The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-10-16
STATE TO RECEIVE
s. MILLIONS UNDER
AAA, FLOOD AYERS
kiWanians Given Informative
Picture Of Administrations
Farm Program

received or will receive approximate
~ $35,9l5000 from the activities of
the agricultural adjustment admins
tration within the last year, Francis
Flood, a representative of the fed
eral organization, told Bismarck XII
wanians Tuesday noon that it had
been of immeasurable benefit to this
state.
Flood, who is with the publicity di-
vision of the AAA, is here from
Washington to check up on certain
of its activities.
He listed payments made or soon to
be paid as follows:
Wheat checks already paid, $780,
100000.
Wheat checks to be paid soon on
the last installment for this year and
the first installment for next year,
Sl4,O00,000.
Corn-hog payments due soon, ST.
100000.
Payments In the pig and SOW pur-
chasing campaign last spring, $685.
600.
Payments for cattle under the
drouth-purchasing program, $780,
600 on Sept. Is and now over $4,000.
600.
Reviewing the operation of these
various activities, Flood said premi-
ums were paid in the hog and cattle
buying drives for animals which the
farmers would have been unable to
feed. In addition to paying more
than could have been obtained on
the open market, he said, the farmer
benefited since he received some of
the money. Had it been sold on the
open market creditors would have
gotten it all.
Flags Eastern Critics
Warning his hearers that il these
benefits and the system under which
they are paid Is to continue the
farming areas must stand fast, Flood
said intelligent eastern businessmen
have no understanding OF the AAA
program and no appreciation Of what
1t means to business and industry.
Their consideration Of the agricul-
tural problem Is largely limited to
mounting such catch phrases as
starving the country into prosper
tty' and taxing business to pay the
farmer" he said.
Commenting on the charges that
wheat benefit payments are being
paid now in an effort to influence
the coming elections, Flood asserted
that the money should have been
paid several months ago and not all
Of the checks will 60 out before the
election. Lack Of facilities under the
heavy burden of work have caused
the delay, he said.
The Importance of the benefit pay
ments Is illustrated, he said. by the
fact that the $l4,000,000 in wheat
benefits to be received soon is more
than North Dakota's entire tax bill,
including those Of school districts
and local subdivisions. He asked the
clubmen to consider to what depths
business would have fallen had it
not been for the AAA payments.
Even the man who got a good crop
IS better Oft. he said, for agreeing to
cut his acreage since the benefit
payment has meant bigger return
than would have been obtained from
the acreage abandoned.
Farmers Receive All
The benefit payment has been par
ticularly valuable, he said, since the
farmer has received nearly all of the
3O-cent processing tax, the only de-
ductton being q cent or two for ad-
ministration. In North Dakota,s big
wheat counties, he said. the cost will
be about q cent a bushel and this
money is paid to local residents.
When wheat raises 50 cents on the
market. he asserted the farmer
doesn't get the entire benefit since
marketing costs usually rise with it.
Pointing out that sl.09 If the party
price for wheat, Flood said North
Dakota, If the benefit payment is
added to the receipts for the 49,
100000 bushel crop raised this year,
IS receiving $l.C5 q bushel. However,
It did not all go.tO formers who had q
crop but much Of 1t went to farmers
who otherwise would have received
nothing.
Contrasting the present situation
with that OF past years, he said, the
present short crop, plus tbs benefit
payment, IS worth more dollars than
the 1882 crop which YVES five times
as big.
An answer was given to those who
think it terrible for agriculture to cut
It's production. It YVES that industry
had cut production first. From 1926
to 1888. he said. index figures had
fallen from 135 to IS on automobile
production, 100 to 81 for iron anc
steel, 102 to 80 Tor coal and lis to S;
Tor textile products. The genera
production drop for manufacturer
products, he said, was from ll9 to 63
Acreage Cut Came Late
Agriculture. he asserted. did No,
begin to cut production until 1894
after terrific SURPRISES had been &C.
cumulated. and then the reduction
was only from 100 to l04.
Due to the AAA, he said, agricul.
tural income rose this year to a leye
higher than the average for the las
five years and this despite the great.
est drouth In history. Lashing out a
those who would brand adjustment 0
production as q Democratic politica
maneuver, Flood said it was advocat
ed by the farm board in 1880 an,
1891 but that many farmers, feelin,
their neighbors were going to reduce
increased their acreage so as to get
little the best Of 1t. The present sys
tenn. he said, insures the reduction b
making it profitable.
Ptcturing the reasons for agricul
lures plight. Flood pointed to 10000
600 acres put to the pillow during tn
war and not since taken out Of cul
tivation. the market for $4,000, 90
acres lost by reduction in the numbe
q horses and mules and the less q
foreign markets. It hit the wlaea
farmer. he said, because we used t
export more than 100000, 900 bushel
and now ship only 30,00o.0 900 bushels
Il hit the hog farmer because he
shipments abroad are 100000 le.
than formerly.
In view Of these facts, he SAIL
something had to be done and reduc
ton seemed the logical answer.