-3- 



chickens selling at celling prices and the demand likely to be sustained, commercial 

 hatchery output in areas in and surrounding the large broiler-producing territories 

 continues to increase over last year. The egg price outlook has inrproved during 

 recent months. In fact, wholesale and retail prices of most grades of eggs since 

 January 15 have been firm at or near celling levels. Per capita egg consumption has 

 continued at a record rate. 



Early spring lamb crop . The early spring lamb crop in the principal pro- 

 ducing states is about 6 percent smaller than a year ago. This is the fourth year in 

 succession that the crop has been lower than the previous year. This year's crop 

 will be the smallest in the present decade, according to the War Food Administration. 

 The reduction this year is the result of a decrease in the number of breeding ewee 

 and not in the number of lambs saved per 100 ewes. T^arketing of early lambs before 

 July 1 this year will be smaller than in 19**^^* and the number of grass -fed yearling 

 lambs and wethers marketed from Texas during the next four months is expected to be 

 materially smaller than the record shipments of last year. 



L end-lease for -postwar relief prohibited in the House Bill . Tuesday, March 

 13 f the House passed and sent to the Senate legislation extending the lend-lease 

 program to June 50, 19^6. However, the bill carried with it an amendment bajinlng the 

 use of lend-lease as a postwar measure for relief or reconstruction in liberated areas. 

 Presumably this means that our contribution to postwar relief euid rehabilitation will 

 come through the United Nations Relief and Rehabilitation Administration and be 

 financed by direct appropriations for that purpose. Of course, the bill may be further 

 amended before it becomes a law. 



Demand expected to remain at a high level . The Bureau of Agrlcult^lral 

 Economics reports that there has been no important ch8u:ige in the demand for farm prod- 

 ucts in recent months and that it seems probable that the demand will continue to 

 approximate its present high level as long as fighting continues in both Europe and 

 Asia. Prices of most farm products are expected to continue at or near ceilings as 

 long as consumer Incomes and military and lend-lease requirements are maintained at 

 present levels. 



There seems to be considerable confusion caused by somewhat conflicting 

 government statements. When the Commodity Credit Corporation vas appealing for a 

 large increase in its borrowing power in order to finance surpluses in farm crops, a 

 statement was made to the effect that relief and rehabilitation requirements with re- 

 spect to foodstuffs would be very much less than earlier anticipated. However, it 

 seems that Mr. Byrnes rushed back to the United States from the Yalta Conference and 

 started the wheels moving to provide large shipments of wheat from interior points to 

 the seaboard for export for relief feeding in liberated areas. In spite of the confu- 

 sion the amount of farm products used for relief and rehabilitation will be an impor- 

 tant factor affecting the demand for farm products. 



Butter set-aside Increased . Forty percent of total production of creamery 

 butter must be set aside for war service agencies in April and 55 percent in May, 

 according to the War Food Administration. This would con5)8Lre with 20 percent set- 

 aside in February and 25 percent in Meirch. Inasmuch as these are months of flush 



