DAIRY PRICE SUPPORTS

Press, Volume XC, Issue 27377, 16 June 1954, Page 11

DAIRY PRICE SUPPORTS

Vote For U.S. Increase

(N.Z. Press Association—Copyright) (Rec. 9 p.m.) WASHINGTON, June 14. The Agriculture Committee of the House of Representatives voted today to increase Federal price supports on dairy products and wool and recommended a system of direct subsidies to farmers to carry out the programmes. TWe subsidy plan would replace present 1 programmes by which the Government buys up surpluses to make sure farmers receive a ‘‘fair price.”

The committee voted to over-ride the Agriculture Secretary (Mr Ezra Benson), and increase Dairy Price Supports from 75 to 80 per cent, of parity, on September 1. The wool programme was adopted “without objection.” It was requested by the Administration and already had been approved by the Senate. The Agriculture Department lias estimated it would bring wool growers about 62 cents (about 66d) a lb, compared with 53 cents (about 57d) now.

The committee also approved the Administration plans for lowering parity prices in 1956 on wheat, corn, cotton, and peanuts.

Mr Benson last April ordered dairy price supports cut from 90 to 75 per cent, of parity because of mounting costly Federal surpluses. In voting to increase supports back to 80 per cent., the committee also approved the payment of direct subsidies to farmers. ®he direct subsidies would make up the difference between market and support prices. . The new wool subsidy plan also would apply to mohair, pulled wool and shorn wool. The authority for direct subsidies—like those for dairymen—would expire on March 31, 1956. price supports now are limited by law to 90 per cent, of the so-called “fair” parity price. The new proposal would permit supports to be increased above that level to encourage a national annual output of 300,000,0001 b of wool.

The Administration supported the programme as an alternative to raising tariffs on foreign wool.