March, 1933 



THE I. A. A. RECORD 



Page Thirteen 



Hog Control Plan 



In Holland 



All Pigrs Earmarked, Processing 



Tax Assures Growers a 



Fair Return 





THE Netherlands last July passed 

 an Emergency Hog Act setting 

 up a "Netherlands Hog Central," 

 composed of representatives of the 

 hog industry to establish a price 

 stabilization fund, to import and 

 export hogs and pork products, and 

 to enforce production control. 



The purpose is to maintain do- 

 mestic hog prices at a level that 

 will represent "at least the indis- 

 pensable cost of production." 



A tax levied on practically all 

 hogs slaughtered in the Nether- 

 lands is the main support of the 

 stabilization fund. Hogs slaugh- 

 tered for consumption by owners 

 are taxed too, except in cases where 

 the tax may be adjudged as exces- 

 sively burdensome. The slaughter 

 tax was fixed on August 15, 1932, at 

 $1.64 per 100 pounds and was in- 

 creased to $1.82 on January 15, 

 1933. 



Slaughter Tax 



The hog slaughter tax is paid at 

 the time of oflacial inspection, and 

 the inspection service has been 

 authorized to refuse certification of 

 live hogs or hog products unless the 

 tax has been paid. The amount of 

 the tax must always be such that 

 "including expenses for the execu- 

 tion of the Act, by means of a sta- 

 bilization fund a basic price may 

 be obtained for the hogs, corre- 

 sponding as far as possible with the 

 indispensable cost of production." 

 The Hog Central imposes an im- 

 port duty on all hogs and pork 

 products Imported into the Nether- 

 lands, and the tax must be "fixed 

 in such a way that the differences 

 between the price of pork products 

 in the home market and in the 

 world market are thereby equal- 

 ized," the law states. One-third or 

 more of the total production of 

 pork in Holland usually is exported, 

 so that the granting of an exclusive 

 export monopoly to the Hog Cen- 

 tral makes it predominant. 

 Last September the Hog Central 



' announced it would pay $5.47 per 



; 100 pounds live weight for hogs of 

 less than 330 pounds delivered for ex- 

 port. At that time the regular mar- 

 ket price ranged from $2.92 to $3.65 

 per 100 pounds. January 15, 1933, the 

 Central price was reduced to $5.11. 



. The losses incurred by the Central, 

 in exporting the surplus are met 



; through the medium of the stabili- 

 zation fund. The Central has exclu- 

 sive control over the 25 bacon fac- 

 tories which produce the bacon ex- 

 ported from the Netherlands and 

 these factories are under contract 



with the Central on a fixed-price 

 basis. Factories are required to de- 

 liver for export as ordered, the ex- 

 ports of hogs and pork products 

 being controlled so as to maintain 

 the home market price. 



All Hos^ Counted 



The first step in production con- 

 trol was a complete count of all 

 hogs late in 1932, and it was an- 

 nounced that the Central intended 

 to reduce the hog population to 

 about the 1930 level. It was esti- 

 mated that at that level the re- 

 sulting marketable supplies could 

 be disposed of at a profit. 



The production control centers 

 upon a system of earmarking of 

 hogs to the number designated by 

 the Ministry of Agriculture. The 

 responsibility for earmarking rests 

 upon eleven Provincial Centrals 

 which have been established by the 

 Hog Central. The Minister of Agri- 

 culture determines periodically and 

 for specified periods the total num- 

 ber of marks to be placed, as well 

 as the number of marks available 

 for the territory of each Provincial 

 organization. District organizations 

 have been set up by each Provincial 

 Central, and earmarks can be 

 placed only on hogs that belong to 

 members of these district organiza- 

 tions. The average district includes 

 about 350 farms and 3,500 hogs. 



