WOI-TV: Down to Earth (1/11/54)

I am Don fish farmer from Maynard, Iowa and Fayette County. I don't like the present farm program I would like to see it changed I'm Oscar Elena Marcus Cherokee County Iowa farmer. I rather like the one that we were working on at the present time Woi TV in cooperation, when the Iowa State Extension Service presents dollars away With dave beckman Good evening and welcome to down to earth at this new time at 7:30 tonight We're starting a new series of programs on public Affairs our public issues and we think that you'll be interested in this series of 11 weeks that we plan to run Now we only have a few minutes here because the program is long and varied To tell you something about what's going to be happening to the leg next 11 weeks So let's get on with that. Now, let me tell you about the four broad areas that we plan to cover during this time Farm price and income policy will be one of our major areas another one Which I know that you'll be interested in will be avoiding depression and then we'll discuss international trade and American foreign policy That'll take us 11 weeks to cover those four areas But we're only interested in the first one tonight. So let's think about it for just a minute The the first one is very important the farm Policy Forum price and income policy rather Because in it we're going to discuss the for the next four weeks some things in it. In fact, we're going to be discussing tonight Which is a part of this number one farm price and income policy Shall we change the present farm program and then on January the 14th will be discussing goals for? American For the farmer goals from a farm price program and then on January the 21st We'll be discussing methods of price and income support and on January the 28th farm price supports the issues and the choices Now then you heard those two gentlemen a minute ago say that they were for and against the particular issue that we're discussing tonight Both gentlemen are farmers here and although you have met them. I Would like to introduce them to you again and tell them tell you a little bit more about them At least let you get acquainted with them again Mr. Don fish have Maynard a Corn and hog farmer and you definitely heard what he said. He wants the program change and mr Oscar Helene of Marcos County to Marcus and Iowa, Iowa rather in Cherokee County The livestock farmer who says he wants to keep the present program Now these two gentlemen definitely have good ideas and you'll be hearing more from them as the program progresses over. Here we have In Boone County residents who form our panel for tonight And certainly you'll be hearing more about them before the program is over and our moderator for tonight is mr Wallace dog extension economist here at Iowa State College and definitely you'll be hearing a Lot about the program as it precedes so Wallace Here it is. We're going to talk about the president farm program and whether it ought to be changed we better think about what the president program attempts to do and How it attempts to do it and then a little bit about the situation at the present time Now if we want to know what the present program attempts to do we have to go back to the 1938 law for the goals in the 1938 law there are three goals set out conservation of natural resources a steady flow of Commodities to consumers at fair prices and then the last one parody income and priority prices for farmers Now this it's this last one that we want to talk about tonight. So we put it up here and and go on with this Graty prices and parity in come out of the it's a goal that we're going to talk about tonight now this Parity word is one that some people worry about let me just take a minute to explain it to you. Parity is a Relationship set up by law that attempts to make a fair relationship between farm and non farm prices Now take a commodity that you're all from with it Will you're with corn we use the 19 10 to 14 relationship to establish this fair price the present law Establishes 90% of parity as a support level that we're going to try to maintain Now 90 percent is for the basic commodities Corn wheat and cotton Rice peanuts and tobacco Now there are some other commodities there also supported 90% of parity and two of them that we're familiar with here in Iowa Our dairy products and wolf Now this is what the president program attempts to do now, what is the message that the present program uses The methods are first loans with storage You're all familiar with the corn loan program purchases with storage such as you have in the butter program Surplus disposal honest necessary Such as we also used it with a butter program now we have the production control for Definitely for wheat and cotton next year. Now. These are the the goals and the methods. Let's look at the present economic situation At the present time there's no unemployment to speak of and there's no shooting war in progress But prices of farm products are at the lowest level in relation to non-farm prices they have been for since 1941 91% of fair government stocks are large At present time the government owns two and a half billion dollars worth of commodities and has under loan an additional billion and a half dollars worth of commodities now this is equivalent to well a two and a half billion dollars about the value of one crop of wheat and four billion dollars is about the value of our one year's corn crop Now why our price is down in the last two years we have lost about a third of the export market for wheat and about Passed the export market for cut. Now if we took the Labor and the land that are being used for producing Wheat and cotton and put those into livestock feed We would increase livestock output roughly about five percent more, but you certainly have some influence on prices too now These are the the goals. These are the methods and this is the present situation we