Ask the Scholar

{
    "localId": "16972763",
    "label": "Agriculture (3)",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/16972763"
}

{
    "id": "16972763",
    "sourceUrl": "https://catalog.archives.gov/id/16972763",
    "contentType": "document",
    "title": "Agriculture (3)",
    "citationUrl": "https://catalog.archives.gov/id/16972763",
    "collections": [
        "James M. Cannon Files (Ford Administration)",
        "James Cannon's Issues Files"
    ],
    "subjects": [
        "Agriculture",
        "Food relief",
        "Legislation",
        "Livestock",
        "Meat"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0039/635863/16972763.pdf",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0039/635863/16972763.pdf",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0039/635863/16972763.pdf",
    "imageCount": 1,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/16972763",
    "naId": 16972763,
    "coverageEndDate": {
        "logicalDate": "1976-12-31",
        "month": 12,
        "year": 1976
    },
    "coverageStartDate": {
        "logicalDate": "1975-03-01",
        "month": 3,
        "year": 1975
    },
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0039/635863/16972763.pdf",
    "mediaId": "82172c862a319fe7",
    "ocrText": "The original documents are located in Box 1, folder \"Agriculture (3)\" of the James M.\nCannon Files at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 1 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\nagrin\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 16, 1976\n976 SEP 20 PM 5 28\nDear Congressman Pressler:\nThe President has asked me to thank you for your recent\nletter with which you forwarded a letter from the South-\neastern South Dakota Elevator Managers' Association\nconcerning the problems of the cattle industry.\nThe Administration has been monitoring the situation with\nconsiderable concern. The current weakness in the fed cattle\nmarket is largely the result of high levels of beef production\nthis year and the current backup of cattle in feedlots with\nmany coming to market as heavy cattle subject to discounts by\npackers. Some reduction in supplies this fall is expected\nto give strength to the market. Per capita beef availability\nthis year is estimated at 127 pounds, 7 pounds over last year\nand 17 pounds over three years ago.\nYour request that a 120-day moratorium be imposed on beef\nimports would be extremely disruptive of the beef trade and\ncall into question the sincerity of our international agree-\nments. As you know, we have negotiated voluntary restraint\nagreements for 1976 with those countries which export beef\nto the United States. Those agreements limit U.S. beef imports\nto a level consistent with the requirements of the Meat Import\nAct of 1964.\nRecognizing the current plight of the cattle industry, the\nAdministration is taking several actions to improve the\nsituation. We are working aggressively on several fronts\nto eliminate the problem of meat imports through the Foreign-\nTrade Zone at Mayaguez, Puerto Rico. While some difficulties\nhave been encountered, we are confident that one of these\nactions will soon be successful.\nThe school lunch program should provide some relief. Last\nyear the Department of Agriculture purchased about 119 million\ndollars worth of beef products for use primarily in school\nfeeding programs. In view of the current and prospective\nFORD i LIBRARY GERALD\n092023\n- 2 -\nprice-supply situation for beef and because of expanded\nparticipation in child nutrition programs, we anticipate\nthat total USDA beef purchases for the 1976-77 school\nyear will be significantly increased from last year's\nlevels.\nBuying of frozen ground beef for current school sessions\nbegan August 11, purchases of canned beef were initiated\nSeptember 9. Through September 10, over 18 million pounds\nof ground beef and nearly 2 million pounds of canned beef\nhad been purchased for about 14 million dollars. Offers\ncontinue to be invited for both frozen ground beef and\ncanned beef on a weekly basis.\nIn addition, the Under Secretary of Agriculture has written\nto the Secretary of Defense urging that the Defense Depart-\nment take advantage of current beef prices by boosting its\npurchases. The Under Secretary of Agriculture has also\nwritten to Mrs. Virginia Knauer to enlist her assistance\nin informing consumers of good buys in beef. USDA is also\ndeveloping a program of consumer information and plans to\nencourage retail chains to increase the use of beef advertised\nsales at minimum margins.\nWe are also concerned over the widening marketing margins\nfor beef; thus the price spread for beef is being closely\nmonitored. Don Paarlberg, Director of Agricultural Economics,\nUSDA, issued the enclosed press release on August 30. It\ncalls for tightening of margins and responding more quickly\nat the retail level to changes in live to carcass prices.\nWe greatly appreciate having the benefit of your views and\nsuggestions on this important matter. We are also concerned\nand will, therefore, continue to monitor the situation closely\nand take action as appropriate.\nM\nJMMurphy, 9-16-76\nSincerely,\nbcc: James Cannon, WH\nCharles Leppert, Jr. WH\nDist: LWSeidman\nWM. SEIDMAN\nRBPorter\nL. William Seidman\nJMMurphy, Jr.