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THE IFEIDERAL RESERVE BANK OIF
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1 3 1949

November 13. 19

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The latest report on farm prices, as of October 15, shows
that *ices-rUdeived
by farmers advanced to a new high point, rising One
per cent from the September level,
Prices paid by farmers rose at a similar rate, puttin
g farm product prices at a level
cent above
on cash income from farm mmrketings show a gross
return for the first 10 months of 1947 at 26 per cent
above the same period of 1946,
As a summary of the outlook for agric=775—In 1948 as discus
sed at the annual
Outlook Conference in. Washington It week, the discus
sions indicated less food production from both livestock and food crops in 1948 and
higher prices than this year, ---especially in the first part of 1948. Per capita food
consumption is not expected to
show much change from '47; there will be more of some
things and less of others. High
consumer incomes and strong domestic demand coupled
with urgentfood needs abroad are
expected to keep prices high.
Meeting the world grain situation has become essentially
a grain conservation
program, especially for this country, due largely to
the smaller corn crop, The grain
conservation program announced recently by USDA and the
Citizens Food Committee will
combine all state, Federal, and private farm organi
zations and agencies in a drive to
save grain. Emphasis of the campaign will be: (1)
saving feed grain by7leeding a
larger proportion of roughages to livestock in areas
where roughage supplies
=abun•ant; 2 reduction of feed grain 'losses by more
careful handling in both.harvesting
and storing; (3) marketing of hogs at lighter weights
IE7order to da776
- 7=
-n;(4
- ) shorter
grain feeding of beef cattle; and (5) close_culling
of dairy and poultry animals.
After considerable controversy the Citizens Food Commit
tee last week canceled
poultryless Thursday as a part of the food conservation
program. Eggless Thursday will
still be observed. Poultry industry representatives
emphasized that the poultryless
Thursday was not saving gran-but actually increasing
grain consumption by backing up
poultry on farms, Crates of birds were shipped to the
White House and to the Committee
by farmers who said they couldn't sell the birds
or afford to feed them.
In place of the poultry holiday producers pledged themselves
to a grain saving
plan which involves a one-third reduction in broile
r chicks by the end of January; a
drop in baby chick production; a decline of one-eighth
in turkey poults below 1947 levels;.
and a reduction of 30 per cent in the poultry popula
tion by the first of the year. This
feed conservation program is estimated to save 56
million bushels of grain.
USDA scientists announce a new method of processing
fresh cut been alfalfa by
concentrating the most valuable part of the plant first
and then dehydrating the concentrate. In view of the manifold increase in alfalfa meal
production during the last
decade and the progress being made in processing, scient
ists foresee a bright future for
alfalfa, especially in expanded industrial uses of pigmen
ts, vitamin A, and protein
obtained from the plants.
Many of the research projects approved under the administrati
on of the Research
and Marketing Act of 1946 are to explore new uses for
specific farm products. Finding
new uses for existing resources and ,products is usually
a C3EgEilaZEIVT-176Wological
development. However, there is danger that too much can
be expected from all this
valuable research. The "new uses" may put the product
in competition with existing
products, and there is net gain to agriculture as a whole
only if total demand for farm
products is increased.

I106

Walter B. Garver
Agricultural Economist