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Agriculture (3)
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James M. Cannon Files (Ford Administration)
James Cannon's Issues Files
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The original documents are located in Box 1, folder "Agriculture (3)" of the James M.
Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 1 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
agrin
THE WHITE HOUSE
WASHINGTON
September 16, 1976
976 SEP 20 PM 5 28
Dear Congressman Pressler:
The President has asked me to thank you for your recent
letter with which you forwarded a letter from the South-
eastern South Dakota Elevator Managers' Association
concerning the problems of the cattle industry.
The Administration has been monitoring the situation with
considerable concern. The current weakness in the fed cattle
market is largely the result of high levels of beef production
this year and the current backup of cattle in feedlots with
many coming to market as heavy cattle subject to discounts by
packers. Some reduction in supplies this fall is expected
to give strength to the market. Per capita beef availability
this year is estimated at 127 pounds, 7 pounds over last year
and 17 pounds over three years ago.
Your request that a 120-day moratorium be imposed on beef
imports would be extremely disruptive of the beef trade and
call into question the sincerity of our international agree-
ments. As you know, we have negotiated voluntary restraint
agreements for 1976 with those countries which export beef
to the United States. Those agreements limit U.S. beef imports
to a level consistent with the requirements of the Meat Import
Act of 1964.
Recognizing the current plight of the cattle industry, the
Administration is taking several actions to improve the
situation. We are working aggressively on several fronts
to eliminate the problem of meat imports through the Foreign-
Trade Zone at Mayaguez, Puerto Rico. While some difficulties
have been encountered, we are confident that one of these
actions will soon be successful.
The school lunch program should provide some relief. Last
year the Department of Agriculture purchased about 119 million
dollars worth of beef products for use primarily in school
feeding programs. In view of the current and prospective
FORD i LIBRARY GERALD
092023
- 2 -
price-supply situation for beef and because of expanded
participation in child nutrition programs, we anticipate
that total USDA beef purchases for the 1976-77 school
year will be significantly increased from last year's
levels.
Buying of frozen ground beef for current school sessions
began August 11, purchases of canned beef were initiated
September 9. Through September 10, over 18 million pounds
of ground beef and nearly 2 million pounds of canned beef
had been purchased for about 14 million dollars. Offers
continue to be invited for both frozen ground beef and
canned beef on a weekly basis.
In addition, the Under Secretary of Agriculture has written
to the Secretary of Defense urging that the Defense Depart-
ment take advantage of current beef prices by boosting its
purchases. The Under Secretary of Agriculture has also
written to Mrs. Virginia Knauer to enlist her assistance
in informing consumers of good buys in beef. USDA is also
developing a program of consumer information and plans to
encourage retail chains to increase the use of beef advertised
sales at minimum margins.
We are also concerned over the widening marketing margins
for beef; thus the price spread for beef is being closely
monitored. Don Paarlberg, Director of Agricultural Economics,
USDA, issued the enclosed press release on August 30. It
calls for tightening of margins and responding more quickly
at the retail level to changes in live to carcass prices.
We greatly appreciate having the benefit of your views and
suggestions on this important matter. We are also concerned
and will, therefore, continue to monitor the situation closely
and take action as appropriate.
M
JMMurphy, 9-16-76
Sincerely,
bcc: James Cannon, WH
Charles Leppert, Jr. WH
Dist: LWSeidman
WM. SEIDMAN
RBPorter
L. William Seidman
JMMurphy, Jr.
Assistant to the President
EPB E/S #979
for Economic Affairs
WH Files
Enclosure
The Honorable
Larry Pressler
GERALD LIBRARY FORD
House of Representatives
Washington, D.C. 20515
McDavid (202) 447-4026
NEWS
U.S. DEPARTMENT OF AGRICULTURE
FARM-RETAIL PRICE SPREADS WIDEN AS LIVESTOCK PRICES FALL:
WASHINGTON, Aug. 30--"Consumers and farmers would both be better off if
the meat trade would lower its present near-record margins for handling beef
and pork," says Don Paarlberg, the U.S. Department of Agriculture's director
of agricultural economics.
Beef and pork prices at the supermarket are down from last year, but not
nearly as much as cattle and hog prices on the farm. Price spreads between
farm and consumer have increased 16 percent for beef and 31 percent for pork
since July 1975.
"Farmers and ranchers are concerned when their prices go down and marketing
price spreads increase. Likewise, consumers are offended when retail prices
fail to reflect increased supplies of meat," says Dr. Paarlberg.
Since cattle prices started to decline in July 1975 farmers' prices have
dropped 26 percent. However, consumer prices for beef have declined only 14 percent.
The spread between cattle prices and consumer beef prices has widened
9 cents a pound since July a year ago and is now at a near-record spread of
64 cents a pound. Preliminary data indicate that spreads in August remained wide
as cattle prices continued to drop.
