Evening star., 1943-09-16
Marvin Jones 10 Put
Milk Problem Before
Senate Committee
b, the Associated Press.

b, the Associated Press.
War Food Administrator Mar
win Jones will lay before the
Senate Banking Committee to-
morrow critical milk produc-
tion problem which, If unsolved,
might lead to consumer ration
ing Of fluid milk this winter and
to higher ration values on
butter, cheese and canned milk.
The food chief will suggest, aides
said, the possible use of Govern
ment subsidies during the winter
season, when production costs gen.
orally advance.
Dairy experts of the War Food
Administration estimated such SUBJ
sides might run between s140, 0,0OO, :
900 and $16o, ,OOO, 900.
Meanwhile. both the White House
and Congress took up the 1914 food
output problem for minute examina-
ton to insure an adequate diet for
tine Nation besides meeting huge
foreign commitments.
VIII OukiinG Views.
Mr.. Jones accepted an invitation
to outline for the House Agriculture
Committee Monday his ideas for
next yearss program-production,
distributions and price fixing.
Chairman Fhlner said the COM
mittee and ahe, farmers want to
know lust who from now on will
have the definite power" over the
food output and what plans are be-
ing contemplated.
The food SUBJECT also occupied the
attention of President Roosevelt who
met with his advisers and with lead
. ers of the major farm organizations
yesterday. 4
A 1914 program involving some
what lower level of guaranteed farm
prices-ahd hence fewer Govern
ment subsidies-may be the out
growth of those discussions.
Many areas, particularly urban
districts, already are running into
milk Shortages fact which last
week led the VIA to inaugurate a
system Of dealer quotas.
Biz Milk Drop Expected. =.
The Bureau OF Agricultural Eco
nomics said in recent report that
milk production in 1914 might drop
to l15,0O0 0O0, 900 pounds, or 1000
900 900 less than the VIA goal, ur,-.
less steps are taken to encourage
greater output.
Dairy authorities said the present
ceiling prices on milk and dairy
products are insufficient to cover
winter feed and other production
costs. Inasmuch as Mr.. Roosevelt
has issued orders that the line be
held on food prices, an increase in
ceilings appears to be out OF the
question.
Subsidies might be In one of two
forms, or a combination of the two.
They might be paid to dealers to
enable them to pay dairymen larger
prices without increasing consumer
prices. Or the subsidies might be
made in the form of reduced feed
prices. The Government would buy
the feed at market prices and sell to
dairymen at a reduced price.
Aides said Mr.. Jones would offer
Congress no definite program, but
would lay the problem before the
lawmakers with the suggestion that
subsidies offered one solution.
Subsidies for Emergencies.
The farm leaders brought from
the presidential meeting yesterday
assurance, they said, that subsidies
which most of them oppose-would.
be used sparingly and only In cases
of emergency.
That assurance may indicate that
the administration is planning to
make some changes in its price sup
port program, under which the Gov
ernment aims to guarantee farmers
above ceiling prices by buying at a
higher price and reselling at lower
figure, taking loss on the differ
ence. Reports have been circulated
that the administration planned to
ask Congress for at least billion
dollars to cover such losses.
The National Grange and the
American Farm Bureau Federation,
as we'll as some congressional farm
bloc leaders, object to such pro-
gram, contending the losses were
nothing less than consumer subsidies.
They ask for ceilings based on the
support prices.
VITA officials said elimination. ex-
cept in the case of a few special
items, of supports in excess of cell
ings appeared to be the only way of
meeting objections of the subsidy
critics.
Prices Well Above Parity.
Some administration economic
advisers believe the Government has
placed too much emphasis on price
as factor in obtaining maximum
food production They contend that
some commodities have been sup
ported at too high level.
Latest Official figures show that
the general level of farm prices is
II per cent above parity. Parity
prices have been defined as those
equally fair to producers and con-
Sumers.
1t would be possible to lower the
support prices on some commodi-
ties, eliminate Government purchase
and losses and at the same time
maintain farm price level of more
than parity. ..
Other commodities besides milk
now supported at levels in excess
Of ceilings include peanuts and soy
beans grown for vegetable oil and
other FOODS, major canning crops,
sugar beets. dry beans and peas.
Next year this list may be re-
duced to milk in the winter season
OF high feed prices, peanuts and
soybeans and a few minor crops.
The VIA has already reduced the
support price of one major farm
Neutrality-suspicious. on next years
production.
Soone Sees Roosevelt