The people's voice. [volume] (Helena, Mont.) 1939-1969, 1953-11-13


support loan rate would drop to 5000 of
parity.
The best that can be expected is that the
loan rate in 1855 would be set at 1870 of parity
$1.33 per busheD and that the market price
would be at under the loan level.
THE WORLD PRICE OF WHEAT, if it were
higher than the corn loan level or market price,
would be the Glow price, in effect for u S. wheat
farmers. The minimum farm price under the Inter
national Wheat Agreement is S. AT per bushel (The
IVA minimum price of $155 or &c less for handling
and &c for transportation from farm to port) If the
world price were to stabilize at the IVA minimum,
y. S. wheat would be exported instead of being
bought for feeding livestock and the wheat farmers
Glow price, would be about $1.47 per bushe
However, the amount of .. S. wheat for feed
export would almost certainly exceed the U. S. quota
under the NV A. except in years of widespread drOuth
Ii so, the world price for wheat outside the IVA
might we'll fall below the IVA minimum The Brit
ish, by refusing to join the IVA, gambling that
will happen.
The only definite assurance that the wheat
farmer would have in respect to the market price
of wheat would be the two-price plans
support loan at Slightly above the
loan level. This might we'll be $1.33 per busheI
1870 of the present parity price of corn. Thus,
$1.35 per busheI for wheat is a reasonable esti-
mate of what the Glow price" would be under
the two-price plan.
EVEN THAT WILL NOT BE THE END of the in
reductions wheat farmers will face under the
two-price plan.
The plan assumes that the ''roll back parity
formula in the present law which is to take effect in
1856 will be applied to wheat in annual steps of %.
Although the marketing certificates production
payment) wheat will be averaged into the 10
year moving average used in determining the roll
back" parity price of wheat this will contin-
drop, year after year. for many years. in the of
fetal parity price of wheat
AS parity is "roed back year after year.
the production payment to farmers the wheat
allotted for domestic consumption will be
duced. And this will contribute further to the
reduction of the parity price itself in future
years
And parity is ''rolled back" the
two-prce plans Glow price" floor for wheat will
drop with it. This will reduce the wheat farm
er's income, and will tend also to reduce the of
ficial "parity' price of wheat.
"TWO-PRICE" PLAN FOR WHEAT WOULD SET
PATTERN FOR COTTON, RICE, TOBACCO
If the 'two-price" scheme is accepted for
wheat the way will be wide open for enactng
similar plan for cotton, rice, and tobacco.
These crops, like wheat depend heavily
ports for their market In 1851, the u. S. exported
approximately 81 % of U. S. rice 1870 of U. S. cot
ton and 25% of U. S. tobacco. The arguments adj
vanced by those who support two-price scheme for
wheat apply fully we'll to cotton rice and tobacco.
Wheat producers count on help from produc-
ers of feed grains, which would suffer serious
petition from cheap wheat if the two-price scheme
is adopted, in fighting against it. But producers of
cotton, rice and tobacco do not have similar 'na-
tural" allies to count on.
Moreover adoption of a price plan for wheat
would in all probability, touch off wave of re-
5trictions trade in foreign countries Their
wheat farmers would consider any tWo-price scheme
to be dumping of our surplus wheat on their
1ets This would inevitably reduce all u S. exports
including other crops well Industrial products
NORTH DAKOTA UNION FARMER.