Evening star., 1934-03-22
General Marketing Agree
ment Policy Under Fire
as Conference Opens.
TAX AND CURTAILING
OF OUTPUT IN PLAN
Supplementary Proposals May
Run Programs Cost From
$165,0OO, 900 to $780, 100000.

BY the Associated Press.
A national conference of co-opera-
tive milk producers gathered today,
opposed to the administra tions new
milk control plan.
In an advance statement, members
Of the conference opened fire on the
general policy of milk marketing
agreements. Attacks on the control
plan were expected later.
The milk program. covering the
last of the commodities named as
eligible under the agricultural ad-
justment act, proposes curtailment Of
milk and butterfat production by Is
per cent below the average produc-
ton of each dairy farmer during
1882 and 1888 A processing tax
would be placed on fluid milk and
butterfat.
In return. farmers who signed con-
tracts with the Government to reduce
would receive benefit payments of 40
cents per 100 pounds of butterfat on
the amount of their curtailment Part
Of this would be paid after approval
of contracts and the balance after
six months.
Three Other Proposals.
Supplementing this plan are three
proposals for relieving existing sur
pluses. The first would appropriate
s5,0000 900 for buying surplus milk for
underfed children in cities; the sec
ond would spend another 5000 900
for purchasing healthy cows in sur
plus areas and distributing them to
needy farm families in deficit areas;
and the third would allocate $5,o0O.- -
900 to eliminate cattle affected with
tuberculosis and bangs disease.
The cost Of the program is estimated
at S165. 600, 900. with the possibility
that $500 ,000, 900 will be expended II
amendments pending in Congress are
adopted.
AntagoniSm to the entire milk pro-
gram has been more pronounced than
on any other suggested by the ad-
ministration. However, q number Of
producer associations. co-operatives
and professors pledged themselves to
support the administrations plan last
october after Secretary Wallace estab-
hshed the Dairy Marketing Corpora
tiQn to purchase surplus dairy prod
uces from overstocked markets.
S11.o0O,000 Obligation.
In addition. the industry is under
a moral obligation to the administra-
tion to the extent of S1l 900 600. When
the Marketing Corporation was estab-
lished, 1t was agreed the cost of pur-
chasing surplus products would be
paid out of processing taxes when the
production control program was es-
tablished. This cost, paid out of the
Treasury. is now about sll ,OO0000
Administration officials said the
processing tax of cents a pound for
butterfat, coupled with the Is per
cent reduction probably would mean
an increase of about cents a pound
for butter and approximately q cent
a quart for milk. 1t was added that
part or all of this tax might con-
ceivably be taken out of contribu-
tors and professors margins instead
Of being added on to consumers.
The proposed program will be ex-
planned to dairy farmers, professors,
distributors and manufacturers at .
series of regional meetings to be held
throughout the country in the next
few weeks.
If the sentiment of these meetings
is favorable it is hoped to begin draw
ing up contracts which individual
farmers will make with the Govern
ment and start on other phases OF
the program some time in April. ac-
cording to Chester c. Davis, farm ad-
ministrator.