kift Extimal Cooperations Mick Producers Federation 6-4-1930 HD 9006 FOREWORD This small pamphlet contains the text of the Agricultural Adjustment Act together with the suggested amendments to that Act as approved by the Committee on Agriculture of the House of Representatives. The amendments have been fitted into the Act in their proper places and where these amendments change the text of the existing law the original language is first set out and is immediately followed by the text as amended. Where entire new sections have been adopted they have been fitted into their proper places in the Act. The new language contained in the amendments is set out in distinctive type. After each amendment there has been developed an explanatory note describing the purpose, operation and effect of the particular amendment. These notes have been prepared by the Washington office of the Federation and have been reviewed by officials of the Agricultural Adjustment Administration. The National Cooperative Milk Producers Federation approves and is vigorously supporting these amendments but it is our principal hope that by publishing the proposed amendments in this form those interested will be better able to make an intelligent and thorough study of the problem involved. CHAS. W. HOLMAN, Secretary, THE NATIONAL COOPERATIVE MILK SUMMARY The amendments to the Agricultural Adjustment Act which are contained in this pamphlet may be briefly summarized in three classes: I. Perfecting amendments such as the addition of interest and tax payments in the definition of parity, changing the word "reduction" in the act to "adjustment," authorizing payment of rental and benefit payments in commodities as well as in cash, a provision for the recognition and encouragement of cooperative associations and a provision for the imposition of quotas or compensatory taxes on imported articles if the importation of such articles threatens the success of any program undertaken by the A. A. A. 2. Amendments to the licensing section of the bill which clarify and expand the licensing section into three classes: (a) licenses which may be invoked for the elimination of unfair practices and charges; (b) licenses to support marketing agreements which have been approved by the handlers of more than 50 per cent of the commodity involved and (c) licenses which may be imposed by the Secretary with the consent of the President in those cases where persons who handle at least 50 per cent of the commodity refuse to participate in a marketing plan and where the imposition of such a license is approved by not less. than two-thirds of the producers by number or volume, engaged in the production for market of the commodity covered by such a license. 3. Amendments to the bill which permit the levying of a processing tax for the expansion of domestic and foreign markets and removal of surpluses. In this class may also be considered the provision for the use annually of 30 per cent of the custom duties for encouragement of exports and removal of sub-marginal farm lands. A detailed description of the operation of these amendments will be found in this pamphlet in the note on pages II-13. It is alleged that these amendments to the Agricultural Adjustment Act represent a further regimentation of American agriculture. We feel that such charges are not warranted but that on the other hand the amendments represent a step away from regimentation. Under the Agricultural Adjustment Act in its present form the Secretary under the licensing power has complete authority to license everyone engaged in the handling of any agricultural prod uct or of any competing product. His right to impose a license is not conditioned upon the request or approval either of producers or handlers nor is the right granted to anyone to request or to require the termination of any license. Under the amendments, the Secretary's right to impose licenses will be limited in part by the provision that licenses must be approved either by persons handling not less than 50 per cent of the commodity covered by any such license or, in the event of their refusal, the license must be approved by two-thirds of the farmers by number or volume who produce for market the commodity covered by the license. In cases where handlers of 50 per cent of the commodity refuse to sign there is in addition to the requirement for producer approval the additional safeguard that any such license must be approved by the President and can only be used on milk and its products, tobacco, sugar beets, wool and fruits and vegetables. The right of the Secretary is further limited by those provisions of the amendments which require him to use regional licenses covering production or marketing areas and to take into account in connection with such licenses the peculiar necessities of each region. The most substantial limitation contained in the amendments, however, is the provision under which the Secretary is required to terminate any marketing agreement or license when requested by a majority in number and volume of the farmers producing for market the commodity covered by the marketing agreement or license. All of these features limit the authority of the Secretary of Agriculture under the Agricultural Adjustment Act so that instead of granting him further powers to regiment agriculture, the amendments in fact limit his existing powers. In addition the recognition in the Act of the principle of expansion of domestic and foreign markets and removal of agricultural surpluses as contemplated by the old McNary-Haugen Equalization Fee Plan and by the Export Debenture Plan represents an important step in the development of a well-rounded program for agriculture. It may well be that through the use of these new powers substantial assistance can be given to agriculture through a program which need not be based on reduction of production or payments to individual farmers for retirement of acreage or for cutting down their production. In addition to the present devices contained in the Act for the restoration of agricultural prosperity, this portion of the amendments places in the hands of the Agricultural Adjustment Administration another powerful weapon to aid in meeting the agricultural problems of the United States. EXPLANATION OF TYPE Used Present Language of Agricultural Adjustment Act- Roman __Italics New Language as contained in Amendments-- NOTE: As this pamphlet goes to press we are advised that certain clarifying amendments are still pending in the House Committee. None of these amendments however, according to our information, are of major importance nor are any of them of a controversial character. AGRICULTURAL ADJUSTMENT ACT, AS AMENDED, AS OF JUNE 29, 1934 AN ACT To relieve the existing national economic emergency by increasing agricultural purchasing power to raise revenue for extraordinary expenses incurred by reason of such emergency, to provide emergency relief with respect to agricultural indebtedness, to provide for the orderly liquidation of joint-stock land banks, and for other purposes. Be it Enacted by the Senate and House of Representatives of the United States of America in Congress Assembled, TITLE I-AGRICULTURAL ADJUSTMENT DECLARATION OF EMERGENCY That the present acute economic emergency being in part the consequence of a severe and increasing disparity between the prices of agricultural and other commodities, which disparity has largely destroyed the purchasing power of farmers for industrial products, has broken down the orderly exchange of commodities, and has seriously impaired the agricultural assets supporting the national credit structure, it is hereby declared that these conditions in the basic industry of agriculture have affected transactions in agricultural commodities with a national public interest, have burdened and obstructed the normal currents of commerce in such commodities, and render imperative the immediate enactment of title I of this Act. DECLARATION OF POLICY SECTION 2. It is hereby declared to be the policy of Congress(1) To establish and maintain such balance between the production and consumption of agricultural commodities, and such marketing conditions therefor, as will reestablish prices to farmers at a level that will give agricultural commodities a purchasing power with respect to articles that farmers buy, equivalent to the purchasing power of agricultural commodities in the base period. The base period in the case of all agricultural commodities except tobacco shall be the prewar period, August 1909-July 1914. In the case of tobacco, the base period shall be the postwar period, August 1919-July 1929. |