532 GENERAL FARM PROGRAM 



in determining the level of supports, we should not overlook the possi- 

 bility that governments, most of v<'liich now control the commerce in 

 foodstuffs, are in a position to use tariffs, embargoes, subsidies, pre- 

 miums, and similar devices to modify materially the effective supply 

 and demand on commodities moving in large volume in world trade. 

 By such devices other nations could influence our support levels mate- 

 rially. In such circumstances discretion in maintaining support levels 

 would seem essential. We feel that fixed floors may be as definitely 

 essential in some commodities, and in some circumstances, as flexible 

 floors in other commodities and other circumstances. 



We do not believe it possible for Congress to determine all the con- 

 ditions which may make either the fixed floor or the flexible floor the 

 most practicable method of dealing with all commodities. We believe 

 it necessary to leave this to administrative decision in the light of the 

 circumstances which may be governing, and we believe the safest 

 course lies in the use of a board such as we have discussed in previous 

 paragraphs. 



Among other methods made available to the Board should be some 

 form of "stamp plan'' designed to meet emergencies and distressed 

 cases, school lunches as they may justify themselves as a worth while 

 part of our educational system, and stock piling of many storable 

 products as insurance against future needs. The policies governing 

 the use of these methods should be established by the Congress, but 

 the problem of choice and administration of the various devices should 

 be left to the discretion of the Board and Secretary. Special provi- 

 sions are necessary in the case of stock piling to minimize the pressure 

 of stored commodities upon the current price structure. Provision 

 that items going into stock piling to be held as insurance against future 

 needs, could be made quite effective by a requirement in the law that 

 they could be released for consumption, only in the case of well-defined 

 shortages or for lower and noncompetitive purposes as set forth in 

 the act. The threat of dumping for speculative or political purposes 

 would thereby be largely removed. 



One of the most practical and effective means of stock-piling food 

 resources lies in promoting sound development of pastures and storing 

 increasing amounts of fertility in the soil. These practices yield lit- 

 tle pi'ompt cash returns to the farmer, yet they are of great value to 

 the Nation. Despite the great cost and in many cases the great waste 

 of so-called soil conservation payments, which were frequently made 

 solely to curtail production, and resulted in vast areas of idle land 

 growing to weeds, on the whole we probably got more than our money's 

 worth during our war emergency in the stored fertility where cul- 

 turally sound practices were followed. We have deplored the abuses 

 involved in many cases of "not growing crops," and have hoped for 

 a sound basis for encouraging culturally sound summer fallowing and 

 pasturing ]:)ractices. In some areas a method of tax adjustment may 

 prove helpful. 



Taxes must be paid either out of capital or from income. Of course 

 income is the one sound source. Most land in summer-fallow or pas- 

 ture produces far less cash income than land in crops, yet, except for 

 permanent pasture land, there is seldom any difference made in the 

 tax base. Justice in taxation and encouragement for storing fertility 

 could both be accomplished if land which was in well-managed 



