12 



I. A. A. Record — February, 1934 



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res. 



Smith Reviews 

 ricultural Problems 



Sees Acreage Reduction as Emergency Measure Only, 



Outlines Work For Future 



"I 



REGARD national efforts now 

 in the making to restore parity 

 prices of farm crops as of an 

 emergency character. Owners of fer- 

 tile farm lands must not longer than 

 necessary be asked to maintain but 

 keep idle large portions of their re- 

 spective acreages," President Earl C. 

 Smith said in his annual report and 

 address at the opening session of the 

 I. A. A. convention in the great 

 armory at Danville, Thursday morn- 

 ing, January 25. He spoke to a full 

 house with many seated in the gallery. 

 "It is my belief," he continued, "that 

 the ultimate and permanent solution 

 of the farm problem embodies three 

 major objectives: (1) restoring and 

 maintaining agricultural exports in 

 proper relationship to industrial ex- 

 ports through trade agreements with 

 foreign nations; (2) the immediate de- 

 velopment of new and large industrial 

 uses for the raw materials produced 

 on American farms; and (3) national 

 planning on a basis that will take 

 from production large areas of mar- 

 ginal lands which never have been or 

 never will be profitable from an agri- 

 cultural standpoint; but could be much 

 better utilized by restoring to the pub- 

 lic domain and used in reforestation 

 or otherwise by the Federal and State 

 Governments. .-, ■; ; ;>; .^ 



"The development of these three 

 policies again presents a challenge to 

 farm organizations and to the states- 

 manship of the country. 



"In the meantime," continued Mr, 

 Smith, "we have cause to be thankful 

 that at last we have full authority for 

 federal assistance and that efforts are 

 being made to increase price levels of 

 farm commodities." He characterized 

 the Agricultural Adjustment Act as 

 the most far-reaching legislation en- 

 acted by Congress during the present 

 generation, in reviewing the long fight 

 of organized agriculture for effective 

 legislation to remove the disparity be- 

 tween agricultural and non-agricul- 

 tural prices. 



He paid tribute to the leadership of 

 Frank O. Lowden in bringing the farm 

 issue to the front in the years 1926 

 to 1928. "It probably should and does 

 bring deep and lasting satisfaction to 

 be able to say on this occasion," he 



continued, "that it now seems the for- 

 gotten man will ultimately be given 

 an equal and just opportunity with his 

 fellow men." 



Mr. Smith reviewed in detail the 

 accomplishments of the commercial 

 organizations during the past year, 

 the activities of the organization in 

 state legislation, discussed at length 

 the national economic situation, out- 

 lined the contents of the Agricultural 

 Adjustment Act, and spoke of efforts 

 made since the enactment of this legis- 

 lation to improve wheat, corn and hog 

 prices. 



Referring to the corn-hog program 

 he said: "Corn and hog farmers at 

 last have their first opportunity 

 largely to determine the future price 

 levels of these commodities. Their ac- 

 tion will largely determine whether 

 their future sales of hogs and com 

 will show a loss or profit. If en- 

 thusiastic co-operation and support of 

 farmers is given, future production of 

 these commodities will be profitable. 

 Without the combined effort and sup- 

 port of farmers no policy of govern- 

 ment can permanently influence and 

 maintain price levels." 



Speaking of the com loan policy of 

 the administration, he said, "The As- 

 sociation took a leading part in secur- 

 ing from the government the adoption 

 of a price-supporting policy for com 

 and in a lesser degree for the hog 

 market. At the time this effort was 

 initiated the average country price for 

 corn in Illinois was 23 cents and 

 seemed destined to go lower. . . . 



"The Association believed that if 

 the government was justified in many 

 of its other price and wage-supporting 

 policies, it was only fair and just that 

 the price of this important basic com- 

 modity should be supported and main- 

 tained. Although the price of corn is 

 yet far from parity it has been greatly 

 stimulated as a result of this service. 



"More than f70,000,000 have been 

 loaned upon corn in sealed cribs on 

 the farms in mid-western corn states 

 on a basis of 45 cents a bushel. It 

 has been carefully estimated that this 

 temporary service has already in- 

 creased by $150,000,000 the current 

 values and incomes of farmers in the 

 middle west. This amount will be 



Any Room in the Wolford at the 

 I. A. A. Convention. 



much greater if and when farmers re- 

 spond in the 1934 progfram to reduce 

 com acreage and thereby create a 

 deficit in production that will allow 

 normal consumption of the accumu- 

 lated surplus of com." 



Mr. Smith commended the efforts of 

 western Illinois livestock growers in 

 organizing against direct buying 

 methods of the packers. He referred 

 to a study being made by the Secre- 

 tary of Agfriculture of the price effect 

 of direct selling of hogs and other 

 livestock to processors. "While as an 

 institution the I. A. A. could not lead 

 farmers to believe that any sectional 

 effort of this character would result 

 in permanently higher price levels," 

 he said, "yet it has repeatedly urged 

 action by the Department of Agricul- 

 ture and pledged its support to a corn- 

 belt program for the curtailment, 

 regulation, or removal of these prac- 

 tices." 



Reviewing state legislative activities 

 during the past year the speaker 

 stated that "the Association does not 

 regard the present occupational tax as 

 a fair tax, but does regard it as fairer 

 than the general property tax in that 

 an occ" pation tax can reach more 

 than one-half of the population of t^e 

 state who cannot be reached by prop- 

 erty taxes. Until the people of the 

 state vote for constitutional changes 

 to permit an equitable taxing system, 

 the occupation tax, with amend- 

 ments to make it apply as much to 

 the rich as to the poor, which it does 

 not do now, ought to be continued for 

 the exclusive purpose of replacing, 

 dollar for dollar, taxes now levied on 

 property. This principle of property 

 tax replacement was introduced and 

 has been continuously supported by 

 the Illinois Agricultural Association. 



"With the approval of the board of 

 delegates the I. A. A. will fight for an 

 amendment placing a reasonable limi- 

 tation upon property taxes and re- 

 moving all present restrictions upon 

 (Continued on page 14) 



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