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Show Holiday Issue, 1967 Page 3 UTAH FARM BUREAU NEWS Agriculture From Subsidies To Profits Says Shuman U. S. Change It is time to change agriculture from a subsidy-orient- ed to a profit-orientbusiness, Charles B. Shuman, president of the American Farm Bureau Federation, said here in his annual address to the 49th annual meeting of the ed Federation. The head of the nations largest general farm organization with a of more than membership 1,700,000 families in 49 states and Puerto Rico, said that government The Federation president also said that the Administrations policy of holding down market prices and making supplemental payments to farmers as a partial offset to low prices represents a brand of protectionism that is jeopardizing Americas farm export market. markets will strengthen when the 'cheap food program with its export dumping is brought to an end. Shuman also said that farmers are concerned with the present wave of protectionism that threatens to destroy the gains that have been made under the trade agree- ments legislation. At present, The EuropeanCommon Markets he said, there are a large number Utah Horticultural Society convention was held December 6 at variable duty on feed grains imof protectionist bills to legislatLake Hotel Salt the in Temple City. Square ports is being increased in retaliively raise tariff duties or impose farm control, direct payment ation against the U.S. feed grain quotas awaiting action by Conand price support programs are program with its liberal direct that farmers cannot operate in the for substitute products, Shuman gress. Shuman said. to hold down used payments, subsidy farm free market when others are subProtectionslm is being said. prices contagious Farm programs with their pro- - special protection against imand to force farmers to accept sidized. This is nonsense. SubAnother concern of farmers, tectionist features and their stimpayments in lieu of the full marports for (me commodity leads to sidies do not strengthen; they the Federation president said, is ulation of surplus production by demands for similar action for weaken. Competition is the way government-generate- d ket price. inflation. 20 of subsidy payments provide the exother items. Farmers will lose to grow strong; and competition is percent There is no mystery about inApproximately net farm income, ' he reported cuse for other countries to more than they gain if the U.S. the way to greater profits. The flation. Its cause, excessive govnow comes from direct subsidy hike tariffs and Impose quotas reverts to protectionist poli- temporary advantage of a subsidy ernment spending, is well known. low our treasor of Import protection is rapidly Since the cause is known, the cure the from federal against priced artificially cies. Not only will our farm propayments American farm alfarmers cotton out and be shut lost of as the protected industry sinks should be obvious. But applicaproducts ducts farmers get ury foreign can compete in world markets once markets in retaliation, but farm deeper into the ruts of complacmost half of their total crop retion of the necessary therapy is turns from this source. they are freed of the maze of costs will soar if domestic inency, inefficiency and obsolesresisted by politicians who disquotas, allotments and regulations tribute the money as well as by dustry and labor are shielded from cense. Tariff or quota protectAmerican agriculture has been that interfere with efficient proions cannot guarantee continued those who are on the receiving foreign competition. The argument is often made sales because consumers will look end. Furthermore, world rapidly converted by the Great duction. (Continued on Page 8) Society planners and politicians to a subsidy-orientbusiness. It is time for a change. Farmers d, want their industry he said. The national farm leader said that there is good reason to believe that with proper transitional protection against dumping of government - held commodity The Utah Farm Bureau Insurance Company wishes you and yours stocks and other temporary hazthe merriest of Christmases and the happiest of New Years. ards, government farm programs could be terminated quite rapthan with market rather We also hope you'll take the best of care as you drive during the idly gains losses accruing to farmers. been in Road conditions the worst 15-1- ed profit-oriente- Shuman termed ridiculous statements by Secretary of Agriculture Orville Freeman and others that the 1967 surplus grain production and farm price disaster is a sample of what would happen with a no controls- - free market operation in agriculture. The wheat and feed grain production binge of 1967 was not a product of the free market, but must be charged to the mistakes of the Administration in promoting an extensive 'feed the hungry world campaign coupled with rosy price prediction, hie said. Farmers feel, he added, that with some justification, they were double crossed. I am confident that producers can, and would, balance production with effective market demand at acceptable prices under a market system. Producers of livestock (which has no government supply - management programs), and soybeans (which generally have sold for more than the support price) have repeatedly demonstrated an ability to operate under a market system. Shuman pointed out that the disastrous farm price collapse of 1967 occurred with the costly and complicated farm programs that were supposed to bring prosperity to farmers in full operation and the progrms were being run by an administration pledged to make them work. We are completing the harvest of the largest crop in history, produced at the highest cost on record, and selling at the lowest prices in a decade. Those who have been predicting Hut farmers would drown in a sea of surplus production with depression -- level prices, if farm programs were ended, must be embarrassed to discover that this result has been achieved under Great socwtyS the management programs. The parity ratio, a measuring stick that tells how farmers are doing, has dropped to 73 per cent as compared with 71 per cent in 1934 in the he depths of the depression, --P- said. are they've years. So, holidays. enjoy a festive and safe holiday season and a prosperous new year. t Msil gou f)t Qfyt Ikaaton the company that gels costs right down to brass tacks UTAH FARM BUREAU INSURANCE |