New Enlistment

AAA's cotton and corn-hog restriction programs for next year were last week announced by AAAdministrator Chester C. Davis. Their prime points:

1) Farmers must agree to reduce their cotton plantings 30% to 45% below "normal," their corn plantings 10% to 30%. They need not reduce the number of hogs they raise, must merely agree not to raise more than the normal number. So that AAA cannot in future be charged with paying men for raising nothing whatever, cotton farmers must raise at least 50% of their normal crop, corn farmers 25%, hog raisers 50%.

2) Farmers are guaranteed for 1936 not less than 5-c- a Ib. for cotton they do not raise. 35-c- a bu. for corn they do not raise, $1.25 for each hog they do raise. Every hog over their quota will cost them $5.

3) Cotton farmers must not increase their plantings of peanuts, tobacco or rice but can grow any amount of feed or food for home use. Corn farmers must grow erosion-preventing or soil-improving crops on the land "rented" by the Government.

4) The cotton contract lasts for four years, the corn-hog contract for two years but both can be canceled at the close of any season by Government or farmers.

5) Under the cotton contract, share croppers and share tenants will receive 25% to 50% of the benefit payments and landlords the rest--in most cases a considerable increase for tenants and croppers at the landlord's expense.

Significance. Though the cotton contract calls for a crop reduction of 30% to 45% below normal, it does not represent as stiff a cut as has been demanded by Southern Senators who want to boost the price of cotton. This fact, in conjunction with the smaller reduction in corn planting and no reduction at all in hog raising, indicates AAA's present belief that farm prices are not likely to flop, that those who want still higher prices are less to be feared than the loss of markets, the howls of consumers.

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