GENERAL FARM PROGRAM 433 



Farm and nonf arm people alike should be interested in our adopting 

 and following agricultural policies which will protect the ability of 

 farmers to produce needed food and fiber, and to manage the soil in a 

 way which will conserve and improve its productive capacity. 



Tlie rest of the economy has a double interest in farm legislation — 

 a firm supply of food and fiber and an agriculture which furnishes 

 dependable markets for production and consumer goods. Everyone 

 has a direct interest in farmers getting what they earn through high 

 and balanced production. This brings us to the question of support 

 j)rices and their role in American farm policy. There are some real 

 differences of opinion as to what purpose Government price supports 

 should serve. 



Two principal viewpoints prevail with regard to the role of farm 

 price supports in our economy. Some people view support prices as 

 fair prices — that is, as profitable prices for producers. These people 

 appear to view the Government price-support level itself as the objec- 

 tive of farm price policy. If price supports are to be used to guarantee 

 farm income rather than as a protection against unreasonable price 

 declines, it follows that the Government must assume responsibility 

 for determining what is a fair level of farm income. In our judgment, 

 in the final analysis, this can only result in the reduction of the farmer's 

 capacity to get a high income. 



The American Farm Bureau Federation views Government price 

 j^uppoi'ts as appropriate and necessarj^ protection to farmers against 

 unreasonable price declines. We want to preserve and increase the 

 productive efficiency of American agriculture. We want to fit a work- 

 able price support program into a free competitive enterprise system. 

 With these objectives in mind, we support the basic principles of the 

 Agricultural Act of 1948, the permanent provisions of which act are 

 designed to provide farmers a workable, permanent farm price-support 

 j^rogram. We believe the price-support program provided in the 

 Agricultural Act of 1948 to be sound and workable. 



On this point, I should like to quote from our resolution of last 

 December : 



We commend Congress for its recoi;nition of the need for a lon.u-ransie farm 

 program in tlie enactment of tlie Agricultural Act of 1948. We l^elieve that the 

 niajor provisions of tliis act, wliicli provide a modernized parity formula and 

 variable price supports, are sound and in the best interests of American agri- 

 culture. In view of the clearly stated expressions of support for these principles 

 embodied in the Democratic and Republican platforms, we urge continued bipar- 

 tisan congressional support of the principal provisions of this legislation during 

 the coming years. 



The flexible price-support program is one that recognizes the needs of con- 

 sumers as well as the rights and needs of pi-oducers. This is essential, for 

 unless we can maintain a sound, workable farm program*, circumstances similar 

 to those which brought disparity and ruin to farmers after World War I may 

 again prevail. 



We specifically recommend that the permanent provisions of the Agricultural 

 Act of 1948 become effective in 1950, as provided l>y law. 



The wartime price-support program was designed to stimulate 

 needed increases in production and to allow for a reasonable period 

 of readjustment after the war. The permanent price-support pro- 

 visions of the Agricultural Act of 1948 are designed to fit into a 

 peacetime economy. In making the choice between the different 

 philosophies represented by high administered prices and flexible 



