Evening star., 1941-01-01
War May Force Shift
In Government Aid
For Agriculture
Processing Tax Plan
Weighed os Substitute
For Crop Looms
BY EDWARD b. HUBBARD,
= lrrnciataS Eta6

Agricultural income in 1941 will
probably equal that of 1910, which
was we'll above the average of the
last decade and the second highest
since 1929.
The basis of this statement is the
expectation that crops will be as
abundant as in the last year, and
that the Department of Agriculture
will continue benefit payments at
least on the present scale. Both
these assumptions appear reason
able, barring weather freaks. The
departments plan for dealing with
the situation, however, is likely to
undergo drastic changes.
Outstanding characteristics of the
present system are ID immediate
relief through Government loans at
fixed prices, and (2) correction of
the underlying maladjustments by
crop restrictions based on past pro-
duction. With all its faults. it was
the most satisfactory method Of
handling the farm problem. Was,
that is. until the war entered into
the picture.
Then 1t was discovered that bel
ligerent nations were more anxious
to devote their slender resources of
American dollars to the purchase
of products of American industry
than her agriculture. Other parts
of the world where settlement in
gold is not necessary are able to
supply the restricted British need
for foodstuffs and fibers.
Crop Loans May Go.
OF the current cotton crop, up to
November l, 304,842 bales were ex-
ported. as against 1,759,295 bales
in the similar period year ago. Of
this commodity, wherein the problem
is most acute, Government loans
stocks are accommodating to a point
where it is evident that some of it
will never move out Normally, half
the cotton crop is exported; even
the present three-shift schedules in
the weaving industry are not able
to fill the breach.
The truth of the matter is that
domestic price maintenance has en-
Couraged other sections of the world
to increase output. The solution
which is now proposed is the scrap
ping of the loan program and the
substitution of a program which
would virtually allow prices to seek
their own level, while domestic users
would pay a modified processing
tax to be turned over to the farmers.
This would be accomplished by is
suing certificates to farmers accord
ing to their production. these cer-
tif1cates to be redeemed by the pur-
chasers of the commodity.
Change in Benefit Payments.
At the same time modification
IN the scheme of benefit payments
is proposed. Standards of farm
management would be set by the
Government in accordance with the
need for various agricultural COM
modities and for soil improvement.
Compliance with the farm manage
ment program would be the basis
Of benefits. 1t is contemplated that
the cost of the new program would
be no more costly to the Govern
ment than that which is now in ef-
feet.
Naturally, there is opposition to
the plan among farmers They now
have the crop loan, and the new
plan seems to give them less as
surance of receiving parity prices.
The whole matter will be aired in
Congress in the early months of
194l, and the whole country will
know a great deal more about it's
advantages and disadvantages long
before the next harvest.
World Wheat Crops Higher.
Wheat crops of the world are
Cetimated at 6.1-billion bushels. or
II per cent above the average for
the five years ended 1878. In the
war areas consumption is restricted
by the inevitable Interruptions to
normal commerce. While surpluses
are less troublesome than with cot
ton, the wheat problem is growing,
and will be worse before it is better.
The Department of Agriculture
plan is envisioned for wheat as we'll
as cotton Corn, however, is
stumbling block, as a large part of
the corn crop is used on the farm
for feed. and is not for this rea-
son readily subject to processing
taxes. The A. A. A. got around this
difficulty by assessing the feed corn
at the packing plant in its final
form, the hog.
OF all agricultural commodities,
hogs and chickens stand out as those
which brought poorer prices in 1910
than in 1899. The former were about
IS per cent down, while corn in
creased in market value roughly Is
per cent Increasing domestic in
comes because of the defense boom
may tend to correct this misalign-
ment somewhat. Britains needs for
merly supplied by Denmark and the
Baltic states are now supplied by
Canada, whose hog population in
creased by more than third last
year.
After the War?
What conditions the end OF the
war will bring, nobody knows, as it