The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-06-15
| ADMINISTRATION IS
READY TO ANNOUNCE
FARM HELP PROGRAM
Aim Of Measures on Breac
Grain and Cotton Is to Cut
Down Production
STARTING DATE UNCERTAIN
No Effort Will Be Made TO Re.
duce Volume of This Years
Cereal Crop
Copyright, 1888. BY The Associated
presS)

PreSSl
Washington, June l5-(P)-The ad.
n,inistration intends to raise S250,0Oo,.
GOO by processing taxes on wheat ano
cotton which it will levy at their max.
lmum size in a bold program aimed to
better long-range farm prices by cut
ting down production.
The governments plans provid.
most OF the sum will be used to re-
ward farmers who agree to reduce
their output in concert with the fed
eral drive to halt the piling up o.
surpluses, long a price-depressing
problem for growers of the two chief
cash crops of the United States.
President Roosevelt has approved
program, devised under powers pro-
vided by the new farm act, which
Secretary Wallace will make public
Friday. A. compromise acreage cur
tailment program will be launched
immediately for cotton, to take out as
much as 100000 acres of the cror
now growing
No effort will be made to cut pro-
duction OF the wheat now nearing
harvest. Winter-kill and bad weather
lave cut the prospects for this crop
Gown 10 approximate domestic needs
for the first time this century, al
though there is expected to be a car
ryover of about 100000, 900 bushels on
July l, beginning Of the new Market
ing year. The wheat program, how
ever. is to be put into effect on fall
planting.
Few Details Complete
Wallace has completed details Of
both programs except for few ele-
ments still open. One, subject to
change, is the exact time the taxes
will go into effect.
The tax on cotton is expected to bd
four cents pound, that on wheat, %
to 30 cents bushel. If prices Of
either drop before collection Of the
tax begins, the rate could be boosted.
while If prices rose as a result of tbs
prospect of smaller future supply.
the tax could be smaller.
The tax is to be collected on all cot-
ton and wheat at the first point Of
processing, but it Is to b refunded on
processed commodities which are ex-
ported.
The acreage reduction program for
cotton is aimed to retire one fourth,
Of the estimated planting OF about 49,
O0O, 600 acres. Rentals will be paid to
growers ait rates varying around 50
an acre, depending on cost accrued to
date and in addition growers will be
offered options on 100000 bales Of
goyerrment-owned cotton at prizes
below the current market.
| Would Produce Big Sum
! If the cotton crop is reduced to TO-.
100000 bales as hoped by some admin
istratOrS, four-cent tax would yielc
5000, OOO,0 900 gross OF which about one
half would be refunded as normally
that portion is exported. This would
leave fund of s1OO,0OO,Oo0 for finan-
cling acreage reduction in addition tc
any sum drawn from appropriations
of 5000, 100000 authorized by congress
for reducing acreages devoted to basic
crops limited In the farm act.
In the case OF wheat, about 100000
600 bushels is normally used to supply
domestic needs for flour and other
food products each year. A tax of 60
cents a bushel would yield $l50,000,-
900. The wheat program contemplates
employment of the domestic allotment
plan with growers to be paid cash
bonuses for agreements to reduce their
acreage. Planting Of winter wheat.
which will begin in August, will be ths
first affected. The plan calls for part
payment of this bonus when the
agreement is drawn with the remain
der to be paid after verification that
the farmer has fulfilled his agree
ments.
In both cases a county administra-
ton is being devised calling for the
establishment of committee OF farmers
to put policing Of the plan on a basis
of self interest as far as possible.