Evening star., 1954-01-11
Farm
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TUIIU
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justed to existing conditions in
the Nations agriculture. This
message presents to the Congress
that new program.
1T will help the farmer attain
full parity in the market. It
win avoid creating burdensome
surpluses. It will curtail the
RECOMMENDATION of production
planning. lessen the problem Of
diverted acreage, and yield farm
ers greater freedom Of choice
and action"
Gen. Eisenhower said that.
destruction of surplus commod-
tiles can not be countenanced
under any circumstances"
They can be insulated from
the commercial markets and used
in constructive ways" he said.
"Such uses will include school
lunch programs, disaster relief.
aid to the people Of other coun-
tries, and stockpiled reserves at
home for use in war or national
emergency.
II recommend that authority
be provided to set aside reserves
up TO the value of $2.5 billion
from the stocks presently held by
the Commodity Credit Corpora
ton. Broad discretionary au-
thority should be provided to
manage these frozen reserves.
Must Have Leeway.
Gen. Eisenhower said the ad-
ministration must have "suf-
flcient leeway to make timely
changes in policies and methods.
including price support levels
to foresee and forestall new
difficulties in our agriculture.
rather than to attempt their
legislative cure after they have
arisen"
Adjustment to q new farm
program must be accomplished
gradually" Gen. Eisenhower
added.
The President said, "the Ma
tons agricultural problem is not
one Of general overproduction."
Consumer Demand High.
Consumer demand" he said.
continues at or near record high
levels; the average price of farm
products that lack direct price
supports have been as high in
recent years as those or price
supported products.
1.-The problem is rather one of
unbalanced farm production, re-
sulting in specific surpluses
which are unavoidable under the
present rigid price supports"
Gen. Eisenhower divided his
message into two sections. The
first discussed his general farm
philosophy and objectives. The
second section was a detailed
discussion Of individual COM
modities.
Gen. Eisenhower's program re-
vived one old ideA-a direct pro-
duction payment to American
wool growers. Under this pro-
posal, American growers would
sell their product in the open
market for what they could get,
The Government then would give
the growers a subsidy intended
to assure them a total income
equal to q price Of 80 per cent
Of parity.
The Agriculture Department
now buys American wool at prices
Of 90 per cent Of parity. Gen
Eisenhower said this has led to
Government storage Of American
wool and American use of foreign
wool. which can be imported at
prices below the Government
supported American level. Money
for the subsidy to wool growers
would come from tariffs collected
on American imports Of foreign
wool.
Gen. Eisenhower also proposed
these treatments of individual
commodities:
Wheat-Substitution of flexi-
BILE supports between rs and 80
per cent Of parity for the pres
ent mandatory 80 per cent sup
ports, which Gen. Eisenhower
said have encouraged so much
bverproduction that the Govern
ment now holds more than 50
billion worth Of the grain in
storage. Gen. Eisenhower also
complained that the Govern
pent-fostered high price Of
American wheat is making the
United States lose its foreign
markets to Canadian wheat.
Gen. Eisenhower would have new
support levels 60 into effect
gradually. Beginning next jan
uary /, q shift from an old parity
formula to an already adopted
modern" parity formula would
go IN effect at the rate Of 5 per
cent q year. Gen. Eisenhower
also wanted continuation of
present acreage allotments and
marketing quotas laws.
Corn-Substitution Of flexible