At the same time, cattlemen are operating at a loss.
Department of Agriculture figures show that typical Corn Belt cattle feeders
have lost money continually since early 1972 except for the period May to December
1975. Presently Corn Belt feedlot owners are losing more than $65 per head.
Likewise, cow-calf herds are also losing money selling young feeders for feedlot
finishing. Cattlemen have reacted by selling off cows, thereby increasing meat
supplies which has depressed farm cattle prices even more.
- more -
1108
USDA 2476-76
- 2 -
Present indications are that farmers who are feeding out cattle
already in feedlots will continue to lose money until the end of the
year.
Price spreads between farmers and consumers are also wide for pork.
In July farm-retail spreads increased 7 cents over June. Early estimates
for August indicate that farm-retail spreads for pork widened further.
Consumer pork prices in July were only slightly lower than a year ago, but
farm hog prices were down 15 percent. The farm-retail price spread had
widened 31 percent.
Department of Agriculture figures indicate that hog farmers have
been making money. But the outlook for fall and into 1977 suggests
a drop in hog prices with hog raisers losing money, particularly if the
price spread between farmers and consumers stays at near-record levels.
How low hog prices slip will depend in part on the farm-retail price
spread. Price spreads usually widen when farm prices are falling. The
marketing spread is expected to continue relatively wide over the next
several months, even though marketing costs per pound of pork probably
will be lower.
"Retailers could improve the situation for farmers and consumers
by promoting beef and pork and reducing their prices more quickly in
line with lower wholesale meat prices," says Dr. Paarlberg.
FORD LIBRARY is GERALD
4408
USDA 2476-76
ACTION
THE WHITE HOUSE
WASHINGTON
September 23, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
PAUL LEACH
Paul
SUBJECT:
Proposed Presidential Response
to Letter from President of
American National Cattlemen's
Association
In late August, the President of the American National
Cattlemen's Association wrote the President regarding problems
with the meat import program and the American National
Cattlemen's Association's recommendation that authority to
negotiate voluntary restraint agreements be switched from
the State Department to the Agriculture Department. This
subject is of considerable emotional concern to cattlemen.
This letter is at Tab A.
After some delay, USDA has provided us with a proposed
response which I have rewritten. This is at Tab B. The
response indicates Presidential concern and informs the
Cattlemen's Association President that the whole subject
will be reviewed by the Agricultural Policy Committee and
appropriate action to correct the situation will be taken.
This course of action is recommended by Secretary Butz as
the best response given the evolving situation with the
meat import program.
Since this is a rather sensitive issue, I suggest that we
staff this proposed response to Bill Seidman, Brent
Scowcroft and Phil Buchen before the letter is sent. I
have discussed this with Roger Porter, who will insure that
the views of the State Department are solicited.
Recommendation
Sign memorandum at Tab C staffing this to Seidman, Scowcroft
and Buchen.
1
American National Cattlemen's Association
A Non Profit Corporation
1001 Lincoln Street
P.O. Box 569
Denver, Colorado 80201
Phone (303) 861-1904
ANCA
OFFICE OF THE PRESIDENT
August 27, 1976
WRAY FINNEY
P. O. Box 280
Ft. Cobb. Oklahoma 73038
(405) 643-2625
The President
The White House
Washington, D. C. 20500
FORD i GERALD LIB:
Dear Mr. President:
The nation's cattle industry is willing to live within the
provisions of the Meat Import Act of 1964. This legislation created
the fairest form of trade access and is the envy of the world. No
other country guarantees, as our law does, a share of a domestic
market. Other countries, in fact, often arbitrarily close their
borders to world trade in meat.
As you are aware, two of our trading partners, Australia and
New Zealand, have violated the intent and the spirit of the Meat
Import Act of 1964 by the use of the unique facility called a
Foreign Trade Zone. The action of these two countries, in our
opinion, is a blatant and willful violation of honesty and fair
play. Australia in particular, has been willing to undercut the
normal price of imported meat by as much as 25% just to make
circumvention possible.
In our efforts to stop such violations we wish to highly commend
Secretary of Agriculture, Earl L. Butz, Assistant Secretary of
Agriculture, Richard E. Bell, and many members of their staffs.
We have sought and received full cooperation from USDA. They
have done and are doing everything within the law that is possible.
We have also received excellent cooperation from Assistant Secretary
of Treasury, David McDonald. I cannot say the same for the Secretary
of State and his staff. We believe the Department of State has
done everything they could to thwart the efforts of Secretary Butz.
