The News And Views

Farm Leaders Puzzled By New Support Plan

WASHINGTON - (AP) -- Farm leaders puzzled today over a statement by President Truman that a sliding scale in the price support law should not be allowed to penalize farmers who increase production for defense needs.

They pointed out such a system is not being used now. Consequently, they said they saw no danger to the farmer unless the administration, which has been against the sliding scale, changes its policies.

Some saw in the comment, made in the president's state of the union message today, an indication the controversial issue may figure in this year's political campaigns.

Mr. Truman's reference to the scale was in connection with an appeal for a stronger farm price support system.

Present farm law sets up maximum levels at which the department may support farm prices. For all crops and products, the maximum is 90 per cent of parity, except in case of national emergency. Then it may be set higher if greater incentives to production are deemed necessary.

For most major crops, the minimum support level is 75 per cent of parity. (Parity is a standard for measuring farm prices, declared by law to be equally fair to farmers and those who buy their products).

For a few products, the minimum is 60 per cent and for others the support level may be dropped to zero.

The so-called sliding scale of minimum supports applies for such crops as cotton, wheat, corn, rice and peanuts. Under it, the minimum rate declines as the size of supplies increases, goes up when supplies drop. It is based upon the theory that supports should be reduced to discourage production when surpluses develop.

But the law does not require the secretary to use the minimum rates of the sliding scale except that he may not go below them. He has authority to set and maintain supports at the maximum level year in and year out regardless of the size of crop supplies.

Because of increasing needs of the defense emergency, Secretary Brannan has set a 90 per cent support rate--the maximum except in case of a national emergency -- for virtually all commodities now having the benefit of such government aid.

Some observers said Mr. Truman may have had in mind an oft-advanced argument that the mere existence of the sliding scale provision for minimum supports, whether it is used or not, serves to weaken the farm price program.