man who had an
average acreage of 500 during the
base period and 400 acres this year
could increase to 400 acres next
year based on a 20 percent rednc-
ton.
@. How many payments will be
made?
A. Three-in 1888, 1894 and
1885. However. the farmer needs
to agree to reduce acreage In only
two years. 1884 and 1895.
@. Then how will the 1893 pay
ments be determined
A. On the domestically consumed
portion OF the crop he produced II
1880, 1881 and 1892.
@. Then this is a two year con.
tract7
A. Yes. The plan passes out In
1895 unless 1t is renewed.
@. Could | sign up next sprinf
after I see how things look7
A. No. Sign before the deadlint
this fall.
@. If wheat prices during tht
coming year should rise above tn,
parity price, will the farmer ge'
everything7
A. Yes. He will get his allotment
payments just the same
@. And there are no strings or
when / shall sell my wheat OF
where | may sell it,
A. None whatever.