FARMERS: The Wheat Evil

Economic discomfiture for a people is political discomfiture for a government. Spurred on by the agonized cry of the wheat farmers in the West, the Cabinet spent two sessions largely devoted to the question: How can the farmer be satisfied? The President wished an answer. Secretary of Agriculture Wallace prepared a report. And others, outside the Cabinet, visited the White House from time to time to offer suggestions.

The Problem. The U. S. is expected to eat about 584 million bushels of wheat this year. It is expected to produce about 821 million bushels of wheat. How is the difference of 237 million bushels to be prevented from drugging the market and dragging down the price of wheat? How is this to be prevented in years to come?

The story of the surplus and its disposal commences in the days before the War. Export (in millions of bushels) of the chief wheat-selling countries was at that time approximately as follows:

U. S............................................... 156

Canada......................................... 81

Argentina.......................................93

Australia........................................ 48

Russia and Eastern Europe..... 185

Total ...............................................563

Other nations supplied about 40 million bushels in addition, making an annual importation of about 600 million bushels of wheat into Western Europe.

This year, according to economists, the same countries will have surpluses for export:

U. S............................................... 237

Canada....................................... 323

Argentina....................................119

Australia.................................... 68

Russia and Eastern Europe...........Practically none

Total.............................................747

There is too much wheat. Canada, especially, has quadrupled her production. Meanwhile, owing to an unusually good wheat crop and a consumption still depressed by the War, Western Europe may consume only 500 million bushels.

Nostrums:

¶Regional conferences between representatives of the Department of Agriculture and Commerce and farmers (suggested at the Cabinet meeting). Secretary Wallace was said to favor them. But conferences (to produce results) must do more than confer.

¶Reduction of the wheat acreage (favored by Secretary Wallace). This is being brought about naturally by farmers who abandon their land on account of low prices. It may be brought about deliberately by diversification of crops and greater plantings of flax and sugar-beets—products which we now import. But, if it is necessary to increase the tariff on sugar to foster beet culture, there will be strong political opposition.

¶Purchase by the Government of wheat at $1.75 a bushel, or similar price, in order to sustain the market. This is advocated by some " radicals" of the wheat belt, but opposed by Secretary Wallace because it would tend to increase wheat production, thereby augmenting the existing evil of oversupply. Eventually the Government would have to dump the wheat back on the market or into the sea.