b ANNUAL, REPORTS OF DEPARTMENT OF AGRICULTURE. 



STATE OF AGRICUIiTURE IN GENERAL. 



The general agricultural improvement noted is most gratifying 

 to everybody and gives renewed hope to millions of farmers who have 

 struggled against most distressing conditions. This does not warrant 

 the assumption, however, that the state of agriculture in all sections 

 is now satisfactory, viewed either from the standpoint of the farmer 

 or from the standpoint of national interest. In many regions agri- 

 culture still is at a disadvantage. The adverse influences of which 

 mention was made in my report of a year ago still exist, though less 

 powerful than at that time. The ratio between prices of most farm 

 products and prices of other commodities is still far out of line. 

 Industrial wages continue at war-time levels and thus help to main- 

 tain high prices for most of the things the farmer buys. High 

 freight rates still prevail, and, while not the cause of low farm 

 prices, place one more additional burden upon the farmer which he 

 can ill afford to pay in view of the prices he must take for his prod- 

 ucts; also they place him at a disadvantage with his foreign com- 

 petitors in world markets in the case of those farm products which 

 we export. Unfavorable exchange rates with European countries, to- 

 gether with financial difficulties in those countries which need our sur- 

 plus, make it more difficult for them to buy, and our export outlet for 

 farm commodities is narrowing. Aside from this difficulty, it is 

 to be expected that as the countries of Europe get on their feet, 

 they will strive to produce more of the things they need and buy 

 less from us, and this must be considered in planning our own pro- 

 duction. The costs of retail distribution of farm products are un- 

 reasonably large, thus enhancing the price to the consumer and de- 

 priving the farmer of the benefit of increased consimiption which 

 ought to follow lower prices which result from large production. 



Studies by this department indicate that 42 per cent of the farmers 

 feel that their financial difficulties are due to low prices of farm 

 products; to high taxes, 17 per cent; high costs for farm labor, 11 

 per cent ; high freight rates, 10 per cent ; high interest, 10 per cent ; 

 reckless expenditures during boom period, 6 per cent ; and too much 

 credit, 4 per cent. 



Too frequently persons who have not inquired into the matter 

 express the opinion that the farmers' difficulties are due to reckless 

 expenditures for land, speculative securities, and other purposes 



