Bountiful Cycle

Despite prolonged drought on the Great Plains and a cold, wet spring elsewhere, the American farmer this year produced a record-tying crop--and once again left it to the Government to get rid of the surplus. Reported the Department of Agriculture last week: 1956 crop volume was 6% higher than the 1947-49 base, matching the records set last year and in 1948. Moreover, the crop was wrung from 14 million fewer acres than were in production in 1955. Explanation of the paradox: increased average yield per acre, reflecting increased use of fertilizers, farm machinery and better production methods.

For Agriculture Secretary Benson the recurrence of a surplus-producing harvest underlined the need to re-examine his flexible (between 75% and 90% of parity) price-support system. Last week came word that his top advisory commission has secretly recommended just such a new look. The gist: he should seek authority to drop supports as low as 60% when supplies are heavy, should not be forced to lift them as high as 90% when surpluses are trimmed. Reason: present law involves Benson in a vicious cycle, i.e., as he successfully acts to dispose of the huge Government-held surpluses, declining stocks at home automatically force the support level up to the maximum 90%. resulting in a new overproduction wave.

Benson, while publicly shying away from the commission's position, personally favors greater freedom in administering the support system. His first goal will be to ask Congress for a new corn program (TIME, Dec. 24). But beyond that, after a suitable period to prepare the ground, Benson will almost certainly come back with a new request that the entire price-support system be overhauled.

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