As we have dealt with this problem, we have often felt that the
Department of State and the office of the Special Trade Representative
were our adversaries. Through their activities it has been evident
that they are more interested in representing the interests of
other countries than they are toward the economic survival of a
segment of U. S. citizenry. As the representative of this segment
of the American society, we feel we must protest in the strongest
OFFICERS: President: Wray Finney, Ft. Cobb. Oklahoma; First Vice President: Richard A. McDougal. Lovelock. Nevada: Regional Vice Presidents
Victor M. duPont, Virginia, Fred Moore, Mississippi. Jack R. Dahl, North Dakota: Earl Brookover. Kansas: Larry Frazier, Washington: John D
Weber. California: Executive Committeement John Greig. lowa. Hilmar G. Moore. Texas: Glenn Deen, Texas, Robert N Rebholtz. Idaho, Bil
The President
August 27, 1976
Page 2
terms the actions of the Secretary of State and his staff. We
believe in trade with other nations, but when such trade is
outside the boundaries of fair play, then all levels of our
government should resist such action and not be of assistance
to the violators.
Further, the Department of State has been derelict in
carrying out its responsibilities to negotiate and establish
voluntary restraint levels associated with meat imports. This
year the month of August was reached before all agreements were
signed. It makes sense to us that all agreements should be
negotiated prior to and signed as close to January 1 as possible.
We are informed that the Department of State has never begun
negotiations in time to reach this objective. Such procrastination
has resulted in many disruptions within the cattle industry.
Mr. President, we respectfully request that the authority
to negotiate and complete voluntary restraint agreements :for
meat imports be transferred back to the Secretary of Agriculture
where it belongs. The law, as contained in the Agricultural
Act of 1956, specifies that this is the responsibility of the
Secretary of Agriculture, but President Nixon by Executive Order
changed this statuatory authority. We further respectfully request
that such authority be transferred without delay as the time for
negotiation of the 1977 restraint levels is fast approaching.
Sincerely,
Wray Finney
President
WF:sf
&
FORD LIEST
LIBR
GERALD
THE WHITE HOUSE
WASHINGTON
Dear Mr. Finney:
Thank you for your letter of August 27 in
which you discussed your concerns with the
meat import program. Since receiving your
letter, I have had my staff investigate the
points you have raised.
I recognize that there have been some
difficulties in administering the meat
import program over the past two years.
For this reason, I am directing Secretary Butz,
as Chairman of my Agricultural Policy Committee,
to initiate a thorough Committee review of our
procedures for negotiation of the voluntary
restraint agreements and for administration
of the program. The Committee will submit a
report and recommendations to me in time so
that we will be able to avoid unnecessary
problems in the administration of the program
in the future.
Please be assured that I appreciate your
efforts to bring important matters of interest
to the American cattle industry to my attention
and that my Administration will continue to be
concerned with the problems of the cattle
industry.
Sincerely,
Mr. Wray Finney
President
American National
FORD & LIBRA
Cattlemen's Association
1001 Lincoln Street
Denver, Colorado 80201
RECD
agrie
THE WHITE HOUSE
WASHINGTON
September 24, 1976 976 SEP 25 AM 9 38
MEMORANDUM FOR:
PHIL BUCHEN
BRENT SCOWCROFT
FROM:
SUBJECT:
BILL Smi SEIDMAN
JIM CANNON
Proposed Presidential Response
to Letter from President of
American National Cattlemen's
Association
In late August, the President of the American National
Cattlemen's Association wrote to the President about the
meat import program. See attached letter at Tab A.
A draft Presidential response has now been prepared along
the lines suggested by Secretary Butz. This is at Tab B.
Since this is a sensitive matter, I would appreciate your
comments and recommendations on this letter and course of
action.
Would you please provide this to me by noon, Saturday,
September 25?
Thanks.
THIS LETTER LOOKS FINE. HOWEVER, I SUGGEST
THAT IT INCLUDE A DATE WHEN THE SECRETARY
SHOULD REPORT TO THE PRESIDENT. PERNAPS THREE
OR FOUR WEEKS. SHOULD CHECK WITH USDA TO
SEE WHAT TIME THEY CONSIDER REASONABLE.
LWS
FORD & DERALD LIBRA
092/10 110
agri
THE WHITE HOUSE
WASHINGTON
September 24, 1976
MEMORANDUM FOR:
PHIL BUCHEN
BRENT SCOWCROFT
FROM:
SUBJECT:
Proposed Presidential Response
BILL Smi SEIDMAN
JIM
to Letter President of
American National Cattlemen's
Association
In late August, the President of the American National
Cattlemen's Association wrote to the President about the
meat import program. See attached letter at Tab A.
A draft Presidential response has now been prepared along
the lines suggested by Secretary Butz. This is at Tab B.
Since this is a sensitive matter, I would appreciate your
comments and recommendations on this letter and course of
action.
Would you please provide this to me by noon, Saturday,
September 25?
Thanks.
