Evening star., 1942-03-08

Aroused but undismayed, agriculture
and its leaders set % work on new meas
ures With the help Of Congressman
from urban areas they put through the
Soil Conservation Act of 1886 and the
second A. A. A. Act of 1888.
These farm acts set up agricultural
price goals. The goal prices were called
parity prices. They were defined as
prices which would give farm products
as much buying power as they possessed
in a base period when agriculture and
industry were in economic balance.
The parity prices were generally ac-
cepted as fair to both producers and
consumers.
War Changed Whole Picture.
The war changed the whole agricul-
tural picture. Suddenly an unprece-
dented demand for food arose. In addi-
ton to growing demand at home, this
country was called upon to provide huge
quantities for its allies abroad as well as
reserves for feeding hungry postwar
Europe until it could get on its feet.
To meet this demand the A. A. A.
shifted its farm adjustment machinery
from low to high gear, with special en-
phasis on producing larger quantities OF
live stock, poultry and dairy products and
vegetable oil crops for which there was
need. Coupled with the war food pro-
gram was a policy designed to stabilize
farm prices around the parity level.
This policy made an exception of corn
and wheat for live stock feed. They were
to be stabilized at IS per cent of parity
for the purpose of providing reasonable
priced feed for live stock, dairy and
poultry farmers. Corn and wheat farm
ers were to receive benefit payments Of
sufficient amount to give them full parity
for their grain crops.
The Government was in a position to
hold grain prices at the IS per cent
| parity level because of its control of sur
pluses which had been accumulated in
prior years under the A. A. A loan pro-
grams. All it had to do was to sell at
the IS per cent price The markets
naturally kept in line.
Congressman from farm belt States
| oppose the corn and wheat price policy.
| They contend it denies farmers the prices
promised them under the A. A. A. acts.
| They are trying to upset the policy by
! pressing legislation which would pro-
| hibit the sale of Government farm
products at less than parity. The legisla-
ton passed the Senate by a top-heavy
! margin.
Roosevelt Veto Forecast.
In communications to Congress Presi-
dent Roosevelt has warned that this
legislation would upset the vital war
food program and result in further in
creaSeS in prices of meats, dairy and
poultry products-already at prices in
excess of parity. Secretary Wickard
says the legislation would boost the con-
sumner food bill 81 ,OO0 100000 a year. give
labor grounds for new wage demands and
start a new spiral of advancing industrial
prices and service rates.
Administration leaders predict the
President will veto the measure If it
reaches him. Congressional farm bloc
! spokesmen declare that If he does they
will pass it over his veto.
In pressing their point the farm bloc
leaders argue that agriculture should be
allowed to make up for the lean years Of
the past They contend that industry
| and labor are receiving advantages in
the form of war profits and wage in
creases far in excess of agriculture's
price gains.
Farmer followers of Mr. Wallace and
| Mr.. Wickard believe the future of the
A. A. A. crop control programs may be
decided by the outcome of the present
fight. They concede that with the present
big demand for farm products agricul-
ture would get good prices regardless Of
the program.
These farmers believe, however, that
the present big markets will shrink after
the war is over, as they did after World
War 7. Agriculture then went through
one of its worst depressions in making
readjustment. There were no A. A. A.
Programs then.
| A. A. A. officials argue that whether
there will be crop control programs in
the next postwar period depends largely
! on whether agriculture has the good
! will of the public generally.