Evening star., 1937-02-18
Crop Insurance
Continued Prom First Page.)

crop insurance would probably find its
greatest usefulness in the Great Plains
most because Of wide f1uctuat tions in
yield and where most of the Nations
wheat is produced"
1t suggested the insurance plan be
voluntary. but that participating
farmers be urged TO join in other
Federal farm programs.
The committee said that if the in
surance plan had operated in impor-
tart wheat States the last six years.
the greatest deficit any one time would
have been 10000 900 bushels under
premiums and the greatest surplus,
10000, 900 bushels.
Federal officials estimated that
sl00. 900 900 to s15o.000 900 would be
needed to set up the plan and estsb-
lish adequate reserves and pay neces-
Sary costs.
Text Of Message.
The text of the Presidents message
to Congress follows:
During the past four years the Gov
ernment has assisted farmers in meet
ing emergencies Of two different types.
The first was the collapse Of prices re-
sulting from huge surpluses for which
foreign markets had disappeared. The
second was widespread failure of crops
resulting from drought.
Government action helped both
farmers and consumers. Meanwhile,
it has been shown that neither pro-
ducers nor consumers are benefited
by wide fluctuations in either prices
or supplies OF farm products.
Convinced that the time has come
to take permanent steps TO protect
farmers and consumers against dis
aster Of both types, appointed, on
September 10 last, committee of rep
resentstives Of Federal agencies and
requested this committee to prepare a
report and recommendations for legis-
lation providing plan of "all-risk"
insurance.
Plan Is Practical
The committee has now completed
its work and l transmit to you its re-
port, entitled Report and Recommen-
dations Of the Presidents Committee
on Crop Insurance" have examined
this report and I am convinced that
the plan it outlines is practical. soci-
ally desirable and worthy OF your
thoughtful consideration.
I believe that it provides an ade-
quate basis for legislation which will
make possible program OF crop in
surance applying to wheat for the crop
year 1888.
I believe that legislation should au-
thorise application OF similar pro-
grams to other commodities when it is
established that producers desire them
and application of the plan to wheat
has provided back log of experience
In applying the principles of crop in
surance.
Crop insurance and q system Of
storage reserves should operate so
that Surpluses in years of good
weather might be carried over for use
in years Of unfavorable growing con-
ditions
Woud Protect Income.
Crop insurance and q system Of
storage reserves would help to protect
the income Of individual farmers
against the hazards Of crop failure; it
would help to protect consumers
against shortages Of food supplies and
/ against extremes Of prices; and final
ly. 1t would assist in providing q more
nearly even flow of farm supplies.
thus stabilizing farm buying power
and contributing to the security Of
business and employme
The Government also has q special
interest in measures which would as
sist in guarding farmers and con-
sumers against emergencies arising
out Of extremes Of surpluses or short
ages.
The expense in the past to Federal,
State and local governments arising
by reason Of crop losses to the de-
sira ability of employing the principle
Of insurance in order to lessen the
cost-fnancial and human-of future
crop disasters.
A program of crop insurance and
storage of reserves should be part OF
the foundation of agricultural policy
which we are building and which
must include the conservation OF soil
and water, better land use, increased
farm income and alienation Of dis
tress In rural areas arising out OF
factors beyond the control OF indi-
vidual producers.
May 1 repeat what have suggested
in q former message: That because
economic and social reforms OF this
character are essentially national in
scope and in administration, the citi-
sens of our Nation believe that our
form of government was never intend
ed to prohibit their accomplishment.