Let me first say that I am glad that the theme
of this plowing contest is conservation - conservation of land and water.
I wholeheartedly favor effective conservation
programs because, simply, I believe in the future of America. Our population
is growing. It is wise conservation that underwrites America by assuring
future food, future fiber, future water to meet the expanding needs of
tomorrow at home and throughout the world.
Some of you know that for several months I
have been making a careful study of the situation confronting our farm
people, and in the process have met with the most knowledgeable and objective-minded
people I could find. What I want to do today is to talk over with you some
of my views based on this serious study.
At the outset I would like this point clearly
understood: The problems of farm people ought not be approached, as far
too often has been the case in the past, as something to exploit for political
advantage. Rather, the approach has got to be objective, and has got to
be constructive. In a determined effort to find a solution the good of
the farmer, not the good of politicians, has to be our steady purpose if
we are ever to get anywhere.
Next, I think we had better get rid of a number
of wrong ideas, too widely shared, about the farm problem, before we talk
about the problem itself.
The first and most unfortunate mistake that
many of us make is to think that farmers themselves are to blame for all
our present farm problems. The time is overdue for everyone to understand
that the surpluses which so long have troubled us all, farm people especially,
have been built up primarily at the urging of Government itself. These
surpluses are the product more of politics than of productivity - of keeping
farm programs on a war footing while the Nation, fortunately, has kept
the peace. Farmers responded with unreserved patriotism to the Nation's
call for ever greater production during World War II and the Korean war.
It is dead wrong to charge against them the politicking that in such large
measure has been responsible for the accumulation of vast surpluses in
government storage.
Further, it is wrong to blame the farmer for
the fact that Government illogically insisted upon unrealistic incentives
to keep production up, while at the same time it conjured up bureaucratic
controls in a futile attempt to keep production down.
We need to understand - all of us - that what
the farmer has done is just exactly what he has been encouraged to do by
his Government. The blame for the results belongs right on those who have
written the laws.
Another misconception is this - that farmers
live off the Public Treasury at the expense of other Americans, thereby
making the public pay higher tax and food bills. No doubt about it - our
present farm programs are costly and unrealistic. But the costs most people
chalk up against the farmer are puffed up all out of shape, and hence are
misleading. The Agriculture Department budget includes far more than payments
to farmers. It includes such costs as scientific research and education,
food grading, market reporting, the national forest service, water and
soil conservation, school lunches, great quantities of food for needy nations.
Properly, these costs should be charged to America's requirement for conservation
and social welfare and to the world struggle for peace and freedom. And
Americans need to understand this as well - most of the increase in today's
grocery bill reflects, not payments to farmers, but modern refinements
in processing, and inflation of costs all along the line.
The truth, as every farmer knows, and as all
other Americans need to understand, is that the price the farmer gets for
what he produces is but a fraction of what the housewife has to pay at
the grocery. The public has a right to worry over taxes and food costs
- but it is wrong to charge these against the farmer.
Some peddle a third misconception, and this
one is especially insulting to farmers. It is that farm people are not
very important any more because mechanization of farming has reduced their
numbers. Well, in the first place, God save the Republic when we start
ignoring our farmers or any other group of America's citizens; and in the
second place, Americans need to understand that farming is still our biggest
single industry, and more importantly, a major customer of all other industries.
Farmers buy more petroleum products than any other industry. They use half
as much steel as the entire automobile industry each year. It simply adds
up to this - if our Nation is to be prosperous, our farmers must be prosperous.
Next, I want to say a word about the mistaken
impression that farmers have long been feathering their nests, so now,
if things are not going too well, they should just grin and bear it. It
is true that farmers have a substantial net worth; it runs about $184 billion.
It is also true that farmers' assets are about eight and one-half times
their liabilities. But remember this - the net income of farmers, while
the Nation generally has prospered, has not been rising or even staying
level; it has been going down. The bald fact is that the farmer has not
shared proportionately in America's increasing prosperity. He has been
getting the short end of the stick. Simple justice, not to say the national
interest, demands that we develop a program that will assure him a fair
return.
Finally is this misconception - about the
worst of all. It is that the farm situation is a hopeless, costly, and
unsolvable mess. I am convinced that most of us have been looking at this
problem with an attitude that is far too negative. No more exciting challenge
will confront the next President and his administration than that of making
a national asset, rather than a liability, out of our Nation's ability
to produce more food and fiber than any other peoples on earth. When we
in America begin looking at the farm situation this way, as we should,
instead of seeing it as a continuing calamity, we will become truly constructive
about it.
