528 GENERAL FARM PROGRAM 



the rest of ovir economv. This rehitionship is constantly changing, 

 and while the results of failure to reco<2:nize the change are not pres- 

 ently serious, the time will come when the inequities resulting from 

 it cannot be defended. Secretary Brannan has recognized this and 

 has provided for a moving base. We doubt if this is an improvement. 

 Experience has shown that sometimes, for extended periods, prices 

 are too high to be equitable — and sometimes too low. A moving base 

 of this nature would reflect these inequities. If we should have an 

 extended depression, the formula would be a serious handicap to re- 

 covery. We prefer the 1909-14: base to such a moving base, buc we are 

 presenting in appendix A for your consideration a formula based 

 on a sound national income which we believe superior to either. In 

 submitting it, however, we believe we should say frankly that with so 

 many items of major import before your committee, we would urge 

 first action on them, including the simple ameuilment of adding labor 

 to the parity cost index of the 1948 formula before undertaking con- 

 sidei'ation of a completely new parity formula, for the 1948 formula 

 thus amended would be relatively sound for some time to come. 



Having determined what is an equitable or parity price level, the 

 next problem is how to attain it. Before discussing details, it maj'^ 

 be best to set forth the goals we are trying to attain. 



GOALS 



{a) A well-balanced national economy: 



(5) Efficient production of an adequate supply of farm products 

 reasonably well balanced to consumer demand as to amoimt, quality, 

 and form ; 



(c) A reliable supply of farm products to meet emergencies of 

 nature or war ; 



{{d) A marketing S3^stem and price structure which will return rea- 

 sonable compensation to producers, with equity to consumers; 



(e) Conservation of our soil resources ; 



(/) Preservation of a system of operator ownership, of family-sized 

 farms under wholesome social conditions with maximum freedom of 

 operation; 



{g) A system as nearly self-sustaining as possible, and relying to 

 a minimum extent on public funds for its operation. 



In seeking ways to attain these goals, it would be well to recognize 

 some limitations. 



A. There are many farmers whose problems cannot be solved by any 

 price-support program. Among them are : 

 {a) Those with inadequate acreage. 

 {b) Those with inadequate capital. 



{c) Those with inadecjuate education, or native ability, or those 

 suffering from physical handicaps. 

 (<-/) Those on submarginal land. 

 Obviously in cases where sufficient production is impossible, marketing 

 methods at equitable prices will not solve the problem. Nevertheless 

 there are a great many of such, and their problems are very real and 

 acute. Special measures, some of them of a social nature, should be 

 provided to aid in meeting such problems, but we do not believe such 

 measures should be incorporated in a V)ill designed primarily to meet 

 the problems of marketing and price. 



