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Montana farmer-stockman. [volume] (Great Falls, Mont.) 1947-1993, August 01, 1959, Image 18

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WASHINGTON, D.C. — Why grad«
meat?
One of USDA's top livestock econ
omists answers that question In a
recent report which takes on a
good deal of significance in view
of moves by major packing firms
to kill the Federal beef grading
system.
Grading is necessary, says econo
mist Harold F. Breimyer, because the
marketing system today must handle
meat in large volume. And for a vol
ume operation, the marketing system
needs a standardized product which
can be bought or sold by verbal or
written descriptions.
Breimyer maintains that the question
livestock producers face is not whether
to have grading or no grading. It's a
choice between uniform Federal grad
ing and a host of non-standard grading
systems operated by private meat
buyers.
Rogers' attack is aimed at a bill ap
proved recently by the Senate Agricul
ture Committee. The measure gives
cooperatives blanket clearance to ac
quire processing and marketing facili
ties. .
Cooperatives already have this pow
er as a general rule under the old
Capper-Volstead Act. But Rogers' aides
maintain that in particular cases,
where acquisition of a processing or
marketing company by a cooperative
creates a monopoly, the action would
violate anti-trust law. The bill under
attack would clear up this question of
anti-trust violations in favor of the co
operatives,
The immediate issue is the case of
CO-OP ISSUE
Attorney-General Rogers is fight
ing a move in the Congress to give
farm cooperatives broader exemp
tion from the anti-trust laws.
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A Division of Superior Separator Co sApany
Keeping in Touch With Washington
m
Uniform Standard Is
Vital in Meat Grading
a dairy farmer's co-op in the Washing
ton area, currently under Justice De
partment fire in the court for its 1954
acquisition of a local dairy.
The Agriculture Department says it
recognizes the need for cooperatives
to expand to meet market conditions.
But it wants the Congress to hold off
action on the exemption bill until the
Supreme Court rules on the local dairy
case.
WHOPPER BUILDUP
The politicians who make it their
business to look ahead to next
year's problems can see a whopper
building up in livestock and feed
grains.
Warning flags have been flying for
months. USDA reports show the big
feed grain supply is being shoveled
rapidly into a growing hog population,
And all the economists who follow farm
trends closely are agreed that hogs
are likely to hit their low price point
for the current cycle in the fall of 1980.
There is some nervousness about the
cattle outlook, too. But most experts
are inclined to believe the cattle mar
ket won't really hit the skids until after
1960, even if the present buildup con
tinues.
Hog prices, however, are enough of
a political factor in themselves to pro
duce some deep thought now—more
than a year before the crisis is ex
pected.
No Republican politician wants to
take the risk of running a Congression
al or Presidential campaign in hog
producing areas next year under the
handicap of a busted hog market. If
the spring pig crop next year points
to price disaster in the fall, you can
look for the heaviest kind of GOP pres
sure for strong Administration moves
to bolster the hog market.
LABOR STANDARDS
Labor Secretary James Mitchell
was ready at press-time to move
ahead with his plans for new mi
gratory labor standards. Attorney
General William Rogers has ruled
that Mitchell has legal authority to
fix labor-standard requirements for
farm employers who want to re
cruit workers through the Federal
State Employment Service.
Before Mitchell puts the new stand
ards into effect, public hearings will
be held on his proposals—which are
currently much milder than when first
revealed several months ago. The ef
fect of the new rules on farmers can't
be gauged until the hearings are com
pleted and Mitchell decides which of
the proposals he'll actually put into the
Employment Service Rules.
In the background is a development
that may hold as much or more signifi
cance for farm employers. This is a
study under way inside Mitchell's de
partment in preparation for a possible

Administration move next year to get
extension of the Federal minimum wage
law to cover farm workers.
MORE INTEGRATION
You can expect "integrated" con
tract egg production arrangements
continue to grow, especially in
Mid-west, Northeast and the
to
the
West.
That's the way USDA economists
size up the outlook after a pilot study
of integration in the egg industry. The
study, made in interviews with 29 firms
last summer and fall, shows that vari
degrees of integration are cutting
costs for many of the firms.
Systems of integration vary, the
study finds. But the important thing
as far as the economists were con
cerned was the finding that costs were
being cut and "integrated operations
likely to continue to increase in
importance.
ous
are
SHORT SHOTS:
Congressional approval is considered
likely for a bill revamping rules on
preservation of acreage allotment his
tory. The bill provides farmers can
maintain history by planting 75 per cent
of the allotment once every three
. . Lightweight wheat is now
years .
eligible for support loans under the
1959 loan program. Discounts will de
pend on actual test weights down to
minimum of 40 pounds per bushel . . •
Oklahoma Senator Robert Kerr (D)
and Arkansas ' Rep. James Trimble
have introduced bills to reverse a 7
year-old administrative ruling which
has the effect of increasing public pow
er rates ... A special Senate investi
gation of USDA's Commodity Credit
Corp. moved close to the action state
recently with the appointment of Rich
ard M. Schmidt Jr., as counsel for the
probe. Schmidt is a Denver attorney.

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