\nAssistant to the President\nEPB E/S #979\nfor Economic Affairs\nWH Files\nEnclosure\nThe Honorable\nLarry Pressler\nGERALD LIBRARY FORD\nHouse of Representatives\nWashington, D.C. 20515\nMcDavid (202) 447-4026\nNEWS\nU.S. DEPARTMENT OF AGRICULTURE\nFARM-RETAIL PRICE SPREADS WIDEN AS LIVESTOCK PRICES FALL:\nWASHINGTON, Aug. 30--\"Consumers and farmers would both be better off if\nthe meat trade would lower its present near-record margins for handling beef\nand pork,\" says Don Paarlberg, the U.S. Department of Agriculture's director\nof agricultural economics.\nBeef and pork prices at the supermarket are down from last year, but not\nnearly as much as cattle and hog prices on the farm. Price spreads between\nfarm and consumer have increased 16 percent for beef and 31 percent for pork\nsince July 1975.\n\"Farmers and ranchers are concerned when their prices go down and marketing\nprice spreads increase. Likewise, consumers are offended when retail prices\nfail to reflect increased supplies of meat,\" says Dr. Paarlberg.\nSince cattle prices started to decline in July 1975 farmers' prices have\ndropped 26 percent. However, consumer prices for beef have declined only 14 percent.\nThe spread between cattle prices and consumer beef prices has widened\n9 cents a pound since July a year ago and is now at a near-record spread of\n64 cents a pound. Preliminary data indicate that spreads in August remained wide\nas cattle prices continued to drop.\nAt the same time, cattlemen are operating at a loss.\nDepartment of Agriculture figures show that typical Corn Belt cattle feeders\nhave lost money continually since early 1972 except for the period May to December\n1975. Presently Corn Belt feedlot owners are losing more than $65 per head.\nLikewise, cow-calf herds are also losing money selling young feeders for feedlot\nfinishing. Cattlemen have reacted by selling off cows, thereby increasing meat\nsupplies which has depressed farm cattle prices even more.\n- more -\n1108\nUSDA 2476-76\n- 2 -\nPresent indications are that farmers who are feeding out cattle\nalready in feedlots will continue to lose money until the end of the\nyear.\nPrice spreads between farmers and consumers are also wide for pork.\nIn July farm-retail spreads increased 7 cents over June. Early estimates\nfor August indicate that farm-retail spreads for pork widened further.\nConsumer pork prices in July were only slightly lower than a year ago, but\nfarm hog prices were down 15 percent. The farm-retail price spread had\nwidened 31 percent.\nDepartment of Agriculture figures indicate that hog farmers have\nbeen making money. But the outlook for fall and into 1977 suggests\na drop in hog prices with hog raisers losing money, particularly if the\nprice spread between farmers and consumers stays at near-record levels.\nHow low hog prices slip will depend in part on the farm-retail price\nspread. Price spreads usually widen when farm prices are falling. The\nmarketing spread is expected to continue relatively wide over the next\nseveral months, even though marketing costs per pound of pork probably\nwill be lower.\n\"Retailers could improve the situation for farmers and consumers\nby promoting beef and pork and reducing their prices more quickly in\nline with lower wholesale meat prices,\" says Dr. Paarlberg.\nFORD LIBRARY is GERALD\n4408\nUSDA 2476-76\nACTION\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 23, 1976\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nPAUL LEACH\nPaul\nSUBJECT:\nProposed Presidential Response\nto Letter from President of\nAmerican National Cattlemen's\nAssociation\nIn late August, the President of the American National\nCattlemen's Association wrote the President regarding problems\nwith the meat import program and the American National\nCattlemen's Association's recommendation that authority to\nnegotiate voluntary restraint agreements be switched from\nthe State Department to the Agriculture Department. This\nsubject is of considerable emotional concern to cattlemen.\nThis letter is at Tab A.\nAfter some delay, USDA has provided us with a proposed\nresponse which I have rewritten. This is at Tab B. The\nresponse indicates Presidential concern and informs the\nCattlemen's Association President that the whole subject\nwill be reviewed by the Agricultural Policy Committee and\nappropriate action to correct the situation will be taken.\nThis course of action is recommended by Secretary Butz as\nthe best response given the evolving situation with the\nmeat import program.\nSince this is a rather sensitive issue, I suggest that we\nstaff this proposed response to Bill Seidman, Brent\nScowcroft and Phil Buchen before the letter is sent. I\nhave discussed this with Roger Porter, who will insure that\nthe views of the State Department are solicited.\nRecommendation\nSign memorandum at Tab C staffing this to Seidman, Scowcroft\nand Buchen.\n1\nAmerican National Cattlemen's Association\nA Non Profit Corporation\n1001 Lincoln Street\nP.O. Box 569\nDenver, Colorado 80201\nPhone (303) 861-1904\nANCA\nOFFICE OF THE PRESIDENT\nAugust 27, 1976\nWRAY FINNEY\nP. O. Box 280\nFt. Cobb. Oklahoma 73038\n(405) 643-2625\nThe President\nThe White House\nWashington, D. C. 20500\nFORD i GERALD LIB:\nDear Mr. President:\nThe nation's cattle industry is willing to live within the\nprovisions of the Meat Import Act of 1964. This legislation created\nthe fairest form of trade access and is the envy of the world. No\nother country guarantees, as our law does, a share of a domestic\nmarket. Other countries, in fact, often arbitrarily close their\nborders to world trade in meat.