| Show I I AAA To Continue J I All Adjustment Projects In 1935 With farm prices still substantially substantially substantially below parity although very much improved during the past two years the Agricultural Adjustment Adjustment Adjustment Ad Ad- Ad Administration is not considering abandonment of any adjustment program now in n effect effect effect ef ef- Director William Peterson has just juat been informed Average January farm price of the 14 basic commodities included under the AAA was per cent of the war pre-war level but in terms of present prices for commodities which farmers purchase parity would be per cent of the prewar prewar prewar pre pre- war level The January farm price of these 14 commodities was therefore 20 points below parity With farmers facing a situation situation situation situa situa- tion in which farm prices without without with with- out benefit payments are 20 points below parity no consideration has been given to abandonment of any adjustment program With normal growing conditions unless there are substantial increases in consumer consumer consumer con con- sumer buying power and industrial industrial indus indus- t trial ial production in 1935 it is believed believed be be- that prices could easily go lower ower this year Considering benefit payments as additional income farmers farmers farmers' received received received re re- re- re on the part of their crops consumed in this country returns equivalent to per cent of prewar prewar pre pre- war prices or 2 points less than parity for the 14 basic commodities commod commod- For the 7 of these 14 basic commodities covered by adjustment adjustment adjustment adjust adjust- ment programs farmers received in farm price plus benefit payments payments pay pay- ments menta 9 0 points above parity How However However ever tl this s margin above parity applies only to that share of sales consumed in this country Administration officials point out that the purpose of the adjustment adjustment adjustment ad ad- act is to seek to establish establish establish es es- es- es and maintain parity prices The need for continuing agricultural agricultural agricultural tural adjustment is emphasized by bythe bythe bythe the fact that farm prices are 20 points below parity in spite of the combined effect of reduced export export export ex ex- ex- ex port surpluses drought and dollar dollar dollar dol dol- dol- dol lar devaluation de Wholesale prices of farm products are 13 per cent below their 1929 relation to industrial industrial industrial in in- prices retail food costs 20 points below the general level of the cost of living and the farmers farmers' farmers farmers' farm farm- erf ers ers' standard of living as measured measured measured meas meas- by net income over operating expenses 20 per cent below their war pre-war standard |