FORD is LIBRARY GERALD
agrin
ACTION
THE WHITE HOUSE
WASHINGTON
September 27, 1976
MEMORANDUM FOR:
THE PRESIDENT
FROM:
JIM CANNON June
SUBJECT:
Letter to the President
of American National
Cattlemen's Association
In late August, the President of the American National
Cattlemen's Association wrote you about the cattlemen's
concerns with the administration of the meat import
program. The Association recommended that the authority
for negotiating voluntary meat import restraint agreements
be transferred from the State Department to the Department
of Agriculture. This letter is at Tab A.
Attached for your signature at Tab B is a response which
has been prepared along the lines suggested by Secretary Butz.
This response evidences your concern about the problems
confronting the cattlemen and indicates that you have asked
the Agricultural Policy Committee to investigate the
problems of the meat import program and provide you with
a report and recommendations within four weeks.
The letter has been approved by Bill Seidman, NSC the
Counsel's office and the State Department (via NSC).
I recommend that you sign the letter at Tab B.
FORD i LIBRARY GERALD
THE WHITE HOUSE
WASHINGTON
Dear Mr. Finney:
Thank you for your letter of August 27 in
which you discussed your concerns with the
meat import program. Since receiving your
letter, I have had my staff investigate the
points you have raised.
I recognize that there have been some
difficulties in administering the meat
import program over the past two years.
For this reason, I am directing Secretary Butz,
as Chairman of my Agricultural Policy Committee,
to initiate a thorough Committee review of our
procedures for negotiation of the voluntary
restraint agreements and for administration
of the program. The Committee will submit a
report and recommendations to me by October 25
of this year so that we will be able to avoid
unnecessary problems in the administration of
the program in the future.
Please be assured that I appreciate your
efforts to bring important matters of interest
to the American cattle industry to my attention
and that my Administration will continue to be
concerned with the problems of the cattle
industry.
Sincerely,
Mr. Wray Finney
President
FORD
&
American National
Cattlemen's Association
1001 Lincoln Street
GERALD
LIBRARI
Denver, Colorado 80201
CC: Leach
INFORMATION agin.
THE WHITE HOUSE
WASHINGTON
September 976 27, 1976 6 54
MEMORANDUM FOR: JIM CANNON
THROUGH:
PHIL BUCHEN
P.
Brubi
FROM:
BOBBIE GREENE KILBERG
SUBJECT:
Proposed Presidential Response to
Letter from Mr. Finney, President of
American National Cattlemen's Association
I have discussed the proposed Presidential response
with Paul Leach and it is my understanding from that
conversation that the State Department does not object
to the Agricultural Policy Committee, chaired by
Secretary Butz, conducting a "thorough committee
review of our procedures for negotiation of the vol-
untary restraint agreements and for administration of
the program." (State is a member of this Committee.)
It is my further understanding that the Committee's
mandate will be to conduct a review of procedures and
administration rather than a substantive policy review.
On the above basis, the Counsel's Office has no objec-
tion to the proposed Presidential response to Mr. Finney's
letter.
For Paul Leach's information, I have sent him a memo-
randum correcting the Cattlemen Association letter's
inaccurate legal statement on the Agricultural Act of
1956. Paul has indicated that he will convey this
information to the Association's attorneys. In its
correspondence, the Association requested that the
President transfer "back" to the Secretary of Agri-
culture the authority to negotiate and complete vol-
untary restraint agreements for meat imports. The
Association went on to state that the 1956 Act gave
this responsibility to the Secretary of Agriculture,
but that President Nixon changed the negotiation
authority by Executive Order.
FORD is LIBRARY GERALD
092801
-2-
7 U.S.C. § 1854 of the Agricultural Act of 1956 states
that the President may negotiate with foreign govern-
ments agreements limiting "the export from such countries
and the importation to the United States of any agricul-
tural commodity or product manufactured therefrom or
textiles or textile products." The President is further
authorized to "issue regulations governing the entry or
withdrawal from warehouse of any such commodity, product,
textiles, or textile products ot carry out any such
agreement. On June 30, 1970, President Nixon issued
Executive Order 11539, delegating to the Secretary of
State, with the concurrence of the Secretary of Agricul-
ture and the Special Representative for Trade Negotiations,
the authority to negotiate bilateral import agreements
on cattle meat, goats and sheep. Under this Executive
Order, the Secretary of Agriculture, with the concurrence
of the Secretary of State and the Special Representative
for Trade Negotiations, is authorized to issue regulations
governing the entry or withdrawal from warehouse for con-
sumption in the United States of any such meats to carry
out any such agreement.
In summary, the President has the statutory authority
to negotiate meat importation agreements and President
Nixon delegated that negotation authority to the Secre-
tary of State, to be exercised with the concurrence of
the Secretary of Agriculture and the Special Representa-
tive for Trade Negotiations. The Secretary of Agriculture
does not have the negotiation authority and that authority
has never been delegated to the Secretary of Agriculture,
other than in the E.O. 11539 provisions for concurrence
with the Secretary of State's actions. However, the
Secretary of Agriculture does have the authority to issue
regulations to complete the import agreements, in the
form of regulations governing the entry or withdrawal
from warehouse for consumption in the United States.