Production Control 



The law provides that the keep- 

 ing, transporting, and marketing of 

 hogs heavier than a live weight to 

 be determined by the Minister of 

 Agriculture is permissible only 

 when the animals are provided with 

 official earmarks. The hogs must 

 be earmarked before they weigh 22 

 pounds. A fee of 10 cents is charged 

 for each earmark, for the number 

 approved, and additional marks 

 may be obtained upon payment of 

 a high fee — at present $4.02 each — 

 which usually makes the raising of 

 excess hogs too expensive. 



The Central agrees to purchase 

 at a fixed price all hogs delivered 

 by producers in conformity with 

 present or future regulations. Cer- 

 tain localities have been designated 

 for receiving hogs from farmers. A 

 representative in each village keeps 

 the Central informed as to the 

 number of hogs to be marketed in 

 his territory, dates of shipment, 

 etc., and farmers must give at least 

 eight days' notice of contemplated 

 shipments. Each farmer is notified 

 upon what date he may ship. If of- 

 ferings appear excessive, the Cen- 

 tral may hold them up. 



The index of farm prices of 27 

 agricultural products reached a new 

 low point at 51 per cent of pre-war 

 on January 15. The index on Jan- 

 uary 15, 1932, was 63 per cent of 

 pre-war. 



Live Stock Growers Plan 

 Expansion 



(Continued from page 12) 



tect the farmers' interests. On the 

 other hand, it is illogical and un- 

 economic to assume that all live- 

 stock must go through a terminal 

 market regardless of conditions." 



Commenting upon the effect of 

 the tariff upon American agricul- 

 ture Charles A. Ewing, president of 

 the National Livestock Marketing 

 Association, said: "During the past 

 10 years farmers have been paying 

 a sales tax through the tariff of 

 $10,000,000,000 to $15,000,000,000 as 

 a special protection to one class of 

 industry. The Tariff Act of 1922 

 gave an average protection to in- 

 dustry of 45 per cent ad valorem 

 effective on 90 per cent of its out- 

 put, and on everything the farmer 

 bought from the hat on his head 

 to the shoes on his feet, he paid a 

 tribute because of the 1922 Tariff 

 Act. 



Tariff Barriers Hurt 



"Our policy of raising higher and 

 higher the barrier of tariff protec- 

 tion against our foreign neighbors 

 has led at last to retaliation. They 

 have built around us new trade re- 

 lationships, have established new 

 trade quotas, and are rapidly re- 

 ducing their business contacts with 

 this country. As a result much of 

 our foreign trade has been lost and 

 this is one of the outstanding rea- 

 sons for the terrific decline in farm 

 income. I do not blame foreign na- 

 tions because our whole policy to- 

 ward them has been unwise and 

 destructive." 



Secretary George E. Metzger of 

 the I. A. A. in addressing the meet-* 

 ing commented on the splendid fi- 

 nancial record which co-operatives 

 generally have been able to main- 

 tain in the face of failures, bank- 

 ruptcies, and foreclosures being 

 suffered on every hand by various 

 other industrial and commercial 

 concerns. He emphasized particu- 

 larly the fact that the major ob- 

 jective in the co-operative program 

 is not merely to save a fraction of 

 the handling cost but it is to con- 

 trol sufficient volume to enable the 

 organization to raise price levels. 



The following officers and direc- 

 tors were elected: Samuel Sorrells, 

 Raymond, president; Sam McClug- 

 gage, Peoria, vice-president; Ray E. 

 Miller, Chicago, secretary; Geo. F. 

 Tullock, Rockford, treasurer; H. H. 

 Parke, Genoa; A. E. Crum, Virginia; 

 O. B. Goble, Charleston; Wm. 

 Temple, LaSalle county; W. E. 

 Sawdey, Rockford; Harvey Hern- 

 don, McDonough county; Mont Fox, 

 Vermilion county; D. H. Myers, 

 Adams county; Joe Fulkerson, Jer- 

 sey county; C. G. Oakes, Shelby 

 county; Carl Lage, Bloomington. 



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