Hon. HERMAN E. TALMADGE, U.S. SENATE, Washington, D.C., March 7, 1978. Chairman, Senate Agriculture, Nutrition and Forestry Committee, DEAR MR. CHAIRMAN: As you are aware, a number of farmers and ranchers have been in Washington since the Congress reconvened in mid-January. Enclosed with this letter are three testimonies which the authors requested that I forward to you for inclusion in the proceedings of the hearings now being conducted by your committee. Any assistance you might give regarding this matter will be appreciated. With warm regards, Very truly yours, Enclosures. JOHN TOWER. STATEMENT OF J. R. LAMBERT, DILLEY, TEX. Mr. Chairman, members of the agricultural committee: I am J. R. Lambert of Box 560, Dilley, Texas 78017. I am the largest stockholder and General Manager of the Wintergarden Agricultural Services, Incorporated. There are thirty stockholders in this country. We are taxpayers of this Nation. Our company buys, sells and stores small grains. We are approved as a commodity credit warehouse. We currently have been selling and shipping a sizable portion of our grains into Mexico. The balance of our grain goes to Gulf ports and cattle feed lots. We also perform the same type of service for South Texas Farmerstock Peanuts being an approved commodity credit warehouse. We retail and wholesale farm and ranch supplies such as fertilizer, chemicals, seed and feeds in a large part of South Texas. We run a cost-plus business primarily. Our business can be adjusted promptly to cut our overhead when things aren't going well. We are doing this right now. I have had to cut back six employees, one-third of my employees, in the past six months as well as not being able to have cost of living increases in 1977 for my current employees. Our expansion of buildings and equipment has come to a halt of any sizable amount. This year we have 150,000 dollars doubtful farm account receivables. This is five times the amount that we have had to write-off in a total of the twenty-one previous years that I have served this same trade area. This serious problem is taking place in congressional districts and states across the United States. You surely are asking yourself does this businessman have a solution to his business short of quitting? I am here to tell you I think I do. I need you to help our farmers. Let's look at them for a minute. Our farmers have risks that most businesses don't have. (1) Weather can ruin them overnight even after they have applied the complete cost of growing the crops except harvest. I have seen it happen the hours preceding harvest and farmers lost it all. (2) Pricing of our farm commodities are much too irregular. Time businesses such as mine get our "fair share" not enough is left for the farmers. One hundred percent of parity for agricultural commodities will solve my business problems. That is why I am here. This can be done by this Congress enacting N.O.R.N. National Economic Stability Act of 1977. I will see that you get a copy of it. Briefly this is what it would do. (1) A Federal law to support 100 percent of parity for raw materials. I support this being done immediately, Economics must start with the products that nature can provide us with. The price these products bring at the first level of purchase is very important to our whole economic system because it determines if our system begins with an economic profit or loss. Agriculture is one business that is being sold into use at first step at a loss. Let's change this unfairness. (2) A new minimum wage law united with the value of agricultural commodities. Our nation's low income people purchasing power would increase because of the added income paid out to them by private enterprise. (3) A new international trade policy involving equity of trade. Fairness for all concerned is essential for our nation to continue to lead the world towards peace. U.S. agriculture is a valuable asset in this but it is being exploited by unfair practices of both private enterprise and U.S. government policies. The end result is agricultural products leaving this Nation at too cheap a price that are expanding our import deficits. I feel this Congress needs to put regulations with these programs to properly protect all concerned. My business needs will be met when we correct the farmers' problems. America is a good land. We have a freedom to express ourselves in this great land. I want to express my appreciation to each of you for continuing that freedom. Part of this testimony is that I am a Christian. I am not perfect but I desire to improve my person. I have a deep desire in my heart for America to continue as the home of the brave and free under God. I believe God has a perfect plan for this world. He can use nature to control the Nation with: The "parties" that produce nature's raw materials must be treated fairly. They are the husbandmen of God's factory. Placing the "fruit of the land" into use at the first step of economics without a profit for