THE ALL ADAMS COUNTY FARM ADVISERS QUARTETTE 



S«Ated at the left is E. W. "Farmer" Rusk now of Coles county, who precede^ Frank Gou^ler. rifflit. 

 at farm adviser in Adams County. Frank is wearing the chief of police star conferred on him during the 

 rvoMit I. A. A. annual meetinc in Quincy. Ray E. Miller, director of Uveitock ^arketins, standinc at 

 the left, followed Mr. Oougler, and Bam F. Suaaell, riflit, it the praaeat adTiur. 



9 and 11 of the Adjustment Act. 



.\pproximately 95 per cent of all corn 

 produced in the United States finds its 

 way to market in the form of livestock 

 or livestock products. It is at this point 

 that corn is processed. Therefore, ap- 

 proximately 5 per cent of corn is only 

 available upon which a processing tax 

 can be levied at the point of commercial 

 processing, to provide revenue necessary 

 to carry out an adjustment program for 

 this grain. 



Approximately 45 per cent of corn 

 finds market outlets in the form of pork 

 and pork products; about 18 per cent of 

 corn gets to the market in the form of 

 dairy products; about 16 per cent of 

 com reaches the consumer in the form 

 of beef; approximately 5 per cent of corn 

 is consumed in mutton; and the balance 

 of the corn produced is used as feed 

 for horses and mules, and enters into 

 other lesser items of consumption. 



If future economic conditions demand 

 the continued adjustment of the pro- 

 duction of corn, permissive power should 

 oe granted under the Adjustment Act 

 to the administrators of the Agricultural 

 Adjustment Act to execute adjustment 

 programs so each phase of the livestock 

 industry, in proportion to the total pro- 

 duction of corn it processes, can bear its 

 fair and proportionate share of the 

 necessary cost of a corn adjustment pro- 

 gram. 



Certainly it is neither fair nor equi- 

 table to require the hog industry, which 

 consumes only 45 per cent of the corn 

 produced, to bear approximately 93 per 

 cent of the cost of an adjustment pro- 

 gram affecting all livestock. Such a 

 condition cannot long endure. I am sure 

 you will agree that no program, based 



upon such inequities and injustices, can 

 long prevail. 



I am neither suggesting nor urging 

 a corn adjustment program of this char- 

 acter, but I do believe the Adjustment 

 .A.ct should be so amended that, if con- 

 tinued adjustment of corn production is 

 found necessary, the cost of such a pro- 

 gram should be borne in the manner I 

 have indicated. i 



The supply and price of corn largely 

 determine the supply and price level of 

 hogs. Similarly, the price level of hogs 

 largely influences the price level of cat- 

 tle. Permit me to illustrate. The total 

 sale value of cattle and hogs in 1929 was 

 12,642,000,000; in 1930, it was $2,312,- 

 000,000; in 1931, it was $1,611,000,000. 



Of these totals, hogs produced 58 per 

 cent in 1929; 59 per cent in 1930; and 

 58 per cent in 1931. The consistency of 

 this percentage discloses a definite rela- 

 tionship between these two classes of 

 livestock and livestock products. Now 

 then, in 1929, the average price of corn 

 was 79 cents; in, 1930, it was 59 cents; 

 and in 1931, it was 32 cents. These corn 

 prices again show the price relationship 

 of corn, as a basic feed, to the sale values 

 of pork and beef. 



In further support of my position, I 

 find that, during the seven months' pe- 

 riod from July, 1934, through January, 

 1935, hog supplies were reduced 4,600,- 

 000 head, compared to a similar period 

 during the previous year. The price of 

 hogs was $3.94 per hundred higher dur- 

 ing the latter seven months' period than 

 prevailed in the former period. These 

 data immediately disclose the effect of 

 reducing supplies upon the price level of 

 hogs. 



On the other hand, the commercial 

 slaughter of cattle, under Federal inspec- 

 tion, was materially greater through- 

 out 1934 than it was in 1933. Despite 

 this increase of approximately 7 per 

 cent in cattle supplies, prices of cattle 

 were considerably higher than in the 

 previous year, with an advancement of 

 about S2.17 per hundred. The effect of 

 the decreased supplies of hogs upon cat- 

 tle prices was especially pronounced dur- 

 ing: January of this year. 



During that month, inspected hog 

 slaughter of 3,047,000 head was 43 per 

 cent smaller than that for January, 1934. 

 Commercial slaughter of cattle, under 

 Federal inspection, however, in January 

 was estimated to be about the same as 

 for the previous year. The price of all 

 grades of beef steers, Chicago basis, was 

 $9.24, compared with $5.35 in January, 

 1934. 



In terms of these figures, no other 

 conclusion can be reached save that the 

 substantial decrease in supplies, and the 

 increase in the price of hogs, influences, 

 if not actually causes, substantial in- 

 creases in the price of cattle, even when 

 receipts of beef show increases. 



A review of comparative price levels 

 of pork and beef, over any extended pe- 

 riod of time, will disclose similar rela- 

 tionships of prices. It must be admitted 

 that hog prices very largely influence, 

 if they do not actually regulate, the 

 price levels for cattle. 



I shall not encumber this record with 

 a mass of statistical data. But, I do ask 

 this committee to review carefully all 

 facts bearing on the indisputable rela- 

 tionship existing between all phases of 

 the livestock industry and the price levels 

 of feed grains. Any unbiased investiga- 

 tion will demonstrate that, in the last 

 analysis, the price level of feed grains 

 largely determines, directly or indirectly, 

 the prices received by farmers for their 

 hogs, cattle, sheep, and dairj' products. 



If my conclusions are correct, then, 

 equity and fairness in any adjustment 

 program only can be extended to each 

 particular group of producers of live- 

 stock and feed grains through permissive 

 legislation, by which proper adjustments 

 in the production of coarse grains may 

 be had to stabilize price levels of grain, 

 and in that way, to influence or control 

 the output of each phase of livestock 

 production. 



Obviously, the cost of such a program 

 should be borne by each livestock pro- 

 ducer in direct proportion to his inter- 

 est in it. No other basis, other than that 

 which recognizes the hog, the steer, the 

 sheep, and the dairy cow as natural proc- 

 essors of corn and other feed grains, can 

 logically be accepted. If the spirit and 

 purpose of the Agricultural Adjustment 

 .Act are dedicated to economic justice 

 (Continued on page 6) - 





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I. A. A. RECORD 



