AAA Livesfock Peed Grain 



Amendment 



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(Continued from page 4) 

 and fairness, processing taxes must be 

 levied at the point where processing first 

 begins. 



Forgetting for the moment the prob- 

 able necessity for a continued program 

 for grain adjustment, I earnestly believe 

 that the Adjustment Act should be 

 clothed with authority for levying taxes, 

 with certain limitations, upon cattle, 

 hogs, sheep, and dairy products for the 

 specific purpose of financing exports of 

 these commodities, or extending mar- 

 kets to absorb the surpluses of these 

 commodities. 



If it is possible to find or develop ex- 

 port outlets for these farm products, 

 such a program would not only be the 

 natural but the most simple and prac- 

 tical way to stabilize price levels in the 

 domestic market for that portion of each 

 of these livestock products, which is 

 needed in the domestic market, while at 

 the same time affording revenue neces- 

 sary to dispose of surplus in other mar- 

 kets at world price levels. 



The amendment as drawn authorizes 

 levies upon each kind of livestock and 

 livestock product, in proportion to the 

 adjustment needs of these farm products 

 in a three-fold way. First, it provides 

 revenue to pay the costs or losses in the 

 disposal of surpluses of each or all of 

 these livestock products in foreign mar- 

 kets. Second, it yields revenue needed 

 to expand either foreign or domestic 

 markets. Third, if neither of these out- 

 lets can be provided, or to the extent 

 they cannot be provided, the amendment 

 provides revenue to make such adjust- 

 ment in production of feed grains as may 

 be necessary to aid in stabilizing pro- 

 duction of livestock and livestock prod- 

 ucts. 



Mr. Chairman, and gentlemen of the 

 committee, I have never believed that 

 any direct program of allotment or ad- 

 justment in the production of livestock 

 can be permanently successful. Such 

 programs present too complex, too many 

 opportunities for injustices and condi- 

 tions which apparently cannot be over- 

 come. 



Under the existing Act, before proc- 

 essing taxes can be levied on any basic 

 farm commodity, an allotment or ad- 

 justment program, carrying within it 

 benefit payments to cooperating grow- 

 ers, must be authorized. To make these 

 allotment benefit payments requires a 

 tremendous amount of administrative 

 machinery, with committees of farmers 

 in practically every county of the grain 

 and livestock producing areas and con- 

 tacts with individual farmers through- 

 out a vast section of the United States. 



Such requirements should at least be 



PRESIDENT EARL C. SKITH WHO RECENTLY 

 preMntod and urged enactment of the livestock 

 feed (rain amendment to the Agricultural Adjust- 

 ment Act before the Africnltural Committeea of 

 Congreu. 



removed from existing legislation and 

 provisions for a simpler program pro- 

 vided. This is the sole purpose of the 

 amendment which I am sponsoring. In 

 no way does it curtail or limit present 

 powers vested in the Adjustment Act, 

 but gives additional authority to ac- 

 complish the aims and purposes of the 

 Act. 



I do not hesitate to say that a vast 

 majority of the farmers of the Central 

 West, with whom I am well acquainted, 

 have accepted with reluctance programs 

 requiring adjustment in the production 

 of livestock. To a similar degree this is 

 true for producers of coarse grains. They 

 have accepted these programs, during 

 the past two years, because of the un- 

 questioned tremendous accumulation of 

 commodity surpluses in the storehouses 

 and coolers of our nation. They prefer 

 to make these adjustments rather than 

 accept the extremely low prices result- 

 ing from these surpluses. They would 

 much prefer, however, comparatively 

 small processing taxes with which to fi- 

 nance the disposal of surplus production 

 as provided for in the amendment. 



I recognize, of course, that eminent 

 authorities take the position that ex- 

 port outlets cannot be obtained or main- 

 tained at reasonable price levels. How- 

 ever, I am also aware of the statements 

 of equally eminent authorities who insist 

 that, were revenue available to finance 

 the difference between domestic price 

 levels and world price levels for our 

 farm products, surpluses could be read- 

 ily removed. 



Without taking any position on the 

 statements of these authorities, I do in- 

 sist upon the enactments to the Adjust- 

 ment Act, which I am sponsoring, so 



this revenue may be provided and thefe- 

 by give us an opportunity, once and for 

 all, to determine which of these au- 

 thorities is correct. 



If we can dispose of our surpluses 

 through the revenue from comparatively 

 low processing taxes, that is exactly 

 what the farmers of the Central West 

 want done. If it is found that such out- 

 lets cannot be obtained, then I can as- 

 sure you that every thinking farmer will 

 respond by doing his full part in making 

 such adjustments in his production as 

 conditions may require. If this is found 

 necessary, the cost of such a program, 

 I repeat, should be borne by each phase 

 of the livestock industry and coarse 

 grain industry as their respective in- 

 terests appear. 



I ask your careful consideration of the 

 aims and purposes of the proposed 

 amendment. I believe nothing has such 

 a far-reaching effect in establishing well 

 being, correct thinking and attitude on 

 the part of the farmers throughout the 

 livestock and grain producing areas of 

 this nation, as will this amendment. 



This amendment simply provides au- 

 thority that adjustment programs, 

 whether to export surpluses, or expand 

 markets for surpluses, or to adjust pro- 

 duction of grains, may be as simple, as 

 practical, as efficient, and as perma- 

 nent as it is possible to make them. If 

 we can accomplish our aim, nothing will 

 contribute more toward 'the return of 

 national economic recovery. 



We should not overlook that produc- 

 tion of livestock and feed grain, com- 

 bined, constitutes from 65 to 70 per cent 

 of the total agricultural income of the 

 United States. Certainly, legal means 

 should be provided so that responsible 

 officials of government, acting by and 

 with the sound advice of the producer 

 representatives of each phase of the 

 livestock and feed grain units of agri- 

 culture, could practically and construc- 

 tively improve and stabilize price levels 

 and incomes for this large part of 

 American agriculture. 



What this nation most needs is a re- 

 turn of normal buying power to the 

 largest buying group in the United 

 States, the American farmer. Give us 

 reasonable price levels, which are the 

 basis of our farm incomes, and our in- 

 comes will immediately find their way 

 into the manufacturing industries of the 

 nation, which supply us with our needs. 

 With s^i^ added outlet on the part of 

 industry, millions of unemployed will be 

 returned to their normal place in so- 

 ciety, and the result will be a more con- 

 tented and stable citizenry. 



B 



Farm real estate taxes in 1933 were 

 the lowest per acre since 1918 and the 

 lowest since 1929 in relation to land 

 values. 



I. A. A. RECORD 



