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data-event-name="pinnable-header.vector-appearance.unpin">hide</button> </div> </div> </div> </nav> </div> </div> <div id="bodyContent" class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><p>The <b>Brannan Plan</b> was a failed <a href="/wiki/United_States_farm_bill" title="United States farm bill">United States farm bill</a> from 1949. It called for "compensatory payments" to American farmers in response to the major problem of large agricultural surpluses stemming from price supports for farmers.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The Brannan Plan was named after <a href="/wiki/Charles_Brannan" class="mw-redirect" title="Charles Brannan">Charles Brannan</a>, who served as the fourteenth <a href="/wiki/United_States_Secretary_of_Agriculture" title="United States Secretary of Agriculture">United States Secretary of Agriculture</a> from 1948 to 1953 as a liberal member of President <a href="/wiki/Harry_S._Truman" title="Harry S. Truman">Harry S. Truman</a>'s cabinet. It was blocked by conservatives and never became law. The start of the Korean War in June 1950 made the surpluses a vital weapon and prices soared as surpluses were used up, making the proposal irrelevant.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Background">Background</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Brannan_Plan&action=edit&section=1" title="Edit section: Background"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/United_States_home_front_during_World_War_II#Farming" title="United States home front during World War II">During World War II</a>, agricultural products were in very high demand by the fact that food was needed overseas. The government encouraged maximum production by setting prices for farm products well above the market-clearing level. This ultimately led to overproduction.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> While the demand for agriculture during the war was high, these wartime conditions proved to be unrealistic when the war ended. Following the war there were large farm surpluses. Subsequently, prices stemming from the price support became higher than consumers were willing to pay. </p><p>Prior to Brannan's proposal, the <a href="/wiki/Agricultural_Act_of_1948" title="Agricultural Act of 1948">Agricultural Act of 1948</a>, a revision of the <a href="/wiki/Agricultural_Adjustment_Act_of_1938" title="Agricultural Adjustment Act of 1938">Agricultural Adjustment Act of 1938</a>, had recently been implemented. However, this act had merely extended the price support programs of the wartime law that would soon expire; something had to be improved. With the need for reform, Charles Brannan proposed for "Production and price adjustment with a definite income objective," which quickly became known as the "Brannan Plan."<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> The goal was to provide high prices for corn, wheat, tobacco, cotton, milk, eggs chickens, hogs, beef and lambs. The political assumption was that American farmers were so morally critical to America that they should be given higher incomes, regardless of marketplace supply and demand. The plan was opposed by the business community and by the nearly unanimous farmers organizations, except for the left-wing <a href="/wiki/National_Farmers_Union_(United_States)" title="National Farmers Union (United States)">National Farmers' Union</a>, which was its chief sponsor.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Proposal">Proposal</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Brannan_Plan&action=edit&section=2" title="Edit section: Proposal"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In the free market, the prices that yielded were considered to be unfair to farmers. Under the New Deal support system, the government would raise the price to a "parity" price, and consumers would not be willing to buy as much. In turn, the government would purchase excess supply, which led to large amounts of storage. However, under the Brannan Plan, the government would allow the surplus to be sold for whatever price it would bring.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> Consequently, the price would drop to that determined by the market and result in an elimination of the surplus. To compensate for the low prices, the Treasury would write checks to farmers for the difference between the high parity price and the low new market price. Altogether, consumers would pay lower prices for farm products, resources would not be wasted producing food simply for storage, and farmers would benefit by receiving the parity price while producing the quantity demanded at the market price for the surplus. </p> <div class="mw-heading mw-heading2"><h2 id="Opposition_in_Congress">Opposition in Congress</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Brannan_Plan&action=edit&section=3" title="Edit section: Opposition in Congress"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Brannan's plan was opposed largely by conservative Republican representatives. Leading counterarguments included the beliefs that of parity or more was too great a price differentiation and granted on too many commodities, the burden on taxpayers would become too serious, and supporting farmers but not other groups would raise ethical concerns. Vermont Republican Senator <a href="/wiki/George_Aiken" title="George Aiken">George Aiken</a> believed the matter of support levels was "a fundamental concern not only of economics, but of philosophy of government as well." The Brannan Plan would "require either huge payments from the Treasury or detailed and severe controls over agricultural production and marketing."