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CONTENTS

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FOREWORD

I. THE YEAR IN BRIEF.---

Nineteen thirty-six an eventful year-Transition from

emergency phase to long-time phase hastened by Hoosac
Mills decision of Supreme Court-Operation of program
complicated by drought-Wide participation by farmers-

Farm income continued upward trend.

II. LEGISLATIVE PROVISIONS FOR ADJUSTMENT ---

Certain provisions of Agricultural Adjustment Act

not affected by Supreme Court decision-Funds and
authority for removal of price-depressing surpluses-
Existing legislation supplemented— Federal grants pro-

vided for supporting soil-conservation program.

III. EVOLUTION OF THE FARMERS' PROGRAM -----

Place of soil conservation in long-time farm policy-

Producing capacity of land impaired by past practices-
Agricultural Adjustment Administration concerned chiefly
with good land-Economic factors have encouraged
exploitation-Effort is to restore and maintain produc-
tivity, while keeping supplies in balance with domestic
consumption and foreign markets-Sharp increase in
exports not likely-Conservation program helps to balance
production-Provide protection against effects of drought-
Individual farmers can adapt national program to their
own farms-Prices an important factor in determining
farm income - Problem of farm tenancy interrelated with
that of conservation-Farmers helped in meeting their
marketing problems and expanding their markets, Special
measures taken to meet special problems—Gaps in farm
program remain to be closed, and additional measures for

such purpose are considered.

CHAPTER 1. THE AGRICULTURAL CONSERVATION PROGRAM

IN 1936...

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

regional differences.

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.

III. THE CORN-BELT PROBLEM.-----

Corn Belt is agricultural heart of the Nation-Farm-.

ers and specialists recommend less intensive farming

methods--Economic reasons for proposed shifts.

IV. THE COTTON-BELT PROBLEM -------

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Climatic, sociological, and economic factors complicate

regional problem-County committees recommend reduc-
tion in cotton acreage and more adequate food and feed
supplies Conservation program carries special provisions

for meeting specific problems.

V. THE GENERAL FARMING REGION.---

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Region composed of transition areas with farming diver-

sified rather than specialized-Problems similar to those of

Corn Belt-County planning committees recommend de-

crease in corn and tobacco acreage--Decrease in soil-deplet-

ing crops to be matched by increases in soil-conserving

crops

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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
also make erosion a serious problem-Region divided
into three principal subregions, each with different prob-
lems- Droughts have heavily affected wheat production
since 1930—County committees recommend 4,000,000-acre

reduction in wheat acreage.

VII. THE DAIRY REGIONS.-

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.

VIII. THE TOBACCO REGIONS.--

Different types of tobacco require different soils and have

different uses-Tobacco generally grown in areas that have
been farmed over a long period and where soil erosion is a
serious problem-Stabilization of supply is an economic
problem-Diversion of acreage from tobacco serves both
agricultural and economic purposes-Farmers encouraged

to grow more food and feed crops.

IX. RANGE LIVESTOCK REGION PROBLEM.--

Region lies in arid and semiarid West-Grazing only

profitable use for large tracts-Land especially subject to
erosion—Overgrazing is principal cause of deterioration-
Regulation of grazing, decrease in wheat acreage, and

production of more tame hay are proposed changes.

X. SPECIAL CROP REGIONS...

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
of small farms, is recommended-Soil conservation associ-
ated with submarginal-land problem-Higher living stand-

ards and most desirable uses of land should be promoted.

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
rates and conditions of payment, division of payments,

and classification of crops.

XIII. RESULTS OF THE 1936 AGRICULTURAL CONSERVATION PRO-

GRAM-----------------------------------------------

Farmers received economic support and protection of the

Federal Government in cooperative effort on privately
owned land-Drought diminished effectiveness of pro-
gram-One apparent result of program was large-scale
shift from soil-depleting to soil-conserving crops-Meas-
ures also taken to improve soil fertility-Land-manage-
ment devices developed under program-Sixty-seven per-
cent of all cropland affected by program-Estimates given,
by States, on extent of diversion and soil-building practices

adopted.

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

range areas--New rates of payment for 1937 program

established.

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CHAPTER 2. ADMINISTRATIVE ORGANIZATION ------

I. WASHINGTON ORGANIZATION.------------

Headed by an Administrator responsible to the Secretary

of Agriculture, the Agricultural Adjustment Administration

is divided for administrative operation into five regional

divisions for the continental United States, and an insular

division-Administrative divisions based upon types of

farming followed in corresponding regions Appropriate

assistants, experts, and operating divisions included in the

organization.

II. ORGANIZATION IN THE FIELD..

State offices established in 1936–Officials and employes

perform, in the field, those functions which can best be
handled there rather than in Washington-Applications
for grants examined and audited in the field for three

regions.

III. FARMER PARTICIPATION IN PLANNING PROGRAMS -----------

Community, county, and State meetings gave farmers

opportunity to express views and opinions in framing pro-

visions of conservation programs-County-planning proj-

ect yielded data and recommendations-Total of 2,712

county agricultural conservation Associations organized

in 1936.

IV. OPERATING THE PROGRAM -----

State administrative organization Community and

county officers elected by farmers themselves throughout

most of agricultural area-County committees review all

forms and documents filed in connection with the program

in their counties.