\nAs you are aware, two of our trading partners, Australia and\nNew Zealand, have violated the intent and the spirit of the Meat\nImport Act of 1964 by the use of the unique facility called a\nForeign Trade Zone. The action of these two countries, in our\nopinion, is a blatant and willful violation of honesty and fair\nplay. Australia in particular, has been willing to undercut the\nnormal price of imported meat by as much as 25% just to make\ncircumvention possible.\nIn our efforts to stop such violations we wish to highly commend\nSecretary of Agriculture, Earl L. Butz, Assistant Secretary of\nAgriculture, Richard E. Bell, and many members of their staffs.\nWe have sought and received full cooperation from USDA. They\nhave done and are doing everything within the law that is possible.\nWe have also received excellent cooperation from Assistant Secretary\nof Treasury, David McDonald. I cannot say the same for the Secretary\nof State and his staff. We believe the Department of State has\ndone everything they could to thwart the efforts of Secretary Butz.\nAs we have dealt with this problem, we have often felt that the\nDepartment of State and the office of the Special Trade Representative\nwere our adversaries. Through their activities it has been evident\nthat they are more interested in representing the interests of\nother countries than they are toward the economic survival of a\nsegment of U. S. citizenry. As the representative of this segment\nof the American society, we feel we must protest in the strongest\nOFFICERS: President: Wray Finney, Ft. Cobb. Oklahoma; First Vice President: Richard A. McDougal. Lovelock. Nevada: Regional Vice Presidents\nVictor M. duPont, Virginia, Fred Moore, Mississippi. Jack R. Dahl, North Dakota: Earl Brookover. Kansas: Larry Frazier, Washington: John D\nWeber. California: Executive Committeement John Greig. lowa. Hilmar G. Moore. Texas: Glenn Deen, Texas, Robert N Rebholtz. Idaho, Bil\nThe President\nAugust 27, 1976\nPage 2\nterms the actions of the Secretary of State and his staff. We\nbelieve in trade with other nations, but when such trade is\noutside the boundaries of fair play, then all levels of our\ngovernment should resist such action and not be of assistance\nto the violators.\nFurther, the Department of State has been derelict in\ncarrying out its responsibilities to negotiate and establish\nvoluntary restraint levels associated with meat imports. This\nyear the month of August was reached before all agreements were\nsigned. It makes sense to us that all agreements should be\nnegotiated prior to and signed as close to January 1 as possible.\nWe are informed that the Department of State has never begun\nnegotiations in time to reach this objective. Such procrastination\nhas resulted in many disruptions within the cattle industry.\nMr. President, we respectfully request that the authority\nto negotiate and complete voluntary restraint agreements :for\nmeat imports be transferred back to the Secretary of Agriculture\nwhere it belongs. The law, as contained in the Agricultural\nAct of 1956, specifies that this is the responsibility of the\nSecretary of Agriculture, but President Nixon by Executive Order\nchanged this statuatory authority. We further respectfully request\nthat such authority be transferred without delay as the time for\nnegotiation of the 1977 restraint levels is fast approaching.\nSincerely,\nWray Finney\nPresident\nWF:sf\n&\nFORD LIEST\nLIBR\nGERALD\nTHE WHITE HOUSE\nWASHINGTON\nDear Mr. Finney:\nThank you for your letter of August 27 in\nwhich you discussed your concerns with the\nmeat import program. Since receiving your\nletter, I have had my staff investigate the\npoints you have raised.\nI recognize that there have been some\ndifficulties in administering the meat\nimport program over the past two years.\nFor this reason, I am directing Secretary Butz,\nas Chairman of my Agricultural Policy Committee,\nto initiate a thorough Committee review of our\nprocedures for negotiation of the voluntary\nrestraint agreements and for administration\nof the program. The Committee will submit a\nreport and recommendations to me in time so\nthat we will be able to avoid unnecessary\nproblems in the administration of the program\nin the future.\nPlease be assured that I appreciate your\nefforts to bring important matters of interest\nto the American cattle industry to my attention\nand that my Administration will continue to be\nconcerned with the problems of the cattle\nindustry.\nSincerely,\nMr. Wray Finney\nPresident\nAmerican National\nFORD & LIBRA\nCattlemen's Association\n1001 Lincoln Street\nDenver, Colorado 80201\nRECD\nagrie\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 24, 1976 976 SEP 25 AM 9 38\nMEMORANDUM FOR:\nPHIL BUCHEN\nBRENT SCOWCROFT\nFROM:\nSUBJECT:\nBILL Smi SEIDMAN\nJIM CANNON\nProposed Presidential Response\nto Letter from President of\nAmerican National Cattlemen's\nAssociation\nIn late August, the President of the American National\nCattlemen's Association wrote to the President about the\nmeat import program. See attached letter at Tab A.\nA draft Presidential response has now been prepared along\nthe lines suggested by Secretary Butz. This is at Tab B.