Evening star., 1941-12-07
oon handling and processing facili-

upon handling and processing facili-
ties.
Experience had shown that losses
incurred by producers as a result
of overexpansion caused them to
cut down on the production not only
of livestock, dairy and poultry prod
ucts. but on the production of corn
as well. The consequent curtailed
supply Of these products moving to
market caused prices to move up
ward again to start new cycle of
overexpansion and contraction.
The ever-normal granary pro-
gram provided the means whereby
surplus corn could be stored by the
farmer for future use. The grower
who in the past was forced to sell
his excess grain at depressed prices
because he needed ready cash. could
get a loan on the corn from the
Government. The loan program.
bv keeping the excess grain from
regular market channels, tended to
support corn prices at an even keel.
Accommodations of corn under this
program, added to this years
slightly above average crop. now
provide the United States with its
largest supply since shortly after
the first World War. Corn reserves
carried over from year to year are
now from three to four times as
large as they were b, ore the pro-
gram was 1naugurated.
Storage-Loan Setup Vital.
Farm officials say it would be
economically impossible to maintain
such a reserve without the storage
loan program. They say that with
out the program corn prices would
be disastrouslv low. probably as low
as in Argentina at present, where
the price is about 25 cents a bushel,
or cheap enough to use as fuel.
Mr. Wickard says that because of
the eXiStance of the present large
corn supply. farmers can safely
start expanding their beef and dairy
cattle herds. their poultry f1ocks and
hog numbers to meet the big de-
mand for food. without waiting for
next years crop.
Had the present food demand situ-
alton found the Nation with long
time average reserve of corn, 1t is
quite possible. the Secretary said,
that some sort of rationing might
have been necessary in order to
meet the urgent British require
mentS.
1T can be said" Mr.. Wickard
adds, that the ever-normal granary
program for corn should save con-
sumers in this country hundreds of
millions of dollars in their food bill
during the coming year"
The Secretary sees another i'm
portant advantage in the program.
Because of the large feed grain re-
serves, it will be unnecessary for
farmers to abandon soil-conserva-
ton and soil-building programs next
year.
Labor and Equipment Short.
"On the other hand, it is very
doubtful, with a severe shortage in
farm labor and farm machinery,
whether farmers would have been
able to expand corn production
suftlclentlv to meet the growing de-
mand.' Mr. Wickard said. LAS it
Is. We need no increase next wear.
Farmers consequently will be able
to utilize their labor supply more
largely in feeding and milling ope--
atlonS than in producing feed"
Contending that the present emer-
gency demand for food was giving
the farm program an opportunity to
show that 1t was ''one of abundance
rather than scarcity" the Secre-
tary says it would be to the Nations
advantage to have similar program
for industry.
In this connection. Mr.. Wickard
re-echoes statement made recently
by r. M. Evans, agricultural adjust
ment administrator.
What a blessing it would be
what a reservoir of strength we
could have-if industry had also
been building its own ever-normal
granary-building it's own stockpiles
of aluminium, copper and STEEL he
said. Then We would have a bal
anced abundance that would be our
best safeguard against initiation"
In addition to the large reserve of
corn. the Nation has huge surpluses
of cotton, wheat and tobacco. Pres
ent supplies of wheat and cotton
are sufficient TO meet the Nations
needs for two years.