AGRICULTURE: A Slice for Butter

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Almost everyone agreed that the Eisenhower Administration had to make some change in the Government's dairy industry program. With dairy products supported at 90% of parity, producers continued to churn out huge surpluses to be piled up in Government warehouses (TIME, Feb. 15). Because prices were held high by the Government, butter and other milk products were being priced off thousands of U.S. tables. A year ago, representatives of the dairy industry promised to develop a workable plan to cope with overproduction. They failed to do so.

This week Secretary of Agriculture Ezra Taft Benson took the course of political courage, announced a change likely to displease most of the dairy industry. As of April 1, he will cut the support price of dairy products to 75% of parity, which is as low as the law allows. This will slice the wholesale butter support price by 8¢ a Ib. (from the present 66¢), and will probably cut retail prices almost as much. Benson hopes this ..will greatly increase consumption. Next decision Benson must make: adoption of a plan to move the $360 million worth of dairy products already stacked up in the Government's warehouses.