Evening star., 1953-01-04
6. 0. P. May Inherit
Farm Recession as
Prices Tumble Z PET.
By Ovid A. Mortin
Associated Press Farm Reporter

so ssO u
By Ovid A. Mortin
=, Associated Press Farm Reporter.
Will the incoming Republican
administration inherit budding
farm recession from the Demo-
Gratis?
This question is being pondered
In political and farm circles be-
cause Of declining agricultural
prosperity. Farm prices tumbled
IL per cent during the last year
and nearly S per cent in the past
two months.
With these price setbacks have
come a slightly lower level Of farm
income. although production in
1852 topped all previous marks.
The farm price dips have been
particularly sharp in the Midwest
ern and Western livestock produc-
ing areas, which are politically
and economically important. Farm
er voters in these areas played
major roles in keeping the Dem
ocratS in power in Washington
during the past 20 years and
helped dislodge them last No
vember.
Would Affect "a Vote.
Politicians are aware Of the
possible effects of a farm recession
at the congressional elections In
1854 and the next presidential
election in 1856.
Hence, the kind of job per-
formed during the next year or so
by incoming Secretary of Agricul-
ture Ezra Taft Benson may have
much influence in determining the
G. o. P. fate at future polls.
Most farm leaders and econos
mists believe that there may be
further setbacks in farm prices |
and income this year and possibly
next. But few believe the Nation
is headed for a farm depression.
This belief is based on the fact
that the Government now has
broad powers to prevent drop in
farm prices to depression levels.
Those powers include price sup
port programs. backed by a $6.85
billion kitty. and by broad author
ity to restrict the production and
marketing of price-depressing sur
pluses of major crops. It also has
authority and funds to finance
sale of surpluses abroad at cut
rate prices. ......
Accustomed to Prosperity.
But these powers and programs
may not be- sufficient to help
farmers maintain the kind of
prosperity to which they have be-
come accustomed since the start
of World War II. Therein lies the
big farm problem that the new
G. o. P. administration may face
in the. years Immediately ahead.
President-elect Eisenhower and
the Republican Party platform
promised farmers more than
would be provided under present
price support programs. They
said producers were entitled to
full parity for their products.
Parity is standard for measur-
ing farm prices which the Roose-
velt and Truman administration
set up and maintained as their
goal. It is designed to be equally
fair to farmers and those who
buy their products.
Farmers have enjoyed prices
averaging at or above parity for
most of the time since. the early
forties. However. prices dipped
below parity late in 1852 and
closed the year at only SO per
cent Of the parity goal.
Would Improve Marketing.
The Republicans have promised
that they will seek to help farm
ers get full parity not through
Government subsidies of controls
but through a better job Of pro-
duction and marketing.
However. they are pledged to
retain. for time at least. the
principle of Government support
of farm prices. But they face an
internal squabble over the level
of support.
Present legislation directs sup
port of major crops at not less
than 80 per cent of parity through
1854. After that. a flexible sup
port scale, ranging from IS to 80
per cent for major crops, will 60
into effect unless Congress directs
otherwise.
Divided Over Level.
COP farm leaders in Congress
are divided over the support level.
Some, including Senator Young of
North Dakota and Representative
Hope of Kansas, favor permanent
80 per cent supports. Senator
Aiken of Vermont, on the other
hand, is a strong advocate of f1ex-
ible supports.
Gen. Eisenhower must decide
before 1854 whether to recommend
continuance of the. 80 per cent
level or adoption of a flexible
scale, or whether to recommend a
whole new approach to the farm
price problem.
The Republican goal of getting
full parity by better production
and marketing methods will not
be easy to reach.
One reason why farm prices de-
clined during the past year and
why they may decline more Is the
fact that overseas markets for
American agricultural products
are shrinking. Foreign buyers are
faced with a dwindling supply Of
American dollars with which to
buy United States food, cotton and
tobacco.
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