THE 



ILLINOIS AGRICULTURAL ASSOCIATION RECORD 



To advance the ptirpose for which the Farm Bureau was organized, namely, 

 to promote, protect and represent the business, economic, social and educa- 

 tional interests of the farmers of Illinois and the Nation, and to develop 

 agriculture. 



THE STATE FAtM 

 •UKEAU niMJCATION 



^ubdidied 



By PRESIDENT CHARLES B. SHUMAN 



I 



1^ 



RECENT headlines spread across the front pages of daily 

 papers were disturbing — "U. S. MUST EAT LESS 

 FOOD." This headline was followed by a humanitarian 

 appeal based upon the needs of a hungry 

 world and asking us to voluntarily re- 

 duce our present all-time high rate of 

 food consumption. 



Why are we in America eating too 

 much food.' Any knowledge of ele- 

 mentary economics will furnish the 

 answer. If we are using too much of 

 any commodity it is because that com- 

 modity is too cheap in price as compared 

 with the price of other goods. Food is 

 cheap in relation to other commodities. 

 It is being used carelessly and to excess. 

 Government statistics show that even before recent wage in- 

 creases the factory worker today was able to buy more food 

 with the pay for an hour's work than at any other time in his- 

 tory! 



Why is food low in price compared with other commodi- 

 ties.'' Most farmers know the answer. Consumers have been 

 enjoying an unusual type of bargain sale. Every time the house- 

 wife goes into the grocery store, Uncle Sam goes in with her 

 and pays part of the cost of her purchases with money from 

 the federal treasury. Money raised by taxation is going by the 

 billions to reduce the price of food through these consumer 

 subsidies so that the best paid people in the world may buy 

 their food below actual cost. 



Why haven't these indefensible consumer food subsidies 

 been ended? Responsible government officials are now saying 

 that they cannot remove subsidies at this time. One argument 

 advanced is that the removal of subsidies now would result in 

 increased food prices and start a renewed inflationary spiral. 

 There will never be an opportune time. As far as inflationary 

 effect is concerned, subsiciies themselves are highly inflationary. 

 First, by reducing the price to the consumer they release more 

 money for further inflationary pressure. Secondly, since they 

 are paid from the federal treasury, subsidies increase the federal 

 deficit and deficit financing is very inflationary. 



When will the time be right for subsidy removal.' Our 

 friends in government say that they must not be removed until 

 such time as there is sufficient production so that subsidy re- 

 moval will not increase consumer prices. In other words, this 

 means that they do riot favor subsidy removal until demand 

 and supply conditions are such as wiH result in the full brunt of 

 subsidy removal falling on the farmers in the form of reduced 

 farm prices. 



To farmers these are fighting words. Farmers are by na- 

 ture sympathetic to those less fortunate. They want to produce 

 enough to help the hungry of the world. However, if we are 

 to meet this challenge and increase production under continued 

 price control, we demand that all food subsidies be removed 

 and that they be removed now. We insist that now is the 

 logical time to remove subsidies, while consumers are well abk 

 to pay fair prices for their food, rather than during a time of 

 falling prices, when the farmer must certainly carry all of the 

 load. 



MARCH, 1946 • VOLUME 24, NUMBER 3 



njJNOIS AGRICULTURAL ASSOCIATION ISth. _ John T. Etohs, Hoopaston SoIm Scrric* W. P. SancttMd 



OFFICERS •9*'»- - Hilton W. Warren, Mansfiald Troniporlation-Clainu G. W. Bsxlac 



Pf.rid.nt, Charl« B. Shuman __.5ulliTaa ^^ ^^\ \\l'^^'^"^^ ^°"°' '""'P'*'' *<=«"«•• - Dl»worth D. \.y^ 



'£^:^^raJ'V.''v^a^Jir^:::ZZZ:^^U ^===J. ^^Jrt^^lfr'^;::^ ASSOCIATED ORGANIZATIONS 



TMi S«: Co. E. M.tw i, C^"'" Uxt ZirJIT". "L^an ^fnti^i. Eulr? Country Ui. In.. Co Dor. Mi.h«. M„. 



