White House Statement on Crop Production Loans to Wheat Farmers.

PRESENT LOW PRICES make it practically impossible for wheat farmers to repay their crop production loans without incurring grave risk of need during the winter. On September 14 the Secretary of Agriculture, in order to clear up the situation, issued the following statement in respect to these loans.

"With respect to your recommendation as to deferment of collection of food and seed loans made by this Department I am authorized by the President to say that the Department wishes to handle the situation with the utmost consideration for the borrowers who are in difficulties. You will realize that the law contemplates that the loans must be repaid out of this crop and that to give such extension as you wish will require legislative authority. To meet the needs of those who are in distress the Department will not press for collection of these loans until Congress has an opportunity to act."

It is now represented that this plan has not solved the difficulties in all localities as it has been construed that under this arrangement a claim remains upon the crop which prevents the marketing of any part of it.

In order to clear the matter up, after consultation with authorities in the States concerned, and in order to enable such farmers to provide for their families, the Secretary of Agriculture, after consultation with the President, has directed the Department to accept from such farmers 25 percent of the amount due, together with an agreement to secure the remaining 75 percent of such debt on whatever terms Congress may authorize. Upon payment of such 25 percent and execution of the agreement, no further payment will be required until opportunity has been given Congress to pass on the question involved.