Evening star., 1947-01-10
Truman Sees AT Loss
OF 100000 in
Crop Price Support
By Ovid A. Martin
Associofed Press StoH Writer

PRESIDENT truman To-Day 1oreCoiC
Government losses of at least $780,
100000 in supporting prices of 1947
crops and asked Congress for meas
ures to prevent excessive" expendi-
lures on surpluses.
The loss forecast was made in the
Chief Executives budget message in
which a cut In Government subsi-
dies to farmers for soil conservation
also was urged.
Under Mr.. Truman's recommends
tion, $780, 900 authorized for soil
conservation payments in 1947
would be cut to 5000. .o00, 900 in 1948.
His estimate of $3.50, 900 900 loss
on price support operations is based
on the assumption of Continued
general prosperity" He said losses
would be much larger should farm
markets be depressed.
- Losses Not Included.
:. These out1ays would not include
losses, which ultimately might be
sustained on surplus wheat, corn,
cotton, tobacco and other products
which are expected to be stored
under Government price-supporting
loans to growers.
The losses would result from Gov
ernment purchase of surplus perish
able products expected to be given
away, sold at cut-rate prices or
w,o or ad fo,. la oL of a ~, a rbo+ Evony,+
for loss of about $50. .0e0, 900 on po-
tatoes, price-support outlays have
been negligible this year.
However, with wartime demands
declining and with agriculture
geared to record production levels,
officials have stated that price sup
port operations might cost as much
as 81 1,500, 100000 a year within two
or three years.
Farm Programs Needed.
With this prospect in mind, Mr..
Truman told Congress that the Ma
tion needs farm programs designed
to balance supplies with demands so
as to avoid excessive expenditures"
for price supports.
1--WE should facilitate" he said,
"the transfer of unnecessary farm
labor and resources from agriculture
to industrial and other pursuits"
While anticipating increased costs
for price supports, the Chief Execu-
tive recommended that Agriculture
Department funds for the next fiscal
year be cut $73,588, ,033 from this
years $1,252, ,159,351.
In urging a slash of soil conserva-
ton subsidies, Mr. Truman said most
of the money is being paid to
farmers who, because of their
strong position in agriculture" would
undoubtedly continue the best farm
management practices without the
persuasion of bonus from the
Treasury"
Reduced Costs Urged.
He said the Government should
shift from the subsidy program to a
less costly program providing all
farmers with technical guidance on
good soil use.
The President recommended also
that the department $4,750,000, 900
Commodity Credit Corp.-the agency
which finances the price supports
be rechartered by Congress. It is
now operating under charter for
which congressional authority ex-
pires June 80.
Other appropriation recommenda-
tions included:
The Federal-State school lunch
program, STE, 100000, or the same as
this year; grower subsidies under the
sugar control program, $55 900. 600
compared with $53.5OO,0OO this year;
the Rural Electrification Admins
tration, $3.50, 900 900, or the same as
this year; the Farmers Home Ad-
ministration for aid to low-income
farmers, $171 100000 compared with
$181, ,789 ,582 this year, and agricul-
tural research, $78 8,206, ,958 compared
with S56. .375 900 this wear.