Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-12-24
WHEAT INSURANCE
MEASURE BACKED
Detailed Crop Program Sub.
mitted to Roosevelt
by Committee.
y the Associated Press.

.. the Associated Press.
An administration bill for Govern
ment-directed crop insurance was
viewed in many quarters today as
the probable outcome Of q detailed
proposal submitted to President Roose-
welt by his special committee on the
subject.
The committee recommended the
program start with insurance of the
1888 wheat crop against drought, flood,
hail, insects and other hazards.
Similar protection, it said was de-
sired by many farmers who grow
cotton, corn. tobacco and other crops.
After studying the report. President
Roosevelt is expected to submit 1t to
Congress.
Under the wheat proposal, farmers
taking the insurance would agree to
pay premiums of q certain number
Of bushels of the grain for each acre
planted.
If natural hazards kept the yield
per acre below half or -fourths
the normal crop, the Government
would supply the deficiency-in wheat.
Insurance would not cover declines
in price.
United States Pays Storage Cost.
Costs Of storing this wheat and
administering the vast plan would
be paid from Federal funds. The
expense was not estimated.
The amount of premiums, losses and
similar details would be determined
by committees of farmers subject to
approval of State committees and
Agriculture Department officials.
Secretary Wallace, chairman of the
Insurance Committee long has advo-
Gated an ever normal granary" plan
which would store surplus crops in
fat seasons for use in lean" years.
Although wheat farmers have asked
insurance on the 1887 crop, he said
the complex details of the plan would
not permit operation before 1898.
Wallace said the Government could
well afford to use public funds to
set up the plan and pay part of the
costs. He pointed to a Treasury re-
port which showed Federal agencies
have expended more than 5000 .000..
900 In the last 10 years to aid farm
ers who lost crops through natural
disasters.
The report reviewed attempts by
private insurance corporations to pro-
tect against crop hazards. All ended
with heavy losses or financial ruin for
the companies.
Insurance on Large Scale.
Crop insurance on a large scale
would probably be a larger enterprise
than any one company or group of
companies would now desire to under
write" the report said
Pitfalls on the private ventures. II
added. could be avoided by a wide
spread national program by insurine
against yield instead of price and by
determining risks from data concern
ing millions of farmers who have
participated in farm programs.
The committee declared the crou
insurance plan would have an Incl
dental effect of leveling supplies and
prices between good and bad years.
Discussing the wide range of pre-
miums that would be required in vari-
Gus wheat areas, the committee said
In some areas long recognized as
good farming territories the costs ap-
pear low, while in other areas the
costs appear high"
The report acknowledged that costs
appear to be prohibitive" in some Sec
tons.
The wheat insurance plan is not
"a substitute for any farm program
now being administered" the commit
tee said, but is supplementary to
other programs" 1t suggests that
farmers who wished insurance be re-
quired to participate in other Federal
farm measures.
Benefits for 1.-The consumer and the
people at large would justify public
contribution the committee argued.
Listed as benefits in which they would
share were reserve supply Of wheat,
stable prices and a more stable farm
income.