have in our studio tonight Karl Malone my colleague and I'd like to ask Karl now. Do you think this represents the the present situation in the present program Yes Wallace, I think you have correctly described the situation. We are in a period of prosperity We have too much production and agriculture to supply the markets It's bearing down rather heavily on farm prices we are building up stockpiles of farm products in the hands of the government and We have a program to support Farm prices for a good many commodities at 90 percent of parity and that program is in rather large scale operation Yes Wallace, I think you have correctly described the situation and the problem that is before us Hold on. How about you? Is that are you satisfied to work on this framework? Okay with me and Oscar. Okay. All right now Don you said you wanted to change the price and farm program tell us why? In the first place. I would like to make it clear that I like high parity prices. I like a hundred percent Parity income if you please but I think that in the long run you have to get those prices in the market I don't think you can legislate them Therefore I do not like the present farm program because for some commodities all the time and for other commodities some of the time The government supports are at a high enough level that neither the United States markets or the world markets will absorb them consequently, the government will either take a huge loss such as in case of perishable products like butter eggs or potatoes or The government held surplus will become so large as to become unmanageable and possibly to cause the whole program to break down or The other alternative that will be under government regulations as to production so strict that neither you nor I will like them I Think free enterprise in the farm will be largely destroyed and they to say nothing of the high administrative expense I also want to emphasize that I do not believe that Price in itself is the yardstick of the immediate well-being of a producer of a certain product that is the the price of a bushel of corn doesn't mean how well off a corn producer is a Price is also and don't forget this. It's a regulator of consumption which were very Much interested in and it's also a guide to production therefore high support prices our tent tend to discourage consumption and to encourage further production neither of which are Advisable I think that's all I'll say at the present time Wallace. All right Oscar now, you said that you wanted to keep the present program for the time being at least why? Well, basically the present program has worked well It has provided farmers with protection from the fluctuations of the free market Yet the farmer has had the freedom to sell instead of to seal if he wanted to It has served the nation well reserves the grain have proved invaluable in time of war and short crops Nothing better has yet been presented The basic problem of American agriculture is its tremendous? Capacity to produce and the only way farmers can be productive from market Declines in the face of this is through a system of fixed price supports and acreage controls were necessary Industry cuts production to maintain profits in agriculture has a right to do the same thing I think we've all noticed recently the way in which many of our big industries have cut production whether it's John Deere International Harvester Automobile Firms and others who are tried to meet their needs by the production route Flexible supports won't do the job The argument that lower price supports will result in less production just doesn't hold water From 1929 to 32 when prices were lower in each succeeding year Production in each succeeding year was higher While the farmer knows or believes he will get a lower price per bushel He's going to produce more bushels if he possibly can to keep his total dollar returned as high as possible only common sense We do recognize certain improvements can be made in the present program when let's not destroy the basic program Twenty years of experience have pointed out some flaws Which we really have met to improve but not destroy the present program We suggest these things first to establish a definite reserve policy and by the way, the president today did indicate in his message that He did want to free and set aside some of the reserves which are now present and Also that acres taken out of production could be kept out in order that we might conserve the acres which were out of production So some of the things probably will be done which are necessary under the framework for that which we have at the present time Let's make a courage allotment stick provide that if the farmer does not comply with acreage allotments when they are in effect He will not be eligible for price supports for the following three or maybe five years in conclusion Let's not apologize for what helped the farmer receives from the government There is no need to because what is good for the farmer is certainly good for the nation Now darn and and Oscar here both have been mentioning this business of flexible prices and Rigid prices or fixed prices Carl. I wish you would talk to us just a little bit about what these terms mean because I think that folks will will understand we're going on from here better if you have Given them a little explanation in that. Well, they fixed price support idea Which is now set at 90 percent of parity says that this 90 percent level is fair It is fair for a smaller than normal supply it is fair for a normal supply or it's fair for a Larger than normal supply and in every case the price support level should be kept at 90 percent of parity now the Flexible idea says that the price should vary Depending on the size of the supply now there are different versions. Yes, and this is one version Is that if the supply is below normal? You have a ninety percent price support if the supply is