LETTER OF TRANSMITTAL UNITED STATES DEPARTMENT OF AGRICULTURE, Hon. HENRY A. WALLACE, Secretary of Agriculture. Washington, D. C., June 15, 1937. DEAR MR. SECRETARY: Herewith is transmitted the fourth report of measures taken by the Agricultural Adjustment Administration to further the economic improvement of agriculture, in accordance with the policies expressed by the Congress and under the provisions of the Agricultural Adjustment Act, the Soil Conservation and Domestic Allotment Act, and related legislation. The report covers the activities of the Agricultural Adjustment Administration during the calendar year 1936, and reviews the shift in emphasis from emergency measures for alleviating the effect of tremendous surpluses, to long-time programs for the welfare of agriculture and especially for protecting and conserving the Nation's greatest natural resource, its soil. Respectfully, H. R. Jolley Administrator. III CONTENTS Page Nineteen thirty-six an eventful year-Transition from emergency phase to long-time phase hastened by Hoosac II. LEGISLATIVE PROVISIONS FOR ADJUSTMENT. Certain provisions of Agricultural Adjustment Act not affected by Supreme Court decision-Funds and III. EVOLUTION OF THE FARMERS' PROGRAM__ Place of soil conservation in long-time farm policy- Producing capacity of land impaired by past practices- I. CHARACTERISTICS AND PROBLEMS OF AGRICULTURAL REGIONS_ General types of farming within different regions deter- mine conditions under which grants are made-Nine type-of-farming regions described-Programs recognize II. DEVELOPING AN AGRICULTURAL CONSERVATION PROGRAM. Objectives and provisions discussed in open meetings with farmers-College specialists consulted-The county planning project-Recommendations indicate goals. Corn Belt is agricultural heart of the Nation-Farm- - ers and specialists recommend less intensive farming Climatic, sociological, and economic factors complicate regional problem-County committees recommend reduc- for meeting specific problems. Region composed of transition areas with farming diver- sified rather than specialized-Problems similar to those of Corn Belt-County planning committees recommend de- VI. WHEAT AND SMALL-GRAIN REGIONS... Regions cover level areas with relatively dry soils Con- ditions favor use of machinery to cut production costs, but Production of fluid milk important in Northeastern States where urban centers are located and where feed production is limited-Butterfat production centers in Lake States and western Corn Belt-Chief needs are for soil-conserving practices and pasture improvement. Different types of tobacco require different soils and have different uses-Tobacco generally grown in areas that have IX. RANGE LIVESTOCK REGION PROBLEM_ Region lies in arid and semiarid West-Grazing only profitable use for large tracts-Land especially subject to Include areas where, for the most part, intensive cash- crop farming is followed-Intensive cropping promotes erosion and causes rapid depletion of soil fertility. XI. SELF-SUFFICING, FLATWOODS, AND CUT-OVER REGIONS.. Three classes of areas involved-Permanent retirement of a substantial part of arable farm land, or consolidation XII. PROVISIONS OF THE 1936 AGRICULTURAL CONSERVATION PROGRAM FOR MEETING REGIONAL PROBLEMS_ Program drafted to maintain adequate supplies without too severe a tax upon soil productivity-Provisions stated in official bulletins issued March 20, 1936-Regulations covered establishment of base acreages, determination of Farmers received economic support and protection of the Federal Government in cooperative effort on privately XIV. REVISION OF PROGRAM FOR 1937 APPLICATION. Greater emphasis laid upon payments for soil-building practices as compared with payments for diversion of acreage Limit established for corn acreage in the Corn Belt-Range program improved for western and southern Page |