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0.208 rolm the Federal Reserve Bank of Chicago July 24, 1953 A NEW FARM ADVISORY COMMISSION was established by President Eisenhower this week. The 18-man commission will review national agricultural policies and the administration of farm programs for the purpose of making recommendations to the Secretary of Agriculture. The President will appoint the 18 members, no more than 9 belonging to any one political party, and at least 12 being representative farmers. The new group will be on a permanent basis, replacing the 14-man interim advisory committee appointed in December 1952. Important questions arise concerning the relationship of this advisory group to the Secretary and his staff of specialists, the Congress, and the farm organizations. SURPLUS FOOD DISPOSAL is an important objective of the Mutual Security Act of 1953, passed by Congress last week. The law authorizes the President to enter into agreements with friendly countries for the sale of surplus U.S. farm products and to accept the currency of the buying country as payment. This would avoid the problem of a "dollar shortage" in the country doing the buying. The foreign currency thus acquired by the US. could be used by the President in waking Mutual Security agreements with other countries. In this way the foreign funds could enter into, and encourage, the stream of trade between friendly foreign nations. The law contains safeguards against sheer "dumping," that is, the substitution or displacement of usual commercial marketings by the U.S. or friendly countries. THE EMERGENCY CREDIT BILL passed by Congress earlier this month includes economic disaster among the types of emergencies that would qualify farmers for special loans. The legislation provides a supplemental source of emergency credit for established farmers—not limited to livestock operators--in areas that have undergone an economic disaster, such as a substantial price decline. When the Secretary of Agriculture determines that such a disaster has occurred, he can authorize loans for farming operations to the extent that credit cannot be secured from local sources. A daily journal reports the following conversation between two farmers in the drouth area-First farmer: "If it doesn't rain soon, I'm going to have to rob a bank." Second farmer: "If it doesn't rain soon, I've already robbed one." THE ,INTERNATIONAL WHEAT AGREEMENT is now effective. Before the July 15 deadline rrore than the required 50 per cent participation was obtained. However, Britain, the chief importer, continues to abstain from the Agreement, and its effectiveness may be considerably reduced thereby. THE NUMBER OF CHICKS for flock replacement was up 27 ago. In the first six months of for laying flock replacement was hatched during June per cent from a year this year, production only 3 per cent Number 206 otp4ii,r r, but the sudden spurt abov he triceorriod ductifiNttoward e end of the hatching in chick he t1611,17 tight egg supply by late season may en rm during June despite the fall. Egg markets fact that egg production xceeded the year-ago amount by 1 per cent. On the other hand, turkey prices were lower during June, and hatcheries continue to report 10 to 15 per cent fewer poults hatched than last year. Production of farm chickens, eggs, and turkeys from 1945 to 1952 is shown in the following table. Farm chickens Eggs Turkeys Year produced produced raised (mil. head) (mil. cases) (mil. head) 1945 1946 1947 1948 1949 1950 1951 1952 799 646 636 536 623 551 578 525 156 155 154 152 156 163 165 170 43 40 34 32 41 44 52 60 THE PRICE OF MILK sold wholesale from farms has declined 20 per cent since January. Part of the. decline was seasonal, but the June 15 price was 12 per cent under June 1952. Dry weather has cut current milk production somewhat, but this year's output is still expected to .exceed last year's 115 billion pounds. THE CATTLE MARKET has been behaving in an odd fashion • lately. Marketings have been heavy on days when they usually are light (Tuesday, for example) and light on days when they usually are heavy (Monday). The result has been a series of sharp and erratic price swings. Market analysts report that dressed beef buyers . and sellers are far apart in price ideas, and cattle feeders are trying to outguess a market which nobody has figured out. In any case, cattle slaughter was heavy last week, and wholesale beef supplies should increase substantially in a few days. At that time consumers, through beef retailers, will determine whether recent price advances for cattle will last, assuming that heavy cattle marketings continue. L. John Kutish -- Agricultural Economist
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