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THE FEDERAL RESERVE BANI( OF CHICAGO AGRICULTURAL LETTER September 7, 1951 The groundwork is laid for further controversy on agricultural policy. The USDA asked county representatives to survey farmer opinion on agricultural programs and report the results to Washington. In this connection,county PMA offices have been provided an outline to use in discussion meetings with farmers, entitled Family Farm Policy Review. Ferm Bureau spokesmen have registered sharp opposition to the Government agency conducting such a field survey, insisting that farmers' views canoe reflected better through their own organizations and the Congress than through employees of the USDA-"it is not a proper way for evolving farm policy reconnnend.ations." The Farmers Union, on the other hand, endorses the activity and charges that those who oppose it may not be "in sympathy with any farm program that is aimed at strengthening a family farm agriculture against the inroads of landlordism." With 1952 on the horizon, the whole activity has been described by some observers as "politics." Science promises to rescue corn growers from the damaging effects of leaf blight, important in some Illinois areas this year. There is evidence that resistance to the disease is inherited and can be incorporated into new resistant varieties. No corn hybrid now widely grown in the Corn Belt is resistant to the disease. The runt in the hog lot may now hold his own w1 th his more vigorous brothers . USDA scientists report that antibiotics added to the feed of weak, unthrifty pigs increased their growth rate nearly 100 per cent. The increase in healthy pigs was 10 to 20 per cent. Antibiotics are organic compounds with germ-killing properties. Farmers who can store soybeans at harvest time probably will benefit from a seasonal price rise. A USDA study reports that for the four years 1946-47 to 1949-50, the price rise from October until spring would have resulted in net earnings from storing equal to 15 per cent of the October value. Price support loans will be available for the 1951 crop at a level about 35 cents above a year ago . The average for Illinois counties will be about $2 .46 a bushel. }le.S Farmers have started marketing the spring pig crop and a substantial seasonal increase in slaughter is expected over the next three months . This suggests that prices will decline seasonally, probably about the usual amount. Some market analysts are predicting 18 dollar hogs in November. Farmers are expected to market more lightweight hogs than usual in view of the narrow hog-corn ratio. Also, the indicated large harvests of soybeans and cottonseed are expected to exert a downward pressure on lard prices and to result in substantial discounts for heavy hogs . At the same time, light unfinished hogs are discounted 8harply. Probably the best policy is to finish hogs rapidly for early sale at 200-240 P0unds. Livestock feeders should follow the cottonseed and soybean meal markets rather closely during the next two months as this will be the period of peak cottonseed and soybean movelllent and may result in favorable opportunities to obtain supplies of protein supplements for future needs . Ernest T . Baughman Agricultural Economist Research Department lo. 108 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (over) Farm Product Prices August 15, 1951 -Commodity Wheat, per bu. . ............... . Rye, per bu. . ................. . Corn, per bu. . ................ . Oats, per bu . . ................ . Barley, per bu . . .............. . Sorghum grain, per cwt ........ . Hay, all baled, per ton ....... . Cotton, _p er lb . . .............. . Soybeans, per bu .............. . Flaxseed, per bu .............. . Potatoes, per bu .............. . Beans, dry edible, per cwt .... . Apples , per bu . . ............... . Hogs , per cwt . . ............... . Beef cattle, per cwt .......... . Veal calves, per cwt .......... . Sheep, per cwt . . .............. . Lambs , per cwt . . . . . . . . . . . . . . . . . Butterfat, in cream, per lb . . . . Milk, wholesale, per cwt ...... . Chickens, live, per lb ........ . Turkeys, live, per lb ......... . Eggs, per doz . . ............... . Wool, per lb . . ................ . Prices Received by Farmers Effective Parity Price $ 2.05 1.46 1.65 0.76 1.17 2.09 20.40 0.35 2.71 3.11 1.17 7.30 1.94 21.20 29.10 32.60 15.00 29.80 0.69 4.45 0.26 0.35 0.50 $ 2.41 1.77 1.75 0.98 1.52 2.97 29.20 0.34 2.82 4.71 1.80 9.25 2.88 21.30 19.80 22.10 11.20 21.70 0.77 4.79 0.31 0.77 Price as a Percentage of Parity 85 82 94 77 77 70 102 66 65 100 147 148 o.4o 0.53 0.57 ¾,ercentage of seasonally adjusted prices to parity prices. SOURCE: Bureau of Agricultural Economics, U.S. Department of Agriculture. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Legal Minimum far Ceiling Prices $ 2.41 1.77 1.75 0.98 1.52 2.97 29.20 0.39 3 .o6 4.71 1.80 9.25 2.88 21.30 26.40 30.10 15.10 29.20 0.77 4.79 0.31 o.4o 0.53 0.95
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