AGRICULTURAL RELIEF

633
Mr. LANKFORD. Section 8 provides—
that the corporation shall be empowered and authorized to make advances on
farm products as collateral security to any bank, banker, trust company or farm
organization in the United States which has rendered financial assistance to any
farmer, group of farmers or farm organizations.

And this plan is a little different from the plan of ordinary bills,
and I want to get it thoroughly before this committee.

Let me go over that again. The bill provides for the advance of
money to certain banks, provided those banks have made advances
to individual farmers of money.

Provided—
now, here is the milk of the coconut and the gist and heart of the bill,
if it has anv-
these advances are made through the banks only to the individual farmer: And
provided, The farmers receiving such financial assistance shall have entered into
contract with the corporation, as set out in section 11 of this act, and shall have
kept and abided bv all contracts so made.
Now, this contract, which is set out in the bill is a rough, crude
contract drawn by me—which could be amended by the committee—
provides that these farmers shall control their production as dictated
and as determined by the cotton advisory council or the wheat
advisory council, or other commodity advisory council.

It provides further that not only shall these farmers control the
acreage which they plant each year, but they agree and obligate
themselves not to sell any cotton whatever after they begin obtaining
these loans, unless the cotton advisory council determines that a sale
shall be made.

Mr. PurNELL. In other words, they borrow money on their crop
and hold it on their own farms?

Mr. Lankrorp. On their own farms, or in warehouses, or in what-
ever way is necessary, so as to make the cotton to be produced actually
for the debt. The plan is simply this, stated in other words, that we
will create the farmers finance corporation, which will loan money
through the banks, to the individual farmers, to enable them to hold
their cotton, provided the planters of 75 per cent of the acreage of
cotton in the United States shall have signed the contracts agreeing
to the control of their acreage planting, and agreeing to a control of
the marketing.

Mr. PurneLL. What percentage of the value of the crop held by
each individual farmer would you permit him to draw a loan upon?

Mr. Lankrorp. The bill provides for loans to the full value of
the commodities. I say in the bill that he shall be authorized to
borrow the average price at which that cotton has sold, for the last
10 years.

Mr. AsweLL. Do you think you could get 75 per cent of the plant-
ers to sign that? } }

Mr. Lankrorp. I do not know; I believe we could. I believe you
would be offering the farmers so much under this bill that they would
sign up. I have great faith in the American farmer signing up con-
tracts if you once offer him something to sign for.

Mr. PurNeLL. In other words, you give him a loan on the basis
+f the full market value at the time the loan is made?