<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> It seems that despite Brannan's effort, most of Congress agreed that his plan valued farm prices at unrealistically-high levels. </p><p>In the <a href="/wiki/1948_United_States_presidential_election" title="1948 United States presidential election">1948 presidential election</a>, Truman received heavy support from Midwestern farmers and scored a surprise upset over the Republican opponent, <a href="/wiki/Thomas_Dewey" class="mw-redirect" title="Thomas Dewey">Thomas Dewey</a>.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> However, the <a href="/wiki/Conservative_Coalition" class="mw-redirect" title="Conservative Coalition">Conservative Coalition</a> still controlled Congress and remained opposed to the plan. The <a href="/wiki/Korean_War" title="Korean War">Korean War</a> began in June 1950 and so food became a weapon against communism in the <a href="/wiki/Cold_War" title="Cold War">Cold War</a>. Prices rose, and the surpluses were used up. <sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Brannan_Plan&action=edit&section=4" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/United_States_farm_bill" title="United States farm bill">United States farm bill</a> for major legislation</li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Brannan_Plan&action=edit&section=5" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">Walton & Rockoff, p. 508.</span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">Allen J. Matusow, <i>Farm Policies and Politics in the Truman Years</i> (Harvard UP, 1967) pp 191–221.</span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text">Thompson</span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">Dean (1996), p. 268.</span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text">Dean (1993) pp 37-38</span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">Charles M. Hardin, "The Politics of Agriculture in the United States." <i>Journal of Farm Economics</i> 32#4 Part 1 (1950) pp: 571-583.</span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text">Walton & Rockoff, p. 509.</span> </li> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text">Dean (1996) p. 274.</span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text">Benedict, 156.</span> </li> <li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text">Matusow, (1967) pp. 222–237.</span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Brannan_Plan&action=edit&section=6" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li>Benedict, Murray R. "Farm policies of the United States, 1790-1950: A Study of their Origins and Development." New York: The Twentieth Century Fund, 1953.</li> <li>Christenson, Reo M. <i>The Brannan Plan: Farm Politics and Policy</i> (University of Michigan Press, 1959)</li> <li>Dean, Virgil W. <i>An Opportunity Lost: The Truman Administration and the Farm Policy Debate</i> (University of Missouri Press, 2006) <a rel="nofollow" class="external text" href="https://www.questia.com/library/120080160/an-opportunity-lost-the-truman-administration-and">online</a> <ul><li>Dean, Virgil W. "The Farm Policy Debate of 1949-50: Plains State Reaction to the Brannan Plan." <i>Great Plains Quarterly</i> (1993): 33-46. <a rel="nofollow" class="external text" href="http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1772&context=greatplainsquarterly">online</a></li> <li>Dean, Virgil W. "Charles F. Brannan and the Rise and Fall of Truman's 'Fair Deal' for Farmers." <i>Agricultural History</i> (1995): 28-53. <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/3744024">in JSTOR</a></li> <li>Dean, Virgil W. "Why Not the Brannan Plan?" <i>Agricultural History</i> (1996) 70#2, pp. 268-282. <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/3744537">in JSTOR</a></li></ul></li> <li>Flamm, Michael W. "The National Farmers Union and the evolution of agrarian liberalism, 1937-1946." <i>Agricultural history</i> (1994): 54-80. <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/3744149">in JSTOR</a></li> <li>Matusow, Allen J. <i>Farm Policies and Politics in the Truman Years</i> (Harvard University Press, 1967)</li> <li>Thompson, Robert L. "Agricultural Price Supports," <i>The Concise Encyclopedia of Economics</i>.</li></ul>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?type=1x1" alt="" width="1" height="1" style="border: none; position: absolute;"></noscript> <div class="printfooter" data-nosnippet="">Retrieved from "<a dir="ltr" href="https://en.wikipedia.org/w/index.php?title=Brannan_Plan&oldid=1230348300">https://en.wikipedia.org/w/index.php?title=Brannan_Plan&oldid=1230348300</a>"</div></div> <div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Help:Category" title="Help:Category">Categories</a>: <ul><li><a href="/wiki/Category:United_States_economic_policy" title="Category:United States economic policy">United States economic policy</a></li><li><a href="/wiki/Category:United_States_federal_agriculture_legislation" title="Category:United States federal agriculture legislation">United States federal agriculture legislation</a></li><li><a href="/wiki/Category:81st_United_States_Congress" title="Category:81st United States Congress">81st United States Congress</a></li></ul></div></div> </div> </main> </div> <div class="mw-footer-container"> <footer id="footer" class="mw-footer" > <ul id="footer-info"> <li id="footer-info-lastmod"> This page was last edited on 22 June 2024, at 06:19<span class="anonymous-show"> (UTC)</span>.</li> <li id="footer-info-copyright">Text is available under the <a href="/wiki/Wikipedia:Text_of_the_Creative_Commons_Attribution-ShareAlike_4.0_International_License" title="Wikipedia:Text of the Creative Commons Attribution-ShareAlike 4.0 International License">Creative Commons Attribution-ShareAlike 4.0 License</a>; additional terms may apply. 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