Evening star., 1938-08-22
NEW DEAL FEARS
GRAVE FARM ILLS
SurpIuses and Recession
Produce Problems Bad as
1934-36 Drought.
BY the Associated Press.


Administration farm leaders de-
scribed the farm problem confront
ing the Nation today as perhaps
the most difficult since the 1934-1936
drought period
Good crop-growing weather during
the last two seasons, the business
recession and unsettled world condi-
compliCate the agricultural situation,
despite Governmental efforts to boost
prices and income.
The difficulty arises from the fact,
they explained, that supplies of farm
products are far in excess of the
demand at current prices.
Secretary Wallace, who conferred
with President Roosevelt during the
week end, said recently that unless
farmers co-operated e-heartedly
with the new crop-control law,
price collapse might follow
Here is the situation repecting the
major crops:
Despite a % per cent acreage re-
duction this year. there is a record
surplus of 13.4OO,0OO bales of cotton,
or about the same as an average
crop. The Government holds more
than 100000 bales put up as COL
lateral for loans to growers.
The price is only slightly above so
per cent of the parity" or price goal
of l59 cents pound, AS a conSe-
quence, the Government is required
by the farm law to provide loans on
this years crop for growers desiring
to hold cotton for possible future bet
ter prices.
To prevent accumulation of greater
cotton stocks, the Government will
ask growers to restrict next years
planting to about 27.0000 900 acres, COM
pared with a normal acreage of 40
100000, and to continue marketing
quotas under which this years crop
is being sold. Cooperating growers
will get benefit payments of 36 to 4
cents a pound.
Wheat.
This years second largest wheat
crop on record, officials said, has placed
the bread grain in almost as serious
situation as cotton. Present prospects
indicate a record surplus of possibly
100000 bushels a year from now.
The excessive supplies, both at home
and abroad, have forced prices to
farm average of about SO cents a
bushel, compared with the parity"
goal Of 83 cents and an average farm
price of $1.18 year ago
To bolster prices and enable growers
TO hold surplus grain off the market
.or better prices. the Government is
providing loans at an average rate of
about go cents bushel.
In order to avert greater surpluses,
the Government is askin. growers to
plant only 55,OO0,OO0 acres for next
years crop, compared to 100000 this
year. Unless farmers cooperate al
most 100 per cent, officials said. mar
ketlng quotas may have to be invoked
On the 1889 crop. Cooperating grow
ers will receive benefit payments of
Is to 80 cents bushel
Corn.
Prospective corn supplies are only
3O,O00,000 bushels short of the amount
which the new farm law describes as
excessive. Consequently, another acre
age reduction program is in prospect
hext year.
Growers were asked to plant 20 per
cent less this year. Next years re-
cuction may be greater. Indications
are that the farm law will require the
Government to provide corn loans In
November at rate of about So cents
bushel. Last years rate was so
cents.
Other Commodities.
Several other commodities face sur
plus problems. Among them are dairy
products, potatoes and some fruits
Potato growers in major producing
, States are voting this week on a pro-
rosal to prohibit shipment of loW-grade
potatoes in an effort to prevent a
market glut and lower prices. The
Government is helping dairy Cooper
atives buy surplus butter to bolster
prices.