Through vigorous administration and through new authority provided by the 83rd Congress, surplus farm products are now moving into consumption.  From February 1953 through November 1954, the rate of increase of government-held surpluses has been reduced by our moving into use more than 2.3 billion dollars’ worth of government-owned farm commodities; this amount is equal to more than seven percent of a year’s production of all our farms and ranches.  Domestic consumption remains high, and farm exports will be higher than last year.  As a result of the flexibility provided by the Agricultural Act of 1954, we can move toward less restrictive acreage controls.

Thus, farm production is gradually adjusting to markets, markets are being expanded, and stocks are moving into use.  We can now look forward to an easing of the influences depressing farm prices, to reduced government expenditures for purchase of surplus products, and to less Federal intrusion into the lives and plans of our farm people.  Agricultural programs have been redirected toward better balance, greater stability and sustained prosperity.  We are headed in the right direction.  I urgently recommend to the Congress that we continue resolutely on this road.

Greater attention must be directed to the needs of low-income farm families.  Twenty-eight per cent of our farm-operator families have net cash incomes of less than $1,000 per year.  Last year, at my request, careful studies were made of the problems of these farm people.  I shall later submit recommendations designed to assure the steady alleviation of their most pressing concerns.

Because drought also remains a serious agricultural problem, I shall recommend legislation to strengthen Federal disaster assistance programs.  This legislation will prescribe an improved appraisal of need, better adjustment of the various programs to local conditions, and a more equitable sharing of costs between the States and the Federal Government.

The prosperity of our small business enterprises is an indispensable element in the maintenance of our economic strength.  Creation of the Small Business Administration and recently enacted tax laws facilitating small business expansion are but two of many important steps we have taken to encourage our smaller enterprises.  I recommend that the Congress extend the Small Business Act of 1953 which is due to expire next June.

We come now to the third great purpose of our government-its concern for the health, productivity and well-being of all our people.

Every citizen wants to give full expression to his God-given talents and abilities and to have the recognition and respect accorded under our religious and political traditions.  Americans also want a good material standard of living—­not simply to accumulate possessions, but to fulfill a legitimate aspiration for an environment in which their families may live meaningful and happy lives.  Our people are committed, therefore, to the creation and preservation of opportunity for every citizen to lead a more rewarding life.  They are equally committed to the alleviation of misfortune and distress among their fellow citizens.