\nSince this is a sensitive matter, I would appreciate your\ncomments and recommendations on this letter and course of\naction.\nWould you please provide this to me by noon, Saturday,\nSeptember 25?\nThanks.\nTHIS LETTER LOOKS FINE. HOWEVER, I SUGGEST\nTHAT IT INCLUDE A DATE WHEN THE SECRETARY\nSHOULD REPORT TO THE PRESIDENT. PERNAPS THREE\nOR FOUR WEEKS. SHOULD CHECK WITH USDA TO\nSEE WHAT TIME THEY CONSIDER REASONABLE.\nLWS\nFORD & DERALD LIBRA\n092/10 110\nagri\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 24, 1976\nMEMORANDUM FOR:\nPHIL BUCHEN\nBRENT SCOWCROFT\nFROM:\nSUBJECT:\nProposed Presidential Response\nBILL Smi SEIDMAN\nJIM\nto Letter President of\nAmerican National Cattlemen's\nAssociation\nIn late August, the President of the American National\nCattlemen's Association wrote to the President about the\nmeat import program. See attached letter at Tab A.\nA draft Presidential response has now been prepared along\nthe lines suggested by Secretary Butz. This is at Tab B.\nSince this is a sensitive matter, I would appreciate your\ncomments and recommendations on this letter and course of\naction.\nWould you please provide this to me by noon, Saturday,\nSeptember 25?\nThanks.\nFORD is LIBRARY GERALD\nagrin\nACTION\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 27, 1976\nMEMORANDUM FOR:\nTHE PRESIDENT\nFROM:\nJIM CANNON June\nSUBJECT:\nLetter to the President\nof American National\nCattlemen's Association\nIn late August, the President of the American National\nCattlemen's Association wrote you about the cattlemen's\nconcerns with the administration of the meat import\nprogram. The Association recommended that the authority\nfor negotiating voluntary meat import restraint agreements\nbe transferred from the State Department to the Department\nof Agriculture. This letter is at Tab A.\nAttached for your signature at Tab B is a response which\nhas been prepared along the lines suggested by Secretary Butz.\nThis response evidences your concern about the problems\nconfronting the cattlemen and indicates that you have asked\nthe Agricultural Policy Committee to investigate the\nproblems of the meat import program and provide you with\na report and recommendations within four weeks.\nThe letter has been approved by Bill Seidman, NSC the\nCounsel's office and the State Department (via NSC).\nI recommend that you sign the letter at Tab B.\nFORD i LIBRARY GERALD\nTHE WHITE HOUSE\nWASHINGTON\nDear Mr. Finney:\nThank you for your letter of August 27 in\nwhich you discussed your concerns with the\nmeat import program. Since receiving your\nletter, I have had my staff investigate the\npoints you have raised.\nI recognize that there have been some\ndifficulties in administering the meat\nimport program over the past two years.\nFor this reason, I am directing Secretary Butz,\nas Chairman of my Agricultural Policy Committee,\nto initiate a thorough Committee review of our\nprocedures for negotiation of the voluntary\nrestraint agreements and for administration\nof the program. The Committee will submit a\nreport and recommendations to me by October 25\nof this year so that we will be able to avoid\nunnecessary problems in the administration of\nthe program in the future.\nPlease be assured that I appreciate your\nefforts to bring important matters of interest\nto the American cattle industry to my attention\nand that my Administration will continue to be\nconcerned with the problems of the cattle\nindustry.\nSincerely,\nMr. Wray Finney\nPresident\nFORD\n&\nAmerican National\nCattlemen's Association\n1001 Lincoln Street\nGERALD\nLIBRARI\nDenver, Colorado 80201\nCC: Leach\nINFORMATION agin.\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 976 27, 1976 6 54\nMEMORANDUM FOR: JIM CANNON\nTHROUGH:\nPHIL BUCHEN\nP.\nBrubi\nFROM:\nBOBBIE GREENE KILBERG\nSUBJECT:\nProposed Presidential Response to\nLetter from Mr. Finney, President of\nAmerican National Cattlemen's Association\nI have discussed the proposed Presidential response\nwith Paul Leach and it is my understanding from that\nconversation that the State Department does not object\nto the Agricultural Policy Committee, chaired by\nSecretary Butz, conducting a \"thorough committee\nreview of our procedures for negotiation of the vol-\nuntary restraint agreements and for administration of\nthe program.\" (State is a member of this Committee.)\nIt is my further understanding that the Committee's\nmandate will be to conduct a review of procedures and\nadministration rather than a substantive policy review.\nOn the above basis, the Counsel's Office has no objec-\ntion to the proposed Presidential response to Mr. Finney's\nletter.\nFor Paul Leach's information, I have sent him a memo-\nrandum correcting the Cattlemen Association letter's\ninaccurate legal statement on the Agricultural Act of\n1956. Paul has indicated that he will convey this\ninformation to the Association's attorneys. In its\ncorrespondence, the Association requested that the\nPresident transfer \"back\" to the Secretary of Agri-\nculture the authority to negotiate and complete vol-\nuntary restraint agreements for meat imports. The\nAssociation went on to state that the 1956 Act gave\nthis responsibility to the Secretary of Agriculture,\nbut that President Nixon changed the negotiation\nauthority by Executive Order.