Evening star., 1936-09-21
text of President Roose-
velt's letters asking Secretary
of Agriculture Wallace and

OF Agriculture wallace ana
4 Morris L. Cooke, administra-
tor, Rural Electrification Administra-
ton, to serve as respective chairmcn
of two committees to work out crop
insurance plan, follow:
Dear Mr.. Secretary:
The Governments long time drought
and land-use program should be COM
pleted and put into operation at the
earliest possible moment and imme-
diate steps are to be taken with this
objective.
I am appointing two committees of
representatives Of Federal agencies to
head up this work, b confer with
farm organization leaders and others
on the problems and to develop spe-
ciflc programs
One committee, on which I want
you to serve as chairman, and in your
absence DR.. A. G. Black. chief of the
Bureau of Agricultural Economics, is
to work out plan Of crop insurance.
The other, which Is to succeed the
temporary Great Plains Drought Area
Committee, is to work out plans for
q land-use program for better perma-
nent protection against drought.
The Crop Insurance Committee
will consist Of yourself and DR.. Black,
H. r. Tolley, administrator of the Ag-
ricultural Adjustment Administration;
Wayne c. Taylor. Assistant Secretary
of the Treasury, and Ernest G. Draper,
Assistant Secretary Of Commerce.
Wants Farm Leaders Advice.
The Crop Insurance Committee Is
directed to prepare a report and rec
concentrations for legislation provid-
ing a plan Of all risk" crop insur-
ance. In preparing its report the
committee should utilize the extensive
crop insurance studies now being
made in the Department of Agricul-
ture. Final recommendation for leg
islation should be formulated with the
advice and assistance of national farm
organization leaders so that the plans
can be submitted to Congress with the
approval and support of the repre-
sentatives Of the farmers. I suggest
that 1t may be found wise for the
first year to limit the application Of
the plan to one or two major crops
as start. My general suggestions to
your committee follow:
In the past three and one-half years
the Government has helped farmers to
meet emergencies of two kinds. The
first was collapse Of prices resulting
from huge surpluses for which the
foreign markets disappeared The
second was a failure of crops in wide
areas resulting from drought. Each of
these emergencies, except for Gov
ernment action to assist farmers,
would have had devastating conse-
quences to consumers and business as
well as to farmers.
The time has come to work out
permanent measures guarding farm
ers and consumers against disasters
Of both kinds. Crop insurance and a
system Of storage reserves should
operate so that the surpluses of fat
years could be carried over for use in
the lean years.
Three Point Protection.
Measures Of this kind should make
three important contributions to the
general welfare of the country as q
whole: First, protection of the indi-
vidual farmers income against the
hazards of crop failure or price coll
lapse; second, protection of consum-
ers against shortages of food supplies
and against extremes Of prices, and
third, assistance to both business and
employment through providing an
even flow Of farm supplies and the
establishing Of stability in farm buy
ing power. Since 1888 the A. A. A.
payments have proved their useful
ness to agriculture as we'll as business
in assuring farmers some income, both
in time of price collapse and in time
of crop failure.
have been impressed by the work
Of the Department of Agriculture in
developing actuarially sound methods
for affording farmers the use of the
insurance principle in protecting them
against hazards which for centuries
have handicapped their occupation.
I am especially interested in its stud
les Of a plan providing for the pay
ment of premiums and insurance in
commodities. This should make it
possible to base the premium rates on
the productivity of the individual
farms as shown by records of past
production, large number of which
the A. A. A. County Committees
already have on file. This method
should avoid making farmers of one
region pay for the risks of another
region. BY making this insurance
available only to farmers co-operat-
ing in farm and soil conservation pro-
grams, the plan would be safeguarded
from the price dangers which the
Federal Farm Board operations in
vited in the years from 1929 to 1882.
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