<--PREV Doc #129  |  Memorial Commission Home Page  |  First Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #131 Document #130; April 4, 1953 To Ezra Taft Benson Series: EM, AWF, Administration Series The Papers of Dwight David Eisenhower, Volume XIV - The Presidency: The Middle Way Part I: Charting a New Course; January 1953 to April 1953 Chapter 2: "A number of misunderstandings": Party and International Struggles   Memorandum to the Secretary of Agriculture: I have read your memorandum of April second concerning the anticipated operations of the Commodity Credit Corporation.1 I realize that certain commodities are supported rigidly by law; in other cases I understand that a certain amount of flexibility is permitted to the Secretary of Agriculture. Would it be well to announce at an early date that when the current arrangements run out, about a year from now, we will not renew at present prices the program for supporting butter and other dairy products? This is merely a suggestion concerning which I should like to talk to you. It is not in any sense a crystallized conclusion.2 1 Benson's memorandum (AWF/A) concerned revised estimates of net expenditures for the Commodity Credit Corporation for fiscal years 1953 and 1954. According to Benson, the new figures showed an increase of $609 million for FY 1953, and $390 million for FY 1954. The Secretary had reminded Eisenhower that the Administration's pledge to carry out the provisions of the Agricultural Act of 1949, making price supports mandatory for both basic and nonbasic commodities, accounted for the increase in net expenditures. He pointed out that rising expenses were the result of an increased volume of operations necessary to bolster dropping farm prices. "With high mandatory price supports," he said, "it is automatic that Commodity Credit Corporation expenditures will be high in years when crops are large." 2 Benson had discretionary authority to set the level of dairy price supports from 75 percent to 90 percent of parity. At the present time, dairymen were receiving 90 percent support and were reluctant to give it up, even though this kept the price of butter relatively high. Because of the high price, consumers had turned to margarine, with the result that the government was forced to buy up surplus butter in order to support the price. Benson wanted to cut support of dairy products to 75 percent, but in meetings with the President, Milton Eisenhower, General Persons, and the Cabinet, it was decided to let the 90 percent level stand for one year and to give the dairy industry an opportunity to effect a program of its own to promote increased consumption of dairy products (Agenda, Feb. 20, 1953, AWF/Cabinet; Benson, Cross Fire, pp. 76-77, 255-57). For further developments on agricultural price supports see no. 322. Bibliographic reference to this document: Eisenhower, Dwight D. To Ezra Taft Benson, 4 April 1953. In The Papers of Dwight David Eisenhower, ed. L. Galambos and D. van Ee, doc. 130. World Wide Web facsimile by The Dwight D. Eisenhower Memorial Commission of the print edition; Baltimore, MD: The Johns Hopkins University Press, 1996, http://www.eisenhowermemorial.org/presidential-papers/first-term/documents/130.cfm <--PREV Doc #129  |  Memorial Commission Home Page  |  First Term Table of Contents  |  Presidential Papers Home Page  |  Doc#  |  NEXT--> Doc #131

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