rols and supports go hand in hand. Consequently, neither consumers nor producers are free to exercise 'heir best judgments as to what shall be produced, how much, and oy whom. Under these conditions he responsibility for making these decisions is given to select men. Thus clothed with authority they Tiust act as though somebody knows moie than everybody. Whep prices are supported above what consumers are willing to pay hey look for cheaper sources of upply and substitute products. Syn hetics flourish while cotton suffers, hleo spreads while butter spoils. Ex port markets disappear as other ■ountries expand their production f cotton, tobacco, wheat, etc. Similarly, as production allot ments are reduced farmers find vays to produce more per acre. They also bid up the price for al 'otted acres in an effort to buy fast enough to keep their rights from >eiiig reduced through cuts. Thus, production is not permitted o decrease in proportion to re duced allotments. Meanwhile, cost per unit of product does not de ciease as might be expected. To the extent that total production is re-1 duced and costs fail to decline pro-: oortionally the farmer's net income is lowei. Producers strive to keep production up despite acreage re ductions. and to this extent contrib ute to the need for further cuts and expand surplus supplies. In order to spare small pro ducers there is a minimum below which their allotments may not b< cut. Those whose allotments arr above the minimum bear the brim1 of cuts until all become so small 'hat the minimum has to be lowered Burley tobacco affords a typical il lustration of what happens. A few years ago the minimum allotmen* was 0.9 an acre. It was reduced to 0.7 an acre In 1955 it was further educed to 0.5 an acre. Now more | than 60 per cent of some 300,0001 farms, or about 180.000, have allot- ; menis of 0.5 an acre or less. This is essentially a process for ' rationing poverty and outlawing ef- ; firiency which would otherwise be : ■xpected. It denies the right to com- i peie and limits opportunity. Those ; growers of tobacco and other com-; moclities who could produce them as cheaply as they can be grown any place and make more satisfac tory incomes than now. are denied 'he freedom to do so. Meanwhile, consumers of these products are 'creep to pay more than the cost should be. To this extent the con sumers have less to spend for other ‘hings which they might buy. This inability to buy other things keeps the standard of living from using. Because consumers are un able to make savings new jobs pro ducing other things are not created. The’clone, the smaller, low income farmers have less opportunity to get into more productive work at higher wages They are doomed to uv • with small allotments which 'ontinue to shrink. Everybody suf fers. Consumers would vote for 'ther pings but cannot save the dollars to support their votes. The )rocess of communication breaks down. The "invisible hand” no long >r beckons toward opportunity Meanwhile, farmers find it very iifUcult to shift the fragments of cropland resulting from reduced al ctments into profitable uses. This 'auses them to turn to other enter irises even though the returns may ie low. Thus, trouble is created for other farmers.
63.5%Tuesday, April 2, 1957 — The Farmville herald and farmer-leader · Page 3
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“rols and supports go hand in hand. Consequently, neither.” Farmville Herald, April 1957.
“rols and supports go hand in hand. Consequently, neither.” Farmville Herald, Apr 1957.
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