STATEMENT FILED BY LEONARD BALLARD, GOOD THUNDER, MINN.

President Eisenhower in his speech at Kasson, Minn., promised the farmer that the aim of the Republican Party would be 100 percent of parity. Under the Benson farm program this will never be possible; for neither flexible or high and rigid supports will solve our problems.

We will not solve the surplus problem by squeezing acreage out of one crop into another. This brings on an expanded program of production curbs until every crop or farm product is controlled.

Therefore I recommend a farm program that will bring farm production into balance with demand by taking a set percent of each farm's crop acres out of production.

This farm program can be executed with a minimum of personnel and very little cost to the taxpayer; with no regimentation of the farmer, for specific crop-acreage allotment programs would be abolished and the farmer given the right to choose freely the crop he would produce on the acreage remaining after he had complied with his conservation acres.

Acreage control offers opportunity to create soil reserves our growing population is sure to need.

Here is my proposed farm program:

100 percent of parity for the farmer to be attained through restricted crop acres, with a set percent of each farm's crop acres taken out of production, adjusted to bring as nearly as possible 100 percent of parity at the market place.

A nine-man board to be set up to set the percentage of acreage restriction from available figures of present surplus commodities. They would adjust the percent of controlled acres yearly.

Idle acres to be a soil-conservation practice, acreage taken out of production to be left idle or planted to green manure.

Attainment of compliance by making only cooperaters eligible for 90 percent parity loans from Commodity Credit. Noncooperator not to be eligible to Commodity Credit loans until payment of penalty attached to each idle

acre.

The commodity credit and ever normal granary plan to be continued with more farm storage encouraged by increasing storage fees to the farmer. I am definitely opposed to that part of our present farm program which gives you an allotment based on past history, and feel the only fair way would be to base it on percentage of total crop acres.

I believe there should be a food-stamp plan to aid the unfortunate and the aged.

I would like to suggest that all taxes be put on a graduated basis similar to our income tax, to aid the small individual just getting started.

I would like to see Government aid stopped on tiling, ditching, irrigation, etc., which brings added land into production.

I am in favor of Government payments to farmers to leave wet lands, timber lots and other uncropped, unpastured acres.

I am owner of 220 acres in Blue Earth County. Thank you for this opportunity to express my views on farm conditions.

STATEMENT FILED BY ROBERT BANKER, SECRETARY-TREASURER, AMERICAN BEEKEEPING FEDERATION, INC., CANNON FALLS, MINN.

It is my belief as secretary of this, the only national organization of beekeepers in the country, that at our annual meeting in January the following changes in the loan and purchase agreement program for honey will be recommended by resolution of that group.

First, that the minimum mandatory support level be raised from the present 60-percent figure to 75 percent and, secondly, that the support-price differential (1 cent per pound lower for Western States) be omitted and the same level prevail in all sections of the United States.

I believe these recommended changes are essential for the continued well-being of the industry if it is to continue to provide the necessary pollination needed for the over 50 major crops requiring bee pollination.

Briefly my reasons for requesting these changes are:

1. The parity price on honey has dropped from 15.8 cents per pound on September 30, 1954, to 15.3 cents per pound on September 30, 1955, which will be reflected in a much lower support level for 1956 under the present program.

2. Our production, packaging, shipping, labor, and other costs have continued to rise to the present all-time high (5 percent estimated increase in the last year).

3. During the 1954 marketing season no honey under loan or purchase agreement was taken over by Commodity Credit Corporation.

4. Latest figures available show there are only 700,000 pounds of this year's crop under the program at the present time.

5. The use of the current program by producers has been curtailed by the fact that the support level is too low.

6. Both in 1954 and 1955 the annual production of honey has been below average, resulting in a temporarily favorable market. If and when the industry secures a normal or above-normal crop the program will be direly needed to prevent a serious setback to the industry which will result in still fewer colonies of bees for pollination of the many crops dependent on bee pollination.

7. In spite of the temporarily favorable market during the last year, the number of colonies in the Nation again declined 4 percent, which has been the annual percentage reduction figure for a number of years. This reduction cannot continue or all agriculture will suffer severely.

8. The program has had a very definite stabilizing influence on the market, but the present support figure is too low to even maintain the colonies operated at the present time when production costs are considered.

9. The industry has taken many progressive voluntary steps to help itself, particularly in the last 3 years. The support program at a higher level is needed to further stabilize the industry until these self-help programs are better established and capable of doing the stabilization needed for a healthy industry.

10. Representatives of the industry would welcome the opportunity to present their request in more detail at formal hearings in Washington if and when new legislation is considered.

11. The industry has no intentions of asking Commodity Credit Corporation to market its production. The program is needed strictly as a stabilizing factor and to prevent temporarily distressed lots from reaching the market at an abnormally low figure.

12. Currently the western market is at approximately the same level as the eastern market. Honey produced in the western area generally is marketed there or exported from the west coast to foreign markets. We can see no justification for any price differential in the western area.

STATEMENT FILED BY MILO L. BELSHAN, GLENVILLE, MINN.

