The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1934-04-19

rise to ten cents per pound to
compensate farmers for remaining
out of the corn-hog reduction pro-
gram. according to G. A. Pond, Of
the Economics Division of the Uni
versity Of Minnesota Department of
Agriculture.
Mr.. Pond illustrates this state
ment by showing how the pro-
gram would apply to a typical
southern Minnesota hog farm of
100 acres, 80 acres of which Is
planted to corn each year to be
used in fattening 124 hogs to a
market weight of 225 pounds. The
average yield of this corn is about
IS bushels per acre.
Under the reduction plan, this
farmer would reduce his corn acre
age one-fifth or 16 acres, and his
hog production one-fourth or 81
hogs. At 30 cents per bushel on
the yield of 16 acres, his corn adj
justment payment would amount to
$168. His hog adjustment payment
of IS per head on three-fourths of
acreage number of hogs he
raised for market during the pre-
vious two years (3-4x124 head or 90
head) would amount to $465.
Due to the difference between the
Is per cent reduction in hogs and
the 20 per cent reduction in corn
acreage, he also would have about
lat bushels Of corn not needed for
feeding, which at 35 cents per
bushel would be worth $51.45. Ad-
justment payments and value of the
surplus corn combined would give
a total of $684.45.
The total weight Of the SO hogs
raised would be 20,925 pounds. At
four cents per pound, these hogs
would bring a total of 1897. Adding
the $684.45 would increase the farm
er's income who reduces his pro-
duction to $1,521.45.
| If this farmer raised his usual
number of hogs and usual acreage
of corn to feed them, he would
have a total Of 27.900 pounds of
hogs, which at four cents per
pound would bring a total of $1,116.
This is $405.45 less than he would
receive if he joined the reduction
program.
If the price of hogs should rise
to ten cents per pound, his total re-
ceipts under he adjustment plan
would be $2,776.95 (20.925 times 10
cents plus $684.45.) IF he did not
join the reduction program, his to-
tai income would be $2,790) 1880
times 10.) Since both amounts are
practically the same, his only gain
by joining the reduction program,
if the price of hogs were ten cents
per pound, would be the saving in
labor and miscellaneous expenses
brought about by the reduction
plan.
Mr.. Pond points out, however,
that with export markets and do
mestic purchasing power at a low
ebb, the farmers best method Of
raising prices of corn and hogs is
to reduce their production Of these
commodities. The plan provided
by the Agricultural Adjustment
Administration, he said. gives them
the opportunity to make this reduc-
ton and at the same time receive
adjustment payments to Offset their
temporary loss of income.
The closing date of the corn-hog
sign-up campaigns April 10. Farm
ers who are planning to sign con-
tracts should see'the county agent
or members of their local corn-nog
committees at once.
The AAA Cigar-leaf tobacco re-
duction program started last year
will be continued in 1884 with pro-
vision for growers who did not
participate last year to sign con-
tracts, according to an announce
ment received by E. c. Lenzmeier,
the county agent, from the Agricul-
tural Adjustment Administration.
In requiring continuance of this
program, the Secretary of Agricul-
ture is exercising authority specifi-
cally granted him in the contract.
The grower who signed up last
year must continue to operate I'M
der his original contract. which al
lows him his choice of three meth
DDS of determining his base acre
| oSC dllo IC4ulIcS It'll 10 reduce MS
base acreage so per cent; or, he
may select other options now offer
ed providing two additional meth
DDS of determining base acreage
and three additional choices in de-
termining the percentage reduction.
A supplemental 1884 first payment"
of So per acre reduced under the
option chosen will be made to the
1888 signer adopting one Of the
choices offered in the amended con-
tract.
New applicants will be offered the
original contract with amendments
attached, but will not be eligible to
receive the Supplemental pay
ment."
The first 1884 payment will be
at the rate Of $50 per acre reduced
and will be paid on or about Octo.