14 ANNUAL, REPORTS OF DEPARTMENT OF AGRICULTURE. 



The case is very different, however, with producers of those crops 

 of which we export a considerable surplus and the price of which 

 is largely influenced by large exports from competing countries 

 which enter the world stream as it flows to points of consumption. 

 Under present conditions these producers find themselves producing 

 at costs beyond their control and which make it impossible for them 

 to compete and live decently. The condition of the wheat grower 

 serves to illustrate the difficulty. He has been producing at prac- 

 tically war costs and is meeting competition which forces him to 

 sell at prices well below the actual cost of production. The result 

 is that those farmers who depend mainly, or evenly largely, on wheat 

 as a source of income are going back steadily year by year. Thou- 

 sands of them already have gone bankrupt, and more are well on 

 the way. 



THE WHEAT SITUATION. 



Speaking of the wheat situation and proposals for relief of the 

 wheat grower^ Secretary Wallace says: 



There has been prepared in this department a very complete re- 

 port on the wheat situation in all of its aspects. This report will 

 be made available to those who may have occasion to use it, and it 

 is not necessary here to add to what has already been said on page 4. 



Many suggestions have been made as to ways by which the wheat 

 grower might be helped out of his distressing situation. Among 

 these may be mentioned : 



Reduction of acreage. Since the acreage was largely increased to 

 meet war demands, and since we now have a surplus, reduced pro- 

 duction is looked to at once as the obvious cure. 



Diversification — the growing of other crops from which part of 

 the necessary income may be derived. 



The organization of the wheat growers into a powerful coopera- 

 tive. 



The fixing by the Government of an arbitrary price which will 

 cover cost of production. 



Liberalizing the immigration law to bring in farm laborers and 

 thus reduce cost of production. Also to bring in industrial workers 

 in the hope of reducing industrial wages. 



An increase in the tariff. 



The purchase of the surplus by the Government and storing it 

 against a time of short production. 