normal You'd also have a ninety percent price support if the supply is ten percent above normal and 85 percent of parity support 20 percent above at 80 percent parity 30 percent above 75 percent of parity, which would be the minimum support level Now if you apply this particular kind of a parity idea to corn and to butter Which we produce here in Iowa the 90 percent price support at the present time us average is a dollar and sixty cents a bushel if you had a 10 percent above normal supply or an 85 percent supported me an hour and a half a twenty percent above a dollar 42 a 30 percent above a dollar 33 or that would be the minimum support level us airy, or if you take butter It would be 66 cents a pound at ninety percent of the normal supply 10% above would be sixty two twenty percent 58 and thirty percent it would be a fifty-five percent or fifty five cents a pound our 75 percent of parody Price support level, in other words the price would vary according to the supply as I said There are other versions of this but this is the general idea of flexibility in the support price procedure I think that is the way it sounds wallet Thank You Carl Now, are you all satisfied with the with this description? I think he talked about quite the picture prices first doctor Do you want to modify it any? Well, the comments regarding the percentage is interesting because The goal really is a hundred percent of parody for the farmer and actually the support price is ninety percent which still leaves us a way to go and normally if we had less than the normal supply we would probably get the hundred percent or more Authority and if we had a More more than normal supply it would be less let them Actually that has happened in This year's market, of course we've had a situation where the free market price has reflected pretty much the supply and so It occurs to me that if you didn't have the support price Which takes off the greater margin of the supply? We would have had a much lesser price for corn than we enjoy at the present time I'm still buying corn at about 10 or 12 cents below this support level Even though much of it is eligible to the support. And so if we were thinking in terms of Trying to get a hundred percent of parity. We do need the kind of support which is now available Well, Don, it sounds to me like Oscar still believes we need to Fix the pork now. Do you want to modify the statement Karl made about flexible forces. It's alright I would like to add just a little bit. I think that one of the things that we need is a commodity by commodity review, I would agree that for the time being at least 90 percent supports aren't so bad for corn but when you Have 90 percent supports for corn. What are you going to do? About dairy products which are being produced in great. Surplus and what are you going to do? And we have no acreage controls for dairy products that I know of Oscar What are you going to do about a wheat which is greatly in excess and cotton. No just moved on As I understand your position and you're saying that you really want to flex prices down to the Free market level but you want to use supports as a kind of cushion to get down there now, is that right? I think that support prices need to be We need to have them to iron out the year to year and in the year Fluctuations we have but I don't think that you can support them permanently Above the price that they will move in the market And you're saying then that we we use them simply as a cushion to get down to free market prices. That's right all right, and Oscar you want to Keep support prices even if it means Transferring some income from the rest of us the farmers after the 90 percent level as a minimum and you'd like to see them of course at 100% now is that So long as we're living in a In a in era of administered prices in almost every other area In this country. I don't know why that Agriculture should be the one who would suffer to the prices which would be fixed by the competitive realm it seems to me that when you look into the And notice the prices and the subsidies and the support, which is being Provided almost every other area of our economy I'm not ready to lose any of the president supports until and At such time that other segments of our society are willing to do likewise agriculture today has a tremendous amount of what new economists might call inputs But the thing is today that we have to purchase to produce. Our agricultural production is so much greater than it used to be That unless we do have protection on the products which we produce We aren't going to last very long unless we're willing to establish that much lower standard living now I would like to come right in there. I think that 70% perhaps or 75 will also give us the kind of protection that we need and But however, it looks foolish to me It looks like we as farmers are cutting our own throats If we have a product that we're producing 30 or 40 percent in in excess to go right ahead Producing that product. I think the price should be low enough if that's one of our inefficient Parts of agriculture that we shift our resources and I don't think you shift them when your prices are high for instance in in our area where we milk cows and make butter butter prices are high enough and have been high enough that most of our Nearly half of the people ordinarily butter our eating Olli we have priced ourselves right out of the market The government has been in the market with a high price support program they have lots of butter in storage and within the last year there has been absolutely no shift out of During and certainly at least some of our inefficient dairy producers should have gone somewhere else Because gotta give these people over here from Boone County a chance to ask some questions now there there's some questions I like very much to ask you. I'd like to ask Don and have him answer Just how he thinks other farmers