Evening star., 1943-11-01

prices for their crops because they
raised so much more than people
were able to buy, and also because
the foreign market for their prod
ucts had practically disappeared.
AS result of this glut, this sitting
excess Of supply over demand, farm
prices faded away to almost Moth
ing, and it was necessary to re-
strict production by taking inferior
land out of production in order to
save agriculture from the complete
bankruptcy which was threatening
1t in 1892
The farmers themselves voted to
do this, because of conditions which
consumers we'll understood and ap-
preciated, for they knew that that
was the only road to salvation for
agriculture and for the country as
a whole
Since the present war began. how
ever, and the demand for food has
outStripped the supply. these restric-
tons have been lifted and there are
now no limitations on the produc-
ton of food
Another fact which is often over
looked by the critics of our acre
age adjustment program is that
more acres were put into soil-im-
proving crops and legumeS and thai
many conservation practices were
lnStltuted-Such as terraCing, cover
cropping and contour farming
which actually improved the soil 50
much that, although less acreage
was in production, more food per
acre was produced In fact. the
great improvement in our soil which
resulted from our agricultural pro-
grams has made possible the record
1000 production Of recent years.
IN planting for 1894 We are de-
termlned not tC repeat the blundcr
OF the First World War-p!owing
and planting crops without regard
to the fitness of the land. and with
out regard to proper soil conserva-
ton. The dust bowl which was
created by these practices has
caused too much sorrow and suffer-
ing and financial loss in recent wears
to let US forget the lesson.
The increased production goals
Tor 1914 involve not only an increase
III the total food production but also
shifting production from one kind
OF food TO other kinds which are
more necessary. The plan calls for
the right amount of the right things
IN the right places-and the objec-
tive Will be to stretch our food sup-
ply as far as possible Accordingly.
the largest increases in production
Will be for those crops which fur
n!sh food for direct human con-
sumption.
Plans are also under way to in
crease our food supply BY the de-
Velopment and procurement of food
abroad. l have already mentioned
now our assistance in developing
iood production in North Africa ha>
made and Will make available food
for our armed forces abroad unde!
reverse lease lend. Other sources
OF foreign food may be available tC
US. The functions Of handling for
elgn food development are being
centralized in the Foreign Economic
Administration so that our food
supply can be augmented III the
most effective way.
support Prices.
IN order 10 induce farmers to in
crease production TO these new goals
and at the same time keen the cost
OF food down, it Will be necessary to
increase the amount of Government
funds which were used for these
purposes in 1913.
Government funds have been
used III various different Wavs in
order TO see that the farmer got a
fair price for his product-a price
nigh enough TO encourage him to
raise more CrOpS-WIthout raising
the price to the consumer. All OF
these administrative methods O.
guaranteeing a minimum price tC
the farmer for his products
whether they take the form of non
recourse loans or guaranteed prices
or SUBSIDY payments. or actual pur-
chase and reSale-are genericaIlI
called price supports. and are in
cluded IN the price support pro-
grams. The purpose of the price
support program is primarily TO en-
courage the farmer to grow a crOr
with the assurance that. 10 matter
what happens he is going to get 9
certain definite return for it. I.
the price which the ultimate con-
sumner pays as fixed by the price
regulations is less than an amOun'
which will pay the farmer this re.
turn. then the Government absorb.
the loss and sees TO It that tn,
farmer gets what was gUsrantpeC
to him. The farmer also enjoys thl
guarantee when prices in the marke
fall below the support level. If tn,
price which the consumer has to pa,
as fixed by the price regulations i
high enough to pay the farmer hi
support price. then. of course. there
is no loss to the Government.
In certain commodities the Wa,
Food Administration knows in ad
vance that il Will have to bear par
of the cost Nevertheless. tht
charge will be a necessary part O.
the program to produce enough food
without having the consumer pa,
too much for it.
We cannot and should not eXpec
the farmers of the Nation to in.
crease their production all over tht
United States if they face the def.
mite risk of loss by reason of suCl
production. We do not expect in.
duStrlal war plants to take Sucl
risks and there is no reason why the
farmers should.
I am attaching herewith state.
ment of the commodities for which
Commodity Credit Corp Suppor'
prices were in effect during 1874,
I Schedule A.. The Congress vii
notice that in some of the commodi
ties such as cotton, corn. wheat. to-
baCCo and rice these support price
have been in effect for several years
l am also attaching a statemen
showing the cost to the Government
Of this support price program 70
l943 lSchedule b. The Congress
Will notice that production of Onl,
a fraction of the commodities re
QulrCd any OUTLAW bV the Govern