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to these plants. This premium is to continue until six inonths-^fter the war in Europe: . 

 By restricting the premium to the better quality of hogs, it is hoped that the quality 

 of pork products will be high enough to hold the overseas market for pork products 

 after the war. Great Britain has contracted with Canada for large quantities of bacon. 



Livestock on farms. January 1 . The extent of the wartime rise in livestock 

 numbers in the United States is indicated by the comparison between the January 1,19^^, 

 figures (preliminary estimates) and the January 1, 1914-0, figures for the various 

 classes of livestock. In the following tabulation the 1914-0 figures are in curves and 

 all are in millions: 



All cattle and calves 82.2 (68.2) 



Dairy cattle and calves 1+0.9 (36.1+) 



Beef cattle l4l.5 (51.8) 



Hogs 85.8 (61.1) 



Sheep ^1.7 (52.1+) 



Compared to January 1, 19^5* ve had a moderate increase in dairy cattle, 

 rather a substantial increase in beef cattle, 11 percent increase in hogs, but a 7 

 percent decrease in sheep numbers. Sheep numbers increase rather rapidly between 

 191+0 and 191+5, but during the past year there has been very heavy liquidation. This 

 liquidation of sheep is understandable. There are no government supports for sheep 

 except the present plan to purchase wool. The outlook for wool prices is not at all 

 favorable. Although the government is paying domestic producers a reasonable price, 

 they are holding auctions at which large quantities of imxorted wool are sold below 

 the price paid for domestic wool. In view of probable supplies, the prices that con- 

 sumers will be willing to pay for beef, dairy products, and pork would seem less 

 likely to go into a tailspin than might be the case with wool or eggs. 



Ep:p:s and turkeys . In the United States k,k^6 million eggs were produced in 

 January I9I+I+. This was the largest January egg production on record and was 17 per- 

 cent above the previous high of January last year, and 82 percent above the 1955-1+2 

 average. We had a record number of hens and production per hen was considerably 

 higher than a year ago. However, the number of pullets not yet of laying age in farm 

 flocks on February 1 was estimated to be k percent less than the record number a year 

 earlier. 



The Crop Reporting Board reports fanners' intentions to purchase 17 percent 

 fewer baby chicks this year than they bought in 19 '+3 • The number actually purchased 

 will depend somewhat upon egg prices d'oring hatching season and the relationship be- 

 tween prices of chickens, eggs, and feed. The January 15 price of eggs vac-: down 11 

 percent from a year earlier, but the price of poultry feed was up about 2^ percent. 



According to the Bureau of Agricultural Economics, a larger turlrey crop is 

 expected this year. February 1 returns suggest about 53 ^8 million turkeys. This 

 would be 2 percent larger than the 191+5 crop but 1 percent less than the I9I+O crop. 

 The east north-central states, including Illinois, expect to increase their oi'.tput 

 ly percent, but this region produces only 9 to 10 percent of the total crop. In the 

 west north-central states, where they produce approximately 50 percent of the country *s 

 C« supply, an increase of 2 percent is planned. Here again relative prices of hatching 

 eggs, poults,^ and feed will determine actual production. 



