AMERICAN FARM PRODUCE

Press, Volume LXXXIII, Issue 25091, 24 January 1947, Page 7

AMERICAN FARM PRODUCE

GOVERNMENT PRICE GUARANTEES CONTROL OF PRODUCTION SUGGESTED (Rec. 9 p.m.) WASHINGTON. Jan. 22. The Secretary of Agriculture (Mr Clinton P. Anderson) told the House of Representatives Agriculture Committee that if the Government continued to guarantee minimum prices for farm products it should have specific power to curb the production of such products, otherwise the Government might have to spend 2,000,000,000 dollars in 1948 in supporting prices, with the result that production would outstrip demand. The Government had sustained farm commodity prices to stimulate war-time production and give farmers some protection while they were changing from war to peace-time economy. The Government had removed surpluses from markets by purchasing programmes and loans to growers of non-perishable products. Mr Anderson said that legal authority existed for controlling the production of certain basic crops like wheat, corn, and cotton through limitation of the acreage planted and the establishment of market quotas. To control the production of other commodities, however, was doubtful. Mr Anderson added that he would feel much better, about the situation if specific authority were given to deal with production. Mr Anderson conceded that he was on doubtful ground when he imposed controls on the 1947 potato crop, after the Government lost 80.000,000 dollars in supporting 1946 potato prices. He sought authority to control the production of pigs, milk, butter-fat, poultry, dried peas, dry and edible beans, soya beans for oil, peanuts for oil, flax seed for oil, potatoes, sweet potatoes, and cotton.