1 -t- 



the corn and hog situation, there will doubtless be a strong effort made 

 to keep price ceilings of pork and lard at present levels. That is 

 probably the reason government agencies are so anxious to keep down the 

 price of feeds. 



If the price of feed should rise appreciably, there would be 

 quite a large faction of the farmers who would complain that they could 

 not feed hogs to heavier weights at the then lower ho^f eed ratio. The 

 goal of agriculture is to produce greatly increased quantities of live- 

 stock products and meats^ If it became unprofitable for farmers to feed 

 heavily enough to reach the goals, there would be quite a lot of pres- 

 sure brought to bear on the Office of Price Administration to increase 

 the ceiling price on livestock products. This would be one entering 

 wedge which would be used as an excuse probably to increase other ceil- 

 ing prices, and the eventual result might be to nullify the whole price- 

 fixing program. 



The government estimates that the disappearance of corn during 

 19^^-1-^2 probably will be close to 2,^00 million bushels compared with 

 the disappearance of 2,511 million bushels in 15^K>-^-l» Of course, the 

 disappearance of corn might be less heavy if more iirheat is fed. How- 

 ever, the disappearance of feed grains is likely to exceed 19^2 produc- 

 tion, and the carryover may be reduced considerably. 



Other grains . Estimates of production of other grains as of 

 June 1 were: Oats— 1,252 million bushels this year compared with 1,176 

 million last year and a 10-year average of 1,007 million bushels; 

 barley— ^02 million bushels compared with 35^ million bushels last year 

 and an average of 225 million bushels, and rye— 5^ million bushels com- 

 pared with 53 million bushels last year and an average of ^5 million 

 bushels. It is too early, of course, to give any estimate of soybean 



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