A Permanent 



Program for 

 Agriculture 



By Earl C. Smith 



EXPERIENCE both before and after 

 enactment of the Agricultural 

 Adjustment Act suggests and 

 recommends the following govern- 

 mental policies as essential to handle 

 the farm surplus problem: (1) An ex- 

 tensive program of soil conservation 

 so administered as to assist farmers in 

 adjusting production to demand; (2) 

 Aggressive program to expand domes- 

 tic and foreign markets for farm com- 

 modity surpluses. If necessary, use of 

 import revenue to assist through sub- 

 sidy; (3) Practical system of farm com- 

 modity loans. 



It is my belief that the development 

 and aggressive administration of these 

 three important functions of govern- 

 ment, properly coordinated would very 

 substantially, if not completely, con- 

 stitute a sound, defensible and perma- 

 nent solution of the farm problem of 

 the United States. 



Our First Objective 



Our immediate objectives should be: 

 FIRST, to secure such action by 

 Government as is necessary to im- 

 mediately and fully discharge its ob- 

 ligation with every farmer who under 

 contract has complied with his agree- 

 ment with the government or is in the 

 process of compliance covering con- 

 tracts of 1935, prior thereto or who has 

 entered into contract or agreement 

 covering adjustment of wheat acreage 

 in the faU of 1935. 



I have every reason to believe this 

 will be easily accomplished, as I have 

 heard of no one in administration 

 circles, congressional circles or reason- 

 able business circles who question the 

 justice of this action. 



SECOND, to secure such action by 

 government as is necessary to cover 

 into the treasury of the United States 

 all processing taxes levied but unpaid 

 up to the time of the Supreme Court 

 decision on January 6. 



THIRD, to secure the enactment by 

 Congress and the administration by 

 Government of a sound, practical, legal 

 agricultural policy covering, 



(a) full authority and direction to 

 insure aggressive action for expansion 

 of outlets for farm products in both 

 the domestic and foreign markets. 



Protect Home Market 



Farmers certainly have a right to 

 insist upon full protection of the home 

 market from competitive imports and, 

 in addition, have a right to insist that 

 at least until industrial prices are in 

 line with agricultural prices, trade 

 agreements entered into with foreign 

 countries should give to agriculture 

 substantial advantage over othar in- 

 dustry in the provisions of all such 

 agreements. 



(b) Practical and effective applica- 

 tion of the business principle in agri- 

 culture that is both successful and ef- 

 fective in business in adjusting pro- 

 duction to total demands of markets at 

 fair price levels. 



(c) Extension of a policy covering 

 commodity loans based upon farm 

 warehou.se receipts or otherwise, so as 

 to control seasonal surpluses in the in- 

 terest of more orderly marketing and 

 more stable farm commodity prices. 



These three things can and must be 

 done. I do not believe farmers are so 

 much concerned as to the legal prin- 

 ciples and authority upon which these 



policies of Government are based, but 

 that they are concerned and wrill de- 

 mand that they be applied with rea- 

 sonable simpUciiy, practicability and 

 made permanently effective. 



Your leaders in stats and nation are 

 convinced that not only can the thre* 

 mentioned principles of agricultural 

 lefislation be drafted, providing for 

 a workable and effective program; 

 but that such a program would be well 

 within any reasonable interpretation, 

 even of the so-called Roberts opinion. 



We believe this is no time for tem- 

 porary expedients or for further twid- 

 dling of thumbs as we face the great is- 

 sue before us. I personally have never 

 witnessed either interest or temper of 

 Congress so conducive and friendly to 

 a sound and permanent solution of the 

 agricultural problem. -■: | •. - i , 



Believed Legal 



Based upon detailed study and legal 

 advice from authority of the highest 

 character, it is believed that through 

 proper amendments to the Soil Erosion 

 Act of 1935, the ultimate effect of ad- 

 justed production to secure and main- 

 tain a fair standard of price levels for 

 farm products can be secured. 



There certainly can be no question 

 as to the responsibility and power of 

 the federal government in controlling 

 the rivers and harbors of the country. 

 There certainly can be no question 

 that any reasonable national effort to 

 conserve soil fertility is in the general 

 public interest. It has been stated by 

 technical authority that soil fertility of 

 a value running into billions of dollars 

 annually is carried by streams and 



I. A. A. RECORD 



