?-\ 





Hamilton Institute says farm income is 

 H4 billion dollars larger than a year 

 ago, and that in spite of the drouth. 

 Prof. Norton, in a Univ. of Illinois pub- 

 lication, Oct. 15, 1934 says: "Prices of 

 Illinois farm products averaged 40% 

 higher in August and September 1934 

 than in the same months in 1933." He 

 also says the most pronounced increases 

 have been in the commodities affected 

 either by the drouth or by governmental 

 control policies.' ^ 



Too long have farmers been the mat-- 

 tress that breaks the fall of the capita- 

 listic system in timfes- of panic. Why 

 must he be under a moral obligation to 

 feed the. world at a loss, while those 

 whose prices enter into his costs resist 

 deflation? Following are a few of the 

 rigid factors that resist deflation: mort- 

 gages, interest rates, freight rates, pub- 

 lic service rates, taxes, common labor 

 wages, tariffs, prices made by gentle- 

 men's agreements and trade associations. 

 All these enter into the costs of what 

 the farmer buys. Many have been re- 

 duced, but all are above what they would 

 be if the law of supply and demand 

 functioned as freely on them as it does 

 on farm products. "~ 



No Other Choice , • 



The farmer would be delighted to pro- 

 duce with all the art and labor at his 

 command all that he possibly can, if 

 everyone else did likewise. He will join 

 any sincere effort against the nbove ri- 

 gidities, and throw in the processing tax 

 along with the rest, to usher in an era 

 of low prices and abundance, instead of 

 limitation and high prices. But until 

 business leaders agree to withdraw the 

 mesh of interference with the free pro- 

 duction and exchange of all goods, the 

 farmer must declare himself a part of 

 the economic system, crazy as it is, by 

 controlling his production until his goods 

 are scarce enough to be in demand. His 

 products must be sound in the same 

 sense that money is sound. Inflation 

 that makes money worthless is no 

 worse than unrestricted production of 

 farm products that makes them worth- 

 less. 



Mr. Wallace quotes Mr. Peek as say- 

 ing that he was for the profit system 

 when it included the farmer. It never 

 has. If all costs and the value of fertility 

 be taken into account, probably not one 

 farm in Illinois has paid a profit over the 

 period of years it has been cultivated. 

 Fertility is now so depleted it can no 

 longer be sold without being replaced. 

 A farmer can no longer sell at prices 

 made outside the profit system and buy 

 at prices made in it. 



Should Meet Approval 



\ The new corn-hog plan permits an in- 

 crease in both hogs and com over 1934. 



WHEM THE 1. A. A. WAS YOUNG— BOARD Of DIRECI0K8 AT PEORIA IMS , 



This is th6 board that lannched the I. A. A. aa a membership organization on its present basis. 

 Left to riffht seated: J, W. Kirkton. Lirinffston coonty; J. R. Fulkerson, Jersey county; J. W. Robinson, 

 Edgar connty; Harvey Sconce, president, Vermilion county; J. W. Thier, Lee county; Zealy M. Holmes, 

 Peoria county; John C, Oummersheimer, Monroe county; Standing, 1. F. Oilmor, Mercer county; C, V. 

 Gregory, Dupage county; John P, Stout, Sangamon county; D, O, Thompson, secretary: Howard Leonard, 

 Woodford county, treasurer; J. W. Morgan. Henry county; Henry T. Marshall, LaSalle county; A. A. HiU. 

 Macon county: 6, C, Johnstone, McLean county, J, C. Sailor, Iroquois county, Tice.president. was absent. 



It should meet the approval of farmers 

 for many reasons. Corn may be 80c now, 

 but don't forget that a very few months 

 ago it was one-eighth of that, and with a 

 good crop and a lessened demand caused 

 by the reduction in livestock, it can drop 

 to that again. There are now less hogs 

 than there have been at any time since 

 1892. Cattle have been reduced 10,500,- 

 000 since the first of the year. By ijext 

 summer, if we have a hard winter, there 

 will be fewer cattle and hogs than there 

 have been at any time in the last 50 

 years. Sheep as well have been much 

 reduced. I shall be more than willing to 

 reduce my corn 30% and put the land in 

 clover to plow under for fertility. A 

 . modest increase in hogs is likely to satis- 

 fy almost everybody, as with the feed 

 scarcity no one will want to plunge. No 

 one that does not sign a contract will be 

 eligible for a loan on his sealed corn 

 next fall. No one should forget the 

 blessing that program brought last fall. 

 The main reason for continuing is that 

 now for the first time we have an ad- 

 ministration that understands the prob- 

 lems of agriculture and is courageously 

 striving to solve them. A year of exper- 

 iment finds us much better off than we 

 were a year ago. I have not been regi- 

 mented, quite the contrary. I feel that I 

 have been freed from the bonds of a 

 system that never permitted me the 

 slightest control of the price I received 

 for my products. By my action in cut- 

 ting my production, in cooperation with 

 Other contract signers, I have had for 

 the first time, something to do with 

 raising these prices. 



Corn-Hog Signup Soon ' 



District meetings are to be scheduled 

 in Illinois for officials of county corn- 

 hog control associations soon after New 

 Year's Day. The work of signing up the 

 new contracts for 1935 will begin shortly 

 thereafter. 



; The coming signup is expected to be 

 much more simple than that of last year. 

 The old contracts on file in each county 

 will be a valuable source of information. 



Economists are forecasting much cheaper con 

 and relatively high-priced livestock next year if 

 the com crop is normal or above. Many farmers 

 doubt that com will go much higher than pi eeent 

 prices. 



Frank J. Watson, manager of the Qual- 

 ity Milk Association at the Quad Cities 

 report.s a blended price for November 

 milk of $1.58. Class 1 bfought |1.70; 

 class II (fluid cream) 11.42; Class III 

 (condensed) $1.32; Class IV (butterfat) 

 $1.11. ReUil price is 9c. The AAA ad- 

 ministrator started checking up on deal- 

 ers recently to see that milk is used in 

 the Class shown by their reports. 



Annual meetings of the I. A. Ar and 

 associated companies are officially an- 

 nounced on page 19. Conferences for 

 agents, managers, and county directors 

 of Country Life Insurance Co. and Illi-- 

 nois Farm Supply Co. respectively will 

 be held on Tuesday, Jan. 29, at Quincy. 



Make your reservations for the com- 

 ing I. A. A. annual meeting, Quincy. 



Tobacco growers are scheduled to vote 



soon on the proposition of levying a 

 substantial tax on tobacco produced in 

 excess of the grower's allotment. This 

 will prevent nonco-operators from prof- 

 iting more than farmers who co-operate 

 and make possible a fair price. 



V 



JANUARY. 1935 



