Agricultural Policy of the United States

CONSUMPTION ADJUSTMENT

programs, that is programs aimed at stabilizing the demand for food, have an important place in agricultural policy for two major reasons. One reason is that a stable demand is of critical importance in obtaining a prosperous agriculture. We saw this in our review of the various income periods in American agriculture. When industrial production and employment fell off, agricultural prices and income almost invariably declined. The agricultural depression in the inter-war years, particularly in the 1930's, is traceable directly to weaknesses in demand. When production and employment were relatively high, however, as in the Golden Era or in the war periods, agriculture fared much better. This is one reason why programs to stabilize demand are an important part of agricultural policy.

The other reason is that a stable demand is of critical importance in obtaining a satisfactory standard of nutrition throughout the nation. Diets have been improving in the United States for some time. On the average, people are eating more citrus fruits, green and leafy vegetables, dairy products, eggs and meats, than they did some years ago. Yet, according to results of several food

-304-