This new attitude must recognize at the outset
how great an asset our enormous productivity is in meeting the overriding
issue of our time - the global struggle to preserve peace and human liberty.
Only 7 million farm people in America produce
nearly as much food and fiber, and in far better quality, as 50 million
produce in Russia. Why?
A really major reason is one that we tend
to take for granted. It is that in America the farmer lives in freedom;
in Russia and Red China farmers are peasant-slaves. They are told what
to plant, when to plant, and where to plant it. They live and work not
for themselves but for a cruel and tyrannical state.
Mr. Khrushchev still boasts that the Communists
are going to outdo America. If there are those among us who are afraid
he is right, they owe it to themselves and their countrymen to see America
in action on the farm.
Then they need a good look inside the Soviet
Union. That's the best cure I know of for cold war nerves.
Chairman Khrushchev, you remember, did it
the other way around. It has jangled his nerves ever since. Since he saw
with his own eyes last year the production miracles which year after year
are wrought in this Iowa farm country, he has made statements about America
which show that even he can recognize a fact when he sees it. Incidentally,
I think one of the reasons he withdrew his invitation to the President
to visit the Soviet Union may have been a reluctance to let President Eisenhower
see at first hand how far behind the Communists really are.
Let all of us recognize, therefore, the great
advantage that the skill of American farmers gives our Nation. Let us eagerly
pursue this advantage by using our abundance more effectively in advancing
liberty and peace.
One way - and it is indispensable - to keep
this advantage is to safeguard and preserve the family farm, which is at
the very heart of our free agricultural system.
We must never forget what our bounty means
to us here at home as well as beyond our shores. To the everlasting credit
of our farm people, Americans are the best fed and best clothed people
on earth - not only today but in all history. Such an asset has got to
be preserved.
How can we best do this? First by avoiding
the tendency to be too inflexible in our approach. All too often we hear
that there is some one magic formula that will solve all our farm problems.
Let's get our thinking straight on that point.
There is no one farm problem today, there never has been. We need differing
programs and differing tools to meet the kinds of problems we really face.
And I repeat - let us keep in mind that the
chief trouble in the past has been political. But there is a way out.
Let us first examine the programs that the
political opposition offers. These are simply this - a return to discredited,
old programs which have never worked, plus plans like the Brannan farm
program that never did fool the farmers and which, therefore, they overwhelmingly
rejected. Inevitably they would lead to a farm economy completely planned
and managed, not by the farmer, but by the Government.
These ideas would not end our farm problems.
They would fasten them on our country forever.
We simply cannot allow ourselves to think
in these defeatist terms. Let me suggest some basic thoughts that point
the way to constructive action.
First, because it was the Government, mainly,
that got the farmer into the farm problem, the Government should unhesitatingly,
as a matter of obligation, help indemnify him to get out.
Second, I consider it likewise a governmental
obligation to help the farmer protect himself against the natural and economic
adversities that uniquely and oftentimes disastrously affect his livelihood.
Third, real farmers should have more to say
about the kinds of programs best suited to their way of life. There is
a clear need for greater farmer participation in the formulation of the
programs that govern them.
Fourth, farmers need programs that will strengthen,
not erode away, their freedom. We need programs to hasten the day when
Federal bureaucrats in Washington, no matter how well intentioned, will
not be telling farmers what to plant, how many acres to sow, how much to
sell, and what their prices have to be.
Fifth, we must - and we can - put our surpluses
more constructively to work for the good both of American farmers and of
all humanity.
Sixth, once we devise means to consume our
gigantic surpluses, production restraints can be eased and made rational
and bearable.
Seventh, programs are needed that will raise
farm family incomes as surpluses are consumed; we cannot tolerate programs
that would cut production by bankrupting the farmer.
Finally, we must carefully consider the whole
complex price support problem, and to that vital subject, I shall return
in my second farm speech in Sioux Falls, next week.
I believe that, by holding to these points,
we can be confident of a bright prospect for our millions of American farmers.
How, exactly, do we begin? Obviously,
a No. 1 job is to work down the price-depressing surpluses which today
are costing us a thousand dollars every minute just to handle and store.
There are, of course, two major parts to this
task - first, disposing of the surpluses we already have; second, preventing
their reaccumulation.
