CHAPTER VII 
THE FARM TAX PROBLEM IN MISSOURI 
ISSOURI, like all other states in which agriculture 
M is important, has an agricultural problem. This 
problem has many angles, of which taxation is one. 
Farm taxes, however, are to be regarded not as a direct 
cause of the depressed condition of agriculture, but rather as 
a complicating factor in the situation. 
Much more important than the relation. of taxes to the 
farm problem are the circumstances that have resulted in 
overproduction of agricultural commodities and consequent 
low prices. The origin of the agricultural problem in the 
United States may be traced back to the homestead laws, 
which tended to bring the formerly unused acreage under 
cultivation at a rapid rate. During the World War period 
the acreage under cultivation was again increased, not only 
in the United States but also in other countries, the products 
of which compete with those of the United States in the 
world market. 
The excessively high prices prevailing during this period 
stimulated the development of unused lands as well as the 
more intensive cultivation of land in general. When prices 
declined after the War there was no immediate withdrawal 
of land from cultivation. In recent years some land has been 
withdrawn, but the acreage of the principal crops has not 
changed greatly. While low prices should tend to reduce the 
acreage, such a result may not be immediate. From the 
standpoint of agriculture as a whole, reduced acreage is 
desirable, but the individual farmer, faced with low prices 
for his product and certain fixed expenses that must be met, 
frequently tries to solve his problem by increasing output. 
While such a policy may result in some immediate benefit to 
the individual farmer, it tends to depress prices still further 
and thus works to the detriment of farmers as a group. 
Other factors, such as greater efficiency in production and 
01