Evening star., 1938-10-11

FRANCIS .
glutted. Under such conditions the
selling price on numerous occasions
has been less than the cost OF ship
ping and handling. There have been
actual instances. occurring all too
often, when farmers not only got no
money from a shipment, but were
billed for charges which were, not met
by the sale of the products.
Victims Of Low Prices.
Extremely low prices often force
farmers to abandon their crops be-
cause the markets do not return
enough to pay cash costs of harvest
ing and nothing for the product itself.
This means waste Of time, labor and
money expended by the farmer in
growing the crop. 1t also means waste
of foodstuffs which could have been
harvested and consumed had prices
been at a more reasonable level.
The best interests OF both the farmer
and the consumer are served when
ouPPAiCo nc lll UdldIlCC WlGkl UllC ICCOS
of the market. Stability in supply
means stability in price. Under such
conditions farmers are able to sell
more of their products with fair re-
turns, while consumers are able to
obtain more with what they have to
spend.
The Federal Surplus Commodities
Corp. is concerned with that portion
of the total crop which results in
glutted markets and forces prices to
ruinously low levels. 1t supplements
the efforts which farmers themselves
are making to improve marketing con-
dltlons and tries to make these efforts
more effective. Programs which the
corporation may put into effect are
developed at the request and with the
help Of responsible producer groups.
When surplus in . commodity Sc
riously threatens to upset the market,
the Federal Surplus Commodities
Corp. is ready to act In cooperation
with the Agricultural Adjustment Ad-
ministration 1t develops 4 program
based on the needs OF the situation.
Through this program the corporation
may buy all or part of the surplus
supply to prevent a complete collapse
in prices to farmers and wholesale
abandonment Of the crop.
In conducting purchase program
the objective is to improve returns to
producers for their entire crop rather
than to improve returns only to the
extent of the buying operation. This
means that the price at which surplus
commodities are bought must be in
line with the going market price.
Bring Steadier Market.
BY removing that part Of the supply
which most seriously depfesses the
market price. programs of the Federal
Surplus Commodities Corp are able to
bring about a steadier how of goods
to market at more reasonable prices
to producers, and with obvious bene-
fits to consumers.
The amount which the corporation
buys through surplus removal pro-
gram usually represents very small
part of the production or available
supply of the commodity. As a gen.
eral rule it is between and 5 per cent.
Once in a while, when an extremely
serious condition exists, the surplus
quantity bought may be run up to
around 10 per cent of the total supply
available. In some instances, however.
the mere announcement of the corpo-
ration's intention to buy a commodity
surplus may bring in an immediate
improvement in the market situation
and no purchases will have to be made.
The Federal Surplus Commodities
Corp. distributes the commodities it
purchases as rapidly as they are ac-
quired All the surplus farm products
which are bought move directly from
the point Of purchase to the States
where they are to be distributed by
welfare agencies to the needy and un-
employed. Shipments of commodities
are made to the States in accordance
with orders from State welfare agen-
cies. The corporation maintains close
contact with all State welfare sgen-
cies. 1t keeps each agency posted as
to purchase programs to be put into
effect and supplies OF commodities
which may be ordered for relief dis
tribution. Always the demand by the
State welfare agencies has exceeded
supplies bought by the corporation.
The responsibility for distributing
surplus farm products received from
the Federal Surplus Commodities Corp.
rests with each State welfare agency.
In every State the welfare agency
maintains a permanent distribution
organization headed by a director of