598 GENERAL FARM PROGRAM 



1. THE INCLUSION OF HIRED FARM LABOR AS AN ITE3I OF COST OF THINGS 



THE FARMER BUYS FOR COMPUTING PARITY 



This we consider desirable in order that the parity index may more 

 accurately reflect the effect of labor-saving devices in today's costs of 

 the things the farmer buys. This is particularly important in pro- 

 viding incentive for desired voluntary shifts of acreage from one 

 commodity to another, since the intercommodity cost and price rela- 

 tionships largely determine such shifts, 



2. COMPARABLE TREATMENT OF ALL COMMODITIES, BASIC AND NONBASIC 



ALIKE, UNDER ANY PRICE-SUPPORT PROGRAM WHICH MAY EXIST 



During the thirties, preferential treatment of basic commodities 

 was justified largely upon the arguments that (1) such programs were 

 temporary and hence we should support the prices of as few com- 

 modities as possible ; and (2) the prices of nonbasic commodities would 

 tend to follow those of basic commodities. During the war. commit- 

 ments to support certain other commodities were justified on the need 

 for increased production to meet war demands. 



The Agricultural Act of 1948 does not pretend to set up temporary 

 price-support machinery, but permanent. The experience of the pro- 

 ducers of nonbasic commodities, particularly some of the perishables, 

 since the war has pretty well demonstrated that the prices of nonbasic 

 commodities do not follow those of basics. These things being true, 

 there is no longer any justification for supporting certain commodities 

 and not others, nor of giving certain commodities prior claim on avail- 

 able funds. To do so favors some farmers and penalizes others, and 

 therefore does not result in equitable treatment for all. We believe 

 that the same opportunity for support prices should be made available 

 to farmers across the board. By this I do not mean to imply that the 

 same methods of support should be used for all commodities, both 

 storable and nonstorable. The method should be adapted to the needs 

 of the particular commodities being supported. Where practicable, 

 we favor the use of marketing agreements, administered through vol- 

 untary associations of farmers. For nonperishable commodities, the 

 nonrecourse loans and purchases have proven valuable. Our poultry 

 division favors the use of compensatory payments in the case of eggs, 

 if they are to be supported. 



3. EXTENDING THE MARKETING- AGREEMENT PROGRAM TO THOSE COM- 

 MODITY INTERESTS WHICH CAN USE THEM TO ADVANTAGE IN ORDERLY 

 MARKETING 



Under the marketing-agreement procedure, industry committees, 

 under the supervision of the Secretary and the staff of the Department 

 of Agriculture, have done much to keep off-grade products from the 

 market, and space the orderly supplying of the market to the best 

 interest of consumers, distributors, and producers. 



Also, they have made possible the use of certain off-grade products 

 to better advantage than would have been the case. 



