-2- 



*v» 



to olDtain it. In the case of corn, that was the grower. Nov that corn is disappear- 

 ing too rapidly for the welfare of the nation, it is necessary to conserve it "by 

 cutting down numbers of livestock and increasing efficiency of feed grain use "by 

 refraining from putting on a heavy finish. 



The ceiling price on corn will he raised, hut in making this adjustment 

 upward, the government should recognize that many farmers have established their 

 livestock enterprises on the basis of present ceilings on corn. They should not be 

 penalized for doing something that government price policies encoui^aged. Therefore, 

 support prices should be maintained on livestock at a reasonable level until producers 

 are able to dispose of present holdings at reasonable weights and a reasonable finish. 

 Reductions in floors on livestock or increases in feed costs should be anno-jjiced in 

 time to permit farmers to change their production plans without severe penalty.' 



Corn loan . Beginning December 1, Illinois farmers who met 90 percent of 

 their war crop goals will be able to obtain corn loans equal to 85 percent of parity 

 price of com as of September 15 . The United States parity price was $1.06 a bushel 

 on that day. Loan rates in the corn-belt counties are based upon freight differen- 

 tials from average shipping points within the area to the terminal markets to which 

 corn would normally'' flow. Loans will be available through June 30, 19^^, and will be 

 due October 1, 19^14-, but will be callable by the Commodity Credit Corporation at any 

 time prior to that date. Farmers are also permitted to pay off the loans at any time 

 during the loan perJ.od, or they may voluntarily deliver the collateral to the Commodity 

 Credit Corporation in satisfaction of loans on October 1, l^kh. 



Is there enough wheat ? November 30 the Millers National Federation recom-- 

 mended to the War Food Administration that sales of Commodity-Credit -Corporation -held 

 wheat for use as feed be discontinued immediately. They also suggested restriction 

 on the use of wheat for the manufacture of industrial alcohol. The reason given was 

 that wheat stocks in this country are disappearing so fast that we are unable to take 

 care of these other demands without Jeopardizing the requirements for human consump- 

 tion. In the meantime, every effort is being made by the government to supplement 

 domestic supplies of feed grains with imports of wheat, feed grains, and protein 

 supplements from Canada, South America, and other regions, 



November 29 subsidy payments on wheat ground on or after December 1 used in 

 floiir production were announced. They continue in effect in December and until further 

 notice. The rates were determined by the difference between the market price of wheat 

 and the price ceilings on flour. This has been one of the factors that has strength- 

 ened wheat prices during the past week. 



Move to lower duties on Imported cyaln . November 26 the House V.'^ys and 

 Means Committee approved a resolution to suspend for 90 days all duties on importation 

 of wheat, oats, barley, rye, flaxseed, and hay. It was reported that this measure had 

 the approval of the War Food Administration. Most of the imports would probably cone 

 frcm Canada. This is only a resolution and not a law, but in combination with other 

 factors, especially the possibility of a ceiling on oats below current prices, it 

 caused considerable weakness in the grain market for a few days. 



Effect of war on ^ain prices . In looking ahead it must not be forgotten 

 that the war may end in Europe by the middle or latter part of 19^14- and that grain 

 prices depend in a large way upon the demand for livestock and livestock products and 

 also to some extent upon the distilling industry. The end of the war will be a signal 

 to most farmers to reduce livestock numbers. The present efforts to reduce livestock 

 numbers are merely to bring them down to a level ccmparable to our supplies of feed 



