Evening star., 1937-03-01
FARM PLANC0ST
BILLION A YEAR
Estimate of Congress Lead.
erS Puts Soil Conservation
at $500, 600, 900.
~ the Associated Press.


By the Associated Press.
Congressional leaders estimated to-
day the Administrations program to
bring parity and security to agrl-
culture may require upward OF .
billion dollars q year.
The major part would be needed,
members of the House Agriculture
Committee said, for these items:
Soil conservation. $500, 100000.
Crop insurance, $100,000,000 to
tl50.ooO, 600.
Rehabilitation Of farm tenants.
share choppers and laborers, $780,
100000 to 25,000,000.
An additional $4,000. 900 has been
suggested by some Congressman to
aid tenants to become land owners.
An appropriation of $25,000,O 600 viii
be required, it was said, to reimburse
the Federal Land Banks for interest
rate reductions Congress is expected
to order continued on farm mortgages.
These estimates do not take mt
account possible appropriations lor
emergency purposes. Congress al
ready has voted $50,000,000 for emer-
eency seed and feed loans and has
received bills calling for $5,000,0Oo
for eradication Of grasshopper ana
insect plaques.
In addition the House Committee
has approved bill to authorize setting
aside $500 100000 in gold as reserve
for $4,000 100000 in agricultural re-
serve notes for use for farm credit at
rates as low as per cent.
Granary Estimates Lacking.
The committee was without estimates
on financial requirements OF Secretary
Wallace's ever-normal granary and
commodity loan program-based on
Government storage OF major 1arm
products from years of bumper crops
for use in poor seasons.
Some features of this latter proposal
were criticized as dangerous as well
as unnecessary" in Brookings lnsti-
tute report published today.
Asserting release Of stored stock In
wears of short crops would tend to de-
press prices at the very times when
the farm has less produce to sell, the
report said there is serious question
as to the amount of gain to be derived
either by farmers or consumers"
It conceded the plan would improve
farmers income in years of large pro-
duction.
The report approved in general op-
erations under the agricultural adjust
ment act and the soil conservation pro-
gram as meeting emergencies facing
agriculture.
The economists said organized ac-
ton of Government is in our modern
technical and institutional situation
necessary"
The economists said with present
worldwide trade and transportation
there was tendency for crops to
balance between seasons and regions.
They quoted administration farm
leaders as saying that even with two
recent droughts and the A. A. A. re-
duction programs there had been no
''acute food shortage" in this country.
Plan Held Inconsistent.
Asserting that former Government
farm programs had been aimed at re-
ducing large supplies in private hands,
the economists said the granary plan
was inconsistent with these, in at
tempting to build up supplies in the
hands of the Government and at the
same time maintain prices Of farm
products.
The economists recalled experience
Of the old Federal Farm Board, saying
it found to its sorrow. the drawing
in of supplies from the market at
times of excess is an undertaking which
has the full support of farmers and
The report said administration of a
storage or loan program lis subject
to great pressure from farm COM
modify groups, often reinforced by
political pressure. as was amply DEM
onstrated by the experience with A.
A. A. loans, particularly those on cot
ton"
The economists suggested Govern
ment efforts could be better directed
toward improving present trade, credit
and transportation agencies, which
they said now tend to eullalise farm
supplies between seasons within Limits
set by perishability and the cost Of
holding operations
Payment Of nearly $4,000, 900, 900 in
benefit payments to farmers and the
crop-control features Of the original
A. A. A. won approval.
For Emergency Periods.
sour general conclusion from the
experience with production control in
1933-35, as far as we can observe it
through the dust Of droughts. is that
the effectiveness of these devices is
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