Sun. Scott Lucas, U. S. Senate majority 

 loader, heart tottlmony on farm program 

 from Allan B, Kllno, pretldent, American 

 farm Bureau federation, at Senate com- 

 mittee hearing In WoMhlngtoa. 



By 



CRESTON FOSTER 



Editor, lAA RECORD 



START NEW FARM PROGRAM JAN. 1 



NEW FARM PLAN PROBABLY WILL HAVE FAR-REACHING EFFECT ON ILLINOIS PRODUCERS 



ANEW farm program goes into 

 operation on Jan. 1, 1950, which 

 probably will have a far-reaching 

 eflfect on the operations of Illi- 

 nois producers during the 

 months ahead. 



It appears quite likely that corn acre- 

 age allotments will be in force in 1950. 

 Farmers are being asked to report the 

 acreage of all principal crops grown in 

 the past three seasons. The report forms 

 which are to be turned in to PMA 

 (formerly AAA) committees asks for 

 acreage planted to both soil building 

 and soil-depleting crops. 



The new farm program provides for 

 price supports of 90 per cent of parity 

 for the six basic crops, including corn 

 and wheat, provided acreage allotments 

 or marketing quotas are in effect in 

 1950. If a vote is taken on marketing 

 quotas and producers turn them down, 

 the support level to those who stay with- 

 in their acreage allotments will be only 

 50 per cent. 



There is considerable difference be- 

 tween acreage allotments and quotas. 

 If marketing quotas are voted in 1950 

 on com, it will mean that producers 

 will be given a quota on how many 

 bushels of these crops they can sell 

 based on acreage allotments and yields. 

 There has never been a marketing quota 

 on corn, and a wheat quota was voted 

 only twice in Illinois. The Secretary 

 of Agriculture is given until Feb. 1, 

 1950 to determine whether or not mar- 

 keting quotas will be needed on the 

 1950 com crop. If he decides they are 

 needed, then an election would have to 

 be held among producers to tell whether 

 or not com growers would approve 

 marketing quotas. 



Acreage seeded to wheat this fall is 

 being measured by PMA committeemen 



to determine if producers are within 

 their 1950 acreage allotments. To get 

 wheat support loans and purchase agree- 

 ments, producers have to stay within 

 their acreage allotments. 



The new farm program, known as the 

 1949 Agricultural Act, was passed by 

 Congress in October and signed by Pres- 

 ident Truman in November. It shows the 

 results of many months of debate, hear- 

 ings and testimony. It is a compromise 

 farm program and there are several 

 points on which the Illinois Agricul- 

 tural Association and Farm Bureau rep- 

 resentatives voiced opposition when they 

 appeared in person to testify during 

 Congressional Committee hearings in 

 Washington. 



The lAA objected to the continuation 

 of high price support levels in 1950 on 

 basic crops because they are likely to 

 necessitate drastic controls on farm 

 production. Objection also was raised 

 to the provision permitting the alternate 

 use of parity formulas depending on 

 which results in the highest support 

 level. 



The lAA and Farm Bureau won a 

 partial victory in that the flexible sup- 

 port principle is included in the new 

 farm program to go into full effect by 

 1952. 



In commenting on the new farm pro- 

 gram, lAA President Charles B. Shu- 

 man said credit was due the senior sen- 

 ator for Illinois, Scott W. Lucas for his 

 fight to represent the Farm Bureau po- 

 sition in the debates in Congress. Sen- 

 ator Lucas as majority leader in the 

 Senate, together with Sen. Clinton P. 

 Anderson, were largely responsible for 

 keeping the farm program out of par- 

 tisan politics. It was also through dieir 

 efforts together with effective support 

 from midwestem members of Congress 



that the principle of the flexible price 

 supports was preserved. 



The lAA has consistently opposed 

 rigid high support proposals which 

 would require a completely government 

 administered agriculture. While the re- 

 cent compromise agricultural legislation 

 does not, in the opinion of the lAA, im- 

 prove the agricultural program, it 

 should serve as a basis for settling the 

 argument between those who want flex- 

 ible support prices and those who desire 

 rigidly administered prices. 



A group of certain non-biisic com- 

 modities are given price supports under 

 the new farm program. Levels are to 

 be determined by the Secretary of Agri- 

 culture within maximums and mini- 

 mums set out in the law. 



Shorn and pulled wool is to be sup- 

 ported at 60 to 90 per cent of parity as 

 the Secretary determines necessary to 

 result in an annual production of 360 

 million pounds. 



Whole milk, butterfat, and the prod- 

 ucts of these commodities have a sup- 

 port of 75 to 90 per cent of parity. 



The Secretary of Agriculture is di- 

 rected to use either the old or the 

 modernized parity, whichever gives the 

 higher level, in figuring supports on the 

 basic crops, such as corn and wheat. 



On a number of commodities which 

 are not included among the basic crops 

 and not among the non-basic crops men- 

 tioned in the new law, there are no 

 minimum price supports provided, and 

 supports can be all the way from eero to 

 90 per cent of parity. 



Under the farm program in effect this 

 year, the minimum support is 90 per 

 cent for hogs, chickens and eggs. The 

 government has promised to support 

 hogs at 90 per cent until March 31, 

 1950. 



I] 



Indil 



L A. A. RECORD 



