Evening star., 1938-07-10
WHEAT SURPLUS
CURE. PLANNED
Farm Officials to Prescribe
After Crop Estimates
Are Released.
6y the Associated Press.

By the Associated Press.
Administration farm oficials will
prescribe this week for one OF agricul-
lures reoccurring ills-"too much
wheat"
The strength. of the dosage will de-
pend on the crop estimate to be made
tomorrow by the Federal Crop Report
ing Board.
A month ago the board forecast the
largest crop on record, ,046, 900 900
bushels. But recent discovery Of dam
age from late frosts and black-stem
rust in the winter wheat belt may
result In reducing the otncial forecast
as much as 100, ,000, 900 bushels.
Even so, the reduced crop would
AL granaries to overnowing. A surplus
of about 00,000,000 bushels remains
from last years crop. This. added to
. yield Of 945,000,000 bushels. woulo
provide a total supply Of LAS, ,0O0, 900
bushels. compared with an expected
need of 750.000,000 bushels for do
mestic and export requirements.
Prospects Of the huge crop have sent
prices downward. On June u the farm
price of wheat averaged 50 cents q
bushel, compared with $l09 year
earlier. If the prospects are borne
out. prices might tend to drop still
lower, officials said.
Plan Loans to Growers.
As q part Of its prescription, how
ever. the Agriculture Department will
attempt to put a floor under wheat
prices. 1t will make loans to growers
desiring to withhold grain from the
market until prices improve.
Of1cials explained that if market
prices dropped below the loan rate.
growers would store their grain under
loan rather than sell it. Thus, buyers
would be forced to pay the loan price
to acquire grain.
Just what the loan rate will be has
not been announced. The farm law
gives the department authority to set
il at between So and IS per cent Of
parity price. A parity price for
wheat is one that would give the grain
rs much purchasing power to buy
non-farm goods as it had in pre-war
years. On June IS, it was $1.l4.
Thus, the loan rate might be be-
tween So and IS cents q bushel ON
cials have indicated, however, the rate
will be close to the minimum allowed
by the law
Omcials expect between 100000, 900
and 200 100000 bushels of wheat to
be stored under the loan program.
Look to Next Year.
As another part of its prescription
for the wheat problem, the department
will take steps to prevent production
Of another large crop next year.
Should the official estimate indicate
q crop of 900, ,000,0 900 bushels or more.
growers may be asked to plant only
$4,000, 900 acres for the 1899 crop.
They seeded 79,5o0,0 900 acres for this
years crop.
To compensate growers for reducing
their operations, the department will
offer about $3.50. 900 900 in benefit pay
ments.
Omcials explain that a small crop
next year would be necessary to use
up excessive surpluses of this year and
to prevent accumulation of additional
unmarketable supplies.
Failure of growers to comply with
the acreage program probably would
make marketing quotas necessary next
summer, they said.
Estimate ON Corn Crop.
The crop board also viii give the
hrst official estimate tomorrow on the
1888 corn crop. This estimate may
give some hint as to whether market
ing quotas will be proposed to regulate
sale Of the crop this fall and winter.
With an expected surplus of at
least $50 1000, 900 bushels, a crop esti-
mate of $500, 0,000, 900 bushels or more
would indicate quotas were likely.
Should the August crop report indicate
q total supply of PITS 5,000,0 900 bushels
or more. the Secretary would submit
quotas to corn growers at referen-
dunn late in that month
The quotas. to become effective,
would have to win approval of two
thirds Of the corn producers in the
commercial corn belt