IHV All AUAMS (OUNTY FARM ADVISERS QUARTETir 



I^M IS E, \V Ksrmtl" Rusk noA- ol Coles tuiinty. wiio pt(-''*i»a iiaiik liuiip.t;- -igin 

 K A«i;n:;- ('-.iiiiTv, Frank is \\>ariii^ tUe tliit-f ot puUci* star coulfrrcil on liim dining thi. 

 /I. .inmial l:i*»etinF iii Quincy. Rav E. Miller. iiiie«tor of livstork fciii*rkf Tinp. stami.ng a' 

 lioAt'il Ml. Gti-.tft'«-r. ami S.tin F. Russell, ripfiiT, is tiie jntsent advisei 



;. aiiil' II "I' .''"■ Ail.ili-tiiiriit Art. 



Approxiniati'ly '.'."> |hm- ci-nt i>{ all i-i>n; 

 i-rodvHcl ill the Vnilfd States finds it- 

 way In iiiaikct ill the form of livestock 

 o)- Iivi-t<.ik pi-o«imls. It i> at this p<iint 

 rhat ii'iVi is iiroccsscil. TliiTifoic. ap 

 pioxiinatfly '^ per cent of corn is only 

 a\ailal>le upon which a pvocessinp lax 

 ran be levieil at O.e point of eoninieicial 

 processing,'. !■. provide levemie necessary 

 to larry ou; an a<i,in>tnient projrram for 

 thin grail.. 



.Approximately 4.' ]hv cent of corn 

 finds market outlets in the form of pork 

 and pork |>rodiicts: ahout 1^ per cent of 

 corn pets to the market in the form of 

 dairy pr<.ducts: aho'ut If. per cent of 

 corn reaches tlie lonsunier in the form 

 of beef: approximately ."i per cent of corn 

 IS consumed ii' mutton: and the balance 

 i>f the con. produceil is iisci! k< feed 

 for horses and mules, and enters int" 

 other lesser items of lonsumplioii. 



If future er-oii"nui- condition.s demand 

 ;hr (■'•ntiniied ad.iustmfril of t!ie pro 

 ductlon .'i' eon., perniissiv, power should 

 be Eranted under the Ad.iustinen! Act 

 to the adminislrat.jrs of the .Agricultural 

 .■Adjustment .Act to execute adjustment 

 programs so each phase of the livestock 

 industry, in proiiortion to the total pro- 

 duction of corn it processes, can bear its 

 fair and pidpi>rtioHate share of the 

 necessary f.>«t of a corn adiustment pro- 

 '.rram. 



I'erlainly :• i> i. oil her fair nor eipii- 

 raide !•• reouirc the hoy- industi.x". which 

 '■onsumes cih 4.') per cent of the corn 

 produced, to beat approximately '.'I! per 

 rent of the cost ■'( an adjustment pro- 

 frrani affecting all livestock. Such a 

 condition cannot !.■' l' cnilure. I am -ure 

 voii will :ijrreo th;i' !>■• if' 'j i .■ml. ba-'d 



upoi: viieh iiieiiuitii- and in iust 'ue-. lai 

 !ons;- pievail. 



I am neither .sU);t;estinj; nor uri;in}; 

 a corn adjustment prosrram (d' this char- 

 acter, but 1 do believe the .Adjustment 

 Act shoulii be ■so ameniled ihat. if con 

 linued adjustment of corn protluction is 

 founil necessary, the cost of such a pro- 

 jrram should be borne in the manner I 

 have imlicated. 



Tht^ supply aiui jirice of lorn laii;el> 

 determine the supply and price level "t 

 hojrs. Similarly, the price level of Ihik^ 

 largely influences the price level td" cat- 

 tle. I'ermit me to illustrate. The total 

 sale value of cattle and hoKs in l!cj;< was 

 $2.t)42.t)0(t.tUl(l; in l:<:!n. it wa- Sl'.:!1-J.- 

 nOO.DOO; in lii.il. it was $1 .CI ! .Odli.ipoo. 



Of these totals. ho;rs produced 5b pei 

 cent in l'.<2l»; .")!■ per cent in l'.t;50; and 

 ."iS per cent in I'.i.Sl. The consistency of 

 this percentage discloses a definite rela 

 lionship between these two classes of 

 livestock and livestock products. Now 

 then, in l!i2!'. the average price of corn 

 was T'.i cents: in It'-'iO. it was 5;i cents: 

 and in li'31, it was .32 cents. These corn 

 prices again show the price relationshiji 

 of corn, as a basic feed, to the sale value- 

 of pork and beef. 



