While these developments in fundamental research, regulation, and
dissemination of agricultural information are of distinct help to
agriculture, additional effort is needed. The surplus problem demands
attention. As emphasized in my last message, the Government should assume
no responsibility in normal times for crop surplus clearly due to
overextended acreage. The Government should, however, provide reliable
information as a guide to private effort; and in this connection fundamental
research on prospective supply and demand, as a guide to production and
marketing, should be encouraged. Expenditure of public funds to bring in
more new land should have most searching scrutiny, so long as our farmers
face unsatisfactory prices for crops and livestock produced on land already
under cultivation.
Every proper effort should be made to put land to uses for which it is
adapted. The reforestation of land best suited for timber production is
progressing and should be encouraged, and to this end the forest taxation
inquiry was instituted to afford a practical guide for public policy.
Improvement has been made in grazing regulation in the forest reserves, not
only to protect the ranges, but to preserve the soil from erosion. Similar
action is urgently needed to protect other public lands which are now
overgrazed and rapidly eroding.
Temporary expedients, though sometimes capable of appeasing the demands of
the moment, can not permanently solve the surplus problem and might
seriously aggravate it. Hence putting the Government directly into
business, subsidies, and price fixing, and the alluring promises of
political action as a substitute for private initiative, should be
avoided.
The Government should aid in promoting orderly marketing and in handling
surpluses clearly due to weather and seasonal conditions. As a beginning
there should be created a Federal farm board consisting of able and
experienced men empowered to advise producers' associations in establishing
central agencies or stabilization corporations to handle surpluses, to seek
wore economical means of merchandising, and to aid the producer in securing
returns according to the a14 of his product. A revolving loan fund should
be provided for the necessary financing until these agencies shall have
developed means of financing their operations through regularly constituted
credit institutions. Such a bill should carry authority for raising the
money, by loans or otherwise, necessary to meet the expense, as the
Treasury has no surplus.
Agriculture has lagged behind industry in achieving that unity of effort
which modern economic life demands. The cooperative movement, which is
gradually building the needed organization, is in harmony with public
interest and therefore merits public encouragement.