Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-05


could get a decent price for
their hogs. Agriculture Secre-
tary Ezra Taft Benson last
week provided an answer.
On visit to the Chicago
stockyards the Secretary noted
that the days top price was Is
cents under the previous days
top of $15.25. He said he
didn't want to leave until the
$15.25 figure was reached again.
Mr.. Benson got into a friendly
dispute with a buyer over the
value Of porkers in a nearby
pen. The two exchanged opin-
ions until finally a truckload
passed which the buyer
snapped up at $15.25.
The next day, however, prices
dropped back to SIS. Before
the end of the week, they
plunged to less than $14. The
Secretary made no move to re-
sumo his impromptu role of
auctioneer.
Mr.. Benson, however, adj
monished meat marketers to
tighten their marketing cost.
He drew an immediate reply
from the American Meat In
titute, which said that 1t was
impossible because packers
profit margins are VIGOROUSLY
low" d955 net income Of Swift
& Co. was 20 per cent over
1854; Armour's net was up $50
per cent; Wilson g. Co. in 1855
declared its first common stock
dividend in three years, and
Hormel's dollar sales hit a new
record.)
Popularity at Ebb
Mr.. Benson's popularity also
hit q records record low.
The Iowa farm publication,
Wallace's Farmer and Iowa
Homestead. reported the re-
suits Of q farmers poll in
that State showing that only
7 per cent thought the Sec
rotary was doing a good Job.
Forty-eight per cent said he
was doing a poor job. OF the
Republicans polled, Al per
cent rated his accomplish
ments as poor" But in the
face Of this Mr.. Benson told
a group of Minnesota farmers
that price supports for hogs
would hurt you" more than
help.
The Secretary's department
on Monday reported that farm
prices were up for the first
time in five months. 1t said
that the month ended January
is saw prices struggle upward
by / per cent. But this actual
" didn't help the farmers any
farm costs also were UP
per cent.
And the next day, the Agri-
culture Department started
using a new formula that low
cred supports about 5 per cent
for 1856 cotton. corn and pea
nuts. The new method for fig
uring parity was ordered in the
1854 farm act. Under the old
formula, parity, a device aimed
at giving the farmer a fair
price for what he sells COM
pared with what he buys. was
figured on 19l0-1914 price-cost
relationships. The new method
uses the last 10 years as a
base. Most commodities were
put under the new formula in
1850. but the basics won a
postponement, and were al
lowed to use whichever formu-
la brought the best price. tThe
support price for wheat, an
other basic. has already been
set this year by the Secretary.
and tobacco and rice growers
for some time have found 1t
profitable to use the new
formula
The new formula had the
effect Of cutting the parity
price for cotton from 1922
cents to 34.84 cents q pound;
wheat from $2.51 bushel to
$2.38; corn from $1.82 to $1.73
a bushel. and peanuts from,
1876 cents to 1873 cents a
pound.
On the day the new formula
went into effect, February /.
Mr.. Benson announced he was
cutting acreage allotments for
1856 commercial corn by 10
per cent, to 43,280,543 acres.