400 - AGRICULTURAL RELIEF
other in adjusting production to demand. The impossibility of absolute control
of production emphasizes the wisdom of exercising the maximum of control.
Thousands of acres of cotton and tobacco land will raise corn and wheat. In
December the Department of Agriculture reported:

«In livestock and livestock products we are to-day on an import basis. The
value of our net imports of animals and animal products for the past three
years was 6.2 per cent of the total farm value of domestic production.”

Beef consumes corn. It was stated a few days ago in the Senate that shutting
out Cuban blackstrap molasses would increase corn consumption in the United
States 50,000,000 bushels for the manufacture of alcohol. Two deductions are
clear. Thorough organization of commodity cooperatives will aftord a powerful
instrumentality to remedy such conditions and adjust production to demand;
second, any commodity is interested in the organization of all others on defensive
grounds.

Some say we can not affect production. There are many ways to affect and
adjust it. We have thousands of acres in wheat in the West which should be
raising sugar beets. Homesteading is progressing, and that could be stopped.

If an operating period were declared on wheat under the Mc¢Nary-Haugen bill,
or a debenture plan, and the producer given a substantial benefit of the tariff
without at the same time giving like benefits to other major commodities, there
would be danger of an excessive increase in wheat acreage. Since the proposed
act contemplates operating through cooperatives, the Federal Farm Board might
be placed in an embarrassing position if unable to speed up organization of other
commodities.

In an article published in the Farm Journal in August, 1927, the Secretary of
Agriculture said: .

“ Commodity cooperative associations have a definite funetion to perform, not
only in merchandising farm products, but also in adjusting production to
demand. I believe that ample authority for this is provided in. section 5 of the
act creating the division of cooperative marketing.”

And again in the same article:

Large-scale organization for orderly marketing and for adjusting production
to demand is essential to that economic stability of agriculture which we all
hope to attain.”

The Federal Farm Board is bound to meet conditions. which will place it
squarely up against this organization question, or else turn the whole operation
over to private interests and forget all about the farmer's bargaining power
and his cooperative. Whatever the legislative plan, if it is financially beneficial
encugh to be an incentive to increased production, the equation of production
will find its mightiest ally in thorough organization of the farmers.

Government can not limit my legitimate uses of my property; it can not say
I shall cultivate only so many acres of this or that; but the farmers’ own organi-
zation may contract with its members for reasonable regulation or adjustment
of production in consideration of services rendered.

The rapidly increasing acreage in Canada is another angle of overproduction.
Canadian and Australian grain are both well organized and stand ready and
waiting to cooperate with us in stabilizing foreign markets. It would appear
that a strong cooperative is the onlv United States agency with which they can
function.

Loans for organization are needed in any permanent agricultural-relief pro-
gram. The subject has a preferred claim to consideration. The structure should
be builded first and then given its uses. It is a supermajor operation which
should be treated where most needed and bv the agency responsible for agri-
culture's present ills.

The farmer does not ask a gift, but a loan. It is not likely that more than
$2,000,000 would be borrowed in the organization of all the commodities.
Such a loan is so modest in this atmosphere of vast appropriations that Gov-
ernment can not afford to take the chance of handicapping the Federal
Dam Tory OF hs omission. Furthermore, refusal would appear unsympa-
t e fundamental objective of agricultural relief. namely. bargain-
ing power.
ee stated hy fe farmer can not organize himself ; how loans will be
such aid EW ae Ys e amendment ; and the urgency and justification for

s e standpoint of the farmer and the operation of the
law. We know of no substantial obiection.