BASIC FARM PRODUCTS

Otago Daily Times, Issue 22219, 23 March 1934, Page 9

BASIC FARM PRODUCTS

PROCESSING TAXES THE AMERICAN PROPOSALS. WASHINGTON, March 21. (Received March 22, at 9 p.m.) The Agricultural Adjustment Administration to-day projected the last of a series of processing taxes on basic farm products. It proposes to raise 165,000,000 to 300,000,000 dollars annually through taxes of from one to five cents per 1001 b of butter-fat. The proceeds will be distributed as benefits to dairymen in return for agreements to reduce production by from 10 to 20 per cent below last year's average. . There are many complaints that milk producers are suffering from under-consumption, not overproduction, and that increased prices would further dislocate distribution, but Mr Wallace (Secretary for Agriculture) insists that production below costs cannot be continued and he estimates to raise the price of milk about half a cent a quart.

Delegates are preparing to leave for Rome to attend the International Wheat Pact Advisory Committee meeting on April 15. It is indicated that the United States will demand a show-down in 'compliance with the existing agreement before there are further negotiations. It is pointed out that while most wheatproducing countries have taken steps to comply with the export restriction and increased domestic consumption clauses, only America and Canada undertook to reduce production. No mention is made of what Argentina has done, but it is believed that she is not enthusiastic over complying with the terms.