vides jobs for many more persons, raises 

 the standard of living the world over, 

 and promotes good will between nations. 

 The lAA Department of Taxation and 

 Statistics expects to pursue its studies of 

 the new agreement and we hope will have 

 available a reliable report available in the 

 near future. 



Editor's Note: American cotton goods manufac- 

 turers, the leather goods industry and the woolen 

 manufacturers have attacked the agreement because 

 some of the hif^h protection they have enjoyed has 

 been taken away. This should result in a reduc- 

 tion in the cost of some thines farmers buy and 

 lead to increased purchases of American farm prod- 

 ucts by Great Britain. 



A. F. B. F. Convention 



The entire board of directors and 

 several staff members of the lAA will 

 attend the annual meeting of the Amer- 

 ican Farm Bureau Federation in New 

 Orleans Dec. 12 to 15. 



The Illinois Home Bureau Federation 

 has designated two women to represent 

 Illinois at the conference of the Asso- 

 ciated Women of the A.F.B.F. to be 

 held preceding the Federation meeting. 



Among the speakers scheduled to ad- 

 dress the convention are Mayor La- 

 Guardia of New York, Henry I. Har- 

 riman of Boston, former president of 

 the United States Chamber of Com- 

 merce, Charlton Ogburn, attorney for 

 the American Federation of Labor, 

 Clifford V. Gregory of Wallace's Farm- 

 er and Wisconsin Agriculturist and 

 Farmer, Chester C. Davis, member. 

 Federal Reserve Board, several news- 

 paper columnists and others. 



The lAA is sponsoring an all-expense 

 tour which will start from Chicago at 

 1 :00 P.M. Saturday Dec. 10, making 

 stops along the Illinois Central to pick 

 up passengers bound for the conven- 

 tion. Reservations should be made at 

 once with Paul E. Mathias at the lAA 

 office, 608 So. Dearborn St., Chicago. 



"Suggestions and Forms for Planning 



the Farm Business," a pamphlet recent- 

 ly issued, will be sent free upon re- 

 quests addressed to the College of Ag- 

 riculture at Urbana. 



A new type experimental tractor, de- 

 signed to handle 100 acres, has been 

 developed at Michigan State College. 

 Using a small automobile-type engine 

 and friction drive, it is capable of pull- 

 ing a 14-inch plow, cultivating row 

 crops and drawing wagons and trailers 

 over rough fields or paved roads. It 

 demonstrates a suitable power plant 

 that can be manufactured for less than 

 $500. 



Safest way to dry a sweater or other 

 knitted article is to lay it flat on a turkish 

 towel in a warm room — flat and just the 

 size and shape desired when it is dry. 



SELECTED CONCESSIONS GRANTED BY THE UNITED KINGDOM: 



Agricultural Producta Before Agreement Alter Agreement 



wheat equiv. 6c per bu. free 



com free bound free 



oatmeal, rolled & flaked oats . . ad val. equir. 29.9°/, ad Tal. equiv. 20% 



cornstarch 10% 10% bound 



lard 10% free 



hams Iree proy. for incr. quota 



apples and pears 25% approx. 17% 



miscl. canned vegetablea 20% 10% 



SELECTED CONCESSIONS GRANTED BY THE UNITED STATES: 



Industrial Products Before Agreement After Agreement 



agricultural hand tools 15% 7.5% 



furniture 40% 25% 



cotton cloth approx. 13% approx. 10% 



cotton & wool cloth 60% 40% 



oUcloth 30% 



belting for machinery 30% 



mis. cotton manufactures 40% 



wool carpets etc 80% 40% 



leather wearing apparel 35% 17.5% 



^a^^ &4dloak 4^o4 1939' 



^J^^^ARM income is exfjected to be 

 ^i^ higher in 1939 than in 1938 



^J with the increase coming main- 

 ly from commodities which resjsond more 

 quickly to increases in consumer purchas- 

 ing power. Farm income in 1938 is esti- 

 mated at $7,500,000,000 or a reduction 

 of 13% from income of $8,600,000,000 

 in 1937. For 1939 it is expected to hit 

 about $8,400,000,000. 



General economic conditions in the 

 United States are mostly favorable to re- 

 covery. The British Trade Agreement 

 promises to improve foreign trade which 

 will partially off-set a general stiffening 

 of foreign trade restrictions against im- 

 ports of our products among other na- 

 tions. 



Income from government payments in- 

 cluding price adjustments to cooperators 

 with the 1939 A. A. A. program probably 

 will exceed the 1938 payments. Farm 

 families tend to spend part of their in- 

 crease in income for living, but they ap- 

 ply a larger share than do city families 

 toward getting ahead financially ■ — pay- 

 ing off debts and making investments. 

 Any general improvement in farm in- 

 come, therefore, will tend toward better- 

 ing the general net-worth situation of 

 families. 



Wheat 



The A.A.A. wheat allotment for 1939 

 is 55 million acres which compares with 

 the 1928-32 average of 67 million acres 

 and 81 million acres seeded for the 1938 

 crop. 



Unless there should be a greater im- 

 provement in economic conditions or in 

 the general price level than is at present 



* Based on reports from Bureau of Agricul- 

 tural Economics, Washington, D. C. 



indicated, domestic wheat prices in 1939- 

 40 are expected to continue low com- 

 pared with recent years. If seedings for 

 1939 exceed the allotment of 55 million 

 acres to any great extent, and average 

 yields are obtained, an increase in the 

 already large United States carry-over ap- 

 pears unavoidable. 



Com 



The outlook for com prices depends 

 partly on the general price level and eco- 

 nomic conditions next year, and partly 

 on the extent of cooperation farmers dis- 

 play in keeping within their acreage allot- 

 ments in 1939. Severe drouth, of course, 

 would result in substantially higher 

 prices, but drouths in the Corn Belt are 

 unusual. There have been only three 

 corn crops in the past 38 years under 

 2 billion bushels, and corn crops one year 

 with another are astonishingly similar in 

 volume. 



Livestock 



With large supplies and relatively low 



[jrices of feed grains in prospect the out- 

 ook is for continued liberal feeding and 

 further increases in the production of 

 meat animals, poultry and dairy products. 

 The supply of hay per animal is the sec- 

 ond largest in thirty years. Feed grains 

 per animal unit are well above average. 

 By-product protein feeds are above aver- 

 age but the supply is smaller than last 

 year. Western cattlemen are restocking 

 the ranges which explains relatively high 

 prices being paid for cows and heifers. 

 It is believed that the relationship of 

 livestock prices to feed prices will con- 

 tinue favorable to livestock producers un- 

 til the approach of the 1939 harvest se»- 



(Continued on page 30) 



DECEMBER, 1938 