Tr.ei«.r.r. R. A. CowlM Bloomington glh 7. IZ Z Auiiit ^^ Countrr Mutual Fir. Co J. H. K.Jl»r. mSi. 



A~L Trwi... A. R. Wright _ ...Vama ""• "u»u« v». i^gg.rouig. n.a oua Countrr Mutual Cosualtr Co. JL E RickordMa 



ComptroILr, C. C. Chap.II. ....Ohicaflo DEPARTMENT DIRECTORS ' -usuaiiy y^. j^ t. HicuorAwa. 



Gonmral Couni.I, Donald Kirkpatiick. — Chicago Dairy Marii.ting _ Wilir.d Shaw lU. Agi. Auditing Aun. C. E. Strand Mor' 



BOARD OF DIRECTORS g;!^i'„ "??»,vSS!f ""'c.^J" H SfiT^ Rl" A"" ^•,"^£* ^S '*°""""^ Kirkpatrick. Sic! 



,_ _ , ■ T», ^_. » Grain Mark.tjng - G.org. H. Utnar 111. Co-op Lock.r S.rTic. Dana Crvd« Pra«. 



(By CoagTMrional DUtnct.) Logal _ _ Donald Kirkpatrick m. F. B,^. S.rum A^ _S F Sum..ir sll; M^ 



lrt_lo Ulh. JteTOT W. Adair, Chicago HU. LWi Stock Markoting 5. F. lu».U 111. Firm SuppW Co ' C H iLkTr mS" 



}»*•- %,C- I. Elliott. Stroalor Offic. C. E. Johnston Dl. Fruit GrowIri^Exchmg. L." L cSJta,' mS' 



13th. JHoni.r Curti.., Stockton Organisation O. D. Briu.nd.n lU. Grain CorporaKon ^ Frrak Ho^ mSt 



Mlh Otto Sl.fl.y. Stron,hur.t Produc. Mork.Hn, T. A. Gougl., Dl. Livestock Mktg. AMnilH. W ■TTautSSS'. H^\ 



ISJh. Ronald A. Holt, Galra Publicity _.Cr.ston Fo«tM HI. MUk Producer." Assn. Wilired ^e^ Mot 



\^ RUM.U V. McK.., Varna Research and Taxation L. H. Simerl Prairie Farms Creameri^ I B CounSI' tilV,' 



V^ - - -ChoTlM tauritien, Roddick Rural School Relations John K. Cox HI. Wool fStg. W. ."_s: f! lisiSl, sTc'-mSI: 



Director of Information, Cresten Foctor. At(t. Editor, James C. Thomson. 



JJ. nUnois Agricultural Association RECORD is pubUsh.d monthly .xcpl August by tb. Illinois Agricultural Association ot ISOl W Washinolon Rxiil 

 Muideta, lU. Editorial OificM, EOS So. D«irbom St.. Chicago, ni. Enf.r.d as second doss motter ot post office, Mendota lU S«i II ImT «5S^ 

 one. ier mailing ot special rote ol postoge provided in Section 412, Act of Feb. 28. 1925, authorized Oct. 27, 193S. Ad<kess" all corm,u^»«»,f. J-I 

 P«Wtartion to fcditori^ Offices, UlSioi. 'AgSculturol Association RECORD, 608 So. Dearborn St., Chicago. Tb. indfvidu^ membi^o U^^rf aL 

 Ute^ Agricultural Association is fire doUars a year. The lee mcludes payment ol 6lty cents lor subscription to the lUinou Agricultural AsM^rt^ 

 ■BCORD. Postmoster: Send notices on Form 3578. Undehyeroble copies returned under Form 3579 to editorial offices, 608 So. Dearborn St.TcUcom, ni. 



MARCR 1946 