CHAPTER 3. MARKETING PROGRAMS

I. MARKETING PROGRAMS FOR FRUITS AND VEGETABLES.--.

Marketing programs redrafted in accordance with

amendments to the Agricultural Adjustment Act- Amend-

ments specify commodities to which marketing agreements
and orders may be applied-Seven programs in effect at
end of 1936 for commodities other than dairy products
Programs affect 90,000 growers-Objective is to adjust

shipments to market demand.

II. MARKETING PROGRAMS FOR DAIRY PRODUCTS.--

Dairy industry experienced gains in 1936-Several fac-

tors have contributed to this improvement- Agreements
and orders in effect for fluid-milk markets and for evapo-
rated milk and dry skim milk industries-Agricultural
Adjustment Administration cooperates with State milk-
regulatory bodies- Legal status of marketing orders not

determined.

CHAPTER 4. SURPLUS-REMOVAL OPERATIONS.----

I. PROGRAMS FOR ENCOURAING INCREASED DEMANDS FOR FARM

DUCTS

Cotton price-adjustment payment plan moved cotton

into commercial channels- Funds obtained from customs
receipts Flour from Pacific Northwest exported to
Philippine Islands—Other agricultural commodities ex-

ported.
II. PROGRAMS FOR DIVERTING FARM PRODUCTS TO New Uses.-

Fruits marketed in new forms-Cotton used in road-

building operations.

III. PROGRAMS FOR PURCHASING SURPLUSES FOR RELIEF DISTRI-

BUTION-

Federal Surplus Commodities Corporation served as dis-

tributing agency-Funds derived from customs receipts

and Jones-Connally Act of 1934— Wide range of prod-

ucts affected-Expenditures for dairy products totaled

$24,541,818.86.

IV. PROGRAM FOR ELIMINATION OF DISEASED CATTLE.--------

Animals affected with bovine tuberculosis, Bang's dis-

ease, and mastitis eliminated.

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CHAPTER 5. LIGHTENING THE IMPACT OF THE 1936 DROUGHT

I. AGRICULTURAL PROGRAMS INCREASED FORAGE SUPPLIES ------

Production of hay crops in 1936 above average Shortage

offset in part by carry-over of 13 million tons-Livestock
numbers adjusted in 1934 and 1935 to supply of available

feeds in 1936.

II. GOVERNMENT ACTIVITIES IN DROUGHT RELIEF.--.

Interdepartmental and departmental committees ap-

pointed-Soil-conservation program adjusted to assist in
meeting drought demands—Livestock conserved and mar-
ket collapse prevented—Supplies of seed saved for use in
1937—Needy relieved by distribution of food and feed
purchased by the Agricultural Adjustment Administra-
tion-Assistance given in locating feed supplies and in

removing livestock from drought-stricken area.

III. STABILIZATION AMELIORATES EFFECTS OF DROUGHT.---------

Effects of drought intensified by exploitative system of

farming-Measures taken under conservation program
meet requirements of scientific studies Cultivation of soil

not incompatible with conservation of resources.

IV. EMERGENCY MEASURES MAY BE DEMANDED AGAIN...

Necessity for emergency operations may be lessened by

better system of land use-Crop-insurance plan would

protect producers and consumers against effects of drought.

CHAPTER 6. THE SUGAR PROGRAM.--.

I. LIQUIDATION OF Sugar PRODUCTION-ADJUSTMENT PROGRAMS.-

Contracts with producers terminated as a result of the

Supreme Court decision of January 6, 1936-Payments due
to producers under these contracts totalled $33,586,606—

Of these claims $28,000,130 was disbursed during 1936.

II. ADMINISTRATION OF THE SUGAR QUOTAS IN 1936 ----

Quota provisions of sugar program not affected by

Supreme Court decision-Increasing consumption and a

deficiency in sugar-beet producing areas resulted in reallo-

cation of quotas during the year.

III. SUGAR IN THE AGRICULTURAL CONSERVATION PROGRAM------

Sugar beets and sugarcane classified as soil-depleting

crops with special acreage bases and special rates of pay-

ment under agricultural conservation program-Effect of

program was to enable growers to conserve productivity

of soil.

IV. THE GENERAL SITUATION IN 1936 ---

World prices reached record low levels as a result of

excess world supplies-Sugar quotas protected market of

United States producers Invalidation of production-

adjustment contracts destroyed means of assuring labor

an equitable share in income from sugar beets and sugar-

cane.

CHAPTER 7. LIQUIDATION OF PRODUCTION-ADJUSTMENT

PROGRAMS..

I. FUNDS FOR LIQUIDATION APPROPRIATED BY CONGRESS.------

Collection of processing taxes discontinued-unliquidated

obligations and committments to contract-signers re-

mained to be settled after January 6, 1936.

II. LIQUIDATION PAYMENTS 94 PERCENT COMPLETED.

Through December 31, 1936, there had been disbursed

2,861,246 payments totaling approximately $230,430,000.

CHAPTER 8. THE COTTON PRODUCER'S POOL -

I. Pool ESTABLISHED JANUARY 8, 1934.-------

Option holders who pooled their optionsin pool organized

in 1934 received advances totaling $39,035,180.

II. PURCHASES OF TRUST CERTIFICATES INCREASED TOTAL-----

Price paid for trust certificates, added to other distribu-

tions among option holders, totaled $66,878,687.19.

III. PAYMENTS TO PRODUCERS ON ACCOUNT OF Pool OPERATIONS.

Disbursements through December 31, 1936, totaled

$66,878,687.19.

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