ARTHUR M. HYDE, Secretary of Agriculture, Member ex officio CHRIS L. CHRISTENSEN, Secretary. 66 FOREWORD The declared policy in the agricultural marketing act is "to promote the effective merchandising of agricultural commodities in interstate and foreign commerce." Clearly this declaration and the inadequacy of farm income have made it incumbent upon the Federal Farm Board to direct its attention to methods of distribution and control of production that will be of permanent value in placing agriculture upon a basis of economic equality with other industries." The major activities of the board have been directed toward assisting farmers in developing a farmer-owned and farmer-controlled marketing system, so sound in principle and merchandising practices that the cooperative marketing agencies thus created will endure and wax strong as rapidly as experience and sound leadership warrant. This long-time policy has not prevented the board from taking such steps as seemed necessary and practical to meet emergency situations. The board is fully aware that efficient production and economical distribution alone will not solve the agricultural problem. Intelligent efforts at adjustment of production are equally important. Continued overproduction in lines that already are overproduced spells its own fate regardless of the unit cost of production. Therefore, it is incumbent upon any agency dealing with this subject to obtain the most dependable information regarding probable supply and demand. This information properly interpreted will assist farmers individually and through their organizations in adjusting the farm factory, as nearly as possible, to turn out the quantity of supplies that the market will take at a profit to the farmer. Continuous and consistent overproduction not only is in violation of the economic laws that determine adequate return, but also violates the soundest principles of conservation, even to the extent of threatening the national welfare. The factory owner, taking full account of the interests of employer and employee, undertakes to adjust production to probable demand. When that point has been reached, it is regarded as wasteful to work men and machines beyond the hours justified by profitable return. Factories and machines are utilized only to the extent that they are needed. Always, or nearly always, in this country there is a surplus of equipment for meeting market requirements. The extent to which factories and equipment are used is determined by conditions, and the surplus capacity is held in reserve. The application to agriculture of this principle of intelligent self-interest is vital to permanent economic progress. Changes in land utilization with a view to conservation are also of major importance in the development of any adequate national policy for agriculture. This means reforestation, restoration of the farm woodlot, planting of shelter belts in the plains regions to protect the farmstead and beautify the countryside, preservation of marginal lands in a state that will render them useful in years to come, readjustment of cultivated acres to the end that lands not needed for crop production will be turned to grass or fallowed, and any other or all things that tend to improve the condition of the farmer and preserve the productivity of the Nation's basic natural resources. The board invites the attention of Congress to the facts contained in this report as indicating the manner in which a national policy for agriculture is being developed in the administration of the Agricultural Marketing Act. II ISSUED BY FEDERAL FARM BOARD Additional copies of this report may be obtained free upon request CONTENTS Page The general attitude of the board.. Development of cooperative marketing associations.. Grain marketing organizations.. Wool and mohair cooperatives__ Cotton marketing associations.. Bean marketing associations....... Other phases of the board's work during its first year |