I. A. A. RECORD— July, 1933 



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Plan Cut In 3 

 Wheat Acreage 



Wallace Announces Application of Domestic Allotment 

 Plan, Await Decision on Corn and Hogs 



ANNOUNCEMENT by Secretary 

 of Agriculture Henry A. Wal- 

 lace that acreage reduction will 

 be applied to the wheat and cotton 

 crops of 1934 indicates that the do- 

 mestic allotment plan will be relied 

 upon mainly to bring the prices of 

 these commodities up to a pre-war 

 parity basis whereas the trade agree- 

 ment section of the Emergency Farm 

 Act will probably be used in the case 

 of hogs and milk. 



;"•; As we go to press, we have seen no 

 official statements regarding the ad- 

 ministration's policies, but newspaper 

 reports of a press conference state 

 that benefit payments are to begin 

 September 1, to farmers who sign an 

 agreement to reduce their wheat acre- 

 age in 1934 and 1935. The payment 

 will depend upon the amount of the 

 processing tax levied, estimated at 

 around 30 cents per bushel. The date 

 for levying the tax is expected to be 

 announced by proclamation shortly. 



It is understood that each state will 

 be allotted a certain acreage from 

 which county and individual allotments 

 will be computed. County wheat pro- 

 duction control committees or asso- 

 ciations will be formed to see that the 

 plan is carried out. The domestic al- 

 lotment plan has the advantage, ac- 

 cording to M. L. Wilson, wheat admin- 

 istrator, of being self-policing since it 

 will be to each farmer's interest to 

 i/iratch his neighbor to see that he does 

 not put in a greater acreage than the 

 plan calls for and thereby undermine 

 the effort to raise prices. 



J..' Pay Sept. 1 



News dispatches announcing devel- 

 opments continue as follows: -.'-'.i' 



"The compensating payments to 

 farmers are to be premised on the 

 farmer's signing a contract to reduce 

 his acreage in 1934 and 1935. Two- 

 thirds of the payment is to be paid the 

 farmer on or about September 1, 1983, 

 and the remaining one-third will be 

 allowed him when he has lived up -to 

 his contract to reduce the next plant- 

 ing. 



"The basis of allotment of benefit 

 money was outlined by the secretary 

 as follows: Each state will be allotted 



an amount in proportion to its part of 

 the national average production in the 

 preceding five years. Each county is to 

 be allotted its share on the same basis 

 and each individual farmer will be 

 given his proportionate amount on the 

 basis of his average production in the 

 preceding three years. Only that part 

 of the farmers' produce estimated to 

 represent wheat for domestic consump- 

 tion Avill figure in the allotment, how- 

 ever, it being now estimated that that 

 part will amount to about 80 per cent 

 of his crop. 



Production Control Groups 



"In addition the contracting farmers 

 in each county are to form a wheat 

 production control association, which 

 will supervise operation of the plan in 

 that county. The extension service of 

 the department of agriculture is also 

 to be utilized for this purpose in coun- 

 ties where the number of contracting 

 farmers is too small to warrant forma- 

 tion of control association. 



"Operation of the domestic allot- 

 ment plan, according to the secretary, 

 will serve materially to facilitate the 

 export of American wheat by bringing 

 the exportable surplus more closely in 

 line with the price of the grain in 

 world markets. At the same time, as 

 an adjunct to the domestic allotment 

 plan, the agricultural adjustment ad- 

 ministration, created under the farm 

 relief bill, is to make new efforts to 

 expedite the outward . movement of 

 wheat from this country." 



Conferences Held 



A series of conferences with or- 

 ganized producers and dealers repre- 

 senting milk, wheat, and cotton were 

 held during recent weeks both at 

 Washington and at market centers at 

 the call of Secretary Wallace and Geo. 

 N. Peek, farm adjustment adminis- 

 trator. 



Representatives of the cotton indus- 

 try met on June 3 to present their 

 suggestions on the application of the 

 Emergency Farm Act to this com- 

 modity. 



Charles J. Brand, co-administrator 

 of the Adjustment Act, and Dr. Clyde 

 L. King, arbitrator for the Chicago 



Henry A. Wallace 



milk zone, conducted a series of hear- 

 ings early in June relative to the mar- 

 keting agreement in the Chicago area. 



Mr. Brand asserted that it is the 

 duty of the adjustment administration 

 under the law to make milk produc- 

 tion pay the farmer better, to get milk 

 to consumers without excessive in- 

 crease in price and see that the dis- 

 tribution system does not get more for 

 its services than it is entitled to re- 

 ceive. "Fairness to the consumer and 

 distributor will be our constant pur- 

 pose, but not at the expense of the 

 producer," Mr. Brand concluded. 



Representatives of the Pure Milk 

 Association, Chicago dealers, and Mrs. 

 W. B. Fribley, president of the Chi- 

 cago Housewives' League, attended 

 the hearings. 



It was announced that when the 

 hearing closes the testimony and 

 statements will be used by the admin- 

 istration to determine whether the 

 Secretary of Agriculture is justified in 

 entering into a compact. 



Marketing agreements and price 

 schedules covering five milk market- 

 ing areas in Georgia have been filed 

 with the Secretary of Agriculture 

 pending the fixing of a date for hear- 

 ing. An effort will be made in the 

 Georgia milk area and adjacent 

 regions to work out an agreement giv- 

 ing the producer a better price. 



Corn-Hog Administrator 



Dr. A. G. Black of Ames, Iowa, was 

 appointed Acting Corn-Hog Produc- 

 tion Chief of the Adjustment Admin- 

 istration for an indefinite leave-of- 

 absence period from his duties as head 

 •>;■> (Continued on page 12) ^' 



