The midland journal. (Rising Sun, Md.) 1885-1947, 1933-12-01
WHAT ABOUT AGRICULTURE ?
BY Miles H. Fairbank, Sec. Treas,
Maryland Farm Bureau
Federation
Part HI.


There are two branches of govern
ment right now trying to help the
farmer-namely, the Department of
Agriculture and the Farm Credit
Administration. In later articles /
will discuss the subject of credit, but
now want to analyze, if can, what
is behind the agricultural adjust
ment program that is attracting so
much attention.
This is being done by the Agricul-
tural Adjustment Administration,
under the guidance of the Secretary
of Agriculture. This branch of the
government is authorized by law to
enter into agreements with produc-
ers for curtailment of acreag or the
reduction of live stock going to
market in order to prevent the farm
SURPRISES that have kept prices
down.
The Secretary also has authority,
axes on commodities to ray the
farmers for their acreage or live
stock reduction. Furthermore, he
has the authority to enter into agree
ments with distributors of farm
commodities to establish prices, and
he can force them to play square by
putting the dealers under license and
revoking the license if they violate
the agreement.
To appreciate this rather radical
departure in the handling Of farm
commodities, one must give some
bought to the various plans that
have been proposed during the recent
years for the control of farm sur
Dluses and the assurance of higher
farm income.
Several years ago we head about
The debenture plan and the farm al
lotment plan, both of which were
forerunners of the present set-up.
They were advocated by farm, organ
izations and were supposed to give
the farmer bounty on that part Of
his crop that was consumed in the
United States, realizing that, when
an exportable surplus is produced
and can't be sold abroad, this is
| dumped on our domestic market and
prices go down.
Advocates of this theory point to
The fact that industry was protected
in like manner but in roundabout
way, via the tariff. For instance,
the price of most industrial nroducts
for domestic use is kept up because
we put various tariffs on similar
goods from foreign countries. in Or
der to keep them from underselling
our own industrial products.
| The consumer wants to know
however, why should he help to
contribute to an artificial price for
| farm produce, just to give the farm
er more income?" This IS logical
question: sensible one, but the
truth is that the present program is
to give the farmer purchasing power
rather than just higher prices. In
other words, for years there has
been agitation, not for higher in
come for the farmer, but for g
parity" income. That is where we
got the phrase, equality fer agri.
culture"
| The figures will show that, nc
matter whose fault it was, the farm
er has not been getting his fail
share of the consumers dollar.
From 1917 to 1920 (war period
there was a period of rising prices
and the farm income increased fast
Or than the prices of commodities
This was the farmers most prosper
GUS era and millions of acres Of
marginal land were put into cultiva
ton. In the summer of 1920 prices
began to fall and farm prices fel
much faster than commodity prices
They hit a level in 1921 and con
tinued level until 1929, when 8
further drop took place.
| During this time prices Ut what
the farmer sold were far below the
prices of things he had to buy an6
that is why, even during the Cool
idge prosperity era," we heard OF
the farm problem. When the de.
preston started in 1880 the spread
became even greater. The present
demand is to close that spread.
The program, therefore, of the
Agricultural Adjustment Admins.
tration is to establish this parity
by getting farmers to cut produc,
ton to meet domestic needs and tc
compensate the farmer while doing
it with a consumers tariff on thai
part of his production that is con.
sumed domestically. From the con.
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