This is subject to the concurrence of the Secretary of
State and the Special Representative for Trade
Negotiations.
FORD & LIBRARY GERALD
Parl
THE WHITE HOUSE
Learly
WASHINGTON
September 28, SEP 28 1976 PM 6 09
MEMORANDUM FOR:
JIM CANNON
THRU:
MAX FRIEDERSDORF m. 6.
FROM:
BOB WOLTHUIS RI&W
SUBJECT:
HR 15068
I got a call yesterday from Walter Jones (D-N.C.) who
strongly recommends that the President sign HR 15068,
an emergency tobacco measure. The legislation which
has passed almost every year, allows tobacco growers
to lease tobacco lands across county lines.
The above bill affects only this growing season and
according to Walter Jones involves no subsidies or price
increases. He thinks it would be most helpful to the
President in the South.
JMC
This bill is not yet
at the white House.
Allen.
FORD LIBRARY & GERALD
092826
[oct.1976]
MEETING WITH FARM CREDIT DIRECTORS
TALKING POINTS
1. The success of our farm policy -- a policy of full
production and fair prices -- is measured in increased
income for farmers around the country.
2. This market-oriented farm policy places greater reliance
on the role of farm credit.
3. With the continued emphasis on market orientation and
unrestricted production, I believe the importance of
providing credit to farmers will continue to increase.
4. Many of the side effects of our farm policy, such as the
growing interest of youth in farming, the increase in
the total farm population and the slowing in the decline
of the number of farms, all point to a lasting and
healthy recovery in our agricultural system.
FOR
GERALD
Fil
FOR IMMEDIATE RELEASE
OCTOBER 4, 1976
OFFICE OF THE WHITE HOUSE PRESS SECRETARY
Ag.
or
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
6
THE BRIEFING ROOM
1:35 P.M. EDT
Good afternoon. Will you please sit down.
I wish to announce my decision to accept the
resignation of Earl Butz as Secretary of the Department
of Agriculture.
This has been one of the saddest decisions of
my Presidency.
Two years ago Earl Butz told me that he wanted
878817 GERALD GERALDR. FORD
to leave the Cabinet. At my request, he agreed to stay
on until the end of this term, in spite of personal
family obligations. I felt that I needed him in the
Cabinet to implement my policies of full farm production
coupled with fair prices for the consumer and good income
for farmers through the sales of their products throughout
the world.
Earl Butz has been and continues to be a close
personal friend, and a man who loves his country and all
that it represents.
Earl Butz has devoted more than 20 years of his
life in public and academic service: As an Assistant
Secretary in the Eisenhower Administration; as a professor
and then a Dean at one of the most distinguished universities
in this country; and more recently as the Secretary of a
Department that has helped to restore personal freedom
and abundance to American farms.
Yet Earl Butz is also wise enough and courageous
enough to recognize that no single individual, no matter
how distinguished his past public service, should cast a
shadow over the integrity and good will of the American
Government by his comments.
For that reason, I have accepted the resignation
of this decent and good man.
END
(AT 1:37 P.M. EDT)
Ag.
CC: Leach
THE WHITE HOUSE
WASHINGTON
Jan lavenaugh- 7.4.1. file
1976 OCT 4 PM 5 34
October 4, 1976
MEMORANDUM FOR:
JIM CANNON
THRU:
MAX FRIEDERSDORF m.6-
FROM:
BOB WOLTHUIS RKW
SUBJECT:
Meat Quota Problem
I got a call from Virginia Smith on Friday strongly
recommending that the President do whatever he can admin-
istratively to solve the Mayaguez problem. She realizes
that very little beef comes through Mayaguez but it
does represent the perception of the problem by the
cattle industry. She said the President's political
situation in her state is very serious and unless he
does something about the Mayaguez problem he will probably
lose the State of Nebraska.
FORD i LIBRARY GERALD
100429
CC: Quern
Leach
THE WHITE HOUSE
ag.
WASHINGTON
October 5, 1976
1976 OCT 6 AM 7/01
MEMORANDUM FOR:
MAX FRIEDERSDORF
FROM:
CHARLES LEPPERT, JR. Lr.
SUBJECT:
Rep. Keith Sebelius (R. - Kansas)
Rep. Keith Sebelius called to urge the President to act
swiftly and dramatically on two items: (1) wheat prices
and (2) beef imports.
Sebelius says the situation in Kansas is drastic and calls
for Presidential action in both areas. He says a failure
to act now will result in severe political consequences for
the President in farm areas. Sebelius stated he did not
want to state it so strongly, but he feels that the Admin-
istration should be made acutely aware of the situation and
emphasized that he would not take the time to call from his
re-election campaign if he didn't feel strongly that a
failure to act will hurt the President politically as he
can be re-elected.
