REPORT OF THE SECRETARY OF AGRICULTURE. 23 



While the increase in land prices is, to some extent, a reflection of 

 the general upward movement in the level of commodity prices, it 

 must be regarded, in part, as an indication of the increasing scarcity 

 of land available for agricultural use. This scarcity is not statisti- 

 cally apparent, for, in addition to tlie area of improved land used for 

 crops, pasture, and other farming purposes (exclusive of range 

 land), there is nearly an equal area that is potentially available after 

 clearing, drainage, irrigation, or for utilization by dry-farming 

 methods. With local exceptions here and there, however, this land 

 is either inferior to that now in use or can be made available for 

 farming only through heavy outlays for improvement. 



AREA EXPANDED DURING THE WAR. 



War conditions stimulated an expansion of the area devoted to 

 crops, estimated at 10.1 per cent from 1914 to 1918, or an increase of 

 3.4 per cent in the per capita acreage. This was effected by utilizing 

 pasturfe land for crop production and by bringing into use other 

 uncultivated areas. The expansion was particularly marked in the 

 case of small grains. Since the armistice, there has been a reduction 

 in crop acreage. From 1919 to 1920 there was a decline of 5.4 per 

 cent in the acreage of 20 principal crops. Apparently, the reduction 

 has been brought about by returning the land to pastures and by 

 discontinuing the use of the low-grade areas which were temporarily 

 utilized. 



These changes should be instructive to those who would reduce the 

 prices of farm products by bringing into use large areas of new land. 

 It is clear that, if prices had been extraordinarily remunerative to 

 the farmer compared with the returns on capital and labor in 

 industry, we ^would not witness this reduction of the acreage in 

 cultivation, but, on the contrary, a continued enlargement of it. 

 While war conditions temporarily increased the net cash income of 

 the farmer and stimulated a temporary expansion of the crop area, 

 this was due in large measure to the response of the farmers to the 

 insistent call for more food, particularly wheat and rye, the prin- 

 cipal bread grains. It is of no small significance that the contraction 

 in acreage has been most extreme in the case of these crops, estimated 

 at 31.5 per cent, for winter wheat, 16.5 per cent for spring wheat, 

 and 22. G per cent for rye. 



Much loose thinking and many wrong conclusions are based on 

 false impressions concerning the profitableness of farming. The 

 increase in farm profits during the war was inevitably transitory. 

 Moreover, measured in purchasing power, they shrank rapidly as a 

 result of the rise in general commodity prices. Owing to the highly 

 competitive character of his business and the lack of organization, 