Testimony presented before Committee on Agriculture and Forestry at Worthington, Minn., October 25, 1955, by Milo L. Belshan, farmer of 200 acres in Freeborn County, Minn.

I feel that in order to establish a sound farm program Congress must take these basic steps: I. Reduce existing surpluses; II. Establish parity for farm production; III. Conserve our soil and water resources.

I. REDUCTION OF EXISTING SURPLUSES

(a) In order to control the amount of commodities in storage, I respectfully submit that Congress establish an adequate and reasonable ceiling on the amount to be put in storage. Such amount to be in harmony with domestic and world demand. Beyond this safe reserve controls must keep production in line with annual demand.

(b) Enlarge school lunch programs and institute similar programs that will contribute to the health and welfare of the Nation.

(c) Maintain tariffs on agricultural commodities in order to discourage the influx of those commodities in long supply.

(d) Establish acreage allotments relative to buyers annual demand.

II. ESTABLISH PARITY FOR FARM PRODUCTION

(a) Support prices on the basic commodities, the oil crops, and the related feed grains at parity. The price to be based on the original parity formula acquired on the 1909-14 average.

(b) To assure the producer parity prices on perishables, establish a program of production payments direct to the producer.

(c) To keep production in harmony with the demand, rigid marketing quotas must be instituted-said quotas to be based on anticipated annual markets.

III. CONSERVATION OF OUR SOIL AND WATER RESOURCES

(a) Land taken off production by acreage allotments must be diverted to a strict conservation program. Such land to be compensated for by direct rental payments, thereby assuring a fair return to the producer, and a soil-saving program for future generations.

(b) Assure soil conservation practices on the land kept in production by compensating the sowing of legumes and grasses, thus maintaining a continuation of regular crop rotations.

I wish to conclude by advocating congressional action to make it mandatory for the Department of Agriculture to return the administration of the farm program on the State level to home rule. Representatives to the various committees being elected from the grassroots.

STATEMENT FILED BY WAYNE BLAHAUVIETZ, HARRIS, Iowa

My name is Wayne Blahauvietz. I farm 312 acres in partnership with my father near Harris, Iowa, just 4 miles south of the Minnesota line.

I realize that the farmer today is facing a definite price squeeze. However, I feel that while some immediate steps need to be taken, a long-time sound farm program is of major importance.

I feel that a sound and stable agriculture can be achieved by increasing foreign trade, using price supports only as a means of regulating production and placing a percentage of the crop acres out of production into legumes to be plowed under.

Foreign markets offer a great opportunity for agricultural products. I grant that production must be regulated to demand, but with an improved foreign trade much of our surplus could be eliminated. This won't solve our immediate problem, but our Government should reduce high tariffs and not be a protective agency for every little industry. Not only will this help reduce surplus, but will lead toward world peace. Also, farmers need to promote the sales of their products to the housewife with the same zeal that the manufacturer uses. I do feel, however, that the farmer has a definite responsibility to produce a quality product that will satisfy the consumers' demands. In the case of pork, it has been proven that the housewife will pay more for a quality product. The fastest way to encourage the farmer to raise the lean hog is for the packer to pay the proper spread between the fat and lean hog.

In regard to price supports, I feel that it should be used only as a crutch to keep us from disaster, rather than be high and rigid. However, as a control of production, I feel we should use supports only as a means of encouraging or discouraging production. With supports we need acreage controls and here we should have cross compliance. It is foolish to restrict a crop in one area and let it be grown in another.

As for acres put out of production, I definitely would endorse the idea of putting those acres into soilbuilding crops. These acres should be plowed under and no crops harvested. Let us store fertility in the soil until it is needed rather than storing surpluses in huge warehouses for some individual to profit on at the expense of the taxpayer. Along with this, we should stop all Government land reclamation projects until our consumer demand is such that we need it.

I feel that this type of long-range farm program will make for a more stable agricultural economy with the farmer getting more of his fair share of the national income.

Senator HUBERT H. HUMPHREY,

Minneapolis, Minn.

ELYSIAN, MINN., October 19, 1955.

DEAR SIR: I am farming for a living and feel that inasmuch as I have a losing battle trying to make a living and raise a family on an equal basis with the small town kids they attend school and grow up with. On top of this I have had to use $3,000 of my savings in the last 3 years to keep operating. I should send in some statements for the hearing being held by your Senate Agriculture Committee.

Yours truly,

RICHARD CLARKE.

P. S.-I am president of a local farm organization having 100 members and they are nearly unanimous in feeling as I do about farm prices; that either we have to have help or go broke.

1. Whereas the flexible price-support program has failed to reduce the surpluses or control production, and at the same time is bankrupting farmers. (a) I urge immediate restoration of 90-100 percent of parity price supports based on old parity.

(b) I also urge the limitation of payment of price-support benefits or crop loans to $25,000 on any farm or group of farms.

2. Whereas we have a slight overproduction of certain grains.

(a) I suggest that a policy of acreage reserve be set up and rented from the farmer.

(b) Restore the green manure program through ACP with payment to encourage its use to maintain the fertility of farms.

3. Whereas the present program has forced feed prices down and dragged livestock prices down to about 60 percent of parity.

(a) I urge that all livestock be protected by 90-100 percent supports through direct payments to farmers.

