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Show lMJtvestoclc I SituationJ XnFa : r Los Angeles, October 2:-, 1!IX1 Let's keep in mind that a processing lax will .soon be levied on all hijr marketed and it is expected that Secretary of Agriculture Wallace W'll make announcement as to the amount of thu "processor's tax in a short time. It is probable that the tax will be tiffeetivo about November 1. Certain Cer-tain producers have asked tluit a tax of at lea.-.t two cents a pound on live hogs be levied and information coming from Washington seems to indicate a tax of at least one cent a( pound. " j Funds derived from the processing tax will be used to pay for the! emergency pork reduction campaign, during which nearly six million 25-to 100-pound pigrs were slaughtered and, not permitted to enter meat channels, excepting a small portion for relief work. Additional funds derived fromi the processing tax may be used to subsidize exports of surplus pork j products and lard and otherwise, with! possibility that farmers who reduce corn acreage and hog production overj a long time period will also share iri benefits from the processing tax. It must be understood that the wholesale slaughtering of little pigs! and bred sows was undertaken purely as an emergency measure. It mayi work. Certainly, there will be many thousands of tons less pork to be marketed early in 1!34 than would otherwise have been the case. The growers themselves are paying for the whole program. We will begin toj realize the shortage in production sl-o:tly before the first of the year and for three to four months thereafter. there-after. In other words, the program was not expected to improve hog; prices until the usual winter packing' season is under way. i What the federal administration and the growers are now interested, in is the 'program that will hrTrigj about some permanent plan to keep' production somewhat in line with! probable con.-umption at a fain price to the grower. I This progra :i is expected to call for reduction in corn acreage in the' midde west along with reduced num- hers of hogs. T':ere certainly should be no disposition on the part of any-! one to cut do'vn production in sec-j tions where production is far below j consumption, provided that such sec- tions, pork production is feasible and economically sound. The far western states, including California, should be encouraged to raise more pork for it is economically unsound to ship hogs and pork products many hundred hun-dred of miles into a section where pork production is needed to round ! out a well balanced agricultural pro-ram. |
