GENERAL FARM PROGRAM 601 



Kelated to any effort of this kind is the need for streamlining our 

 processing and distributive system for farm products. In this con- 

 nection we should push to the limit studies of marketing and distribu- 

 tion costs under the Research and Marketing Act of 1946. Also, 

 farmers should be encouraged to further improve marketing and dis- 

 tribution by introducing new competitive factors into the marketing 

 system which is cooperatively owned and controlled by the farmers 

 themselves. May I repeat for emphasis, that farmers can do more to 

 help themselves in this field through cooperative effort than can Gov- 

 ernment either through regulation or direct merchandising. 



The demand for American farm products can be further expanded 

 if a means can be found for increasing exports of farm products. In 

 the short run this can be gi-eatly augmented by the investment of 

 American capital abroad. Because of the current shortage of dol- 

 lars in many countries, we urge that an appropriate agency of the 

 United States Government be authorized to convert foreign currencies 

 acquired by United States exporters into dollars, and to hold such 

 foreign currencies or invest them abroad imtil such time as world con- 

 ditions will result in more normal private investment abroad and a 

 better balance of trade. 



In the long run, the demand for American farm products can be 

 greatly stimulated through the industrialization of the more unde- 

 veloped countries, many of which are overpopulated in terms of their 

 present ability to produce food. Their first need is for industrializa- 

 tion to make possible the building up of balanced purchasing power. 

 With such purchasing power there will develop a demand for more 

 farm products than these countries can produce and hence a demand 

 for our products. To move in this direction America needs to export 

 her industrial know-how and lier experience in research and education. 

 This is a long-time program, but it is one which offers great possibili- 

 ties for the American farmer in terms of a market for his products. 



Also, if we are to have a sound self-reliant agriculture, there is need 

 for decentralization of industries. This is particularly true of our 

 industries for processing and handling farm products. In the case 

 of many farm products, there is great economy in processing near 

 the area of production, in terms of freight, use of byproducts and 

 employment for farm workers no longer needed, at least full time in 

 agriculture. We believe there is need for a comprehensive study of 

 the possibilities of decentralizing future industrial expansion into 

 semirural areas. Such a program would, of course, have value in 

 terms of national security in the event of war. In such matters as 

 freight rates, minimum wages, and pricing methods, we need to guard 

 carefully against penalizing rural communities W weighting the 

 scales in favor of industrial expansion in already overpopulated areas. 



Xow, with respect to Secretary Brannan's proposal, our executive 

 committee on April 12, passed the following resolution: 



A preliminary examination by the council's executive committee of the Sec- 

 retary's proposal brought forth the following questions to which the executive 

 secretary shall call the attention of the Congress. 



I want to again explain that the executive committee met on April 

 11 and 12 and the Secretary's program had only been out about 5 days 

 at that time. So this is a tentative reaction. Since then copies have 

 been placed in the hands of our member organizations ancl we will 



