I. A. A. RECORD— November, 1033 H 1. A. 



Pres. Smith Comments 



On Corn-Hog Plan 



Urges Government Loan on 

 Corn of 60c Per Bu. Chi- 

 cago Basis to Provide 

 Immediate Relief 



"The permanent corn-hog program 

 announced recently by Henry A. Wal- 

 lace, Secretary of Agriculture, and 

 George N. Peek, administrator of the 

 Agricultural Adjustment Act is sub- 

 stantially different, is much more con- . 

 servative, and in my judgment, its 

 price improvement effect on hogs will 

 be much less immediate than the pro- 

 visions of the program recommended 

 by the National Corn-Hog Commit- 

 tee," said President Earl C. Smith in 

 a recent statement. ■ - ;; 



"As Chairman of the Committee, I 

 feel sure I reflect its position in ex- 

 pressing regret that the Administra- 

 tion program fails to recognize the 

 great importance of definitely and im- 

 mediately raising and maintaining hog 

 prices until the effects of a tonnage 

 reduction policy can be made to oper- 

 ate. 



"While the announced program, if 

 fully supported by farmers, will, un- 

 doubtedly, be very effective in improv- 

 ing the price level of hogs in the 

 spring, summer and fall of 1934; yet 

 its immediate effect on hog price levels 

 will be determined by the amount of 

 continuous and aggressive support 

 given the hog market by the Adminis- 

 tration through purchases of hog prod- 

 ucts for the Federal Unemployment 

 Relief Administration. Every influence 

 will and must be brought to bear to 

 keep such support of the hog market 

 operating to the full extent and while 

 doing so, farmers must speedily co- 

 operate with the local committees that 

 will be authorized to assure the needed 

 reduction in hog tonnage during 1934, 

 so as to justify the government in re- 

 lieving the over-burdened markets 

 throughout this coming fall and win- 

 ter. 



"If proper co-ordination of all ef- 

 forts — ^both by the Administration and 

 by farmers can be had — hog price 

 levels can and will be raised and sta- 

 bilized. That part of the program hav- 

 ing to do with reducing future corn 

 production is substantially in line with 

 the recommendations of the National 

 Corn-Hog Committee. 



"To secure substantial improvement 

 in the price of corn, we are urging 

 government support to the corn mar- 

 ket through a system of loans on state 

 farm warehouse receipts on a basis of 

 60 cents per bu., Chicago. In my opin- 

 ion, such a program is both defensible 

 and fully justified to meet the present 



crisis by getting improved price levels 

 now and to keep them improved until 

 the effect of the corn reduction cam- 

 paign can be made operative. 



"In the future our efforts will be 

 largely confined to securing and main- 

 taining government support to the 

 corn and hog markets during the win- 

 ter, so as to assist farmers in the 

 present hour of great need for in- 

 creased income." ■■'v:'..;^ '■.-;•' 



First Checks To Corn 

 n K Belt By January 



Secretary Wallace Comments on 

 Permanent Corn-Hog Plan 



Farmers who co-operated in the 

 pig control plan received around $31,- 

 000,000 Secretary Wallace announced 

 in a radio talk over NBC Oct. 18. 

 More than 100,000,000 pounds of pork 

 — 50 or more train loads — ^were turned 

 over to the Relief Administration. 

 More than 600 carloads of this meat 

 has been ordered shipped to relief 

 agencies in 40 states. 



Discussing the more permanent 

 corn-hog control program recently 

 announced, Secretary Wallace said, 

 "we expect to have the first checks 

 in the hands of farmers in the com 

 belt sometime in January 



"I suppose we have spent ten times 

 as much time and mental labor in de- 

 veloping this corn-hog program as we 

 have spent on any of the major pro- 

 grams previously announced, but in 

 spite of this the complexities of the 

 problem are such that I do not feel 

 entirely satisfied with the plan. . . ." 



After discussing the details of the 

 progrram as presented elsewhere in this 

 issue the Secretary said: "I do not 

 underestimate the difficulties and 

 complexities, but I am inevitably more 

 impressed by the difficulties and com- 

 plexities that will surely confront the 

 com belt if corn and hog producers 

 go ahead without any program. For 

 if nothing is done, if farmers refuse 

 to co-operate we will then continue to 

 grow those 15,000,000 of surplus acres 

 of corn just as though gasoline had 

 not displaced ten or eleven million 

 horses and mules, and just as though 

 we had made no improvements in re- 

 cent years in the number of bushels 

 of corn required to produce a 100 

 pounds of pork. 



"If nothing is done, we will then 

 be continuing in amazing ignorance 

 of the fact that Germany now has a 

 tariff on lard of more than $15 a hun- 

 dred pounds, that our share of the 

 British pork market is no longer the 

 usual 20 per cent, but only six per 



Corn-Hog Committee 



; Plan Compared 



The corn-hog control plan adopted 

 by the AAA differs considerably 

 from the plan recommended by thp 

 National Corn-Hog Committee cf 

 grower representatives. 



The committee recommended thai 

 prices be fixed through agreements 

 between the Secretary and processors 

 so as to reach parity at Chicago by 

 November 1, 1933. This means about 

 $8 hogs which would include the pro- 

 posed processing tax of $2 per 100, this 

 price to be maintained until June 1, 

 1934. The committee also proposed a 

 benefit payment of $1 per cwt. on all 

 hogs weighing less than 220 pounds 

 sold between Nov. 1, 1933 and June 1. 

 1934 by contracting growers. 



Thus, under this plan contract 

 signers would have received around 

 $7 per cwt. for top hogs f. o. b. Chi- 

 cago and would have been required to 

 reduce their 1934 hog tonnage a mini- 

 mum of 20 per cent. 



The corn acreage reduction pro- 

 posal of the national committee is 

 similar to that adopted by the AAA. 



It is believed that the committee 

 plan as applied to hogs would have 

 raised prices immediately. The AAA 

 plan will depress prices on the other 

 hand, and the producer will receive 

 little or no benefit until a year from 

 now unless the government comes in- 

 to the market and buys substantial 

 quantities of live hogs and pork prod- 

 ucts for poor relief. 



cent, and that the total decline in our 

 export trade has left us with an un- 

 saleable, unusable surplus of perhaps 

 seven million head of hogs. The cost 

 of a do-nothing policy might be reck- 

 oned in terms of 10-cent com and two- 

 cent hogs next year, and the resulting 

 social stability would likewise be 



worth just about that much 



"Many people resent the idea <jf 

 restricting production so long as pp"- 

 ple are hungry. They call it wicked— 

 and so do I. Fortunately, we have a 

 President who shares these views. 

 Under the policy he has recently an- 

 nounced, the hungry will be fed, and 

 it will be possible for farmers to con- 

 tinue to produce not only for all wno 

 can afford to buy, but for all in ^^"^ 

 country who need food." 



The milk trade agreement proposed 

 by the Sanitary Milk Producers and 

 St. Louis distributors would pay th« 

 producer $1.95 per cwt. f. o. b. deal- 

 plants for class 1 milk. 



ers 