\nFORD is LIBRARY GERALD\n092801\n-2-\n7 U.S.C. § 1854 of the Agricultural Act of 1956 states\nthat the President may negotiate with foreign govern-\nments agreements limiting \"the export from such countries\nand the importation to the United States of any agricul-\ntural commodity or product manufactured therefrom or\ntextiles or textile products.\" The President is further\nauthorized to \"issue regulations governing the entry or\nwithdrawal from warehouse of any such commodity, product,\ntextiles, or textile products ot carry out any such\nagreement. On June 30, 1970, President Nixon issued\nExecutive Order 11539, delegating to the Secretary of\nState, with the concurrence of the Secretary of Agricul-\nture and the Special Representative for Trade Negotiations,\nthe authority to negotiate bilateral import agreements\non cattle meat, goats and sheep. Under this Executive\nOrder, the Secretary of Agriculture, with the concurrence\nof the Secretary of State and the Special Representative\nfor Trade Negotiations, is authorized to issue regulations\ngoverning the entry or withdrawal from warehouse for con-\nsumption in the United States of any such meats to carry\nout any such agreement.\nIn summary, the President has the statutory authority\nto negotiate meat importation agreements and President\nNixon delegated that negotation authority to the Secre-\ntary of State, to be exercised with the concurrence of\nthe Secretary of Agriculture and the Special Representa-\ntive for Trade Negotiations. The Secretary of Agriculture\ndoes not have the negotiation authority and that authority\nhas never been delegated to the Secretary of Agriculture,\nother than in the E.O. 11539 provisions for concurrence\nwith the Secretary of State's actions. However, the\nSecretary of Agriculture does have the authority to issue\nregulations to complete the import agreements, in the\nform of regulations governing the entry or withdrawal\nfrom warehouse for consumption in the United States.\nThis is subject to the concurrence of the Secretary of\nState and the Special Representative for Trade\nNegotiations.\nFORD & LIBRARY GERALD\nParl\nTHE WHITE HOUSE\nLearly\nWASHINGTON\nSeptember 28, SEP 28 1976 PM 6 09\nMEMORANDUM FOR:\nJIM CANNON\nTHRU:\nMAX FRIEDERSDORF m. 6.\nFROM:\nBOB WOLTHUIS RI&W\nSUBJECT:\nHR 15068\nI got a call yesterday from Walter Jones (D-N.C.) who\nstrongly recommends that the President sign HR 15068,\nan emergency tobacco measure. The legislation which\nhas passed almost every year, allows tobacco growers\nto lease tobacco lands across county lines.\nThe above bill affects only this growing season and\naccording to Walter Jones involves no subsidies or price\nincreases. He thinks it would be most helpful to the\nPresident in the South.\nJMC\nThis bill is not yet\nat the white House.\nAllen.\nFORD LIBRARY & GERALD\n092826\n[oct.1976]\nMEETING WITH FARM CREDIT DIRECTORS\nTALKING POINTS\n1. The success of our farm policy -- a policy of full\nproduction and fair prices -- is measured in increased\nincome for farmers around the country.\n2. This market-oriented farm policy places greater reliance\non the role of farm credit.\n3. With the continued emphasis on market orientation and\nunrestricted production, I believe the importance of\nproviding credit to farmers will continue to increase.\n4. Many of the side effects of our farm policy, such as the\ngrowing interest of youth in farming, the increase in\nthe total farm population and the slowing in the decline\nof the number of farms, all point to a lasting and\nhealthy recovery in our agricultural system.\nFOR\nGERALD\nFil\nFOR IMMEDIATE RELEASE\nOCTOBER 4, 1976\nOFFICE OF THE WHITE HOUSE PRESS SECRETARY\nAg.\nor\nTHE WHITE HOUSE\nSTATEMENT BY THE PRESIDENT\n6\nTHE BRIEFING ROOM\n1:35 P.M. EDT\nGood afternoon. Will you please sit down.\nI wish to announce my decision to accept the\nresignation of Earl Butz as Secretary of the Department\nof Agriculture.\nThis has been one of the saddest decisions of\nmy Presidency.\nTwo years ago Earl Butz told me that he wanted\n878817 GERALD GERALDR. FORD\nto leave the Cabinet. At my request, he agreed to stay\non until the end of this term, in spite of personal\nfamily obligations. I felt that I needed him in the\nCabinet to implement my policies of full farm production\ncoupled with fair prices for the consumer and good income\nfor farmers through the sales of their products throughout\nthe world.\nEarl Butz has been and continues to be a close\npersonal friend, and a man who loves his country and all\nthat it represents.\nEarl Butz has devoted more than 20 years of his\nlife in public and academic service: As an Assistant\nSecretary in the Eisenhower Administration; as a professor\nand then a Dean at one of the most distinguished universities\nin this country; and more recently as the Secretary of a\nDepartment that has helped to restore personal freedom\nand abundance to American farms.\nYet Earl Butz is also wise enough and courageous\nenough to recognize that no single individual, no matter\nhow distinguished his past public service, should cast a\nshadow over the integrity and good will of the American\nGovernment by his comments.\nFor that reason, I have accepted the resignation\nof this decent and good man.\nEND\n(AT 1:37 P.M. EDT)\nAg.