Show 1 FEDERAL FEDERAL FARM ii BODY APPEALS TO CONGRESS Board Asks Legislative Action to Raise Agricultural Price Level v WASHINGTON Dec 8 IP lP P Con Con- W gressional action to Increase the income Income In In- come of the American farmer former by elevating dc ele- ele the general level of a agricultural cuI to with other tural prices a par com commodities was advocated today by the farm board This problem was assi assigned as as- si signed ed to congress in a special report on legislative recommendations which said the boards board's stabilization operations opera opera- were powerless to achieve e this end I No hint as to the boards board's ideas on the form of such legislation was given 1 except that the process should pay the tho costs if any o on ova a continuous and sustaining self basis basis' and provide an effective system for lor regulating acre N ate age or quantities sold or both The board also aIso urged that it be au to compromise debts now P owed by farm cooperative bons and be provided either with ac acv additional ad- ad v money for the use of cooperative coop coop coop- or or empowered to borrow funds on its own bonds or debentures for that purpose Net assets of the boards board's revolving re fund were placed a at when all outstanding 1 loans are re appraised on a conservative basis Except for the necessity of setting aside to cover the boards board's A equity In wheat and cotton turned over to the Red Cross the report 4 said the present value alue of the revolting revolt ing fund would be LOSSES DEDUCTED These amounts are left leU after deducting deducting deducting de- de ducting all losses on account of sta operations and setting aside liberal reserves reser against possible V- V losses on loans now outstanding to cooperative associations Along with the legislative recommendations the board transmitted to 0 congress its annual report which laid laic down a fivefold program for b boosting the agricultural income It advocated advocat ed cd a general reduction in international 0 trade barriers and readjusting of agricultural debts b by agreement Ii among debtors and creditors Holding that the present low pric prices price of farm products must in fn general be ascribed to other causes than heavy surpluses the b board ard said any remedial remedial reme reme- dial plan should include t I 1 Hastening business recovery In the United States thereby 7 Increasing big ing increasing returns from products sold in the domestic market K 2 2 Steps to initiate recovery in in in- trade thereby strength s strengthening ening g foreign demand for export products w 3 3 Readjustment of taxes interest inter est cat and principal payments freight rates and md other fixed charges which enter into the farmers farmer's expenses and Z now abnormally depress the share which he receives of the final retail t price t REDUCE EXPENSES EXPENSES' I. 4 Further strengthening and and- expanding ex cx- of cooperative organization to reduce the expenses of marketing and increase the producers producer's share of the consumers consumer's dollar io 5 5 Efforts through cooperative marketing associations or in other ways to secure a better adjustment f between the quantities produced and the needs of the market Explaining that to help raise the thes thel s l level vel of farm incomes devices other than stabilization are nrc required the y report on legislation added 4 In the light of the experience with stabilization over the past three years ears i the board recommends that any new newt t legislation be based on the following two principles which have been dem dem- by experience to be essential essen essen- for effective e relief I 1 Prices can not be raised unless someone pays the cost The new plan must be sustaining self with a cond con con- continuous d method of covering the costs Prices of other products are now 40 per cent above the prices at which farm products arc are selling If the new method raised prices to domestic cons consumers con w sumers to the level of prices of other commodities that would not be giving farmers an unfair advantage ADJUSTED PRODUCTION r 2 Prices can not be kept at fair I levels unless production is adjusted to meet market demands Man Many farm products are now being produced in jn quantities in excess of at those which the market will take Higher prices without regulation of at production would stimulate still more t Any method which provided pro higher high high- cr tr prices and did not Include effective t regulation of acreage or of quantities ties tics sold or both would tend to increase ine in in- crease e the present sui surpluses pluses and soon break down as a n result To be of lasting help any plan must provide a system of effective regulation so that our millions of farmers can plan and adjust their production on a 3 dependable basis Instead instead In In- stead of competing blindly with each J other I |