Statement by the President Concerning Drought Problems, Wichita, Kansas.

THE REPORTS on your conference here in Wichita show that you have been analyzing carefully not only the needs for immediate emergency help, but also the long-term actions which will aid in stabilizing the economy of this vast area of our country which is seriously affected by drought.

We, in turn, are going to carefully analyze all of the reports and information which have been given to us during this tour and which have been developed during your meeting here. We intend to utilize fully all of the authority and resources which we can properly bring to bear on these drought problems.

Furthermore, we will immediately seek in the Budget the following additional authority from the Congress to continue and expand emergency programs:

1. Authority to use 25 million dollars of the Disaster Loan Revolving Fund to provide additional emergency feed assistance to farmers and ranchers in the drought areas of the United States.

2. Extension, until June 30, 1958, of 25 million dollars of the unobligated funds appropriated for Agricultural Conservation, to enable Secretary Benson to make payments to farmers to carry out wind erosion and other emergency conservation measures.

3. An additional appropriation of 26 million dollars under Title One of the Bankhead-Jones Tenant Act, primarily for refinancing farm indebtedness by direct loans.

The acute drought situation throughout the country has caused us to take a closer look at the entire field of disaster relief and to examine the relationship between the Federal and State governments in administering and financing these programs. This, obviously, is a problem that cannot be solved alone by either Federal or State governments. Both must work closely together to attain solutions of lasting benefit to the affected areas. I am convinced that the State and local governments should assume greater responsibility in helping solve the recurring problems of agriculture, including distress. I think this would aid materially in a more effective administration of these programs and in better adapting them to local conditions and actual requirements.

It is particularly important that our farm and ranch people be given every reasonable type of help in adjusting their businesses to the best use of their land and other natural resources. The Great Plains Council has been contributing to the solution of this problem for many years. We have seen on this trip farmers and ranchers who have successfully coped with severe drought problems. Their experience demonstrates what can be done by many other ranchers. These improved farming practices are a part of the Great Plains Program that was developed by the various State and local agencies and the Department of Agriculture.

There are many areas in which local, State and Federal government and private groups can and should work together. We must use all our best efforts to:

1. Develop further usage of our land and water resources, by range improvement and better management of watersheds.

2. Continue and expand research in better land and water use, in weather forecasting, in evaporation and transpiration reduction methods, and in saline water conversion. Further research and improvement in weather services to agriculture are needed. This includes monthly and seasonal forecasting that will better equip farmers and ranchers to adjust their operations to the climatic problems of these States.

3. Achieve maximum conservation and storage of surface and ground waters for agricultural, industrial and municipal purposes.

4. Assure adequate credit on reasonable terms to farmers, ranchers and small businessmen. Private, cooperative and Federal lending agencies have been and are providing very helpful credit assistance throughout the drought area. I have asked the government lending agencies to carefully re-appraise their lending policies and adequacy of loanable funds. I would suggest that the other lending institutions likewise carefully re-appraise their facilities and resources. I want to see private lending institutions continue to be the principal source of credit, with the Federal programs merely supplementing as needed.

5. Emphasize the need for industrial development in the Great Plains. Industrial expansion in this area will bring additional opportunities for employment to supplement farm and ranch income. This would be especially helpful during this emergency period, and of course would contribute to the economic welfare of the entire area.