them is freedom loss from within. In April of 1977, former Secretary of the Navy, John B. Connally spoke to the Texas Feed and Grain Convention at Houston, Texas. He personally called on the association members and all concerned Americans to support 100 parity for our farmers. No more or no less. I believe my fellow Texan is correct. I believe what I am saying is a "grass roots" requirement. Gentlemen, I believe this is the most important issue facing this Congress. We are on the verge of being taken from within by ourselves. God gives us the wisdom but we have to act within due time. I am counting on you. STATEMENT OF KEN LANE, HASKELL, TEX. The first graph indicates how the population of the 17th Congressional District is related to the parity price on farm products. The population figures are from Haskell County, one of the least affected counties. At the present time the 17th District is considered to be a poor and sparsely populated district. This decline in population is caused by a gradual decline in parity, thus giving a general appearance of poverty throughout the entire District. It is depressing to live in an area in which there are no younger people. In my church of 250 members, men younger than myself number less than twenty. This is shown on the second graph. Our businesses are deteriorating or closing their doors. Our smaller communities are dying. School and county budgets have become harder to manage because there is less taxable property. County and school districts without oil production to tax are in trouble now. Serious damage has been and is being done in rural America. It will take years to repair this damage. However, parity prices will turn this trend around and begin to heal the scars in these rural areas. Money in the hands of agricultural producers changes hands approximately seven times, thus creating new jobs and new markets. Better markets and jobs will put this country back to work. Also, the U.S. budget may look better and be easier to balance if we in rural America get an opportunity to pay more income tax. One can conclude from the third graph that the net farm income is related to parity almost directly. If farm income is up, this does not mean that net farm income is up. Net income is the taxable income that is reflected in the budget of the United States. The amount of income tax that would be generated at 100% of parity would let the farmers of the U.S. hold their heads up and say "I paid my fair share." Also it would help get the budget in balance. The amount of taxable income that is being lost at the present parity levels is unbelievable. The point of efficiency in farming is being or has already been accomplished. A further reduction in number of farmers will bring inefficiency in the agricultural world. Texas farms have increased in size by 257 acres in the last 26 years. Large operations that now exist are not the best or most dependable producers. They are hard to manage and wasteful. One hundred percent of parity will cost the consumer about 3.4 percent of his take-home pay. This still gives the United States the cheapest food in the world. Also, it will put this country back on its feet economically. History has shown us that the nation's economy is sound under one of two conditions: full productions for an all-out war effort or when the American farmers receive 100 percent of parity. STATEMENT OF MRS. LUPHIA LANE, HASKELL, TEX. We farmers love our Country and respect our Government. But the thinking farmers know the state of their business and try to prepare for problems ahead for their household and the Country. We want to produce food and fiber for all our people. We have sensible God fearing leaders that can and will find a just way for all with God's help. We Americans believe in justice for all. We are looking for new and better ideas to produce better products. We try to present the facts, truthfully and honestly. If we don't plow in the cold, we won't have anything at harvest. In our part of the Country the economy depends on agriculture. If it fails, we all fail. Of course, we don't make a good crop every year. We have many problems to try to solve that are expensive and hard. Crops were very good here in 1977. But high costs and low prices consumed it all. Young farmers with families and debts to pay are having it pretty bad. We want to be rescued. Don't let us go unrewarded. We need your help and you need ours. The land produces the oil and gas. The oil industry needs understanding. I ask the prayers of the people for our President, his job is very hard. STATEMENT OF ROBERT M. CURRY, EXECUTIVE VICE-PRESIDENT, FIRST NATIONAL BANK, PULASKI, TENN. Mr. Chairman and other Committee Members: My name is Mike Curry and I am Executive Vice-President of the First National Bank of Pulaski, Tennessee. My bank is one of four banks located in Giles County, a rural county of approximately 24,000 people. Pulaski is the county seat of Giles County with a population |