. y Administration tried a series of mergency measures to rectify the U.S. alance-of-payments deficit, one of hich was an attempt to increase the urplus of exports over imports. While ve are not here discussing the total roplem involved in this, or even Whether oF not the Johnson Adminis- ration succeeded, or could succeed in ty aim. The fact is that they pushed Xs aside for their advantage in the Market place. ; we have a glut of wheat. We have a crisis of overproduction in wheat. e UK, China, and the Socialist lands of Europe, in the recent past, took 50 percent of our flour and wheat gyports. Socialist European countries took 29.6 percent, and China took 29.8 percent in the period 1962-63 to 1966- 67- ji of the conclusions about where we sell our wheat have not been 5 : Total, U.S.A. Canada exporting Perlod (millions of bushels) tries 4950-51 375.3 241 838 1956-57 539.5 264 1,024.7 1957-58 396.4 320 856.2 4966-67. 731 . 516 1,609.8 4967-68 750 345 # BS. drawn by our governments, although today they madly clutch at the hope that both China and the U.S.S.R. will puy lots of wheat, from us. This raises some deep-going political questions about the influence of for- eign policy on agricultural markets. Right now the United States and West Germany are attempting to force a ¢ougher stance on Canada in NATO. Against whom? Against Canada’s best wheat customers! There are other contradictions, too. For instance, we ‘are faced with the roblems of storing surplus wheat, “while three-quarters of. the world is — hungry. Scientific American, November, 1968, ’ gays: _ “The economic gulf that has divided the poorer countries of the world from the richer countries is rapidly widen- ing .. - It is highly probable that for at least the next 20 years most of the people in the world will continue to exist at the margin of subsistence ... about 2.1 billion people, or 64 percent of the world’s population, live in coun- tries whose average income is less than $300, and almost 1.9 billion of these people live in countries whose average income falls below $200...” The same article uses several criteria for measuring poverty in the world. This, however, is fundamental. The average per capita income in the Unit- ed States, for a population of. just under 200 million, is $2,893. For Can- ada, with a population around 20 mil- lion, it is $1,825. But for 1,018 million people it is below $100. Now the “experts” are raising new questions. Are we growing too high a quality wheat? This, of course, is not the problem of the farmer, but the shortcoming of government policy. One article has it “Developing nations short of foreign exchange (our empha-- _ sis) have preferred to import accept- - able but less costly wheat grades.” A Canadian Press report in the Re- gina Leader-Post said: © “In two short years, the world has found it can get, along without wheat from the Canadian grain belt. The as- sured markets are gone—perhaps for- ever and Western Canada farmers are facing a dilemma unmatched in nearly 40 years... What do they do? Diversify? Switch to new crops or var- ieties? Sell at any price? ... Mr. Park- er (W. J. Parker, president of the Al- perta Wheat Pool) says. the world could get along nicely without any Canadian wheat. Mr. Runciman adds that urgent statements about North America having to feed mankind are not valid . . . The dwarf varieties (Mex- ican dwarf Pitric) hold promise of self- — sufficiency for Pakistan and India... closer to home the U.S.A. is on. an export binge and cutting into tradition- al Canadian markets .. . part of ‘the teason for the push was the unfavour- able: American balance-of-payments . . . Canada’s. best prospects for sales are in Communist China . always paid up . - Again we need to revive our attack on the spending of nearly two billion dollars yearly on armaments; on our commitments to NATO and NORAD .°. Peking has and show that it is in this area where © we can find the capital to expand mar- kets for agricultural products. The outcomes of federal and provin- cial elections indicate that a wide sec- tion of the Canadian electorate is confused on these questions, blaming most of our tax problems on welfar- ism, rather than on the heavy arma- ments spending which benefits the monopolies—and the give-aways, tax concessions, low royalty rates given the monopolies by the same govern- ments. That’s why it’s so important to show e A moratorium on farm debt so that no farmer loses his machin- ery, land or his equity in them, as a result of this year’s conditions. e A special federal fund to, prov- ide a minimum income of at least $3,000 yearly to each farmer, pre- serve herds and stocks, subsidize interest rates so they don’t rise above 5 percent during this crisis. e Government action to provide a system of state-owned drying equipment. '-e@ Immediate government action to guarantee an adequate supply of _ good seed grain. e Steps to protect Canadian agri- aes from U.S.A. dumping. 3 tni 4 Sey £53 Communist farm program. _e@ Remove the minimum restric- tions for qualifications for dairy and egg subsidies. : e@ A comprehensive Dominion- provincial, all risk, crop insurance scheme, which would assist in guar- anteeing a minimum annual income. e Federal-provincial actions to bring monopoly profiteering under control. e A radically new program to secure new markets for wheat, in light of present-day reality. The basis for trade expansion must be a policy of buying from those who buy from us, and the acceptance of local currencies. Socialist countries now purchase more than 50 percent of our export wheat—let’s have new policies of friendship with them. f+ tArreege “Th We are faced with the problems of storing surplus wheat while three-quarters of the world is hungry. the alternatives opened up by policies . based upon. peaceful co-existence and ‘mutual advantage. -‘There’s another area to be looked at: the class differences within agricul- ture. There is poverty and social back- wardness throughout the agricultural . community. A good many people have read gen- eral statistics about the declining farm population, ‘and have concluded that the farmers have virtually disappeared, and that there will be no such animal around. In their opinion, the farmers who are left have now )become: rich and wealthy—and, by deduction, reac- tionary. ~ } A quick glance at the 1966 census figures, which really needs studying in its totality, reveals that these conclu- sions are wrong. The problem of the “small farmer” is still with us. Just examine this table from the 1966 census reports. ‘ There are 430,522 census farms. | Number Annual Value of Approx. of farms agricultural products sold of all farms 10,282 Over $35,000 23 9,384 _ Between $25,000-34,999 2 31,149 Between $15,000-24,999 7 44,217 Between $10,000-14,999 10 38,753 Between $ 7,500- 9,999 9 58,103 Between $ 5,000- 7,499 14 37,923 Between $ 3,750- 4,999 9 47,024 Between $ 2,500- 3,749 11 60,947 Between $ 1,200- 2,499 14 55,271 Between $ 250- 1,199 13 36,692 Between$ 50- 249 9 The top two categories, that is, those. farmers selling above the $25,000 a year, are limited to about 4 percent of the farmers. Depending on the par- ‘ticular “expert” who does the figuring, it is estimated that net income varies between one-quarter and one-third of gross annual sales.'In that case, only 21 percent of all farmers would have a net income of $5,000 a year upwards. Below that are all the rest. Hedlin Menzies and Associates, in Rural Poverty in Canada, show the dis- parity between farm, rural non-farm, and urban families by province in 1961. : ‘ Farm * Rural Province 1958 non-farm Urban Manitoba 3,572 3,564 5,657. Sask. 3,321 3,584 5,417 Alberta 4,281 4,198 5,894 ~ 102,000; This table indicates that rural non- farm average was 69 percent, and the rural farm average was 63 percent of the average urban income. Rural Poverty in Canada shows that over half the total family income for those farmers grossing between $1,200 and $2,499 annually, got 50 percent of their incomes from non-farm sources, . to give them a mean average’ annual income of only $2,400. According to this report, 44 percent of all families residing in rural areas of Canada were poor.’ In absolute terms they formed the largest groups in Quebec, with 125,000; Ontario, with and Saskatchewan with 61,000. \ "In two short years, the world found it can get along without the wheat from the : Canadian grain belt."