The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1934-04-20
The impoverished Farmers Pay
The Hog Processing Tax


It is no mystery why Secretary of Agriculture Wallace
seeks the power to compel crop reduction in accordance with
the AAAs starvation program. The facts OF the cornog
Man reveal so clearly the PURPOSE of the Roosevelt admin
sratonto help the rich farmers and bankers at the
pense of the small farmers and workers it will take
plenty of compulsion to draw the midwest into such plan
again.
We have already shown by illustrations with other crops
how the addition processing cuts down the amount
of food the city workers buy and thereby kills large
section of the farmers market.
In the matter of hogs, has been conclusvely
that the farmers themselves who pay the processing
You may recall the statement of Norman Draper head
of the meat trusts lobby in Washington THE packers
not in business the fun of it he said at hearing last
November. The processing tax hogs will be passed
to the taken of the paid to farmers
Since the big packers clearly that raising the price of
pork cuts down their market and reduces their profits they
have chosen the other alternative taking out of the price
paid to farmers
The farmers in the corn belt know through their ex
perience that when they sell live hogs they have been
forced to take reduction the sale price from buyers
great greater than the amount of the processing tax
Every knows that the price of hgs dropped the day
after the processing tax announced October IT. 1888
by 80 cents, the exact amount Of the first tax.
Chester c. Davis AAA Administrator admitted this in
speech before the Illinois Agricultural Association in Dam
vile 25 "Our studies show that when supply rather
than demand dominates the market the tendency
the processing tax out of the price to producers That
what is happening right now"
shutting one OF the most powerful monopoes in the world
forcing the farmers to stand the processing directly
and that the Roosevelt administration has intention of
making it different.
is to raise the S35OO00O00 fund to admin
straton expenses and benefit payments to farmers With
the farmers paying the processing tax themselves it be-
circle with the farmers paying themselves
But they are not even paid in full In the first place.
the government deductS all the administrative field expenses
Of the ConHog Control Association in county In
the second place. there sort of shell game taking place
which deserves special comment
The processing tax roughly approximates the amount
of the benefit payment The tax at present 1925
On 222 pound hog the bonus OF So and the tax cancel each
hog When does he receive the bonus In November 1884,
the farmer will receive 81 head the following February 81
additional.
While the government is holding this money for more
than year, the farmer must bOrrowh he can-and pay
high interest merely to get running expenses
There are profits be made under the cor-hog plan,
all right but these be traced to the pockets of the large
farm operators. The big farmer the corporation which
operates large farm reduce its costs when reduces
acreage by laying off farm workers But the small farmer
who does his work with the help of his family, and
two workers, cannot reduce Moreover the small farmer
who plants less than 10 of gets bonus
reduction while the pig fellow does
Let us take situation of the tenant as cOntrased to
that Of the landlords and corporations In 1892 38 per cent
of all forced sales the belt large portion of
the FARMS operated by tenants owned by insurance
companies banks federal Ian banks joint stock banks and
mortgage companies Under the terms of the eShog con-
tract all tenants other than cash tenants sha receive
share IN the benefit payment in proportion his share IN
the CROP The share tenant therefore who does all of the
work and takes all the risk is left holding the dirty end of
the stick when the benefit payments made In this
the tenant who has himself paid the processing tax ac
tually paying higher rent to his landlord.
There another phase of the cornhog plan which re-
ceiveS little attention in the public statements of the AAA
This is the seascst nature of the corhog control COM
mtees They almost always composed large farm
bankerarmers extension agents and other friends of
big business in the countryside In the rural districts these
fellows it must be remembered the carriers of fascs
These committees at play the role of publicity agent
police and stoopgeonS Their purpose Is to organize pub
nc opinion in support of the vicious plan But as farmers
become and dsgusted with the plan and refuse to
abide by It, these committees win come forward as omen
scst groups 10 force small farmers to comply with its
oppressive provisions. -
There is plenty yet to be said about the cornboo n
ns editorial merely touches the surface of its nfamies IF
Is you farmers IN the belt however who must write
the actual facts OF how this plan is working and how NC
must light It, The columns of this paper are open to Won
and you are invited to make use of thenFarers Wo0i