Let us today talk about the first part - using
up surplus stocks. My answer to this I call Operation Consume. And what
does it do? It isolates the surplus stocks from the commercial markets
as completely, effectively, and quickly as we can. It uses the surpluses
for constructive works. It aims at keeping farmers from being made prisoners
of their own efficiency.
Operation Consume is a four-part undertaking.
The first is a sharp intensification of the
food for peace program.
This includes new and more energetic efforts
among surplus-producing nations to assist the hungry people in less favored
areas of the world through the United Nations. This is an effort at once
practical and humanitarian. More than that, it brings our bounty directly,
and more positively, into the great struggle for freedom.
In its support we will continue to sell our
surplus products abroad under Public Law 480. We will additionally continue
using surplus foods and fibers to help meet emergencies throughout the
world caused by such catastrophes as floods, droughts, earthquakes.
Moreover, we should accelerate our efforts
in underdeveloped nations to acquaint these millions of peoples with our
multitude of farm products and their many uses. In this way, we will simultaneously
build commercial markets for our farm people, as was long ago demonstrated
by our experience under the 480 program.
The second major part of Operation Consume
is to create, for America, a strategic food reserve.
These critical reserves of foods would be
stored at strategic locations throughout the Nation, in forms in which
they can best be preserved for long periods against the contingency of
a grave national emergency, such as sudden international requirements,
or any enemy attack.
I am firmly convinced that in the kind of
world in which we live today, we cannot risk a shortage of food. In these
times, we must keep on hand large enough stocks to feed our people should
our normal sources of food be destroyed. Our present wheat surplus is even
now a great protection for America, for in an emergency wheat can be eaten
even in its natural state. Even better, wheat can be prepared - and this
I would have further developed as a matter of high priority - in ways that
can protect it against contamination, preserve it for long periods, and
yet keep it immediately available for human consumption. We need to move
a substantial part of these surpluses into storage properly dispersed to
speed their availability in time of crisis, and we must replace them periodically
with fresh supplies.
Next, Operation Consume will effect payments
in kind from existing surpluses as part of a temporary land conservation
and retirement program of which we need to achieve better balance in today's
agriculture.
Of course, barter payments of this kind have
to be so administered as not to disturb market prices, while at the same
time reducing the output of additional surpluses. We will use the surplus
to use up the surplus.
Finally, as part of Operation Consume, I propose
an urgent exploration of the conversion of grain to protein foods for distribution
at home and abroad, an approach whereby excess grain could become low-cost,
bulk-canned meat, powdered milk and eggs, meanwhile giving livestock, dairy,
and poultry producers throughout the country additional income.
I expect this new program to be worked out
and to become a significant and valuable addition to our food for peace
efforts and to our school lunch and relief distribution programs.
Here again there must be safeguards against
disruption of normal commercial marketing channels at home and abroad as
well as prudent cost controls.
Aside from some domestic school lunch and
relief distribution, only long-term future contracts would be used as,
for instance, with CARE, religious, voluntary groups, and with such other
assistance efforts as we may engage in abroad.
The difficulty with our attack on the surplus
problem in the past is that it has been too timid and too little. We must
set as our objective a target date of 4 years using the tools that I have
outlined to reduce the surplus to manageable proportion. We need to get
the surplus off the farmers' back and off the Nation's back as well.
It will, of course, be necessary to appropriate
for these programs. But in evaluating their costs, we must take into account
the present tremendous outlays that we will thereby be getting rid of as
we reduce the surpluses. In other words, we must and should be willing
to pay more now in order to take a big bite out of the surplus and to reach
our target date, recognizing that the costs overall will be less in the
long run.
These are, in brief outline, the four programs
of Operation Consume - a concerted effort to the critical surplus problem.
As we thus move ahead, we can expect the affected
farm commodity prices to move up to a more normal market relationship.
Thus, we will achieve our two eagerly sought objectives: raising farm family
income while relieving the Government of much of the heavy cost of carrying
vast stores of unused foods.
Next week in South Dakota, I will spell out
the companion effort, no less important to farmers. I shall call it Operations
Safeguard - a program to deal with the other major phase of our problem,
that of avoiding the building up of new unmanageable surpluses. Taken together,
Operation Consume and Operation Safeguard will strengthen all agriculture
- an enormously powerful force against communism.
There is great gratification for me in the
concept that here, in these efforts, we can put the American farmers' skill
and productivity more effectively at work where most needed - in the very
forefront of the world struggle for freedom. Here communism cannot hope
to compete. Here all humanity will clearly see the shining promise and
profound meaning of liberty.