OCR Text |
Show Page 2 Much 9, 1956 Tke Utah Statesman THE UTAH STATESMAN HOW THE SOIL BANK WORKS "1 Weekly Newspaper Devoted to Good Government" Harry B. Miller, Publisher Gail Feltch, Editor 421 Church Street Phone EM Entered as 2nd Class matter at the Post Office at Salt Lake City, Utah, under the act oi March 3, 1879. Single copy 10c Subscription $3.00 per year. Published weekly at. 421 Church Street, Salt Lake City, Utah. NATIONAL EDITORIAL ASSOCIATION, Vol. 10; No. 9 2.IHE lOGSEBURIIOn DESERVE l.TDE OIDEDGE DESERVE 49 1956 March 9, 1956 . Editorial What Is Parity? The readervoter is daily faced with the task of deciphering headline news concerning the "farm issue." The terminology of price support," parity" rigid vs. flexible price supports," has become part of the readers diet. For the layman in this case the voter or the person at home trying to figure out what is going on as far as the farm issue" is concerned, this terminology is a barrier to understanding. First of all the status of the farm issue. The Senate Agriculture and Forestry Committee approved a Committee-draw- n Agricultural Act of 1956 which combined President Eisenhower s recommendation for a soil bank plan, explained on Page 1, with was high, rigid price supports. The vote on the bill (S-318- adopting sound toil and The Acreage Reserve an proposed by the President is designed to directly benefit producers of wheat, corn, cotton and rice and to indirectly benefit producers of other crops and livestock. It is voluntary, but payments, based on the value of crops that land would have produced if planted, would be high enough to take 15 to 20 million acres land out of use until the of to normal carry-ove- r reduced is surplus 3) high-producti- Committee vote approved a provision calling for a return to rigid price supports at 90 per cent of parity of major 8-- 7 levels. It stops the rotation of one problem crop to another farmers problem crop or to live- crops. The House passed on a roll call vote last May on to restore rigid price supports at 90 per cent. a bill (HR-12- ) What does this mean? Five basic commodities wheat, cotton, corn, rice, peanuts receive mandatory price supports on a flexible (or sliding) scale ranging from 82.5 per cent to 90 per cent of parity. The support level rises to 90 per cent when supply and demand are approx- -' imately balance or when a shortage develops. Supports decline toward 82.5 per cent when supply substantially exceeds demand. What is Parity? Parity is a formula to measure the purchasing power of prices received by farmers for the commodi-the- y sell. (Illustration: Wheat sells for $2 a bushel, but fertilizer costs $5 for 100 pounds.' Two bushels of wheat will buy only 80 pounds of fertilizer, so wheat is selling at 80 per cent of parity). What are price supports? Price supports are based mainly on loans. Broadly speaking, the system works like, this: The Federal Commodity Credit Corporation lends die farmer a sum equal to the value of his crop at the support level. If the wheat support is $2 a bushel, the farmer will get a loan of $2,000 for a 1,000 bushel crop. The crop is collateral for the loan. If die market rises to $2 or more, the farmer repays the loan and sells the crop. If the market falls below $2, the farmer keeps the $2,000 loan and turns the crop over to CCC. The present administration favors flexible price supports rather than adjustable to conditions of supply and demand rigid supports which encourage unrealistic patterns of production. The decline in farm prices occurred under fixed supports, not under the flexible system, in effect since 1955. 201-20- 6 FAIRBANKS. MORSE CO. PUMPS AND SCALES 153 West 2nd South Phone EM 08 My best wishes and compliments to the Utah Statesman for the Fine Job They Have Done to Promote Good Government stock. Producers of livestock or poultry who reduced their planting could get grain previously grown gnd needed to feed their stock from the surplus. Or, payment certificates, drawn against the surplus, could be turned into immediate cash. At the same time, reduced production and reduced surpluses would allow prices to go up on the crops harvested ftfom the acres that were planted. Payments would give farmers a guaranteed income from their soil bank acres regardless of drought, insect damage or other disaster. It would give them a chance to build up productivity for the future. The Conservation Reserve will benefit all farmers both the owner of the land and other farmers as welL.lt will remove from the market the produce of marginal lands and lands in serious danger of wind or water erosion. These acres unnecessarily maintained in production now add substantially to the market gluts, often with no real profit to the owner, and at serious harm to our soil resources. It will help free up present markets, remove the threat of future surpluses. To farmers facing the threat of dust bowl conditions or water erosion dne to continuous cropping, it provides the necessary incentive to change over to sound farming practices. income The payments would make it unnecessary for the fanner to maintain this land in production and unnecessary for the Government to buy and store surpluses from this land. Interests of livestock producers and dairymen would lie fully protected since jiartici-fiant- s would contract not to graze these lands. Reduction of feed grains now groan and fed on these farms would also help to reduce livestock production. soil-conservi- ng Yerd's Save Way Station Big Farmers Are Benson Backers BEELINE GAS FOR LESS Pkone IN 3006 Highland Drive Verdon C. Heaton, Mgr. commercial or bis" farmer save Secretary of Agriculture Benson support this week throush a survey conducted by Farm Management . moisture-co- n nervation practices. basis. 12 to 3. An Provides payments for removing 2S million acres from all production and Provide EweroM incentives for taking enpart of pretent acreage allotment n on of oat temporary prodnctlon tirely The magazine. The masazine polled 212,437 farms with incomes of $1,200 a year of better in seven west-ter- n states Utah, Arizona, Nevada, California, Idaho, Oregon and Washlnston. Snow White Egg Co. "The Best Eggs for the Best Customers" 888 E. 33rd South Ph. HU 4-57- 55 DICE VANDEN AEEEB, Mgr. The vote was alons party lines with 65 per cent of the 4,000 first returns declarlns the Republican Party this year showins 64.5 per cent for Mr. Benson asainst 34 per cent for the Democratic Party with 35.5 per cent opposins Mr. Benson. Most western farmers take a dim view of price supports, favor soil bank restrictions and divide on the question oi federal payments to farmers with certain annual income levels. Bearing Service & Supply Co. "The Best Costs No. More" 1207 South Main IN M776 re-strict- ins An additional 50,000 questionnaires on the same subject will be mailed out ths week to give nearly 50 per cent sampling. ECONOMY A G GROCERY Mayor Adiel F. Stewart 4860 South Redwood Road Phone AM Quality Groceries and Meats Lockers $10.00 Per Year OIL MIPAC'JY 73 Utah Oil Building Salt Lake City, Utah |