dictatorships of the old world.'' 



It is well known that food uses for 

 agricultural products invariably bring the 

 farmer highest returns and that industrial 

 outlets thus far have depended upon 

 either converting farm wastes into useful 

 products or securing raw farm products 

 at prices which represent a loss to the 

 producer. We have a good example in 

 soybeans. Approximately two-thirds of 

 soybean oil production is used for food. 

 Consumers of soybean flour are well able 

 to pay a higher price for soybeans than 

 the livestock grower who buys soybean 

 oil meal as a supplement in milk, beef, 

 or pork production, or the automobile 

 manufacturer who converts the meal into 

 plastics for dashboards and distributor 

 parts. Paint has provided a good mar- 

 ket for about 10 per cent of soybean oil 

 but the food outlets undoubtedly are the 

 chief reason for relatively favorable 

 prices for soybeans. 



Farmers are vitally interested in the 

 launching of more intensive experimenta- 

 tion and research toward the discovery 

 of new outlets for farm products. But 

 they welcome this development as a 

 supplement, not as a substitute for the 

 acreage adjustment and surplus storage 

 programs at least until such time as new 

 commercial uses are developed to pay 

 farmers parity prices for their com- 

 modities. The Illinois Agricultural As- 

 sociation and associated organizations I 

 am sure will lend every aid and influence 

 toward the realization of results which 

 will prove of real value and importance 

 to farm people. 



m 



^vPOOPERATORS in the 1940 

 f'^^ AAA program are assured of 

 \[_^ receiving parity payments for 

 compliance next year from the appropria- 

 tion of $225,000,000 made for this pur- 

 pose. 



Several provisions have been added to 

 those in effect this year as follows: (1) 

 Producer must plant within the total of 

 acreage allotments of com, cotton, rice, 

 tobacco and wheat established for his 

 farm under the 1940 Farm Program; 

 (2) producer may not offset performance 

 on the farm by over-planting the five 

 commodities on other farms in which he 

 has an interest. 



Rates of price adjustment payments 

 will be announced after 1939 average 

 prices are determined. The rate for any 

 crop cannot exceed the amount by which 

 the 1939 average farm price of the com- 

 modity is less than 75 fser cent of the 

 parity price. 



Under the 1939 program a producer 



MEETINGS & EVENTS 



American Farm Bureau Federation an- 

 nual /wnvention, Stevens Hotel, Chicago, 

 Dec. 4-8. 



International Livestock Exposition. Chi- 

 cago, Dec. 2-9. 



National Vegetable Growers Associa- 

 tion, Chicago, Dec. 3-7. 



Producers Creamery oi Mt. Sterling, Dec 

 19. 



Farm and Home Week, Urbana, Ian. 

 8-12, 1940. 



L A. A. Annual meeting Jan. 30-31, Feb. 

 1. 



could qualify for a payment by adhering 

 to the allotment for one commodity even 

 though he over-planted the acreage allot- 

 ment of another commodity on the same 

 farm or overplanted the same crop or 

 other commodities on another farm. The 

 new provisions make it possible for the 

 county or state Triple A committees to 

 withhold all or part of the payment in 

 such cases under the 1940 program. 



Producers of winter wheat may apply 

 for and receive 1940 parity payments be- 

 fore their 1940 performance is checked 

 on corn, cotton, tobacco or rice upon 

 agreeing to make refunds if subsequent 

 check-ups show that they have over- 

 planted their allotments of any of the 

 four other crops named. 



Business 



\ /— 1 



■ TEEL mill operations in the Chi- 

 ^^S^ cago district were reported at a 

 V^3^ new 10-year high last week 

 with production up to more than 88 per 

 cent of capacity. Contrary to general 

 belief most of this increased steel busi- 

 ness is for industrial uses. Automobiles 

 and trucks, construction, heavy machin- 

 ery, railroad equipment, battleships and 

 related lines are taking vast quantities of 

 iron. A substantial amount of business 

 has come in from foreign countries due 

 to the disruption of steel production in 

 the warring countries of Europe. 



Business Week's index of business as 

 of October 21 was 121 which compares 

 with only 99 a year ago. The rise in 

 employment undoubtedly is responsible 

 for holding up hog prices and for the 

 improvement in butterfat and milk 

 prices. 



A report received by Business Week 

 from Cleveland says: "Business is as busy 

 as a beehive. The landscape south of 

 Pittsburgh is heavy with smoke from 

 newly-charged beehive coke furnaces 

 which have been pressed into service to 

 supplement by-product coke output. One 

 plant obsolete 20 years ago is back on 

 the firing line — the demand from the 



steel mills is that urgent." 



From Minneapolis and St. Paul comes 

 this report, "The fever spot in this wide- 

 spread region is still the head of the 

 Lakes. The Duluth steel works are near 

 capacity for the first time in years and 

 iron ore from the Messabi Range is be- 

 ing shipped in everything but washtubs. 

 Forty vessels went into service in two 

 weeks, the ore docks are working 24 

 hours a day, dock masters are making 

 preparations to steam out frozen ore in 

 the freight cars to keep it moving until 

 December 1. Payrolls will be high in 

 the iron mining regions for the next six 

 weeks." 



Three shifts are working at the New- 

 port News and Norfolk, Virginia coal 

 piers; Hampton Roads too is busy as 

 export shipments are added to the normal 

 coastwise movement. West Virginia bi- 

 tuminous producers are crowded with 

 orders from the steel industry and South 

 American, Scandinavian and West In- 

 dian consumers who formerly got their 

 fuel from South Wales mines. At 

 Charleston, West Virginia, large chem- 

 ical companies are expanding capacity; 

 between July and September production 

 advanced some 20 per cent. September 

 retail sales rose to a post-'29 peak. 



England is reported to have made 

 heavy purchases of frozen beef from the 

 Argentine and is importing wheat from 

 Roumania. Imports of Polish hams into 

 this country have ceased. Pork and farm 

 products from the Baltic countries are 

 now going to Germany and Russia. 



^\^EWS reports state that the 

 ^jJ United States now owns 67 per 

 ^Jf I cent of all the world's monetary 

 gold. England and France, biggest hold- 

 ers of gold next to the U. S. are reported 

 to be exchanging their gold at a rapid 

 rate for supplies of all kinds. If the 

 embargo is lifted on war materials large 

 orders are expected for all types of air- 

 planes, motorized tanks, guns and other 

 munitions. 



Eighty-seven class I railroads had 

 operating revenues of 1304,481,638 in 

 September, 1939 compared with |258,- 

 289,661 in the same month of 1938. 

 Income were 17.9 per cent more than 

 the figure for 1938, but 18.6 per cent 

 less than September, 1930. , , 



Earl C. Smith addressed more than 

 600 high school ag students, teachers 

 and visitors at the first F. F. A. officers 

 training school held on the State Fair 

 Grounds, Springfield, recently. 



■ 



L A. A. RECORD 



•; i: 



