' 



ness of the situation has had little chance 

 to practice the good farming he would 

 like to follow. If cooperative action will 

 keep his neighbor from cutting his throat 

 in useless competition he can once again 

 adopt a system of farming that will re- 

 store and maintain the value of his land. 



There is a similar land use problem in 

 the Western states. The g^razing lands 

 have been overstocked, both on public 

 and private land. Drought and wind- 

 storms in recent years have proclaimed 

 in bold handwriting on the wall the 

 costly erosion that wUl result in far 

 more actual reduction than any planned 

 program of man's if it is allowed to con- 

 tinue. Perhaps time it will be found 

 advisable to develop a voluntary adjust- 

 ment program for the West which will 

 limit the grazing of cattle and sheep on 

 private land and be coordinated with 

 grazing on public land. It would cer- 

 tainly be conserving our natural re- 

 sources for an economy of plenty in the 

 future instead of recklessly bringing 

 about an enforced reduction latep on 

 throiigh the sheer breaking-down of our 

 grazing lands. 



Now, it is true that a feed grrain acre- 

 age control program would not meet the 

 problem that comes from the yiear to 

 year changes in yield that are inevitable. 

 The resulting fluctuations in supply and 

 price which induce the cattle and hog 

 production cycles would continue. The 

 "ever normal granary" plan could be 

 adopted to supplement it to advantage. 

 This plan would involve the extension of 

 loans to farmers on existing supplies of 

 feed grains in years of high yields and 

 release the supply in years of low yields.' 

 In fact, the two would setm to go to- 

 gether. The com loan can not success- 

 fully stand alone without the security of 

 production control. Each seems to supple- 

 ment the other. 



Corn Loans Again 



And right here I want to announce 

 definitely that provision for corn loans 

 will' be ap essential part of our corn-hog 

 program 'for 1935. Just as last year, only 

 farmers who sign the corn-hog contracts 

 soon to be offered will be eligible for 

 these loans. But by this I do not mean 

 that the amount of the loan will be the 

 same. - The amount to be loaned per 

 bushel?this year has not been determined, 

 and cannot be until later in the season 

 whett the essential facts have developed 

 in regard to probable production and 

 feed requirements. 



How would a feed grrain control pro- 

 gram be financed? 



Since only a very small proportion of 

 feed grains move through commercial 

 processing channels, a tax of sufficient 

 size to provide the funds could not come 

 from that source. 



Since it is desirable to keep the ad- 



justment program self-supporting finan- 

 cially, many of our advisors have advo- 

 cated that a feed grain control program' 

 should .be financed from a processing 

 tax on livestock, the rate oh each kind 

 of stock being determined by the relative 

 benefits derived. This would necessitate 

 an amendment to the Agricultural Ad- 

 justment ^ct since it is now impossible 

 to use processing taxes on livestock to 

 retire feed grain acreage without making 

 benefit payments to the specific class of 

 livestock taxed. The National Agricul- 

 tural Conference went on record as fa- 

 voring such an amendment unanimously. 

 We have pointed out to your leaders and 

 others in the conference some of the 

 difficulties in the way of securing the 

 amendment. While we . believe in the 

 soundness of the principle and will give 

 it our support in every way, it is up to 

 the country to support the idea and to 

 support it vigorously. It will take a real 

 push from the country. If you favor it, 

 see that your views are heard. 



These are some of the problems we are 

 thinking about in Washington. They are 

 your problems and they come to us from 

 you as do most of the suggestions for 

 meeting the problems. Before any pro- 

 gram along these lines would be in- 

 augurated the Agricultural Adjustment 

 Administration will have to be satisfied 

 that it has the backing of the livestock 

 and feed industries. We will, of course, 

 follow the established precedent of first 

 getting the approval of the producers 

 concerned. ;,i 



' Not So Simple 



Today, here in the Corn Belt, I have 

 discussed feed and livestock. It is only 

 one of the problems that go to make up 

 the major effort toward the development 

 of the nation's whole agricultural policy. 

 However it finally works out we know 

 there is no royal road, guaranteed 

 against any failure, to an immediate and ' 

 permanent prosperity for the farmer. 

 Simply saying that "There oughtta be a 

 law!" and then passing that law cannot 

 suddenly produce buyers for an unlimited 

 number of hogs at $12 per hundred, and 

 buyers for an unlimited suppJjr of wheat 

 at fl.75 per bushel. No, it isn't as simple 

 as that. 



The simplest general formula I can 

 think of includes three suggestions: Let 

 us renew and continue our effort to re- 

 store >as much of our foreign export as 

 we can get on reasonable terms. Let us 

 insist on increased industrial production 

 ajid lower prices for industrial goods. 

 And then let us continue as we are do- 

 ing in agrriculture to cooperate together 

 so that we can maintain that balance of 

 production which will give to the world 

 a generous supply of goods at a fair 

 price compared to the prices the farmer 

 pays for what the world furnishes to 

 him in return. 



Dividends Declared 



By Service Companies 



The phenomenal payment of patronage 

 dividends to Farm Bureau patrons by 

 county service companies continues to 

 mount with the end of fiscal years for 

 many companies closing the past sixty 

 days. 



Reports coming from the annual meet- 

 ings of these companies show the refund* 

 paid to farm bureau members in good 

 standing to be among the 'largest in the 

 history of these companies. 



Jersey County Farm Supply Company 

 takes the lead in the payment of the 

 largest patronage refund check per mem- 

 ber — -^96 farmers received dividend 

 checks averagring |34.20 each. A patron- 

 age refund of 26 per cent on lubricating 

 oil and grease, 24 per cent on gasoline 

 and kerosene, and 17 per cert on all other 

 sales, resulted in the return of $16,942.51 

 on the year's business. This company 

 has been in operation five years and dur- 

 ing that time has returned $65,196.93. 

 This does not include $3,360.32 preferred 

 stock dividends paid during the same 

 period. The largest 1934 check was for 

 $337.29, and 28 others were for more 

 than $100.00 each. 



During the past month Wabash Valley 

 Service Company returned $20,500 to its 

 member patrons on the year's business. 

 This figure represented a 17 per cent^ 

 patronage dividend on rural sales of 

 gasoline, kerosene, lubricating oils, 

 grease, Soyoil paint, tires, and other 

 commodities, and 12 per cent on gasoline 

 sold through filling stations. The net 

 sales of this company increased over 46 

 per cent, and the company closed its year 

 with sales totaling $168,000 and not a 

 single penny in accounts receivable, — a 

 TKost remarkable record. 



McLean Pays $37,000 



McLean County Service Company dis- 

 tributed $37,000 to 1,582 members at its 

 annual meeting held early in January. 

 The rate of patronage declared was 23 

 per cent on lubricating oil and grrease, 

 16 per cent on rural deliveries of gasoline 

 and kerosene, 12 per cent on grasoline sta- 

 tion sales, 15 per cent on Soyoil paint 

 and tires, and nine to twelve per cent on 

 distillate, furnact oil, and other such 

 products. One farm bureau member re- 

 ceived $428.03 and 37 others each re- 

 ceived $100.00 or more. This company 

 has paid out a total of $282,000.00 in 

 patronage dividends since its organiza- 

 tion in 1927 in addition to the seven per 

 cent annual preferred stock dividend. 



Madison Service Company, at the close 

 lof its third year, distributed $8^00 

 among 535 member patrons, 18 per cent 

 on oil and grreaae, 15 per cent on rural 

 sales of gasoline and kerosene, and 12 

 (Continued on page 34) 



FEBRUARY, 1986 



27 