\nCC: Leach\nTHE WHITE HOUSE\nWASHINGTON\nJan lavenaugh- 7.4.1. file\n1976 OCT 4 PM 5 34\nOctober 4, 1976\nMEMORANDUM FOR:\nJIM CANNON\nTHRU:\nMAX FRIEDERSDORF m.6-\nFROM:\nBOB WOLTHUIS RKW\nSUBJECT:\nMeat Quota Problem\nI got a call from Virginia Smith on Friday strongly\nrecommending that the President do whatever he can admin-\nistratively to solve the Mayaguez problem. She realizes\nthat very little beef comes through Mayaguez but it\ndoes represent the perception of the problem by the\ncattle industry. She said the President's political\nsituation in her state is very serious and unless he\ndoes something about the Mayaguez problem he will probably\nlose the State of Nebraska.\nFORD i LIBRARY GERALD\n100429\nCC: Quern\nLeach\nTHE WHITE HOUSE\nag.\nWASHINGTON\nOctober 5, 1976\n1976 OCT 6 AM 7/01\nMEMORANDUM FOR:\nMAX FRIEDERSDORF\nFROM:\nCHARLES LEPPERT, JR. Lr.\nSUBJECT:\nRep. Keith Sebelius (R. - Kansas)\nRep. Keith Sebelius called to urge the President to act\nswiftly and dramatically on two items: (1) wheat prices\nand (2) beef imports.\nSebelius says the situation in Kansas is drastic and calls\nfor Presidential action in both areas. He says a failure\nto act now will result in severe political consequences for\nthe President in farm areas. Sebelius stated he did not\nwant to state it so strongly, but he feels that the Admin-\nistration should be made acutely aware of the situation and\nemphasized that he would not take the time to call from his\nre-election campaign if he didn't feel strongly that a\nfailure to act will hurt the President politically as he\ncan be re-elected.\nSebelius says the time is now to raise the loan rate on\nwheat to $2.25 and that that target price is low. He feels\nthat OMB should accept the $2.25 support price and get some\nPL 480 money moving.\nOn beef imports, Sebelius says that it is imperative that\nthe Administration put out the message that USDA did attempt\nto regulate beef imports by regulation that beef entering\nthe U. S. through free trade zones would be charged against\nthe country of origin, but that the USDA attempt to regulate\nbeef imports has been blocked by court action instituted by\na meat processor.\nCC: Jack Marsh\nJim Cavanaugh\nJim Cannon\nFORD & LIBRARY GERALD\n100607\nagu\n[1976]\nTHE WHITE HOUSE\nWASHINGTON\nDATE: 10/6\nTO: FRED SLIGHT\nFROM:\nALLEN MOORE\nSUBJECT: Article request for\nThe Farmer\nACTION:\nFYI:\nChanges have been noted in the\nmargins, and one question (#12)\nre-written. Note the decision\nto be made by you on Question 2.\nFORD & LIBRARY GERALD\nPaul Leach\nACTION REQUESTED\nOctober 2, 1976\nMEMORANDUM FOR:\nJIM CAVANAUGH\nPAUL O'NEILL\nBILL BAROODY\nFROM:\nFRED SLIGHT FW8\nSUBJECT:\nArticle Request\nThe President has been requested to submit his views on\nissues concerning farmers for publication in THE FARMER.\nAttached are draft responses to the list of questions\nasked of the President, prepared by USDA's public information\noffice. I would appreciate your review of these responses.\nCharacteristically, this request along with the draft arrived\nto my office very recently, and the submission date for\npublication was September 30, However, the publication will\nextend its deadline for a few days, and consequently, I\nwould appreciate your comments and/or suggestions by c.o.b.\nWednesday, October 6.\nThank you for your continuing assistance.\nAttachment\nFORD & LIBRARY GERALD\nQuestion 12\nQ: How would you recommend grain inspection be administered?\nShould inspection be by government inspectors? Private\ninspectors? Both?\nA: We must not tolerate the kind of behavior involved in the\ngrain inspection mess. To clean up the grain inspection\nproblem and maintain the confidence of our grain export\ncustomers, I have directed the USDA to use every available\nresource.\nHowever, because a change in law is also needed, I recommended\nlegislation last year that would strengthen the present in-\nspection system in which the states and private organizations\nshare responsibility with the Federal government. While I\nsupport legal changes, I believe that a completely federalized\ninspection system would be costly and unnecessary.\nJust before Congress recessed, it finally passed a \"compromise\"\nbill which does not totally federalize the system. I will be\nexamining this bill within the next few days and determining\nwhether it deserves my signature.\nFORD is LIBRARY GENALD\nCC: Judy Johnston\nPaul Leach\nagric\nTHE WHITE HOUSE\n-\nWASHINGTON\nArt\nOctober 8, 1976\n74!\nMEMORANDUM FOR:\nVI JIM CANNON\nJIM CAVANAUGH\nJIM CONNOR\nIm\nMAX FRIEDERSDORF\nFROM:\nJACK MARSH Jan\nCongressman Jim Abdnor of South Dakota called to make\nthe following points which he wishes to have relayed\nto the President's advisers:\n1.\nThe Agriculture situation remains bad insofar as\nfarm income is concerned.\n2.\nHe recommends that serious consideration be given\nto the increase of loan prices which he says are\nnow far too low.\n3.\nHe argues strongly that the hay bill should be\nsigned by the President, and he questions the\ncost figures that have been cited for this pro-\ngram as being far too high.\n4.\nHe has sent a telegram urging that consideration\nbe given to the beef import question and a change\nin the beef import quota.\n100901\nTHE WHITE HOUSE\nWASHINGTON\nDate\n10/11/76\nTO:\n1976 OCT 11 PM JIM CANNON\nFROM: Max L. Friedersdorf\nFor Your Information X\nPlease Handle\nPlease See Me\nComments, Please\nOther\nagm\n+-\nOctober 8, 1976\nMEMORANDUM FOR:\nMAX FRIEDERSDORF\nFROM:\nJOE JENCKES 9.6.9.