742 EXPERIMENT STATION RECORD. [Vol.38 



Geography of wheat prices, L. B. Zapoleon (U. S. Dcpt. Agr. Bui. 59^ 

 (1918), pp. 46, figs. 9, maps 4)- — This bulletin presents a detailed study of the 

 wide variations occurring in the producers' price of wheat throughout the 

 continental United States, based on figures showing price averages by counties 

 compiled from annual returns of some 30,000 township reporters for the five 

 years 1910 to 1914, inclusive, and being a survey of the geography of wheat 

 prices and price factors. The tabulated data are supplemented by maps and 

 graphs showing geogi-aphic price zones and related factors. 



The bearing of price factors on the indicated price differences is outlined 

 in an empirical manner, these factors being described as complex, frequently 

 interdependent, and not susceptible of absolute measurement Price factors 

 from 1871 to 1915 are briefly reviewed in an effort to trace present tendencies 

 through their indicated development. In conclusion, the gross price of wheat 

 is contrasted with the actual returns by coordinating prices, yields, and cost 

 of production per bushel and per acre. The basic elements in geographic price 

 differences are deemed to be population, prod;iction, demand, and indicated 

 trade movement, the author stating that " farm prices group themselves geo- 

 graphically into zones responding to economic conditions attending the transit 

 of wheat from areas of supply to those of demand." 



The lowest farm price for wheat, 65 cts. per bushel, appeared in the surplus 

 areas of Idaho and Montana, having small consuming populations and located 

 most disadvantageously as to foreign markets. Ii"'rom this pivotal area, wheat 

 prices gi'aduated upward in every direction, following closely wheat move- 

 ments toward areas of deficient production. Toward the Pacific they increased 

 to the west and south, attaining a maximum of $1 per bushel at San Francisco 

 and in southern California, and toward the Atlantic they increased to the 

 east and south, with a maximum of $1.15 and over in the Southeast (chiefly 

 in South Carolina and Georgia). Localities with higher or lower price levels 

 than those of the surrounding territory sometimes occurred entirely subordi- 

 nate to the general price current, responding to peculiarities of the commercial 

 wheat movement. 



Comparative stability and small local differences in prices were found in the 

 great wheat-producing sections having a great volume of wheat traffic, com- 

 petitive primary markets, and elaborate freight adjustments, whereas in 

 regions having small wheat movements, greater price irregularity and higher 

 prices obtained. A large part of the commercial wheat was found in a limited 

 number of markets with highly organized distributive systems, each ordinarily 

 receiving its supplies from some particular territory. " The largest single 

 element in the regional price disparities is represented by freight rates. 

 Though subject to change in their main features, they are constant in their 

 influence on price conditions." 



Based on summarized data showing average prices and cost of production 

 for the period of 1911 to 1915, inclusive, it was noted that areas of high price 

 showed minimum net returns, higher prices per bushel being offset either by 

 high acreage costs or such relatively low yields per acre as to make the per 

 bushel cost high. On the other hand, low prices per bushel with high yields 

 showed high returns per acre at the lowest costs. The ratios of returns per 

 acre or per bushel to cost, based upon average figures for the United States 

 as 100 per cent, were 201 and 205 per cent, respectively, for Montana and 

 Idaho, as compared with 155 and 139 per cent for South Carolina and Georgia, 

 respectively. 



In reviewing farm prices for wheat and price factors for the period of 1871 

 to 1915, inclusive, it was observed that the minimum farm price has moved 

 steadily north and west, appearing in Nebraska from 1871 to 1875, in the 

 Dakotas from 1891 to 1895, and in Idaho and Montana from 1911 to 1915. 



