ADJUST FOOD PRICE CONTROLS 



SAYS lAA BOARD 



THROUGHOUT the war years farmers produced unprecedented quantities 

 of food. Since the wars end they have kept production at near record 

 levels. Farmers, knowing the urgency of the need for food, both at home 

 and abroad, want to continue this high level of production. However, farmers 

 know they can not long continue maximum production under the rigidities 

 and restrictions imposed by the OPA. 



Farmers have supported all honest attempts to control inflation. They 

 have insisted upon a balanced budget and that price control measures be ap- 

 plied and maintained uniformly and equitably over industry, labor and agri- 

 culture. This has not been done. 



While prices of farm products have been kept under rigid ceilings, farm 

 operating costs have advanced sharply. The farm labor supply has been re- 

 duced and farm wage rates greatly increased by the government-sponsored 

 high wage and short hours policy in industry'. 



Strikes, increased labor costs and unreasonable OPA price ceilings have 

 combined to restrict the output of farm equipment and other essential indus- 

 trial products. High wages, huge consumer food subsidies and low food 

 price ceilings have encouraged excessive use and outright waste of vital food 

 products. Farmers now insist that definite action be taken to end this intoler- 

 able situation. 



Therefore, the Board of Directors of the Illinois Agricultural Associa- 

 tion, recognizing the importance of this situation, not only to agriculture, 

 but also to the entire nation, respectfully urges and insists that the Congress 

 of the United States incorporate into any legislation extending price control 

 beyond June 30, 1946, the following essential provisions: 



First, consumer food subsidies must be eliminated rapidly and according 

 to a definite schedule terminating not later than Dec. 31, 1946. 



Second, as consumer food subsidies are removed, retail price ceilings 

 must be adjusted to offset the subsidy removal. 



Third, all OPA controls must be eliminated according to a definite 

 schedule as rapidly as production or supplies reach specified normal levels. 

 All controls, except possibly those on rents and a very few important scarce 

 items, should be eliminated by March 30, 1947. 



Fourth, the price control agency must recognize increased costs of pro- 

 duction and be required to reflect such increased costs by immediate adjust- 

 ments in price ceilings. 



Government Planners Do It Again! 



" This week, the U. S. miller, 



• • • * baker and plain citizen final- 

 ly knew that famine abroad would mean 

 sacrifices at home. But the U. S. farmer 

 again got what he wanted out of world 

 shortages: a higher price." 



That's the way one national magazine 

 reported the government's announcement 

 of the 30-cent per bushel bonus offered 

 farmers for delivering corn and wheat 

 to the account of the Commodity Credit 

 Corporation. 



But that wasn't the way many farmers 

 over the state considered the "bonus" 

 section of the famine relief program. 

 With most of the stocks of corn held by 



other than producers, the farmers cer- 

 tainly hadn't asked for the "bonus." In 

 fact, the government had been encourag- 

 ing farmers to market their corn with 

 the promise that the price wouldn't be 

 increased. 



Those farmers who had responded to 

 the government's plea and marketed their 

 grain before the "bonus" was announced, 

 felt that they had been fooled and they 

 didn't like it. 



At a feed conference held in Wash- 

 ington in March, lAA officers were in- 

 vited by Secretary of Agriculture Ander- 

 son to indicate what farmers thought 

 about materially increasing the price of 

 corn. 



lAA President Charles B. Shuman on 

 March 29 reported to Secretary Ander- 

 son that he believed it would be unwise 

 to increase the price of corn at that time, 

 explaining that most of the stocks were 

 held by other than producers. 



President Shuman suggested rather that 

 the price of corn should be permitted to 

 increase substantially at some tame shortly 

 prior to the beginning of the new har- 

 vest. Such an increase, he said, should 

 be on a graduated basis through the mar- 

 ketingSeason so that there could be some 

 encouragement for normal movements to 

 market. 



The lAA president further stated that 

 he believed that feed grains were not 

 being hoarded and were moving out of 

 storage at about the usual rate, consider- 

 ing the small amount still held by farm- 

 ers. 



However, on April 19, the Department 

 of Agriculture outlined the following 

 program: 



The government offered farmers a 

 bonus of 30 cents a bushel on wheat 

 delivered under the certificate plan to 

 the government by May 25. 



The government offered to buy 50 

 million bushels of corn from farmers at 

 a bonus of 30 cents a bushel over cur- 

 rent ceiling prices. 



Four other points in the program ap- 

 plied to millers and processors. 



The reaction to this announcement 

 in the country was sharp and violent. 

 Producers were in agreement with the 

 humanitarian objective of the program, 

 that of aiding starving people, but they 

 were highly critical of the government 

 in breaking its price pledge. 



Producers had repeatedly been in- 

 formed through the piress and other in- 

 formational channels that the govern- 

 ment would not increase the price on 

 the 1945 corn crop. 



In the state AAA newsletter of Dec. 

 '21, 1945, at the time corn rates on the 

 1945 crop were announced, there ap- 

 peared a statement which said in part, 

 "... if at a later date the Department 

 of Agriculture institutes a corn buying 

 program all purchases will be made at 

 not more than established ceilings." The 

 state AAA news letter of Feb. 1, 1946, 

 repeated this statement in urging farm- 

 ers to market "wet corn." 



Producers also recalled another broken 

 pledge of the government which occurred 

 two years ago during the corn freeze 

 order. At that time, they reported, 

 both OPA and USDA had announced 

 that no one would get a higher price. 

 Then the corn shortage caused the Com- 

 modity Credit Corporation to announce 

 a special 5 cents per bushel payment for 

 shelling the com. This special payment 

 was considered by many to be the same 

 as a price boost. 



I. A. A. RECORD 



