Evening star., 1954-01-11
Mojor Features Of Form
'Proqrom

Program
The new farm program here
proposed is consistent with all
the foregoing conditions and
fundamental considerations. It
has five major features:
/. The new program should
first be given an. opportunity
to start operating without the
handicap Of such large accu-
mulated surpluses. This is to
be done by setting aside cer-
tain quantities, of our surplus
commodities. eliminating them
from price support computa-
tions.
g. The l948 and 1949 Agri-
cultural Acts were soundly con-
ceived and receievd bipartisan
support. The principles on
which they were based are par
ticularly applicable to the ag-
ricultural industry today, Al
though based generally upon
those principles, the proposed
agricultural legislation of 1854
contains certain new features,
improvements and modifica-
tionS.
8. The amendment to the
1949 Agricultural Act providS
ing for mandatory rigid sup
ports, attuned to war needs
and demonstfably unworkable
in peacetime, will be permitted
to expire. After the 1854 crops
the level of price supports for
the basic commodities will be
gradually related to supply.
promising farmers greater
stability of income.
4. Modernized parity is to
become effective for all COM
modities on January /, 1856.
as scheduled by law. Provision
should be made for moving
from the old to modernized
parity in steps Of five per-
centage points of the old parity
per year until the change from
old to moderniZed parity has
been accomplished.
S. The key element of the
new program Is a gradual ad-
justment to new circumstances
and conditions. Application OF
modernized parity and the re-
lation of basic crops to supply
levels require a transition Pc
riod to assure a stable farm
economy. This transition
should be accomplished in a
prudent and careful manner
to avoid sharp adjustments
which would threaten the dis
location of the program.
6. In keeping with the policy
of gradual transition. the Sec
retary of Agriculture will use
his authority under the Agri-
cultural Act of l949 to insure
that year-to-year variations in
price support levels will be
limited
7. The authority of the Sec
retary of Agriculture to apply
price supports at more than
90 per cent of parity when the
national welfare or national
security requires should be
continued
Pority and Price Supports
Under the provisions of the
Agricultural Acts of 1948 and
l949 the Government will:
/. Support the prices Of ba-
sic crops of those farmers who
cooperate with acreage al
lotments and marketing quotas
when such are in effect:
2. Announce the price sup
port level for various crops
before those crops are planted.
insofar as practicable;
3. Support price levels at up
to 80 per cent of parity. For
some products a schedule Of
price floors will also be pro-
vided as authorized by the
1949 act. ranging from Is to
80 per cent of partly, according
to the relationship of total
normal supply; and,
4. Vary the price support
level one percentage point for
every two percentage points OF
variation in the total supply.
If the supply is short. higher
support levels will encourage
production. If the supply is
overabundant. a lowered price
will stimulate consumption.
Thus, not only will a floor be
placed under all basic crop
prices, but variations in price
and supply will tend to offset
each other, and thus stabilize
the income of the farmer.
Modernized Pority
Parity calculations for most
conditions under the old for
mula are based upon price rela-
tionships and buying habits Of.
40 years ago. Because meth
ods of farm production have
changed markedly, the Con-
gress has wisely brought the
parity concept up to date.
Modernized parity takes ac-
count of price relationships
during the most recent 10
years. 1t permits changes in
farm technology and in con-
sumner demand to express
themselves in the level of price
support and restores proper
relationships among COM
modities.
For the basic commodities,
the law provides that until
January /, 1856. the old or
modernized parity. whichever
is higher, shall be used. For
all commodities except wheat.
corn, cotton and peanuts.
modernized parity is already in
use.
Equitable treatment of the
various commodities requires
that we should use modernized