Evening star., 1935-11-05
2-yEAR CORN-HOG
CONTROL RENEWED
Wallace ProCIaims Program
Finding Justification
in Referendum.
BY the Associated Press.

By the Associated Press.
Declaring the recent referendum had
indicated its economic justification"
Secretary Wallace late yesterday for
mally proclaimed new two-year corn
hog control program
Officials of the A. A. A. said it
had been tentatively decided 10 make
benefit payments at approximately the
same rates in effect this year, but this
will not be determined for about a
month.
Wallace'S announcement came as
more than 80 farm representatives
studied details Of the new contracts.
and the departments annual outlook
report forecast a continued upward
trend in farm income for the next
year.
Better Demand Expected.
"The demand for farm products in
1886" said the report. lis likely to
be greater than in 1885. Consumer
buying power in the United States
is likely to be increased in 1886 buy
ing power of consumers in many for
eign countries also is likely to in
crease"
Total cash income from farm mar
ketines and A A A benefit payments
for 1885 was estimated at $4,000 000.-
600. 6 per cent increase over l934s
s6,387000 600, and SO per cent above
1929 depression low Of 81 1928 100000.
But the department said the total
forecast for this year represents but
81 per cent of the average annual
income for the five years preceding
1880. Much of the 1885 improvement
was attributed to marked advance
in live stock prices.
Balance Is Objective.
Principal objective of the new corn.
hog program, officials explained, Will
be to maintain balance between pro-
duction and consumption of corn and
hogs. They have recommended to the
conference of farmers here that corn
production next year be limited to 95..
100000 acres. compared with this
years 93.590000 acreage.
The officials estimated that if there
was no adjustment about los 1000 900
acres would be harvested. To bring
the figure down to $4,000 900, they said,
would require a reduction in base
acreage of about 20 ger cent by con-
tract signers. This years reduction
averaged about % per cent. A Is
per cent maximum reduction has been
suggested for 1887.
The proposed l,4I0000 increase in
corn acreage in 1886 over this year
presumably was intended 10 provide
sufficient feed to permit hog con-
tract slgners to produce 100 per cent
Of their production in the base years,
1923 to 1888. This proposal for 100
per cent production would provide
for 80 per cent increase in Federal.
inspected hog slaughter in 1867.
The outlook report predicted some
improvement in foreign demand in
1886 for American products, especially
cotton
Less for Food Purchases.
Declaring that levels of living Of
farm families have risen considerably
since the low point of 1882, the report
said that with more money available
for family living in 1886, expendi-
lures for automobile upkeep and pur-
chase may take a relatively large
share, and that food purchases will
absorb less. Food purchases on farms
this year we're said to have been un-
usually large because of the 1894
drought.
The cash income prediction for 1898
was Sl0o.000,000 more than an esti-
mate made in August The income
from farm marketings and rental and
benefit payments in 1888 were S5.117.-
100000: in 1881, s5.899 100000; in
1880, s8,45l 100000 and in 1929, Sl0,.
479,OOO. 900.
Earlier figures given out by the
department for the years preceding
1885 were based on production rather
than marketing, the department said,
explaining that the figures based on
marketed products we're better for
comparative purposes.
If average yields are harvested on
prospective acreage for 1886, the de-
partment said this country probably
would produce a wheat surplus for
export next year The live stock in-
dustrieS, with reduced numbers of ami
mails and plenty of feed. were said
to be in the best condition in several
years 10 benefit from increased con-
sumner demand. Some improvement
in the dairy industry. the potato and
fruit industries. and further lmprove-
ment in the farm credit situation
were forecast.