150 GENERAL FARM PROGRAM 



the same time benefit a wider grou]) of consumers- — ^in fact, all consu- 

 mers of the commodity involved. 



Conditions and limits: Now let us consider the practical conditions 

 and limits for price supports. 



Farnr-ers consider themselves to be partners with each other and 

 with other people in operating a program for the benefit of all. I 

 believe they expect to and should accept responsibility. I do not 

 believe that full benefits, if any, should be extended to producers who 

 operate without regard to the welfare of the general public or of their 

 fellow farmers. 



As a result of increased yields, American farmers in 1948 produced 

 the largest corn crop in history on the second smallest number of acres 

 in 50 years. They produced the second largest crop of potatoes in 

 histor}" on the smallest number of acres in the past 70 years. Cotton, 

 tobacco, wheat, and oats are among other major crops for which yields 

 have been increasing. 



There is good reason to believe that high-level production will 

 tend to continue and that yields may continue to increase. 



Even though economic activity in the United States continues at 

 near-record levels and foreign demand for the products of our soil 

 may remain large for some time to come, production of most agri- 

 cultural commodities may easily outrun current high-level demand. 

 Our experience in this country shows that full employment and high- 

 level economic activity do not automatically provide a good market 

 for everything our farms may produce. For example, with substan- 

 tially full employment in 1923, our wheat prices were abnormally low 

 because of foreign surplus production. In 1926, we had substantially 

 fully employment and a domestic surplus of cotton. In 1929, we had 

 substantially full employment and w-ere struggling to get rid of our 

 large 1928 wheat crop. 



Thus, farmers have to prepare to moderate production of some items 

 or less than maximum capacity. 



Failure to provide for adjustments in production may result in 

 burdensome surpluses as well as continued unwise use of much of our 

 soil resources. 



In view of the significant changes that have taken place in the total 

 volume and in the pattern of agricultural production, there is a need 

 to reexamine our adjustment policies and programs in order to insure 

 that they realistically meet the problems that lie ahead. In making 

 this reexamination, careful consideration must be given to providing 

 a combination of production and marketing adjustment nieasures to 

 balance supplies with demand, give producers an opportunity to con- 

 tribute to farm income stabilization, and provide reasonable limits to 

 the Government's financial assistance. My suggestions regarding 

 these, by commodity groups, are outlined below. 



Marketing quotas and acreage allotments should continue to be 

 available or be provided for commodities such as tobacco, cotton, 

 wheat, rice, corn, and peanuts, with improvements based on experience. 



Whenever acreage allotments or marketing quotas are in effect on 

 corn, acreage allotments and marketing quotas should be available for 

 use on other feed grains and possibly rye. Such authorities are needed 

 for additional commodities, such as soybeans, flaxseed, and dry edible 

 beans. 



The legislation should provide for acreage allotments, marketing 

 quotas, and marketing agreements and orders for fruits, vegetables, 