STATEMENT FILED BY ROBERT L. CORNELL, CHAIRMAN, RENVILLE COUNTY CITIZENS' AGRICULTURE COMMITTEE, OLIVIA, MINN.

We wish to call to this committee's attention the serious dissatisfaction of the Renville County farmers and of the Renville County small-town businessmen and professional people with the present depressed condition of the farmer, and with the failure of the present administration in marking any effort to carry out President Eisenhower's campaign promises for agriculture.

Our committee wishes to go on record as asking for full parity on the old parity ratio, to the farmer on the family-size farm, and not parity at the terminals.

We favor a soil bank; parity for perishable through compensatory payments; commodity loans and liberal loan cost credit.

STATEMENT FILED BY ELVIE DREESZEN, CUSHING, IOWA

Since I was unable to present an oral testimony at the Worthington, Minn., hearing, I am submitting the following written testimony for the consideration of your committee and ask that you include it as a part of the official proceedings. I am an Ida County, Iowa, livestock farmer operating 240 acres and marketing some 65 head of fat cattle and 350 head of hogs per year.

First of all let me emphasize that we are faced with some really acute problems in agriculture at the present time; some of which I'm sure would require the wisdom of a Solomon to solve. It is doubtful if a majority of farm operators will be able to remain solvent for long under the present level of income. Therefore, I herewith submit some suggestions which I hope will be helpful to your committee in drafting new farm legislation.

1. I believe that farmers should make every effort to produce a type, grade, and quality of product that the consumer will buy, i. e., meat-type hogs, quality

eggs, grade A milk, etc. We need a clearer cut system of grading and price differentials to encourage farmers to produce such products. There is simply no point in producing anything of a type and grade for which it is difficult at best to find markets. I believe that past production of, for instance, fat back, lard-type hogs has succeeded in weaning the consumer away from the pork counter so that at the present time the sale of good lean pork has been hindered. 2. I believe farmers, as a group, should start immediately to spend some real money to promote their products. Farmers have traditionally out-produced all other parts of our economy and at the same time have done the poorest job of selling what they produce. Where we have spent pennies before, we need to spend dollars now. How many television programs do we see advertising products of animal origin? I am suggesting, for example, a nickel per hog and a dime per head of cattle marketed for slaughter be collected and used for whatever advertising media is deemed necessary to reach the majority of consumers. We need to educate the consumer along the lines of recognizing quality pork, eggs, etc., as they shop for these products. We probably need some legislation authorizing some sort of checkoff system, on a voluntary basis to begin, to collect the money necessary to advertise. In my own case on the above basis I would have contributed $24 last year to such a fund. This is no large amount, but when pooled with like contributions from all farm operators, would be enough to conduct a really effective selling campaign the year around.

3. While setting up such a program as suggested in point 2, we are going to have to limit some of the resources that we are now applying to agricultural production. I believe that the best method for doing this is to be found basically in the soil fertility bank plan and I wish to add my support to this plan. I hope that it will become a very important part of any new legislation for reasons that I will not list here since I know that you are aware of them. connection with this plan, we should insist that all new land reclamation projects not now under development be stopped immediately.

In

4. I believe in the ever-normal granary system and feel strongly that storehouse loans be continued to assist in orderly marketing.

5. We need to continue, more strenuously than ever, our efforts to sell abroad. I favor selling even to Communist countries all of the agricultural products that we can. I believe that a good hard look should be taken at all restrictive tariff barriers that hinder the movement of our surplus.

STATEMENT FILED BY R. J. DYKSTRA, SIBLEY, IOWA

I appreciate the opportunity to present this written testimony to the congressional agriculture committee, and I trust that you will give it your careful consideration.

My name is R. J. Dykstra, I live 21⁄2 miles southeast of Sibley, Iowa, Osceola Couny. We have been farming on this 160-acre place for the past 19 years. Our farming operation is an average diversified farm operation, with the bulk of our income coming from hogs, sheep, and dairy cattle as well as poultry and a few acres of soybeans. Therefore you can readily understand that I have to buy corn and oats for feed.

The income situation in agriculture is of considerable concern to me at the present time. Farm prices have been declining steadily for the past several years while the cost of commercial feeds as well as machinery has gone up. Our commercial feed has increased about 60 cents per 100 pounds in the past 2 years. A tractor of average size now retails for approximately $3,000. Whereas 3 years ago it was $2,500. Even our land and other taxes have increased the past years. This all helps make farming almost unprofitable. Two years ago, when this area was hailed out, I tried to buy corn from the Government storage bins (ASC), but could not buy any, while at the same time they were shipping some out to other

areas.

The situation in agriculture today is serious, it is a complex and difficult problem (as you are well aware of), and I certainly do not have the answer to it. But I am positive that the high support prices will not correct the situation. It tends to bring more corn into storage, which today is already a problem. The high cost of maintaining such storage is high and creates another problem.

I would like to see a low support price and gradually work toward the supply and demand method, maintaining the ASC offices for a possible emergency. I believe we should do all in our power to build up our foreign trade in agriculture commodities. Some of the Government-owned surplus farm commodities