\nSUBJECT:\nFarm and Cattle Vote\nSenator Milton Young phoned me today urging in very\nstrong terms that the President take immediate action\non price supports for wheat. The Senator said wheat\nshould be pegged at $2.50. According to Senator Young,\nit is imperative that the President take such action\nor he will surely lose the farm vote.\nSenator Young also urges that the President take\naction on beef imports.\nFORD i LIBRARY GERALD\n101/02\nOctober 21, 1976\n1976 OCT 21 PM 3 49\nMEMORANDUM FOR:\nJACK MARSH\nDICK CHENEY\nFROM:\nMAX FRIEDERSDORF\nSUBJECT:\nNorth Carolina\nSenator Helms and Tom Ellis, the Reagan Chairman in North\nCarolina, dictated the attached statement today, pertaining\nto the President's scheduled visit to Raleigh.\nAside from the Helms commercial, the statement has merit.\nCC: Dave Gergen\nGwen Anderson\nJim Cavanaugh\nJim Cannon\nAnn Brunsdale\nFORD i LIBRARY GERALD\n112/16\nSUGGESTED STATEMENT BY THE PRESIDENT ON THE TOBACCO INDUSTRY\nIN NORTH CAROLINA - SUBMITTED BY SENATOR JESSE HELMS.\nPresident Ford will be here on Saturday in the heart of the\ntobacco belt. He will be asked about tobacco and even if he\nis not, he needs to say something to reassure the tobacco\nindustry - farmers, warehousemen, and leaf buyers - of his\ninterest in their industry.\nHe might say something along these lines:\n\"I've been talking with Senator Jesse Helms, a really outstanding\nMember of the Senate Agriculture Committee, about the problems in\nthe tobacco industry. Senator Helms told me of an announcement\nby the Flue Cured Stabilization Corporation, that they are in a\nshakey position as they are now forced to take under loan, greatly\nincreased quantities of tobacco. This is endangering a self-\nsustaining program - one that has never cost the government a\nnickle - and to shake this organization sends negative vibrations\nto every level of the industry - from farmer to manufacturer.\"\nThe President may also want to say:\n\"1. I am interested in protecting your vital agricultural interests\nin North Carolina, this certainly includes tobacco.\n2.\nI have, and will continue to urge the Department of Agriculture\nto do all possible to insure the continued support of massive\nexports of tobacco. This is good for the farmer, but it is\nalso good for the economy - not just in North Carolina - but to\nhelp our balance of payments.\n3.\nI have requested the Agriculture Department to continue and\neven increase their Commodity Credit Corporation export sales\nprogram. This will stimulate sales of tobacco to our export\nmarkets. In turn, it will increase the tobacco farmers'\nability to sell their crops at a fair price. (Today, approxi-\nmately 40% of all tobacco grown in the United States is\nmarketed overseas.)\n4.\nThis is not a Jimmy Carter giveaway. This program I have\noutlined has not, and will not, cost the taxpayer a single\ndollar. As a matter of fact, the government made money on\nthis program last year. I wish we had more federal programs\nlike this. II\n(Last year, the Commodity Credit Corporation made available $100\nmillion for the tobacco program. If the President is to make the\nabove statement, he should request Agriculture and OMB to increase\nthe budget for the coming year.)\nfile\nTHE WHITE HOUS\ning to the\nust be kept\nWASHINGTON\nuntil the\nransmitted\nNovember 4, 1976\nMEMO FOR: PAUL LEACH\nFROM:\nSUBJECT: Legislative Program for Agriculture\nJIM Sm CANNON\nAM\nPlease look this over and identify for\nme in a brief memo the key points of\nconcern.\nE\nAttachment\nFORD i LIBRARY 076830\nND FINANCE\nTHE WHITE\nWASHINGTON HOUSE Jash - agriculture\nSour This\nDecember 8, 1976\nis late\nMEMORANDUM FOR: JACK MARSH\n8m\nFROM:\nSUBJECT:\nJIM Your CANNON memo Jun re:\nPeanuts\nAt this point, nothing should be done vis-a-vis Frick or\nUSDA.\nUSDA has no legal power to do away with allotments so there\nis obviously a misunderstanding by Representative Dickinson.\nWhat Frick has done is to tell the ASCS county committees\nnot to approve any allotment sales or leases, pending a\ndecision on the matter of sale or lease of allotments. This\nis merely a precaution in case USDA decides to prevent\nallotment transfers for the 1977 crop thereby effectively\ncutting peanut production, surpluses and government support\nprogram outlays. A policy decision on this matter is\nexpected before January 20 from USDA.\nYou should be aware that the Administration has supported\nlegislation to rationalize the peanut program (see attached\nPresidential Q and A).\nIf you have further questions, let me know and we can do\nadditional digging.\nAttachments\nFORD & LIBRARY 076839\nTHE WHITE HOUSE\nWASHINGTON\nDecember 6, 1976\ni 3 5 18\nMEMORANDUM TO:\nJIM CANNON\nFROM:\nJACK MARSH each\nJim, we received a call from Rep. Bill Dickinson.\nDickinson was extremely concerned over a recent\nannouncement regarding Ken Frick's (Agriculture)\nintention to do away with acreage allotments for\npeanuts.\nDickinson was of the view that such a move would\nbe extremely harmful to some of our Southern\nRepublicans, in whose districts peanut crops loom\nvery large. Dickinson was obviously suggesting\nthat Frick's announcement be countermanded.\nPlease have a member of your staff look into this\nmatter, and then give me your own guidance.\nMany thanks.\nFORD i LIBRARY GERALD\nPEANUT PROGRAM\nQ:\nDo you favor a change in the present peanut program?