Sebelius says the time is now to raise the loan rate on
wheat to $2.25 and that that target price is low. He feels
that OMB should accept the $2.25 support price and get some
PL 480 money moving.
On beef imports, Sebelius says that it is imperative that
the Administration put out the message that USDA did attempt
to regulate beef imports by regulation that beef entering
the U. S. through free trade zones would be charged against
the country of origin, but that the USDA attempt to regulate
beef imports has been blocked by court action instituted by
a meat processor.
CC: Jack Marsh
Jim Cavanaugh
Jim Cannon
FORD & LIBRARY GERALD
100607
agu
[1976]
THE WHITE HOUSE
WASHINGTON
DATE: 10/6
TO: FRED SLIGHT
FROM:
ALLEN MOORE
SUBJECT: Article request for
The Farmer
ACTION:
FYI:
Changes have been noted in the
margins, and one question (#12)
re-written. Note the decision
to be made by you on Question 2.
FORD & LIBRARY GERALD
Paul Leach
ACTION REQUESTED
October 2, 1976
MEMORANDUM FOR:
JIM CAVANAUGH
PAUL O'NEILL
BILL BAROODY
FROM:
FRED SLIGHT FW8
SUBJECT:
Article Request
The President has been requested to submit his views on
issues concerning farmers for publication in THE FARMER.
Attached are draft responses to the list of questions
asked of the President, prepared by USDA's public information
office. I would appreciate your review of these responses.
Characteristically, this request along with the draft arrived
to my office very recently, and the submission date for
publication was September 30, However, the publication will
extend its deadline for a few days, and consequently, I
would appreciate your comments and/or suggestions by c.o.b.
Wednesday, October 6.
Thank you for your continuing assistance.
Attachment
FORD & LIBRARY GERALD
Question 12
Q: How would you recommend grain inspection be administered?
Should inspection be by government inspectors? Private
inspectors? Both?
A: We must not tolerate the kind of behavior involved in the
grain inspection mess. To clean up the grain inspection
problem and maintain the confidence of our grain export
customers, I have directed the USDA to use every available
resource.
However, because a change in law is also needed, I recommended
legislation last year that would strengthen the present in-
spection system in which the states and private organizations
share responsibility with the Federal government. While I
support legal changes, I believe that a completely federalized
inspection system would be costly and unnecessary.
Just before Congress recessed, it finally passed a "compromise"
bill which does not totally federalize the system. I will be
examining this bill within the next few days and determining
whether it deserves my signature.
FORD is LIBRARY GENALD
CC: Judy Johnston
Paul Leach
agric
THE WHITE HOUSE
-
WASHINGTON
Art
October 8, 1976
74!
MEMORANDUM FOR:
VI JIM CANNON
JIM CAVANAUGH
JIM CONNOR
Im
MAX FRIEDERSDORF
FROM:
JACK MARSH Jan
Congressman Jim Abdnor of South Dakota called to make
the following points which he wishes to have relayed
to the President's advisers:
1.
The Agriculture situation remains bad insofar as
farm income is concerned.
2.
He recommends that serious consideration be given
to the increase of loan prices which he says are
now far too low.
3.
He argues strongly that the hay bill should be
signed by the President, and he questions the
cost figures that have been cited for this pro-
gram as being far too high.
4.
He has sent a telegram urging that consideration
be given to the beef import question and a change
in the beef import quota.
100901
THE WHITE HOUSE
WASHINGTON
Date
10/11/76
TO:
1976 OCT 11 PM JIM CANNON
FROM: Max L. Friedersdorf
For Your Information X
Please Handle
Please See Me
Comments, Please
Other
agm
+-
October 8, 1976
MEMORANDUM FOR:
MAX FRIEDERSDORF
FROM:
JOE JENCKES 9.6.9.
SUBJECT:
Farm and Cattle Vote
Senator Milton Young phoned me today urging in very
strong terms that the President take immediate action
on price supports for wheat. The Senator said wheat
should be pegged at $2.50. According to Senator Young,
it is imperative that the President take such action
or he will surely lose the farm vote.
Senator Young also urges that the President take
action on beef imports.
FORD i LIBRARY GERALD
101/02
October 21, 1976
1976 OCT 21 PM 3 49
MEMORANDUM FOR:
JACK MARSH
DICK CHENEY
FROM:
MAX FRIEDERSDORF
SUBJECT:
North Carolina
Senator Helms and Tom Ellis, the Reagan Chairman in North
Carolina, dictated the attached statement today, pertaining
to the President's scheduled visit to Raleigh.
Aside from the Helms commercial, the statement has merit.
CC: Dave Gergen
Gwen Anderson
Jim Cavanaugh
Jim Cannon
Ann Brunsdale
FORD i LIBRARY GERALD
112/16
SUGGESTED STATEMENT BY THE PRESIDENT ON THE TOBACCO INDUSTRY
IN NORTH CAROLINA - SUBMITTED BY SENATOR JESSE HELMS.
