Evening star., 1940-01-04
Is Pct. Reduction
In Farm Funds Asked
By the President
Would Represent
Half Of Proposed
Federal Sovines
BY the Associated Press.

uSOSIOs SOVIuiSS
By the Associated Press.
President Roosevelt recommended
today that agricultural appropria-
tions, including the crop control and
farm subsidy programs, be cut rs
per cent in the year starting next
July l. The economies thus effected
would be about half the estimated
net reduction in all Government eX-
penditures.
The Chief Executive asked Con-
gress to grant the Agriculture De-
partment $908 ass TOT, compared with
this years record sum of 81 ,239 640,-
970, exclusive of funds for rural
relief. This includes some reap
preparation of unused funds as well
rs new money.
This would be cut of 1891 1886 ,263
from this years appropriation and
would compare with the Presidents
estimated net reduction of $675 ,0O0,-
900 in all governmental expenditures.
The largest reduction was proposed
for farm subsidies. Mr.. Roosevelt
recommended that $725.642,740 be
made available for subsidies, surplus
disposal operations and crop in
surance, compared with a current
appropriation of 1867 ,637 ,0l2.
Hopes for Price Increase.
In making this cut the President
expressed the hope that agricultural
prices would advance to a point
where next years crops would bring
farmers at least rs per cent of
'parity"-the price goal of crop
control and surplus disposal pro-
grams. He pointed out that some
commodities, particularly cotton,
wheat, corn and cattle, had made
rather sharp price gains since the
outbreak of the European War.
The budget recommendations con-
tanned no provision for parity pay
ments. Congress voted $225, 900, 900
for such payments this year and
$212,000,000 in the previous year
without following a presidential sug-
gestion that revenue measures be
enacted to finance them.
Il do not suggest in any way"
Mr.. Roosevelt said, abandonment
of the policy of parity payments
heretofore adopted, and future
events may call for some appro-
priation to this end"
He noted, however, that Congress
had failed to make any provision
for the financing of these payments
already made or obligated for 1898
and 1889 crops"
Other recommendations.
Included in the Presidents sub
sidy recommendations we're:
A sum of $498 $50, 900 for soil con-
servation payments to farmers CO.
operating with crop programs and
using soil conserving practices; SAT-
975,0OO for payments to growers CO.
operating with the sugar control
program; $172,678,812 for disposal
of farm surpluses and S. ,928 for
operation of the wheat crop insur-
ance program. a
The surplus disposal item
$33,000,000 less than this year
would be used to finance the stamp
plan or distributing surplus food
and cotton products among needy
families and for export subsidies on
surplus crops; particularly cotton.
The President proposed s25,
900 for tenant farm purchase loans,
reduction of $15,775 900, and only
S1,102,50 for operation of depart
ment's submarginal land purchase
programs, compared with 81 7,423, 300
this year. Officials said such an
amount would be necessary to ad-
minister present projects and that
no additional land could be bought.
Mr.. Roosevelt made no provision
for rehabilitation loans and relief
grants to low income farmers. The
department had $l61 500 900 for such
activities this year. He said COM
plete omission of this item "con-
templates its consideration as a
feature of any emergency relief
measure as may be proposed for
1941."
Recommendations for other Agri-
culture Department activities-re-
search, regulatory work, economic
information, insect control, the
Weather Bureau-totaled $182,612,-
967.
The President asked only $780,
600 for the Rural Identification Ad-
ministration, compared with $42,-
100000 made available this year.
He said this agency would obtain
loan from the R. F. C. to take care
OF its program of lending money to
farmers for electrical services.
Likewise, the Farm Credit Ad-
ministration's funds would be cut
from $l8,739,075 to $3944,O81. Mr..
Roosevelt said that $15,OOO,OOO ap-
propriated this year for emergency
seed, feed and crop production crop
loans should not be needed, mas
much as collections from old loans
were expected to take care of this