The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1954-08-13

creased about 7 per cent.
90 While the detailed facts
may be hidden from view, many
of the farmers customers know
that something is wrong" and
they do not like 1t, The general
public became resentful about the
potato and egg programs which
resulted in the government re-
moving price supports on these
commodities. The general situa-
ton with respect to wheat and
other commodities Is causing SINH
lar resentment. Unconsciously the
general public understands that If
land, labor. and equipment is be-
ing used to produce commodities
which are not being sold that
someone is paying for this waste
They suspect that somehow they
are being unfairly treated. There
isn't any question but what con-
sumers ultimately have to pay
for using resources to produce
what consumers do not want.
III. 90 PER CENT OF PARITY
GUARANTEE STIMU TES
PRODUCTION AND WASTES
RESOURCES
/. Production stimulated.
The fact that an incentive
price will increase production has
long been Recognized by the Con-
gress. which repeatedly has used
this device to stimulate produc-
ton. in time Of need The Senate
recently Recognized this principle
in passing the wool bill
The fact that a less attractive
price will help bring overexpanded
production back into line has like
wise been recognized by the Con-
gress.
At this time. when less produc-
| ton is needed, the, continuation Of
80 per cent of parity rigid price
support, an incentive price is
wholly inappropriate. Experience.
the expressed judgment of the
Congress. and economic fact all
argue against it.
2. 80 per cent rigid supports dis
courage sound soil conserving
practices.
High price supports have kept
parts OF the dust bowl in wheat
instead Of grass. High price sup
ports have kept cotton on erod-
Ing hilsides In parts of the south
east, when this land should be
shifting to livestock production.
High price supports for corn
have resulted in cash grain por-
duction ON midWestern farms
which otherwise would have been
in the livestock business.
| Grass and forage -consuming
livestock are major contributors
to a program of wise soil conser-
walton. This kind of farming is
discouraged by 80 per cent OF
parity-price support on grain anc
row crops.
3. Consumers incensed by increas.
ed taxes.
The public generally. as well a,
the farmers, are aware of the fact
that the public debt is strainine
at the 275 billion limitation anc
that rigid price supports have
helped contribute to this burden
The reality of taxation and the
burden of The public debt cannot
be explained away to the taxpayer
by falling to look at all of the
costs. While it is true that the
Commodity Credit Corpora ton
has only suffered losses of a little
over 81 billion on the porgram
that it calls price support. it is
only fair to point out that Bill
lions OF dollars have been spent
Tor surplus removal programs.
acreage allotment and marketing
quota programs. none of which
would have been carried out ex-
cept for the problems created bv
price supports, The Department
OF Agriculture has submitted facts
which make it abundantly clear
that rather than the true cost of
price support being a billion dol
lars, that it is many. many times
this figure. However, this is not
the most Important issue A. the
real question is-Have rigid sup
ports worked? Obviously they
have not worked and we are not
getting full value for the money
spent.
Nv. RIGID PRICE SUPPORTS
INJURE OUR COMPETITIVE.
FREE CHOICE. ECONOMIC
SYSTEM BY
Cd Undermining the function
ing Of price.
% Pena'izing the efficient.
CD Rewarding the inefficient
and
% BY making farmers de-
pendent UPON the government.
!. Excessive prices pile up sur
piuses. which depress price.
Six and half billion dollars
worth OF American farm products
have been piled up In the effort
to make price support effective. S