Evening star., 1941-03-25
Senate Group Backs
Bill 10 Add Billion
To Farm Income
Agriculture Committee
Supports Bonkheud
Parity Loan Plan
BY the Associated Press.

BY the Associated Press.
Legislation which its author said
would add about ,000,000000 a
year. to farmers income through
higher Government loans was ap-
proved today by the Senate Agri-
culture Committee.
The author, Senator Bankhead
Democrat, of Alabama, said the bill
was intended to place farmers near
er parity with labor and industry"
The l3 Senators attending todays
committee sessions, Senator Bank
head said, were unanimous in ap-
proval.
Senator Bankhead said his bill
aimed at assuring producers of cot
ton, wheat, corn, tobacco and rice
a parity or fair exchange price
for their products through loans de-
signed to serve as a floor under
market prices"
Strong Controls Needed.
Senator Bankhead said the Gov
ernment loan would represent full
parity price less the amount OF soil
conservation payments" AS an ex-
ample. he said. the present parity
price for cotton is 1887 cents a
pound, while soil conservation pay
ments amount to 1877 cents. Thus
the loan price under this bill would
be 1412 cents pound. The proposed
Government loan on wheat would be
S105 cents bushel, and on corn II 2
cents bushel.
These loans, much higher than
past Government loans under the
farm program and recent market
prices would be effective only If
farmers voted in favor of rigid mar
keting controls and observed acreage
allotments.
I'VE would need strong controls, u
Senator Bankhead said I'VE can't
fix an attractive price like the old
Farm Board did and then turn
farmers loose on production"
Would Increase Penalties.
The legislation would sharply in
crease present penalties for market
ing crops in excess of allotments
or quotas. Excess cotton would draw
a penalty of 8 cents a pound, COM
pared with the present cents
Penalties of IS cents bushel would
be raised to 30 cents for corn and
so cents for wheat.
If Congress approves the bill the
Alabama Senator said. the loan of
14.5 cents on cotton would be avail
able August l. start of the new crop
marketing season, providing cotton
growers complied with acreage and
marketing controls and gave the
Government title to any old crop
cotton now under loan.
President Roosevelt recently re-
fused to support the Bankhead plan
and several other proposals by con-
gressional leaders of farm legisla-
ton for increasing farmer income
legislators said.
Not Backed by Wickard.
Secretary Wickard and other Ag-
riculture Department spokesmen
also refused to support the Bank
head bill during public hearings of
LQe agriculture COmmlItee.
At the same time it approved the
Bankhead bill, the Senate Agricul-
ture Committee recommended re-
vision of existing provisions of the
farm act for applying marketing
controls over corn and wheat.
Growers of these crops probably
will vote on applying marketing
controls this year because of large
surpluses now stored under Gov
ernment loans. The new provisions
would increase penalties for mar
keting excess corn and wheat to the
same levels as the Bankhead bill,
and also give farmers a chance to
vote on operating these controls for
two years, one year, or not at all.