-3- 



been supported by higher loan rates in the later period. 



The big increases in prices were first in hogs — nearly 2.5 

 times as high in price as two years earlier; second in eggs — up almost 

 50 per cent higher in price; third in soybeans — about SO per cent 

 higher, and fourth in milk and milk cows — about 50 P^r cent higher in 

 price. 



Beef cattle and lambs increased less in price; they were on 

 a relatively high basis two years ago. The same was true of wool. 



The Influence of Government Purchases * What accounts for 

 these large increases in prices of hogs, eggs, soybeans and milk? The 

 demand for all of these commodities has been peculiarly increased by 

 the war. A little over a yeaj? ago the government announced a lend-lease 

 program for supplying (with many products) the nations which have since 

 become our Allies in prosecuting the -war. No cash was required; settle- 

 ment was to be made later. Among the commodities desired were certain 



dairy 

 foodstuffs, particularly pork, lard, eggs and manufactured/products. 



The capture of our former sources of supply of imported vegetable oils 

 by Japan emphasized the need for more home production. Hence the 

 emphasis on soybeans. This crop also produces an excellent high protein 

 feed — soybean oil meal — which is needed in connection with our 

 expanded livestock production program. During the past year the govern- 

 ment has brought huge quantities of the above mentioned products for 

 export under the lend-lease plan. Thus in April 19^ million dollars 

 worth of farm products were bought and in May ^15^ million. Since the 

 program began, the total of purchases has been $1,225 million. This is 

 largely an addition to the demands of consumers in this country. 



