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Farm costs . Prices received by farmers Increased much faster 

 during 19^1 than prices paid by them, and net Incomes are accordingly 

 Increased, Inasmuch as the Increased prices received were not offset 

 by a decline in the volume of production. For 19^2, however, prices 

 paid by farmers are expected to rise substantially, but not enough to 

 offset the Increase of prices received. As a whole, prices received 

 should be close to, or slightly above, parity. 



The largest prospective increases of prices paid by farmers 

 are for feed, automobiles and tractors, building materials, feed con- 

 tainers, and many small items of equipment and supplies. Farm wage 

 rates will also be substantially higher. Moderate, advances are ex- 

 pected in prices of farm machinery, fertilizer, gas and oil and 

 possibly taxes. 



As of October 1, 19^1* average wage rates paid to hired labor 

 in Illinois were as follows: per month with board, $te.00 ($33»25 ^^ 

 19^0); per month without board, $53.75 ($^3-75 in 19^0); per day with 

 board, $2.^0 ($l.gO in 19^C); per day without board, $2.95 (^2.30 in 

 19^0), Not only have wage rates increased during the past year, but 

 farm employment has declined substantially. For the United States as 

 a whole as rf November 1, 19^1i there were almost one-half million 

 fewer persons employed In agriculture than on November 1, 19^0. 

 Family workers 8.s of November 1, 19^1; were 7>^^3 thousand; 

 November 1, 19^0, ^,139 thousand. Hired farm workers November 1, 19^1, 

 vjere 2,577 thousand compared with 2,763 thousand a year earlier. The 

 numbers of both farm and hired workers were at the lowest levels since 

 1925. The Increased costs of hired labor, brought on both by induce- 

 ments offered In Industry and Increased size of military forces, will 

 undoubtedly Induce farmers to use more labor saving machinery. This 

 tendency may also prevent as great an increase in the production cf 

 animal products as may be desired, inasmuch as livestock farms re- 

 quire lots of labor. -0- 