would go along with him I don't take time for this because what these people ask the question I'd like to ask you we had time for you to answer. There's even though other industries do this Do you think you really can make it work for finals night? Don't answer because I want to get any boon people It's a chance to really ask the questions. Would you folks have some questions you'd like to ask either Oscar or? Donny and I'm wondering in regard to the conditions we We ask all people who vote we expect from the vote and if we ask too high a price support on Farm commodities what is going to be their reaction then in regard to their own? affairs later on when they are asking for government support Which they perhaps well do which men might like estimate Ellie in place? well, if I get your question correctly, are you worried about the the consumer or the Businessperson who is asking for subsidies. I would say that it would it would be as to both parties both to this consumer and to the businessman its Cooperation that we're really seeking and if we ask for too much, I wonder if we will reach that cooperation that we will need well Of course at the present time so many segments of our society do have protections of various kinds whether it's in subsidies tariffs supports of various kinds like the mail the Ship subsidies for instance railroads the airplanes or we could go on and on all kinds of areas in which there is a very definite support and I take it Oscar peels that we're not the only ones that asked for support then another question, I Am a farmer in Boone County and I'd like to know if there isn't the possibility of us pricing ourselves out of the world trade market we export a lot of goods then they wonder if by high prices if we might not fights ourselves out of that market I Take it easy dressing these for you too, Oscar. I Would agree that we probably would price themselves out of the market But that's the reason the present law provides that we will produce the amount that we can consume that whatever market is available most domestic and foreign and there are times when we have needed all of our production for both domestic and foreign and when we can't Use utilize all that we can produce because of our ability to produce large amounts It seems to me that we just have to do exactly like business does and that's to curtail the amount of production All right. Is there another question? I'm a housewife if we get these flexible flexible support Mr. Fish how long would it take before the housewife realized the difference in the price of clothing and food? No She's asking me a question that I frankly don't know I think that You must realize this under flexible supports. We wouldn't go very far down I think maybe Oscar has led you to believe that we might go clear down to the 1929 32 period I I don't believe that 80% isn't very much lower than 90% There wouldn't be very much passed on to the housewife and I Think it might take a little while for it to get there Other questions you got time for about one more We have a surplus of wheat in our wheat area Due to high prices. It is soft wheats as I understand What we need is hard durum wheats something that will be used for Household use now, who do you want to comment on? Another law you can pay premiums for production so that you could check the Princess during the war we added plaques to the list at a high price and we can do the same thing I think with the Greek question that you are raising. Well now as I understand the the two participants on the panel here, mr fish wants to Have flexible prices get us down to the market level and Mr. Pauline here Wants us to stay at the high higher level the 90% level and this is really the issue between them now I think that you folks will have to consider this issue and I will Sort of pass it on to you now to make a decision on these things talk it over with your neighbors and Dave I think we hope they will do a good job of it. Well Thank You Wallace now What do you think about this situation or you put the present farm program? Would you like to have it changed you like 9% of parity? You want to fix parity program believe on flexible parity? We didn't intend to try to answer all the questions for you tonight But we do hope that we challenged you to do some thinking for yourself By the way, Jim Davis tells me that there are several hundred listing groups in 22 counties in this area listening in tonight and we certainly want to welcome them and Hope that we will have plenty other to get in in the near future By the way in 11 weeks, you know We're just getting warmed up and getting our gloves on so we have all this to look forward to now then If you aren't clear on anything, why don't you drop us a letter? Drop me a letter? I'll see that these fellows are answer this question for you. Whatever the question might be in relation to this subject We're talking about tonight. You let me know and we'll get it answered for you Another thing if you have any questions in your mind Why don't you go to your County Extension director and ask him for a copy of what's next m farm program? It's a bulletin. It's a reprint from farm science number 5:13 they don't have it. They'll get it for you So your County Extension director certainly would be glad to do this for you, by the way He'll help you What to get into what listening group is available for you to get into so you'd be sure and get into one soon and remember that we fear like you to write us letter and let us know what you think of the program and give us some idea of whether Or not we're reaching you with the programs that we have in mind tonight now then next week next week We're talking about goals for a farm price program. So be with us in next week at that time 7:30. Good night This program was produced for the Agricultural Extension Service by a dave beckman Directed by Joe Adams Technical director burnin Casper