Evening star., 1950-01-01
| Farmers Dependency
On u. ). 10 Increase
In Coming Year
By Ovid A. Mortin
, Associoted Press Sfoff Writer

py OFto -. MoTtiH
Associated Press Staff Writer
Agriculture will be more de-
pendent in 1850 upon the Govern
ment for its financial well-being
than perhaps in any year since
before the war.
The reason for this is to be
found in the fact that prices of
many farm products have fallen
or are expected to fall to levels
at which the Agriculture Depart
ment supports them.
During and since the war, most
farm commodities advanced
sharply in price under the influ-
ence of heavy demand.
Now that the pendulum is
swinging in the other direction,
price support policies will deter
mine in large measure Just how
low prices will go and farm in
come will drop.
Farm products which already
are down to or below current Gov
ernment support levels include
cotton. wheat, corn, cottonseed,
grain sorghum, peanuts, flaxseed,
potatoes, tobacco, apples, butter,
eggs, hogs and possibly rice.
1850 Rates Yet to Be Fixed.
Except in the case of a few
products. price support rates for
1850 are yet to be determined.
New price support legislation 60
ing into effect the first of the year
gives Secretary of Agriculture
Brannan much wider discretion in
setting support levels than does
the old law.
Because of this broader author
ity, the Secretary is in position
himself to fairly well determine
agriculture level of prosperity.
The new law requires supports
for the so-called basic crops
cotton, corn. wheat, rice, tobacco
and peanuts-to be maintained at
or near 1949 levels.
But in the case of many other
important products the Secretary
has authority to reduce supports
below mandatory levels of 1949
Included are hogs. chickens. eggs,
milk. butterfat. soybeans and
turkeys.
Whether Mr.. Brannan will set
supports at relatively high levels
or reduce them where he has the
discretion is a matter of specula-
ton at the present.
Favors High Supports.
The Secretary has made clear
in testimony before congressional
committees and in speeches that
he favors relatively high supports.
He argues that they are necessary
devices to prevent a collapse in
farm buying power which. he says,
would bring on a new depression
for a Nation.
This does not necessarily mean,
however, that Mr.. Brannan viii
maintain supports at or near
maximums permitted by law.
Staring him in the face are rising
surpluses of many farm products.
Generally speaking. the higher
price supports are the larger is
production. Furthermore, the
larger the production the bigger
are the supplies which the Gov
ernment must take over under
its price support operations.
Already the Agriculture Depart
ment has more than $2,750. 900. 900
tied up in farm surpluses. During
the fiscal year ending last June
80. # took a loss Of $254, ,000, 900
on such commodities. Losses dur
ing the current fiscal year may be
double that amount.
Mr.. BraEnan himself has
warned that taxpayers are likely
to balk against prolonged losses
Of this kind.
Crop Controls Return.
The Government has taken
steps which 1t hopes will hold
down the size of further outlays
on price supports. Those steps
include a return to prewar pro-
duction control measures designed
to hold output more nearly to the
size of market needs.
It has invoked rigid marketing
quotas on the 1850 crops of cot
ton, peanuts and tobacco. It has
or will set up acreage planting
quotas to reduce 1850 production
Of wheat, rice, corn, potatoes and
possibly soybeans.
But the Government is without
authority TO restrict production Of
products such as pork, eggs. poul-
try, butter and milk. These prod
ucts are costly when it comes to
Government buying for price-sup-
port purposes. Because they are
highly perishable, 1t is difficult
for the Government ever to get
its money back out of them.
Naturally, the restrictive pro-
grams on the crops will have
tendency to reduce farm returns
from them.