Evening star., 1943-08-01

Ine war Qemand Tor 1000 and more
food is pushing the once powerful Agri-
cultural Adjustment Agency (AAA) into
the background
Many postwar thinkers predict that it
never viii regain its former position.
In It's efforts to expand production of
American agriculture to the limit, the
War Food Administration (WFA) has,
with the exception of a single nonfood
p-tobacco-tossed aside the tools
which the AAA used for 10 years to guide
and control farm output.
These tools were acreage allotments,
crop benefit payments for complying with
allotments and marketing quotas with
stiff penalties for sales in excess of al
lotments
These tools were invented in time of
crisiS-but different crisis from that
confronting the country today
They were brought into use to combat
unmarketable surpluses and ruinously
low prices of farm products. Their pur-
pose was to adjust production to the
effective market demand-that is, the
quantity OF particular commodity
which consumers would buy at prices
deemed fair to both farmers and users.
There is little dispute over the effects
OF the AAA programs from a financial
angle. Farm prices improved So did
farm incomes. Surpluses-that is, sup
plies for which there We're no ready mar
kets-were reduced. Agriculture as an
industry arose from the brink of bank
| ruptcy
Charged With Shortages.
Critics accused the AAA of promoting
scarcity and food shortages. Some
charged it sought to subject agriculture
to the will and control of strong Fed
eral Government. Others declared the
AAA deprived farmers of their economic
freedom and independence of action.
involved in this criticism was States
rights issue. Prior to the AAA, farmers
had looked to State and county gov
ernmental agencies for advice and guild
ance. Those agencies were the State
extension services and county agricul-
tural agents. The extension services
generally were connected with the State
agricultural colleges
The AAA quickly showed these State
agencies aside. Jealousies naturally de-
veloped
Now the situation is reversed. Farm
ers no longer are plagued by so-called
| SurpluSes. There Is ready market for
everything they can produce And
| prices are good. Producers don't need
to lean on the AAA for benefit payments
-
| acreages in line with limited market
The AAA has been called a Crop
curtallment' agency. Its officials and
| advocates objected to such a designa-
ton. They claimed it could be used as
| mechanism to expand or contract pro-
| auction as the need might be. They
lkened it to bellows. If larger pro-
duction was needed, all the AAA need
| do. they said, was to increase planting
| ailotments.
Wen, as noted above, the War Food
| Admlnistration-the agency controlling
the AAA-has dropped AAA acreage
| alotments and marketing quotas for all
crops except tobacco.
Feared Food Acreage Lost.
| The reason assigned to their reten-
| ton on tobacco is to prevent diversion
OF excessive acreages from food crops,
| Tobacco is bringing excellent prices and
| officials note the possibility of too much
| production at the expense of food crops
| ii there were no restrictions.
In dropping AAA planting controls,
| VIA officials said that the formula
Tor determining acreage allotments was
too rigid to allow efficient utilization of
the Nations land resources.
All this does not mean, however that
the Federal Government will cease to
exercise strong influence on agricul-
tural production. In the future-at least
for the duration of the war and few
years thereafter while the demand for
American food overseas continues heavy
that influence will be less direct, more
subtle-but possibly just as powerful as
ever
The Federal Government will continue
to do the overall planning for produc-
ton. 1t will determine needs for vari-
GUS crops. Then it will set up prices
winch would tend to encourage paintings
and production to match those needs
For example, should the Government
decide that more dry beans and fewer
sugar beets were needed, it would provide
prices which would make beans better
paying proposition than beets in areas
where the two crops are interchangeable.
Shifts in other crops would be handled
in similar manner.
The Government will use price CELL
lngs, price supports and commodity loan
programs to set up scales of prices which
would tend to encourage the type and
character of production needed. In many
cases prices of some commodities might
be supported above consumer ceiling
prices. The Government could buv such
commodities at the support price and re-
sell to distributors at levels which wol:>-s
permit sale to consumers at lower CELL
ing prices Such operations would involve
losses to the Government. Those losses
would be, in effect, subsidies.
Farmers Hands Freed
ms method of supporting grower
prices at levels above consumer ceiling
prices is being employed on several COM
modltles this year, including peanuts for
processing into edible oil, canning crops
and sugar beets.
Under future war food programs, the
individual farmer will be absolutely free
with the exception of tobacco-to pro-
duce what he pleaSeS The Government