In further sujiport of my position. 1 

 find that, during the seven months' pe- 

 riod from July, 1934, through .January. 

 1 !•;!•"). hog .supplies were reduced 4.tlt«t.- 

 "00 head, compared to a sjniilai period 

 during the previous year. The jirice ot 

 hogs was 8-3.04 per hundred higher dui 

 ing the latter seven months' period than 

 [irevailed in the former period. These 

 data immediately disclose the eff<ct d 

 reducing supplies upon the prici' i.V": ..! 



Illl-Js. 



On the other hand, the cominereial 

 slaughlei of latlle. tinder l-"ederal inspcr 

 lion. w;is iiialeriiilly ;;re;iler through- 



■ ■nt \'.<-'.\ ilia'. It was II. 1'.':;:1. hespite 

 this iniica~e i^' appi<i\iniatoK 7 pci 



■ ■(•III II! r:illle -U|iplie-. prii-e- of catib 

 will 1 oiisidi I iil'h hiuhi" t)i;iii III lilt 

 oic\ Kills ;.eal. with an ;iil\ aiu-cmelll ol 

 ail. 'Ill >''_!I7 pi I iiiindi 111. The effect ot 

 •iie ill A-roa.sed -iipoiiis ^,| hogs upon eHt- 

 'If piiccs v\;is i.s|if,-iall\ prmioiinced dur 

 mi;- .laitinnN ^t' t In.- > eat . 



Iiniitic tliat iiioi.ili. ii.s|n'i'cd lioj; 

 -laiighlei of :;.o;T.nit(i head wa- 4-'; pet 



• c'lt smaller than th:it for .lanuar.w !'.':!!. 

 I 'oninienial sljmghlii ot' r;illle. unck'i 

 l-i-i|eral iii-feet ion. iii.uoMi. it; -lanuary 

 w.is i-s| ii>iated to le alioiit t li(' -ame a- 

 fiii till' pie-, im;- \i-ar. Tlic price of all 

 ■.;iado- of beef -ti'ers. Ciiicaiio basis. wa> 

 ■■^'.'.21. (oniptiii'd with ;?.">. :;."> in .January. 

 l;'.".4. 



Id tciiiis iif these figures, no other 

 loin-Iiision lai; 1»' reached save that the 

 -ub-taiitial dtcrease in -upplies, and the 

 iiicrea-e in the price of hogs, influences. 

 if not aciuallj causes, substantial in- 

 i-rease- in the piice of rattle, even when 

 receipt- of beef show increases. 



.A revii'w of comparative i>rice levels 



• if pork and be« f . ovei' an.v extended pe- 

 I iod of time, will disilose similar rela 

 tiiii:ships of price-. It must be admitted 

 Ihat hog prices very largely infiuenc(. 

 if they do not actually rugulate, the 

 price le\el> t'or ciittle. 



I shall not encumber this record with 

 a mass of statistical data. But. I do ask 

 this ciinmittee to review carefully all 

 facts lieaiing oil the indisputable rela- 

 tionship existing between all phases of 

 the livestock industry anil the price level- 

 of feed grains. .Any unbiased investiga- 

 tion will denionsu-iite that, in the la-t 

 aiialysi-. the price level of feed grain- 

 largely determine-, directly or indirectly, 

 the pi ices riceivcd by farmers for their 

 hog-, cattle. shi»'p, and ilairy products. 



If my conclusions are correct, then, 

 'iiuity and fairness in any adjustment 

 loogram only lan be extende*! to eacli 

 liarticulai gnmp of prodticers of live- 

 stock and feed irrains throutih permissive 

 legislation, by which pioper adjustments 

 in the production of coarse grains may 

 he had to stabili/.e price levels of grain, 

 and in that way. to influence or contrid 

 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. .\o other basis, other than that 

 which recogni/.es the hog. the -teer, tlie 

 -heep, and the dairy cow as natural proc- 

 essor- of corn and other feed grains, can 

 logically be' accepted. If the spirit and 

 o'lrnosc uf the .Agricultural .Adiustment 

 \it all- ■ieiiii-ated to pi-on.-mic justice 

 I < 'iiii'iniied on pane 'II 



I- A- A. RE(ORl» 



