The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1934-05-24
AAAPLAN DECLARED
TEMPORARY SYSTEM
New Book ExpOunds Advan-
ages and Shortcomings of
Plan Now in Progress

Limitations of the AAA as a step
toward permanent recovery for agri-
culture, and possible hindrances
which the AAA program may pre-
sent to the attainment of sound
farm prosperity, are pointed out by
DR.. A. A. Dowell and DIR. o. B. Jes-
ness of the University of Minnesota
Department of Agriculture in their
recent book, "The American Farmer
and the Export Market" published by
the University of Minnesota Press,
Minneapolis.
One risk seen in the present AAA
program is that many farmers may
fail to understand clearly that it can
not be a permanent relief plan. The
AAA can be only temporary ex-
pedient, it is suggested, because sub
sidizing farmers to let parts OF their
farms lie idle is a policy the public
will not support in the long run.
Moreover, they point out that the
AAA's reduction program is not good
economy as a permanent solution.
Whatever permanent curtailment OF
farm products may be needed should
come through eliminating the less
efficient producers and areas not well
adapted to the commodities concern
ed, rather than to have every produc-
er cut down his production.
Essentially, the aim of the present
AAA program is to reduce produc-
ton more nearly to domestic basis
for the time being. The objective is
to raise domestic prices for farm pro-
ducts, but the benefits are offset to
some degree by reduced production
which lessons the amount available
for sale at the higher prices. More
attention should be given to the effect
of curtailment on the agents of pro-
duction. Have we more advantage
Gus use for the labor, land and equip
ment now being used for agricultural
exports? Dowell and Jesness believe
not, and hence urge that steps be
taken to reestablish export outlets.
They also point out the Importance of
industrial recovery in restoring farm
outlets.
There is some danger, says Dowell
and Jesness, that the AAA program
as a temporary measure may focus
attention too much on domestic prices
and thereby delay the adoption of a
program for the development of for
eign markets. Maintaining domestic
prices generally above world levels re-
quires additional tariff restrictions to
keep out imports. Import barriers
operate in two ways to hinder the
continuance and expansion of export
trade in farm commodities.
First, foreign countries which might
purchase our exports retaliate again
st our tariffs by boosting their own
tariffs to keep out our products. Sec
ond, so long as the United States
maintains high import duties and
other trade restrictions, it can hard
ly use it's influence to urge the re-
establishment of trade among ma
lions generally.
Furthermore, all protective tariffs,
whether on industrial or on agricul-
tural commodities, hurt our export
business in another way. Foreign
countries are able to buy only when
they are able to sell. If through i'm
port restrictions we refuse to buy
their products, we make it impossi-
BILE for them to buy ours. If we want
exports, we must accept imports.
Not withstanding our essentially
domestic program, say Dowell and
Jesness, it would be unfair to say
that its leaders ignore the advantages
of international trade. The view
seems to be that, temporarily, fore
ign markets do not exist and that it
is unwise to produce for them. This