RESOLUTIONS 



ADOPTED BY BOARD OF DELEGATES 



AT 34TH ANNUAL MEETING IN CHICAGO, NOVEMBER 18, 1948 



I. LONG RANGE FARM PROGRAM 



The Illinois Agricultural Association vigorously sup- 

 ported the long-range farm program bill as enacted by the 

 last session of Congress. We recognize that many of the 

 provisions of this legislation were the result of compromise 

 and that changes and amendments may be necessary. How- 

 ever, we believe that the basic principles of this legislation 

 are sound. We favor the use of flexible price supports 

 as floors to protect farm prices from collapse rather than 

 high support levels which would result in fixed prices and 

 rigid controls. 



Farmers should not be penalized for increased produc- 

 tion in response to governmental requests. We suggest 

 that careful studies be made of existing agricultural legisla- 

 tion to determine means of further improvement. 



II. TAXATION OF COOPERATIVES 



Vicious attacks upon farmer cooperatives continue, dis- 

 guised as attempts to secure tax adjustment or reform. The 

 real purpose of these attacks is to destroy farmer coopera- 

 tives and eliminate their competition. We have repeatedly 

 stated that we do not seek unfair tax advantage for farmer 

 cooperatives. It is our position that the earnings retained 

 in the corporate structure and not currently distributed, 

 either by a farmer cooperative or by a business corpora- 

 tion, should be subject to corporate income tax. 



The portion of earnings distributed to shareholders as 

 dividends upon capital stock, either by a farmer cooperative 

 or by a business corporation, should not be subject to cor- 

 poration income tax, since such income is taxable in the 

 hands of the shareholders. Likewise, we insist that 

 the portion of the earnings of farm cooperatives, which 

 is currently distributed to members and patrons in the 

 form of patronage refunds, should not be subject to 

 corporation income tax, since such refunds are taxable in 

 the hands of such members or patrons. We oppose double 

 taxation in either case. We will vigorously defend our 

 farmer cooperatives against such attacks. 



III. COORDINATION OF FEDERAL AGRICULTURAL 

 AGENCIES 



During the last two decades numerous separate federal 

 agencies have been created to meet specific agricultural 

 problems. In many cases there has been a marked 

 change in the nature and an increase in the scope of the 

 operations of these agencies. We recognize that some pro- 

 gress has been made through reorganization and increased 

 eflFiciency. However, there still is duplication of activi- 

 ties, unnecessary expense in their operations, and confu- 

 sion among farm people served. 



The work of United States Department of Agriculture 



agencies serving farmers falls into three broad classes, 

 research, education and service functions. To reduce ex- 

 pense, minimize confusion and provide maximum service 

 to farmers, we recommend that so far as reasonably pos- 

 sible all activities in each of these fields be combined under 

 the agency best fitted to perform the particular function. 



IV. LABOR LEGISLATION 



The Association reaffirms its support of national legis- 

 lation which is fair to both labor and management and 

 which recognizes the necessity of protecting the general 

 welfare. 



V. PRICE CONTROL 



The Association reaffirms its opposition to the reimpo- 

 sition of direct price control which must, of necessity, be 

 accompanied by both rationing and/or production con- 

 trol. Such measures will require a vast bureaucratic, regu- 

 latory and enforcement body in order to make these meas- 

 ures work, and will inevitably result in the loss of individ- 

 ual freedom which must be preserved if democracy is to 

 survive. . 



VI. FEDERAL AID i 



The Illinois Agricultural Association opposes excessive 

 increases in federal aid to local governmental units. Nec- 

 essary appropriations should be made in such manner as 

 will preserve essential local control and will supplement, 

 not replace, local effort. We oppose any further federal 

 aid to schools except to those in states which prove this 

 aid to be absolutely necessary to provide adequate public 

 education and then only to publicly supported schools. 



VII. OLEOMARGARINE TAX 



The passage of legislation imposing taxes on yellow 

 oleomargarine by Congress was a recognition of the need 

 to protect both the dairy industry and consumers against 

 imitation and fraud. The need for this protection is no 

 less today than it was when existing legislation was passed. 



Illinois is a prominent dairy state and ranks fifth in the 

 United States in milk production. Last year five and one- 

 half billion pounds of milk were produced on Illinois 

 farms. In 1947, Illinois produced 35.96 per cent of the 

 total national soybean crop. Cooperative marketing as- 

 sociations affiliated with the Illinois Agricultural Associa- 

 tion last year handled 2,625,000,000 pounds of milk and 

 in excess of 15,000,000 bushels of soybeans. Our organi- 

 zation is interested in legislation as it affects the general 

 welfare of agriculture. We are not representing the special 

 interests of either the dairy or the soybean producers. 



12 



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