The 



DlincHs A^cukural Assodatioii 



RECOI^D 



['ubllsbed monthly by the Illinois Agricultural AHOCiation at 166 So. Main Street, Spencer, Ind. Editorial Offices, 608 So. Dearborn St., Chicago, 111. 

 Entered as second class matter at post office, Spencer, Ind. Acceptance for mailing at special rates of postage proTided in Section 412, Act of Feb. 28, 

 1925, authorized Oct. 27, 1926. Address all communications for publication to Editorial Offices, Illinois Agricultural Association Record, 606 So. 

 Dearborn St., Chicago. 



Number 9 



SEPTEMBER, 1933 



Volume 11 



Submit Program To 

 Raise Hog Prices 



EABL 0. SMITH 



A PROCESSING tax on hogs 

 the proceeds of which would 

 be used to encourage the mar- 

 keting of 4,000,000 pigs weighing from 

 25 to 100 pounds between now and Oct. 

 1, 1933 was recommended by the Na- 

 tional Corn and Hog Committee fol- 

 lowing a recent conference in Wash- 

 ington with the Agricultural Adjust- 

 ment Administration. 



In addition the 



c m m i 1 1 ee, of 

 w h i ch President 

 Earl C. Smith is 

 chairman, p r o - 

 posed that 1,000,- 

 000 sows soon to 

 farrow, weighing 

 275 pounds and 

 over, be encour- 

 a g e d to market 

 by paying a bonus 

 of $4 a head in 

 addition to what- 

 ever price they may bring. 



This program, it is estimated, will 

 relieve the hog market during the 

 next year of approximately 2,000,- 

 000,000 pounds of pork, or around 

 5,000,000 hogs. 



It was also suggested that large 

 quantities of pork might be disposed 

 of by sale to relief agencies under 

 definite agreements that the normal 

 purchase of meat by these agencies 

 will not be reduced. 



The lower grade animals could be 

 used for tankage and soap. It is esti- 

 mated that from $40,000,000 to $60,- 

 000,000 will be required to carry out 

 this one year emergency program. 



The Corn and Hog Committee sug- 

 gested that the emergency program 

 be completed by Oct. 1 when a more 

 permanent program can be formu- 

 lated and launched to reduce the 1934 

 spring pig crop and corn acreage. 



No recommendation was made as to 

 the rate of a processing tax to raise 

 the required sum. 



At the general meeting on August 

 10, all farm organizations represented 

 vigorously supported the recommen- 

 dations of the committee. 



Thomas E. Wilson, Chicago packer, 

 stated that the packing industry was 

 interested in helping farmers obtain 

 an increase in their income and that 

 it would co-operate in the final pro- 

 gram offered by the Adjustment Ad- 

 ministration. 



Department of Agriculture econ- 

 omists advised the Corn and Hog 

 Committee that the increase in pigs 

 farrowed and to be farrowed during 

 1933 will be approximately seven per 

 cent more than the farrowings of 

 1932. In terms of tonnage this in- 

 crease would amount to approximate- 

 ly 700,000,000 pounds of live weight 

 pork. 



The committee was also informed 

 that the decrease in normal exports 

 amounts to approximately 500,000,000 

 pouTiH-:. Taken together this presents 

 a problem of removing at the earliest 

 possible time and in the most eco- 

 nomical way around 1,200,000,000 

 pounds of pork production. In addi- 

 tion, some further reduction seems to 

 be essential if a substantial raise in 

 the price of hogs is secured. 



The enormous increase in produc- 

 tion, coupled with a drop in normal 

 demand, has resulted in holding the 

 price of hogs to approximately 50 per 

 cent of the pre-war parity price level. 



To meet this situation the com- 

 mittee recommended the removal from 

 the domestic market of 500,000,000 

 pounds of pork and pork products be- 

 tween now and January 1, 1934, and 

 a total of 2,000,000,000 pounds during 

 the coming marketing year by any 



one or a combination of the following 

 methods: 



(a) Encouraging the market- 

 ing of 4,000,000 pigs of 

 from 25 to 100 pounds 

 average weight between 

 Aug. 15 and Oct. 1, 1933 

 by paying the following 

 prices : 



25 to 40 pounds. .$9.00 cwt. 



8^50 

 8.00 

 7.50 

 7.00 

 6.60 

 . 6.00 



immediate 



41 - 50 



51 - 60 



61 - 70 



71 - 80 



81 - 90 



91 -100 



(b) Inducing the 



marketing of 1,000,000 

 sows above 275 pounds in 

 weight, soon to farrow, 

 by offering a premium of 

 $4 per head, plus the re- 

 moval of the usual dock- 

 age. 

 It is proposed to dispose of the re- 

 sulting meat and meat products from 

 the best of these animals by the sale 

 on a moderate basis to relief agencies, 

 under definite agreement that their 

 normal purchases of meat will not be 

 reduced. The balance of the lower 

 grades of meat resulting from this 

 type of marketing should be con- 

 demned, tanked, and such salvage 

 realized therefrom as would be possi- 

 ble without serious inconvenience or 

 injury to the immediate demand of 

 this kind of product. 



To make this program effective the 

 committee recommended that a very 

 substantial or restrictive processing 

 tax be placed upon all hogs of 235 

 pounds live weight, other than pack- 

 ing sows at the earliest practicable 

 date. 



It is further proposed that the reve-' 

 nue necessary to make prompt pay- 

 ment to farmers for their marketings 

 of this class of animals, according to 

 the suggested price schedules, be pro- 

 vided by a processing tax on all hogs 

 marketed in the usual way during the 

 next 12-month period. 



In addition, this program will pro- 

 vide very substantial and necessary 

 cash for the present owners of mil- 

 lions of pigs and brood sows, who live 

 in distressed areas where drought and 

 insect pests have destroyed necessary 



