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The dairy situation . The U. S. Department of Agriculture estimate g that 

 prices received by dairy farmers will decline less than seasonally from December 

 through March and will probably average about the same as a year earlier. However, 

 returns to dairy farmers will be at the highest level ever reported for that period 

 as a result of the higher dairy production payments. Milk- and butt erf at-feed price 

 ratios will be more favorable than other important live stock- feed price ratios. As a 

 result, milk production in 19^5 may reach 119 billion pounds. Durinp September, 

 creamery butter production was estimated at 115 million pounds, 10 percent less than 

 in September 19^3, 



1 

 The fruit situation . The U. S. Department of Agriculture summarizes the • 



fruit situation for 19ifi4- and 19*4-5 as follows: Prices received by farmers in 19^ for 

 fruit, both citrus and deciduous, generally were at levels approximately twice the 

 averagesfor the five-year (1955-39) period. Prices for the l^k^-kk citrus crop av- 

 eraged slightly above prices for the preceding ' crop . In contrast, prices for most 

 deciduous fruits of the 19Mf crop are averaging slightly below thoee for the short 

 19J+3 crop. Although the 19^ appl® crop is about one- third larger than the 19^5 

 crop, prices received by fanners for apples on October 15> 19^^i were nearly as high 

 as a year earlier. Continued high consumer incomes and large noncivilian require- 

 ments are the principal factors contributing to the relatively high prices received 

 by farmers for fruit this year. 



During 19^^* fresh fruits have been the principal class of fruit available 

 to civilians. Supplies of fresh citrus fruits from the record- large 19^5-^ crop, 

 most of which was marketed in 19^^ have been generally plentiful. Civilian supplies 

 of fresh deciduous ftruits from the generally large 19^ crops also have been plenti- 

 ful. However, civilian supplies of canned fruits continued short because of large 

 noncivilian requirements. Approximately I6 million tons (fresh basis) of fruit were 

 produced in 19^/ setting a new record. The record- large citrus crop of 19^3-^* 

 marketed chiefly in 19^^^ was about 5^ percent leirger than the 10-year (1933-^2) av- 

 erage . 



The new 19Mi-lf5 crop is expected to be only about 6 percent smaller than the 

 preceding one, despite heavy damage to the Florida c2X)p. Aggregate production of the 

 eight major deciduous fruits In 19^ is expected to be about 20 percent larger than in 

 19^5 and about 8 percent leirger than the 10-year average. Moreover, the eiggregate 

 production of walnuts, almonds, filberts and pecans this year is indicated to be Ik 

 percent larger than last year and kS percent leu^ger than the 10-year average. The 

 prospective large production of fruits and nuts In the early postwar years is ex- 

 pected to face a condition of greatly reduced government requirements and smaller 

 civilian demand. This will require a broadening of markets and uses. Total supplies 

 of fruit, particularly citrus fruit, are likely to outstrip demand for it at present 

 price levels, leading to sharp downward adjustments in prices. 



The commercial crop of apples in Illinois in 19^ is eslmated at 2,^18,000 

 bushels compared to 2,790,000 bushels in 19^3 and an average of 3,20l4-,000 bushels for 

 the nine years 195^-^5 • The pear crop for Illinois was also below the nine-year av- 

 erage, but almost 50 percent above the very short crop of 19^5- 



GLJ:wd 



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