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WEAT IS THE OUTLOOK FOR HOGS? 



Illinois is predominajitly a^rn ani hog state with soybeans and cattle 

 next in line but quite a distance behiijff. In 19^2, the values of Illinois crops 

 at farm prices were as follows: corn, $364 million; soybeans for beans, $ll8 mil- 

 lion; oats, $65 million; and wheat, $15 million. During that year we produced 

 2,216 million pounds of hogs valued at $275 million. The gross income from cattle 

 and calves was $172 million. The value of milk produced was approximately $133 

 million emd the value of eggs produced was only about $57 million in spite of a 

 substantial increase in production during recent years. 



In response to very favorable relationships between prices of hogs and 

 corn, Illinois farmers expanded hog production I8 per cent between 19^0 and 19^2. 

 Another large increase occurred in 19^3. Now we are asked by the government to 

 cut 194V spring farrowings 20 per cent below 19^3 and reduce average weights next 

 year very substantially below the average for 19^3. "We have a ceiling of $l4.75 

 on hogs at Chicago etnd support prices promised. Under present conditions, hog 

 prices ajce likely to remain near ceiling levels, except for temporary periods of 

 heavy receipts. Beginning October 1, dairymen received more income per unit of 

 products sold, so there will be less tendency for dairymen to switch to hog pro- 

 duction. There are no special inducements for hog feeders to switch to dairying, 

 however . 



., The October crop estimate places 19^3 U. S. com production at more than 



3 billion bushels for the fourth time in history. Because of the fact that corn 

 and hogs are usually produced on the same farm, it probably will be profitable to 

 continue to feed corn to hogs, at least until the government works out some sys- 

 tem whereby more feed grain is diverted to the dairy farmers. That may be done. 

 A rise in the price of corn and in the subsidies on milk and butterfat would re- 

 duce the quantity of corn available for hog feeding. Much simpler would be a re- 

 duction in hog price ceilings. All that I am suggesting, however, is that when 

 the government asks that available feed supplies be diverted from hogs to dairy 

 cows, it would seem reasonable to expect that steps would be taken to facilitate 

 the shift. The improvement in com prospects amd increased imports from Canada 

 may make drastic changes unnecessary. 



