Agricultural surplus

“ This variation in the yield of agricultural crops forces the countries where crops are deficient to purchase from those where they are abundant, or who have a surplus on hand from previous abundant harvests. In the United States, when the harvests are abundant, the American farmers, rather than sell below a certain price, keep a portion of their crops on hand until bad crops in Europe produce a foreign demand, which has to be supplied at once. ”

“ Granting, then, that the gross produce of the soil is greater when cultivated by a race of petty landowners, than by capitalists employing hired labour, and that the land will thus maintain a greater number of agricultural labourers, it is obvious that the surplus produce that remains for the support of other branches of industry is diminished in exactly an inverse ratio. ”

“ In addition, this farm-city team produces enough food in surplus of our own needs to enable the United States to be the breadbasket of the world, exporting more agricultural products than any other country. Each $1 billion of farm exports provides an additional $1.4 billion of off-farm economic activity and provides jobs for about 22,000 people on farms and in small towns and cities. ”

“ The hay crop is almost entirely used in this way, and the tendency is to convert more and more of these crops into these higher-priced products. Still, the time is far distant when domestic consumption will come anywhere near overtaking domestic production, especially of wheat and the other cereals. The certain extension of acreage with the growth of demand and price, the increased use of agricultural implements, and the improvement of methods will be sure to keep up a large surplus for export for many years to come. ”

“ Even the peasant has five acres of land allotted him by the government; and in his home garden he raises carrots and turnips and pumpkins and melons. The larger farmers raise wheat and corn and sugar beets, oats and all the cereals; and cattle in large numbers. [Pg 89] They raise their own food and they are chiefly vegetarians; and they carry their surplus in ox-teams to the nearest market. Prices are regulated by the Agricultural Society. Every farmer gives one or two days a year to the State and pays his taxes in kind. When crops fail, the Coöperative Agricultural Society lends him money. ”

“ The removal of a fiscal burthen on agriculture, such as tithe, has the same effect as if the labour necessary for obtaining the existing produce were suddenly reduced one-tenth. The abolition of corn laws, or of any other restrictions which prevent commodities from being produced where the cost of their production is lowest, amounts to a vast improvement in production. When fertile land, previously reserved as hunting ground, or for any other purpose of amusement, is set free for culture, the aggregate productiveness of agricultural industry is increased. ”

“ Even the reductions in freight rates, alike from the agricultural districts to the seashore and from America to Europe, do not compensate him for the great reduction in the price of what once he fondly believed was an enduring source of profit. The time when it was safe to put an entire farm into wheat has passed. Farmers are studying mixed crops now with all the intelligence that is in them, for a man’s first duty is to earn food for his family. ”

“ The cost of production of the food grown in these least advantageous circumstances determines, as we have seen, the exchange value and money price of the whole. In any given state, therefore, of the laborers' habits, their money wages depend on the productiveness of the least fertile land, or least productive agricultural capital: on the point which cultivation has reached in its downward progress—in its encroachments on the barren lands, and its gradually increased strain upon the powers of the more fertile. ”

“ When the demand of an increasing population for more food can not be satisfied without extending cultivation to less fertile land, or incurring additional outlay, with a less proportional return, on land already in cultivation, it is a necessary condition of this increase of agricultural produce that the value and price of that produce must first rise. The price of food will always on the average be such that the worst land, and the least productive installment of the capital employed on the better lands, shall just replace the expenses with the ordinary profit. ”

“ To ensure reasonable returns for grain growers and incentivize major grain-producing areas, we will ensure the provision of agricultural supplies such as chemical fertilizers at stable prices, continue to provide agricultural supply subsidies to grain growers, and step up support for major grain-producing areas. ”

“ More cash was needed to buy manufactured goods as the farm became less self-supporting, but prices for raw materials remained low during the agricultural slump of the 1920s and 1930s. "Agriculture was much less distressed when the farm was a self-supporting home," reflected the Washington Star:
But when factories began producing commodities in quantity the farmer could buy them easier than he could make them at home. ”

“ One-fourth of farming in America is responsible for 85 percent of the farm surplus. Three-fourths of farming is out on the free market and has known a 21 percent increase in the per capita consumption of all its produce. You see, that one-fourth of farming—that's regulated and controlled by the federal government. In the last three years we've spent 43 dollars in the feed grain program for every dollar bushel of corn we don't grow. ”

“ The price of wheat rose to an average of 14s. per quarter, thereby encouraging tillage once more. There was steady inflation.
With enclosure of agricultural land there could be more innovation and more efficiency, e.g. the time for sowing could be chosen. It was easier to prevent over-grazing and half-starved animals as a result. The complications of the open system with its endless quarrels and lawsuits were avoided. Now noblemen talked about manure and drainage, rotation of crops, clover, and turnips instead of hunting, horses, and dogs. The breed of horses and cattle was improved. ”

“ If its price like that of most other commodities had risen, or was likely to rise, with increasing demand, no political foresight, no more equable arrangement of the burden of taxation, no reduction even in public expenditure could have long availed us. But the wheat region has been designed apparently to be co-extensive with the progress of civilised man, and the more regular and extensive the demands upon it the more ready and continuous becomes the supply. ”

