AGRICULTURE

The agricultural situation is improving.  The gross farm income as estimated by the Department of Agriculture for the crop season 1926-27 was $12,100,000,000; for 1927-28 it was $12,300,000,000; for 1928-29 it was $12,500,000,000; and estimated on the basis of prices since the last harvest the value of the 1929-30 crop would be over $12,650,000,000.  The slight decline in general commodity prices during the past few years naturally assists the farmers’ buying power.

The number of farmer bankruptcies is very materially decreased below previous years.  The decline in land values now seems to be arrested and rate of movement from the farm to the city has been reduced.  Not all sections of agriculture, of course, have fared equally, and some areas have suffered from drought.  Responsible farm leaders have assured me that a large measure of confidence is returning to agriculture and that a feeling of optimism pervades that industry.

The most extensive action for strengthening the agricultural industry ever taken by any government was inaugurated through the farm marketing act of June 15 last.  Under its provisions the Federal Farm Board has been established, comprised of men long and widely experienced in agriculture and sponsored by the farm organizations of the country.  During its short period of existence the board has taken definite steps toward a more efficient organization of agriculture, toward the elimination of waste in marketing, and toward the upbuilding of farmers’ marketing organizations on sounder and more efficient lines.  Substantial headway has been made in the organization of four of the basic commodities—­grain, cotton, livestock, and wool.  Support by the board to cooperative marketing organizations and other board activities undoubtedly have served to steady the farmers’ market during the recent crisis and have operated also as a great stimulus to the cooperative organization of agriculture.  The problems of the industry are most complex, and the need for sound organization is imperative.  Yet the board is moving rapidly along the lines laid out for it in the act, facilitating the creation by farmers of farmer-owned and farmer-controlled organizations and federating them into central institutions, with a view to increasing the bargaining power of agriculture, preventing and controlling surpluses, and mobilizing the economic power of agriculture.

THE TARIFF

The special session of Congress was called to expedite the fulfillment of party pledges of agricultural relief and the tariff.  The pledge of farm relief has been carried out.  At that time I stated the principles upon which I believed action should be taken in respect to the tariff:  “An effective tariff upon agricultural products, that will compensate the farmer’s higher costs and higher standards of living, has a