President Ford will be here on Saturday in the heart of the
tobacco belt. He will be asked about tobacco and even if he
is not, he needs to say something to reassure the tobacco
industry - farmers, warehousemen, and leaf buyers - of his
interest in their industry.
He might say something along these lines:
"I've been talking with Senator Jesse Helms, a really outstanding
Member of the Senate Agriculture Committee, about the problems in
the tobacco industry. Senator Helms told me of an announcement
by the Flue Cured Stabilization Corporation, that they are in a
shakey position as they are now forced to take under loan, greatly
increased quantities of tobacco. This is endangering a self-
sustaining program - one that has never cost the government a
nickle - and to shake this organization sends negative vibrations
to every level of the industry - from farmer to manufacturer."
The President may also want to say:
"1. I am interested in protecting your vital agricultural interests
in North Carolina, this certainly includes tobacco.
2.
I have, and will continue to urge the Department of Agriculture
to do all possible to insure the continued support of massive
exports of tobacco. This is good for the farmer, but it is
also good for the economy - not just in North Carolina - but to
help our balance of payments.
3.
I have requested the Agriculture Department to continue and
even increase their Commodity Credit Corporation export sales
program. This will stimulate sales of tobacco to our export
markets. In turn, it will increase the tobacco farmers'
ability to sell their crops at a fair price. (Today, approxi-
mately 40% of all tobacco grown in the United States is
marketed overseas.)
4.
This is not a Jimmy Carter giveaway. This program I have
outlined has not, and will not, cost the taxpayer a single
dollar. As a matter of fact, the government made money on
this program last year. I wish we had more federal programs
like this. II
(Last year, the Commodity Credit Corporation made available $100
million for the tobacco program. If the President is to make the
above statement, he should request Agriculture and OMB to increase
the budget for the coming year.)
file
THE WHITE HOUS
ing to the
ust be kept
WASHINGTON
until the
ransmitted
November 4, 1976
MEMO FOR: PAUL LEACH
FROM:
SUBJECT: Legislative Program for Agriculture
JIM Sm CANNON
AM
Please look this over and identify for
me in a brief memo the key points of
concern.
E
Attachment
FORD i LIBRARY 076830
ND FINANCE
THE WHITE
WASHINGTON HOUSE Jash - agriculture
Sour This
December 8, 1976
is late
MEMORANDUM FOR: JACK MARSH
8m
FROM:
SUBJECT:
JIM Your CANNON memo Jun re:
Peanuts
At this point, nothing should be done vis-a-vis Frick or
USDA.
USDA has no legal power to do away with allotments so there
is obviously a misunderstanding by Representative Dickinson.
What Frick has done is to tell the ASCS county committees
not to approve any allotment sales or leases, pending a
decision on the matter of sale or lease of allotments. This
is merely a precaution in case USDA decides to prevent
allotment transfers for the 1977 crop thereby effectively
cutting peanut production, surpluses and government support
program outlays. A policy decision on this matter is
expected before January 20 from USDA.
You should be aware that the Administration has supported
legislation to rationalize the peanut program (see attached
Presidential Q and A).
If you have further questions, let me know and we can do
additional digging.
Attachments
FORD & LIBRARY 076839
THE WHITE HOUSE
WASHINGTON
December 6, 1976
i 3 5 18
MEMORANDUM TO:
JIM CANNON
FROM:
JACK MARSH each
Jim, we received a call from Rep. Bill Dickinson.
Dickinson was extremely concerned over a recent
announcement regarding Ken Frick's (Agriculture)
intention to do away with acreage allotments for
peanuts.
Dickinson was of the view that such a move would
be extremely harmful to some of our Southern
Republicans, in whose districts peanut crops loom
very large. Dickinson was obviously suggesting
that Frick's announcement be countermanded.
Please have a member of your staff look into this
matter, and then give me your own guidance.
Many thanks.
FORD i LIBRARY GERALD
PEANUT PROGRAM
Q:
Do you favor a change in the present peanut program?
A:
Yes. I'm afraid the industry is going to be damaged
if there aren't some changes. Current legislation
encourages the production of peanut surpluses at the
present price support level. Large amounts of
peanuts are produced under the government subsidy
program. Government peanut subsidies will cost tax-
payers many millions of dollars this year. The loss
on the 1975 crop will exceed $175 million. That kind
of program can't have a long life in today's climate.
It is an embarrassment to farmers and in the long run
not good for peanut growers. We need a change which
will permit our peanuts to meet world demand at
competitive price levels.
Congress failed to correct this problem during the
session just ended. Next year my Administration will
try again to work with the Congress to find a way to
change this program and end the burden of this outmoded
program.
