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Paeturee. The feed situation will be affected by pasture conditions. Farm 

 pastures got off to an average start this year, with the May 1 condition about 78 per 

 cent of normal. This was lower than the last two years but higher than the recent 

 10-year averaige. During May pastures in the corn belt were favored with plenty of 

 moisture, but the temperature was a little too low to induce maximum growth. In 

 a number of the southern states, pasture conditions were good, but in the western 

 north-central states, including the western com belt, conditions were rather spotted. 

 In the Roclcy Mountain states and in California, pasture conditions were good to ex- 

 cellent. Because of the necessity to conserve every bushel of com and pound of pro- 

 tein concentrate possible for later use, farmers will probably make the greatest pos- 

 sible use of pastures and forago this year. 



Price roll -backs . Today, June 10, the 10 per cent roll -back on retail 

 prices of butter is scheduled to go into effect. This will amount to 5 to 6 cents 

 a pound. The creameries and farmers will receive the same coiling price as before 

 the roll-back. This is an effort to reduce the cost of living primarily as a moans 

 of preventing increases in wage rates of organized labor. June 8 officials- of the 

 Office of Price Administration indicated that they were. also contemplating roll- 

 backs for prices of fresh vegetables. A 10 per cent roil-back on meat prices has 

 already been ordered. Subsidies are being used to offset the roll-backs in connec- 

 tion with livestock products; however, none are planned in connection with the re- 

 duction of the prices of vegetables. 



Distribution . In' connection with a regulated program such as is necessary 

 to bring about maximum production in general and greater shifts in production as be- 

 tween commodities, problems are bound to appear. We had problems connected with the 

 balancing of production prior to the Agricultural Adjustment Administration program, 

 which used benefit payments as incentives to cause desirable shifts In production. 

 Market prices were the regulators. During major wars, we cannot afford to let un- 

 restricted rises in prices guide production. With the extremely strong demand, 

 prices would rise much further than necessary to bring about these shifts in pro- 

 duction, and we should have a drastic inflation. Instead we set up goals and use 

 price floors as incentives to increase production. We use price ceilings, both to 

 put some sort of a lid on prices and to direct emphasis as between enterprises. 

 This latter procedure was oxomplif led in the low ceiling prices for com in relation 

 to prices of livestock products. This ceiling was intended to promote a rapid ex- 

 pansion in hog production at a time when we had very large supplies of feed. Un- 

 fortunately, it has been continued so long that we are rapidly approaching a criti- 

 cal feed situation. 



We also have problems In distribution. One of those problems is the alloca- 

 tion of goods as between the armed forces, our allies, and civilians. These problems 

 have to be solved by employees of the government during times of war. A recent (de- 

 velopment along this line is the appointment of a War Meat Board. This War Meat' 

 Board consists of representatives of the War Food Administration, the U. S. armed 

 forces, the food rationing and price divisions of the Office of Price Administration 

 and representatives of the meat industry. The m^t board will attempt to bring about 

 the allocation and distribution of the national meat supply among the three groups, 

 taking into consideration the q.uantity of meat available from day to day and from 

 week to week. They hope to obtain the close cooperation of all government agencies 

 involved and all segments of the livestock and meat industries. 



Although in general we would expect costs of distribution to be lowest under 

 programs involving the greatest amount of competition, including only such regulations 



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