\nA:\nYes. I'm afraid the industry is going to be damaged\nif there aren't some changes. Current legislation\nencourages the production of peanut surpluses at the\npresent price support level. Large amounts of\npeanuts are produced under the government subsidy\nprogram. Government peanut subsidies will cost tax-\npayers many millions of dollars this year. The loss\non the 1975 crop will exceed $175 million. That kind\nof program can't have a long life in today's climate.\nIt is an embarrassment to farmers and in the long run\nnot good for peanut growers. We need a change which\nwill permit our peanuts to meet world demand at\ncompetitive price levels.\nCongress failed to correct this problem during the\nsession just ended. Next year my Administration will\ntry again to work with the Congress to find a way to\nchange this program and end the burden of this outmoded\nprogram.\nBACKGROUND\nThe peanut program under present legislation clearly is not\nworking since it is resulting in an excessive production of\npeanuts which cannot be marketed at the support price dictated\nby the legislation. Therefore, it is needlessly costing\nAmerican taxpayers millions of dollars to purchase and store\nthe embarrassing large surpluses acquired at the high support\nprice level.\nThere is a clear need to change the present peanut program.\nCurrent legislation directs the Secretary of Agriculture to\nprovide price supports for peanut producers. It provides that\nthe minimum peanut acreage allotment shall be 1.6 million acres\nand the minimum support level shall be 75 percent of the parity\nprice for peanuts as of August 1 each year.\nThe production controls only limit acreage, not poundage output.\nYields at the time the program began in the 1930's were only abo\n900 pounds per acre, while the 1975 yields average 2,565\npounds per acre. Because of excess production, peanut output\nnow exceeds our domestic edible needs by about 40 percent.\nFORD & LIBRARY AERALD\n-2-\nUntil the 1973 crop, the Commodity Credit Corporation sold\nsurplus peanuts at competitive world prices which usually were\nsubstantially below the loan value. Beginning with the\n1974 crop, the subsidy of peanuts for export was discontinued.\nSubsidies on exports of other commodities had been removed\nearlier (i.e., corn in the early 1960's; cotton in 1966; and\nwheat and rice in 1972; tobacco and flour in 1973).\nCurrent laws hamstring the Government by viture of the high\nminimum allotment and high loan rate -- neither of which can\nbe changed without new legislation.\nLegislation, considered by the Congress at its last session\nand aimed at corrective measures, failed to pass because of\nopposition from some Southern Democrats. This bill, H.R. 12808,\nintroduced by Representative Dawson Mathis of Georgia, would\nhave amended present peanut price support program on the 1977\ncrop only. It would have improved the peanut program by\nreducing the acreage allotment 22.5 percent, by reducing the\nprice support loan rate from 75 percent of parity to 70 percent\nof parity, and by changing from an acreage allotment program\nto a poundage allotment program.\nThe proposed legislation would have continued to provide an\nadequate supply of peanuts for domestic use, reduce government\ncosts, and allow freedom to produce for export markets.\nPCL\n10/19/76\nFORD LIBRARY &\n@@\nLEACH\nagric.\nTHE WHITE HOUSE\nWASHINGTON\n976 DEC 9 PM 3 34 December 8, 1976\nMEMORANDUM FOR:\nJIM CANNON\nFROM:\nI would greatly appreciate your Jan office handling the\nJACK\nattached matter directly. I would also like to\nreceive a copy of your response.\nMany thanks.\nFORD & LIBRARY GERALD\n120911\n2\n3\n5\n5\n6\n1\nthe\n2\n3\nWHDOOS 449P EDT DEC 2 76 VAF151(1629)(2-038828337)P 12/02/76 1629\n4\n5\nICS IPNNTZZ CSP\n1976 DEC 2 PM 4 55\n6\n9197821705 TDNT RALEIGH NC 59 12-02 0429₱ EST\n7\n8\nPMS JACK MARSH , DLR\n9\nWHITE HOUSE\n10\n11\nWASHINGTON DC\n12\nNORTH CAROLINA FARM BUREAU REPRESENTING PEANUT GROWERS OF THIS STATE\n13\n14\nREQUEST YOUR ASSISTANCE IN RESCINDING THE RECENT USDA ORDER \"TO\n15\nDELAY APPROVAL OF REQUEST FOR LEASE, SALE AND TRANSFER OF ALLOTMENT\n16\n17\nACREAGES\". MANY GROWERS HAVE MADE CONTRACTS FOR 1977 AND THIS POLICY\n18\nCHANGE COULD FURTHER ERODE THE FARM INCOME OF AN IMPORTANT COMMODITY\n19\nFORM 0805 PRINTED BY THE STANDARD REGISTER COMPANY, U. U.S.A.\n20\nGROUP IN OUR STATE\n21\nJOHN SLEDGE PRESIDENT NORTH CAROLINA FARM BUREAU Federation\n22\n23 NNNN\n24\nFORD & LIBRARY GERALD\n25\n26\nTHE WHITE HOUSE\nWASHINGTON\nDecember 8, 1976\nDear Mr. Sledge:\nMany thanks for your recent tele-\ngram.\nSince this is a matter that is\nhandled by the Domestic Council,\nI have referred your telegram to\nMr. James Cannon, Director of\nthe Domestic Council, for his\nconsideration.\nI am sure you will be hearing\nfrom Mr. Cannon shortly concern-\ning this matter.\nSincerely,\nJohn Counsellor O. Marsh, to Thank.J.\nMr. John Sledge\nPresident\nNorth Carolina Farm\nBureau Federation\n5301 Glenwood Avenue\nRaleigh, North Carolina 27611\nBERALD is. FORD LIBRARY\nagriculture\nDecember 17, 1976\nTO:\nMR.' CANNON\nFROM:\nALLEN MOORE\nAssistant Secretary Feltner (Agriculture called about a\nFederal appeal of the food stamp decision.\nHe understood from your conversation with Knebel that\n\"we\" were not inclined to force an appeal if Justice\nrecommended against it (which is likely)\nIf this is wrong, someone needs to direct the A.G.\nto appeal. Otherwise, we do nothing and leave the issue\nto Justice.\nFORD i LIBRARY 976839"
}