“ Taking the question of clearing and total cost of cultivation of lands in these areas, from evidence it will be found over the whole area that growing wheat at the figures named leaves a fair margin of profit, and would provide a food supply, not only for all future local requirements, but leave a large surplus to export. The average cost of production in these areas is now about 2s. ”

“ Senior illustrates this view of the subject by likening the effects of tithes, or other taxes on agricultural produce to those of natural sterility of soil. If the land of a country without access to foreign supplies, were suddenly smitten with a permanent deterioration of quality, to an extent which would make a tenth more labour necessary to raise the existing produce, the price of corn would undoubtedly rise one-tenth. ”

“ Better agricultural treatment may easily make half-cultivated land bring forth double its previous produce; but the highest pitch of farming once reached—as it comparatively soon is—the produce cannot be further increased; and even before this limit is reached, the return for each additional application of capital and labor becomes less and less proportionately bountiful. ”

“ From February 1953 through November 1954, the rate of increase of government-held surpluses has been reduced by our moving into use more than 2.3 billion dollars' worth of government-owned farm commodities; this amount is equal to more than seven percent of a year's production of all our farms and ranches. Domestic consumption remains high, and farm exports will be higher than last year. As a result of the flexibility provided by the Agricultural Act of 1954, we can move toward less restrictive acreage controls. ”

“ A bushel of wheat will not feed more people during scarcity than during plenty; but a bushel of wheat will exchange for a greater quantity of luxuries and conveniences when it is scarce, than when it is abundant; and the landed proprietors, who have a surplus of food to dispose of, will therefore, in times of scarcity, be richer men; they will exchange their surplus for a greater value of other enjoyments, than when corn is in greater plenty. It is vain to argue, therefore, that if the bounty occasions a forced exportation of corn, it will not also occasion a real rise of price. ”

“ Crop surplus control relates to the total amount of any major crop grown in the whole nation on all cultivated land- good or bad—control by the cooperation of the crop growers and with the help of the government. Land use, on the other hand, is a policy of providing each farmer with the best quality and type of land we have, or can make available, for his part in that total production. Adding good new land for diversified crops is offset by abandoning poor land now uneconomically farmed. ”

“ This will necessitate and force a restoration to other staples of acres recently diverted to wheat." But, in the face of the figures quoted above, the evidence is clear that herds are not only ample for present needs, but afford a larger margin than ever of exportable surplus. If herds were insufficient, there would have been a curtailment of exports and an increase in the consumption of breadstuffs, but neither have happened; neither has there been any reduction in the standard of living. ”

“ The inefficient units with which the great mass of our farmers are still operating, and the ineffective methods which are employed by fully one-half of our 6,500,000 farmers, are the chief causes of distress among this large agricultural group. It may be economically unsound to counsel increased production for American agriculture, but only good can come from a decrease in the cost of production. ”

“ I believe the set-back is only temporary, and there is little probability of any decrease in the demand for men to work on the farms, for the prices of all agricultural products are high enough to warrant, if it were possible, a very largely increased output. ”

“ But agriculture had suffered from more than its debts. Actual experience with the operation of the Agricultural Adjustment Act leads to my belief that thus far the experiment of seeking a balance between production and consumption is succeeding and has made progress entirely in line with reasonable expectations toward the restoration of farm prices to parity. ”

“ Likewise our dairy farms, our fruit farms, and our market gardens have been segregated from the general farm. This simply means that manufacturing cloth, or cheese, or producing milk, or tomatoes can be done at less cost in separate establishments than upon a general farm.
The general farm will always grow poultry for home consumption, and will always have some surplus to sell. With the surplus, the poultryman must compete. His only hope of successful competition is production at lower cost. ”

“ What the agricultural improvements since made have really done is, by increasing the capacity of production of land in general, to enable tillage to extend downward to a much worse natural quality of land than the worst which at that time would have admitted of cultivation by a capitalist for profit; thus rendering a much greater increase of capital and population possible, and removing always a little and a little further off the barrier which restrains them ”

“ The tight stabilization program and weak demand for our exports by our major trading partners have impaired our ability to restore economic growth. Nevertheless, the expansion of the agricultural sector by 2.1 percent as of the first quarter prevented a larger fall in .real output. The improved income in agriculture will raise the purchasing power of two-thirds of our population who live in the rural areas and eventually raise the demand for industries and revive industrial activity. ”

“ It is significant that almost each of our great crises in the past has been preceded either by the failure of the harvest at home or by the existence of such a bountiful output abroad as greatly to reduce prices. It must be remembered that, notwithstanding all recent developments, this country is still primarily agricultural, and that upon the varying extent of our great staple crops depends in large measure the effective demand which sets and keeps in motion the wheels of business activity. ”

“ It is very frequently the same throughout the West, where so much that is raised upon a farm is valueless; and where, for even the grains, they have a market which barely pays the expense of living. The expense incurred in farming can be regulated by the profit of the crops; and where even no manure is required, the labor has to be expended, and crops in distant localities often fail to pay the expense of this labor. Where land will pay for a liberal cultivation, as well as fertilizing, it is much better, as a farmer must work his stock, and a certain amount of care is indispensable. ”

“ A decrease in the world supply of wheat has resulted in a very large increase in the price of that commodity. The position of all agricultural products indicates a better balanced supply, but we can not yet conclude that agriculture is recovered from the effects of the war period or that it is permanently on a prosperous basis. ”