The 



DBnois A^ctdtur^ Assodaticn 



RECOI^D 



Published monthly by the IlUnoU Agricultural ABsociatlon at 165 So. Main Street, Spencer. Ind. Editorial Offlres. 608 So. Dearborn St., Chicago, III. 

 Entered as second claM matter at peat office, Spencer, Ind. Acceptance for mailing at special rates of postage provided In Sectloa 413, Act of BVb. 28, 

 192S, authorized Oet. 27, 192S. Address all communications for publication to Editorial OfBces, Illinois Agricultural Association Record, MS So. 

 Dearbem St., Chicago. 



Number 4 



APRIL, 1933 



Volume 11 



TheR 



ooseve 



ItF 



arm 



Bill 



It Gives The Secretary of Agriculture Broad Powers To Attack The Price Problem And 



Restore Farm Purchasing Power 



THE farm bill of the Roosevelt 

 administration which was 

 unanimously approved at a con- 

 ference of 52 representatives of the 

 general farm organizations, co- 

 operatives, and farm press is dif- 

 ferent than any agricultural legis- 

 lation heretofore proposed. 



It sets forth certain objectives 

 the chief of which is to raise farm 

 prices gradually until the farmer 

 has the same purchasing power he 

 had in the five-year period from 

 1909 to 1914. The bill clothes the 

 Secretary of Agriculture with broad 

 powers to act in achieving the goal. 

 It does not tie the administration 

 down to any one plan or principle. 

 It does point out several ways of 

 starting agriculture on the upgrade 

 leaving it to the discretion of the 

 Secretary to use one or all of the 

 methods suggested. In this respect 

 the measure blazes a new trail in 

 legislation so far as agriculture is 

 concerned. 



As a means toward raising prices, 

 the bill would restore the balance 

 between production and consump- 

 tion of farm crops. It gives the Sec- 

 retary of Agriculture power: 



(1) To provide for reduction in 

 acreage or production of specified 

 farm products and to compensate 

 producers for such reduction 

 through rental or benefit payments. 



(2) To enter into marketing 

 agreements with producers, mar- 

 keting agencies, and processors of 

 farm products. 



(3) To license processors and dis- 

 tributing agencies engaged in inter- 

 state or foreign commerce in han- 

 dling agricultural products and to 

 regulate them so as to eliminate 

 unfair practices and charges. 



(4) To use the Smith Cotton op- 

 tion contract plan on the 1933 crop 

 of cotton. 



(5) To impose taxes on the 

 processing of the basic agricultural 

 commodities at an amount not in 

 excess of that necessary to restore 

 the pre-war price parity, subject to 

 the limitation that the tax shall be 



reduced if the full amount is more 

 than can be borne under existing 

 conditions without excessive re- 

 duction in consumption. 



It is intended under this broad 

 grant of power that the Secretary 

 will call in representatives of the 

 producers and processors for each 

 commodity and shall work out sep- 

 arately for each commodity the 

 method of dealing with it which 

 offers the best hope of effective 

 control of production for the 19^3 

 crops and of progressive action to- 

 wards an elimination of surplus 

 stocks or production, and restora- 

 tion of normal price parities. 



Under the taxing power, provi- 

 sion is made for hearing interested 

 parties so that before applying the 

 law the Secretary will discuss each 

 proposed step with those interested 

 and will take into account their 

 expert advice. 



In controlling production of dif- 

 ferent commodities different sys- 

 tems will probably be used. Thus it 

 is anticipated that in the case of 

 hogs benefit pajonents will be con- 

 tingent upon a reduction in the 

 tonnage of pork marketed by the 

 producer. In the case of cash crops 

 the rental or benefit payment may 

 be based primarily upon reduction 

 in acreage of the particular crop 

 in question, with supplementary 

 provisions as to the alternative 

 use of the land. Under the plan the 

 Secretary is also at liberty to rent 

 land in large tracts or in selected 

 regions, or to allot the sums for 

 land rentals by States and counties 

 so that each producer will have an 

 equal opportunity to rent a portion 

 of his land. 



Provisions are included for taxes 

 on the existing warehouse stocks at 

 the time the processor's tax goes 

 into effect and refunds on the ex- 

 portation of finished products upon 

 which processing taxes have been 

 collected and for the imposition of 

 such taxes as are found necessary 

 on commodities or products com- 

 peting with the basic agricultural 



commodities or their products. 

 Commodities used by unemploy- 

 ment relief agencies are exempt 

 from taxation. Through these, and 

 other special provisions it is hoped 

 that the tax can be applied with 

 the least possible necessity for ad- 

 jimstment in the varioiis. Industries 

 and without injustice to the va- 

 rious individuals and concerns in- 

 volved, so that in every way the ad- 

 dition of the tax will work out in 

 the same way as an increase in the 

 price of the product itself. 



In practically all cases the per- 

 centage of the retail prices which 

 now goes to the farmer is so small 

 that the addition of the tax will 

 have only a very slight effect on 

 the retail price. It is anticipated 

 that that part of the tax which is 

 added to the retail price will not 

 be burdensome to consumers. At 

 the same time by increasing the 

 funds available in rural commu- 

 nities and thus increasing the as- 

 sets behind the rural banking 

 structure and increasing the pur- 

 chasing power of farmers for in- 

 dustrial products it is expected that 

 there will result an increase in city 

 industrial activity. As this develops 

 the increased activity will even- 

 tually provide city workers increased 

 incomes far greater than the small 

 increase in food cost. 



The basic products to which the 

 Act applies are: wheat, cotton, com, 

 tobacco, rice, hogs, cattle, sheep, 

 and milk and its products. In prac- 

 tically all cases these products are 

 now selling at retail far below the 

 cost of other items of food and the 

 prices of goods and services which 

 consumers buy. The Bill specifically 

 states that the Act is not to be so 

 administered as to advance the re- 

 tail price of the products affected 

 out of line with the prices of other 

 products. 



The President may terminate the 

 measure whenever he finds that the 

 existing emergency in relation to 

 agriculture has been ended. 



