154 



GENERAL FARM PROGRAM 



for price support and other programs. I hope that the sound operat- 

 ing experience of the Federal Crop Insurance Corporation in recent 

 years will allow it to grow until crop insurance is available to every 

 fanner. 



In general, I would reem.phasize the recommendations made by the 

 Department of Agriculture in 1947 with regard to the programs 

 needed in addition to pricle supports. 



All of these matters have their individual places in our total agri- 

 cultural policy of abundance. Price support is not the only matter 

 that requires our attention. However, it is the im.m.ediate, pressing 

 problem, and I would say, further, that it must be the heart of our 

 policy, for it will determine to quite an extent how successful the rest 

 of our programs can be. One thing is certain: It would do little good 

 to have a power line to the farmstead or a hospital in the community 

 if the crop produced will not I'eturn enough money to enable the 

 farmer to use the available services. 



In the final analysis, of course, the best basic economic aid for agri- 

 culture is a fuUy employed labor force at good wages. But labor is 

 not likely to be fuUy employed and industry is not likely to be expand- 

 ing production when agriculture is in economic trouble. Agriculture 

 is not merely a recipient of good fortune but a partner in the m.aking 

 of prosperity. 



I am confident that by working together we can develop a produc- 

 tion and price-adjustment program that will actively and positively 

 serve the best interests of all the people. 



(The exhibits accompanying the Secretary's statement, are as 

 follows:) 



Exhibit A 



Professional Definition of Income Support Standard 



The income support standard in any year shall be that level of total cash 

 returns from farm marketings which is equivalent in purchasing power to the 

 average purchasing power of cash receipts from farm marketings during the ten 

 calendar years 1939 tlirough 1948. Purchasing power in any year shall be measured 

 in terms of an index of prices paid by farmers for goods and services, including 

 interest and taxes. 



The following table and calculations show how 1939-48 average purchasing 

 power would be calculated and adjusted to give an income figure for 1950: 



Table 1. — Cash receipts from farm Tnarketings: Calculations of average purchasing 

 power, 1939-48, and of income support level for 1950. 



1 Excluding Government payments. Cash receipts for 1949 were estimated at $27,500,000,000. 



