6590

AGRICULTURAL. RELIEF
council-in each land-bank district, each council to be composed of five members,
four to be chosen annually by the cooperative associations and farm organizations
in the district and one to be named annually from the district by the Secretary
of Agriculture.

We recommend that this section provide for:

(a) A per-diem compensation of $10.

(b) Quarterly meetings of each council within each district.

(c) Authority for the chairmen of the district councils ot meet upon call of
the board frequently enough for the formulation and execution of plans for
cooperation between the board and the councils and for coordination of the work
of the councils.

(d) if the board finds it advantageous or necessary a joint meeting of the district
councils.

To represent the producers and to assist the board in connection with technical
operations with any agricultural commodity during a marketing period, the
board should be required to arrange for a commodity committee of not more than
seven members who would be named by the district councils. The board should
should be required to determine what land-bank districts produce the com-
modity in such volume as to entitle them to representation on the committee,
and the number to be chosen by the advisory council in each district so desig-
nated. The choice of the members of a commodity committee would not be
limited to members of the advisory council. :

This arrangement of farmer-elected district advisory councils is favored for
several reasons.

Last year’s bill provided that each board member must be chosen by the
president from a list of three nominees agreed upon by the farm organizations in
the land bank district. This would have given agricultural interests a direct
connection, which is not provided in the present bill, with the administrative
body. It is felt therefore that such advisory councils as are created should be
chosen by organized farmers rather than by the board, and that this representa-
tion can best be provided on a district basis. The advisory councils would serve
as connecting links between the farmers and the board. They would represent
the producers’ interests in matters within the board’s jurisdiction, and on the
other hand, would represent the board and its policies in contact with the farmers
of the several districts. We consider this recommendation important because
we recognize that this legislation to be permanently successful must be admin-
istered in a manner to receive public approval and especially farmer approval.
We believe that farmers will cooperate more effectively and will be better satisfied
if they have the deciding voice in the selection of the advisory councils in a formal
way rather than to have the appointments made by a board. in whose selection
they have had no voice.

The provision for commodity committees is suggested in order that the board
may not be deprived of the technical assistance of a producers’ committee familiar
with the marketing problems of any commodity for which marketing agreements
as provided in section 7 are undertaken. A commodity committee, therefore,
would advise the board particularly on matters relating to marketing agreements
with that commodity, and the method of collecting equalization fees.

II. Loans (sec. 5): It is recommended that the provisions for loans state more
definitely the purposes for which loans may be made, and instruct the board that
such loans are to be only on terms that adequately guarantee their repayment.

In addition to the loans, provided in (1) section 5 to assist cooperative associa-
tions in controlling the surplus of any agricultural commodity, this section now
provides (in (2) of sec. 5) for loans which can not in the aggregate exceed
$25,000,000, to assist cooperative associations in acquiring necessary facilities.
It is recommended that this second purpose for which loans may be made under
the aggregate limitation of $25,000,000 should be amplified to permit loans to
cooperative associations for use as capital for agricultural credit corporations to
function in connection with the intermediate credit banks. This provision was
in the bill which passed Congress last year. Also, in order to provide a way in
which the board may assist sound cooperative associations, it is recommended
that a small portion of this aggregate sum of $25,000,000 be made available for
loans to cooperative associations fo assist them in extending their membership,
but loans for this purpose should also be on such basis as assures their repayment,
and the amendment should specifically limit their aggregate amount.

III. Clearing house and terminal market associations (sec. 6): It is recom-
mended that this section befchanged so as to apply only to cooperative associa-
tions. Specific mention of ‘perishable’ agricultural commodities should be