Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-09
the building up Of new price-de.
pressing SURPRISES.
Deferred Production

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of wheat and 3 million Of cotton.
1t should be practical to include
wheat already seeded if it is in
corporated with the soil, as green
manure, or by other accepted
practices. This would make 1t
possible for more farmers to en-
ter the program Immediately and
thereby start at once to work
down the surplus.
Administrative discretion is
needed to assure that the rates
Of reduction in different areas
are related to the supply and
demand conditions for different
grades and classes. The farm
er's cooperation in this tenn
porary program must not impair
his historic acreage allotments.
Rights of tenant farmers must
be protected. / should expect
the reduction in wheat and cot
ton paintings to continue for
some 3 or 4 years. during which
time these huge crop carry
overs should decline to normal
levels.
In return for their voluntary
participation in the Acreage Re
serve Program CO operating
farmers will be allocated certi-
ficates for commodities whose
value will be based on the nor
NAL yields of the acres withheld
in this Reserve. I recommend
that these certificates be made
available to cooperating farm
ers through their County Agri-
cultural Sterilization Commit
tee at normal harvest time for
each crop. The certificates will
be negotiable so farmers can
convert them to cash. They will
be redeemable by the Commod-
ity Credit Corporation in cash,
or in kind at specified rates.
Would Ban Grazing
I further recommend that the
legislation provide that each
participating farmer contract to
refrain from cropping or grazing
any land he puts in the Acreage
Reserve.
BY so reducing crop produc-
ton. commodities now in gov
eminent ownership can be used
to supply market needs up to a
proportionate amount. Thus the
bullying Commodity Credit Cor
poration stocks can be cores
pondingly worked down with
out depressing current market
prices.
. The program will operate in
this way: A farmer, with an
allotment Of 100 acres Of wheat,
for example. may choose to plant
only 80 acres and put the re-
naming 20 in acreage reserve.
His acreage allotment will not
be affected. He will agree not
to Craze or harvest any crop
from the 20 acres put into the
reserve.
In return for this cooperation
in the temporary acreage re-
duction program. he will receive
a cashable certificate. The GER
tiflcate will be equal to a per-
centage Of the value of the crop
he would have normally har-
vested from the 20 acres. This
percentage will be set at an in
centive level sufficiently high to
assure success Of the program.
This deferred production plan
uses the surplus to reduce the
surplus.
1t will be financed with COM
modities already owned and paid
for by the Government. Time
and shrinkage, storage and other
costs are eroding away the pres
ent value of these stocks. Con-
sequently, the real net cost to
the Government-taking these
and other facts into considera-
tion-will be substantially less
than the apparent cost in pay
ments made on certificates.
Sees Many Virtues
I emphasize that this program
is specifically intended to provide
an income to farmers while the
essential adjustment in stocks is
being accomplished.
There are many virtues in the
plan
1t will help remove the crush
ing burden Of SURPRISES, the es-
sential precondition for the sue
cessful operation Of a sound farm
pTOSTdUl.
1t will reduce the massive and
unproductive storage costs on
Government holdings-costs that
are running about a million dol
lars a day.
1t will provide an element of
insurance, since farmers are as
sured income from the reserve
acres even in a year of crop
failure.
1t will ease apprehension
among our friends abroad over
our surplus disposal program.
1t will harmonic agricultural
production with peacetime mar
kets.
B. The Conservation