The globe-independent. (Hagerstown, Md.) 1943-19??, 1945-12-06

Economic Development today made
public a policy statement on "Agri-
culture in an Expanding Economy"
based on an 18-month study of the
problems and prospects facing
American agriculture
Speaking as Vice-Chairman of the
Research Committee, Chester c.
Davis, President Of the Federal Re
serve Bank of st, Louis, outlined the
Committees findings and stressed
the fact that the serious problems
ahead for American farmers are also
! the common concern of business
men, labor and citizens generally
The CED statement calls particu-
lar attention to three focal prob
lens facing postwar agriculture and
traces the possible effects of these
on the whole country. The Com
mittee sees as critical the oversupply
of manpoWer that in peacetime had
been backing up" on the farms as
result of low industrial and com
mercial activity. Two other farm
problems that receive special atten-
ton in the CED statement are the
instability of farm income and the
inadequacy of farm product price
policy.
In releasing the CED statement,
Davis pointed out that the vast de
mands of war had temporarily
solved" some of these farm prob
lens but at the same time it had
opened the way to their return in
aggravated form when the demands
of war and rehabilitation have been
met. Farm product prices doubled
during the war over the low 1899
level, and production went up one
! fourth. Yet, during the same period,
against this tide Of rising prices,
| there was movement off the farms.
Farm population dropped from 80 to
Is million people This helped to
correct problems that had stemmed
from the prewar oversupply of man
power on farms.
But, as the statement points out,
the war also fastened the progress
of agricultural technology. Thus, as
postwar demand for farm products
recedes from wartime levels, still
less farm manpower will be re-
quired to produce the food, feed
and fibre needed. Viewing this com
bination of factors, the Committee
warns against overemphasis on
nostalgia back to-the-40-acres" sug-
gestions for taking care of veterans
and employed war workers. 1t
warns likewise against the current
boom in land prices.
Since the manpower surplus on
farms and the instability of farm
earnings are tied directly to the
level of industrial activity, the CED
Research Committee sees as the
primary solution the expansion of
non-agricultural employment This
would serve the dual purpose of
absorbing the under-utilized farm
manpoWer and, at the same time,
provide additional goods and serv-
ices for a rising standard of living.
Even if we can achieve prosper
Gus conditions in the economy as a
whole, the Committee sees a con-
tinuing need in agriculture for the
cooperative machinery provided by
Government. Few of the adjust
ments called for in the farm sector
can be effected by the Individual
farmer working alone, in its opinion.
In the area of price policy, the
Committee believes we should re-
examine the entire system, begin
ming with a re-definition of parity"
IN the light of current agricultural
conditions. While it believes that the
following three types of government
payments may be needed in the i'm
mdiate future, it warns against their
continuation to a point which will
tend to preserve artificial or I'M
economic farm conditions.
l. Transition payments ito dis
charge the governments commit
ment to support farm prices for two
years after the war" This should
be done Sin such a way as not to
be detrimental to agricultural pro-
duction or to trade, and without
concealing necessary or desirable
farm production changes"
2. Adjustment payments as an
aid to farmers in depressed sectors
OF agriculture, such as the cotton
South, in transferring to other farm
products or to non-farm occupa-
lions. The payments would be tied
to specific performance and geared
to achieving bettre balanced
economy in the areas affected.
3. Compensatory payments, to
counteract the adverse effects OF
acute industrial depressions upon the
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