BACKGROUND
The peanut program under present legislation clearly is not
working since it is resulting in an excessive production of
peanuts which cannot be marketed at the support price dictated
by the legislation. Therefore, it is needlessly costing
American taxpayers millions of dollars to purchase and store
the embarrassing large surpluses acquired at the high support
price level.
There is a clear need to change the present peanut program.
Current legislation directs the Secretary of Agriculture to
provide price supports for peanut producers. It provides that
the minimum peanut acreage allotment shall be 1.6 million acres
and the minimum support level shall be 75 percent of the parity
price for peanuts as of August 1 each year.
The production controls only limit acreage, not poundage output.
Yields at the time the program began in the 1930's were only abo
900 pounds per acre, while the 1975 yields average 2,565
pounds per acre. Because of excess production, peanut output
now exceeds our domestic edible needs by about 40 percent.
FORD & LIBRARY AERALD
-2-
Until the 1973 crop, the Commodity Credit Corporation sold
surplus peanuts at competitive world prices which usually were
substantially below the loan value. Beginning with the
1974 crop, the subsidy of peanuts for export was discontinued.
Subsidies on exports of other commodities had been removed
earlier (i.e., corn in the early 1960's; cotton in 1966; and
wheat and rice in 1972; tobacco and flour in 1973).
Current laws hamstring the Government by viture of the high
minimum allotment and high loan rate -- neither of which can
be changed without new legislation.
Legislation, considered by the Congress at its last session
and aimed at corrective measures, failed to pass because of
opposition from some Southern Democrats. This bill, H.R. 12808,
introduced by Representative Dawson Mathis of Georgia, would
have amended present peanut price support program on the 1977
crop only. It would have improved the peanut program by
reducing the acreage allotment 22.5 percent, by reducing the
price support loan rate from 75 percent of parity to 70 percent
of parity, and by changing from an acreage allotment program
to a poundage allotment program.
The proposed legislation would have continued to provide an
adequate supply of peanuts for domestic use, reduce government
costs, and allow freedom to produce for export markets.
PCL
10/19/76
FORD LIBRARY &
@@
LEACH
agric.
THE WHITE HOUSE
WASHINGTON
976 DEC 9 PM 3 34 December 8, 1976
MEMORANDUM FOR:
JIM CANNON
FROM:
I would greatly appreciate your Jan office handling the
JACK
attached matter directly. I would also like to
receive a copy of your response.
Many thanks.
FORD & LIBRARY GERALD
120911
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6
1
the
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3
WHDOOS 449P EDT DEC 2 76 VAF151(1629)(2-038828337)P 12/02/76 1629
4
5
ICS IPNNTZZ CSP
1976 DEC 2 PM 4 55
6
9197821705 TDNT RALEIGH NC 59 12-02 0429₱ EST
7
8
PMS JACK MARSH , DLR
9
WHITE HOUSE
10
11
WASHINGTON DC
12
NORTH CAROLINA FARM BUREAU REPRESENTING PEANUT GROWERS OF THIS STATE
13
14
REQUEST YOUR ASSISTANCE IN RESCINDING THE RECENT USDA ORDER "TO
15
DELAY APPROVAL OF REQUEST FOR LEASE, SALE AND TRANSFER OF ALLOTMENT
16
17
ACREAGES". MANY GROWERS HAVE MADE CONTRACTS FOR 1977 AND THIS POLICY
18
CHANGE COULD FURTHER ERODE THE FARM INCOME OF AN IMPORTANT COMMODITY
19
FORM 0805 PRINTED BY THE STANDARD REGISTER COMPANY, U. U.S.A.
20
GROUP IN OUR STATE
21
JOHN SLEDGE PRESIDENT NORTH CAROLINA FARM BUREAU Federation
22
23 NNNN
24
FORD & LIBRARY GERALD
25
26
THE WHITE HOUSE
WASHINGTON
December 8, 1976
Dear Mr. Sledge:
Many thanks for your recent tele-
gram.
Since this is a matter that is
handled by the Domestic Council,
I have referred your telegram to
Mr. James Cannon, Director of
the Domestic Council, for his
consideration.
I am sure you will be hearing
from Mr. Cannon shortly concern-
ing this matter.
Sincerely,
John Counsellor O. Marsh, to Thank.J.
Mr. John Sledge
President
North Carolina Farm
Bureau Federation
5301 Glenwood Avenue
Raleigh, North Carolina 27611
BERALD is. FORD LIBRARY
agriculture
December 17, 1976
TO:
MR.' CANNON
FROM:
ALLEN MOORE
Assistant Secretary Feltner (Agriculture called about a
Federal appeal of the food stamp decision.
He understood from your conversation with Knebel that
"we" were not inclined to force an appeal if Justice
recommended against it (which is likely)
If this is wrong, someone needs to direct the A.G.
to appeal. Otherwise, we do nothing and leave the issue
to Justice.
FORD i LIBRARY 976839