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The 



DBnois A^ctdtural AssodatioQ 



RECORD 1 



PublUbed monthly bj tbe lUinoU Agrlrultural .. itlfia at 16S 80. Main Street. Spencer, Ind. Editorial Offlies, 608 So. Dearborn St., Chicago. 111. 

 Entered as second claM matter at post ofDce, Speheer, I t,. Acceptance for mailing at special rates of postage provided in Section 412, Act of Feb. 28. 

 1925. authorised Oct. 27. 1928. Address all communic^ions for publication to Editorial Offices, Illinois Agricultural Association Record, 608 80. 

 Dearborn St.. Chicago. 



Number 12 



DECEMBER, 1933 



Volume 11 



AAA Aids 



Ss Corn-Hog Prices S 



45c Per Bu. Loan at Farm and Support of Hog Market 

 ; Follow Request of Organized Illinois Farmers . ., 



THE request of organized Illinois 

 farmers for a higher loan on 

 corn and government support 

 of the hog market voiced in the meet- 

 ing of 8,000 farmers at Peoria called 

 by the I. A. A. on Oct. 27 met an im- 

 mediate response from the Agricul- 

 tural Adjustment Administration at 

 Washington. ^■^V■. Y.^r'^'V;.- .■■'v; 



The sentiment of the meeting ex- 

 pressed in a reso- 

 lution unanimous- 

 ly adopted was 

 carried to Wash- 

 ington by Presi- 

 dent Earl C. 

 Smith the next 

 day. 



"I found Secre- 

 tary Wallace, Ad- 

 ministrator Peek 

 and his assistants 

 all responsive to 

 this constructive 

 ' '. , V request on my ar- 



rival in Washington," said Mr. Smith. 

 "During my four days' stay in the 

 capital, the Agricultural Adjustment 

 Administration was busy working out 

 final details of the permanent corn- 

 hog program. 



Quick Action V 



"Com loans as indicated by press 

 statements will soon be available, and 

 this week the government is calling 

 for bids on 75,000,000 pounds of pork 

 products from hogs weighing from 

 100 to 215 pounds. All these products 

 will be used in feeding the unemployed 

 so as to improve rather than inter- 

 fere with the competitive market. 

 Other substantial purchases of pork 

 products have been authorized at in- 



EASL C. SHITH 



tervals throughout the winter until at 

 least 300,000,000 pounds have been 

 purchased. 



"In my judgment, these accomplish- 

 ments are both a tribute to the con- 

 structive efforts of organized farmers 

 and to the earnestness and responsive- 

 ness of the Administration at Wash- 

 ington. With patience and persistence, 

 farmers, through organization sup- 

 ported by a friendly administration at 

 our national capital, can and will 

 bring about a steady improvement in 

 farm buying power." 



On November 9 the AAA announced 

 that the Commodity Credit Corpora- 

 tion with the approval of the President 

 had obtained a commitment of $150,- 

 000,000 for loans at the rate of 45 

 cents a bushel at 4% interest at the 

 farm again, t merchantable corn prop- 

 erly stored and warehoused. This defi- 

 nite commitment is the second step 

 taken within the past few weeks to 

 raise farm buying power and supple- 

 ment the $350,000,000 corn-hog ad- 

 justment program for the coming year. 



Buy Live Hogs 



Government support to the hog 

 market took a new turn the second 

 week in November when packer buy- 

 ers, and livestock commission com- 

 panies at Chicago got into a deadlock 

 over hog prices. When packers at- 

 tempted to break the market below 

 $4.50 the Chicago Producers Com- 

 mission Assn. with the co-operation of 

 other commission companies resisted 

 with the result that large supplies 

 were held over. The packers countered 

 by increasing their purchases in the 

 country direct from farmers. Then the 

 government came to the rescue by 



buying large numbers of live hogs at 

 the $4.50 price which will be processed 

 by low bidders and the meat turned 

 over to the unemployed through the 

 Federal Surplus Relief Corporation. 



Harry L. Hopkins, federal relief ad- 

 ministrator, in a public statement was 

 quoted as saying: "We are doing our 

 own buying in the hog market be- 

 cause packers are apparently refusing 

 to pay the Chicago market price. The 

 situation there was bad. Packers were 

 not taking the farmers' offerings and 

 consequently storage charges were 

 growing larger all the time. 



"In buying hogs from the commis- 

 sion men at a higher price than the 

 packers are willing to pay, we are 

 helping the farmer to get a better 

 price. This policy will be applied to 

 purchases of cattle and other livestock, 

 if necessary, to hold up the market. 

 There is danger that the packers will 

 control the livestock market unless 

 something is done." Before this emer- 

 gency arose the government had been 

 negotiating with the packers to fur- 

 nish processed hogs for unemployed. 



V / - ;; Loan Regulations - .' . ^ 



In all cases only farmers who agree 

 to take part in the Administration's 

 corn control program calling for a re- 

 duction of 20 percent in acreage 

 planted next year, will be eligible for 

 loans. 



To allow for variations in moisture 

 content, a standard measure of 2% 

 cubic feet instead of the customary 

 2V4 cubic feet will be regarded as the 

 equivalent of one bushel. Any corn 

 eventually delivered to markets in set- 

 tlement of loan notes, however, will be 

 taken at the regular shelled market 

 rate of 56 pounds per bushel. 



Loan regulations specify that the 

 storage at public warehouses for this 

 purpose shall not exceed one-fourth 

 cent per bushel per month of storage 

 and not more than two cents per 

 bushel handling charges. 



However, in Illinois, which has a 

 state warehouse ac passed at the re- 

 quest of the I. A. A. several years 

 ago, loans will be made on marketable 

 com sealed in cribs on the farm. 

 Warehouse boards are to be set up in 

 (Continued on page 4, Col. 1) 



