



Extension Service in Agriculture and Home Economics 



'^ '^ University of Illinois College of Agriculture, Urbana 



WEEKLY BEVIEW AND FARM OUTLOOK LETTER 



By G. L. Jordan 

 Professor, Agricultural Economics 

 (Prepared July ^) \^ ;, 



Wheat receipts are rather large at southwestern markets hut they are being 

 used to fill previous contracts and are not a serious price depressing factor. It 

 seems that mills have so many orders for flour that the demand for wheat holds up well 

 in the face of rather laxge receipts. The crop is late in the main winter wheat region, 

 but yields may be a little larger than were forecast a few weeks ago. 



The national wheat goal for 19^6 is from 6? to 70 million acres. The 19*^5 

 prospective acreage is 68.6 million. Requirements are expected to be heavy during the 

 months ahead particularly for relief feeding. The national goal for rye to be har- 

 vested for grain in 19^4-6 is 2.8 million acres compared with an indicated harvest of 2.2 

 million acres in 19^5. Farmers are asked to plant as much acreage to rye to be har- 

 vested to grain as is consistent with needs for other crops. The goals for wheat and 

 rye for individual states will be worked out by federal and state agencies. 



According to a press release the government is considering a new subsidy to 

 lamb producers to slow up the liquidation of lambs. Details have not been worked out 

 but $1 per hundred pounds has been suggested. The object is to assure producers a 

 good price for a substantial period so that they would not rush their flocks to market, 

 thereby depleting breeding stock. 



Receipts of livestock at 12 public markets in June showed the following per- 

 centage changes from June 19^^: Cattle, -5; calves, -l8; hogs, -62; and sheep and 

 lambs, -9. 



The feed situation will be dominated by the outlook for the corn crop. How- 

 ever, livestock-feed price ratios probably will continue favorable to livestock pro- 

 ducers for at least several months, according to the Bureau of Agricultural Economics. 

 Prices of feed grains are likely to be about as high in the months of heavy marketings 

 in 19^5 as in 19^^. If we have a reasonably late fall which will permit the corn to 

 mature, the 19^5-^6 supply of feed grains will compare favorably with the relatively 

 large 19^^-^5 supply. 



Between May 15 and June 15 prices received by farmers for agricultural com- 

 modities increased to a new high since" 1920 and stood at 206 percent of the five-year 

 average, August 1909 to July 191^. The index of prices paid by farmers, including in- 

 terest and t€uces, was unchanged at 173 percent of the base period. Consequently farm 

 prices averaged 119 percent of parity, a new record high since June 19^5* 



The producer 'b ceiling prices for potatoes f .o.b. country shipping point for 

 the State of Illinois during the month of July I9U5 is $2.95 per hundred pounds. 



The United States Department of Commerce polled the presidents of the 12 

 federal land banks concerning farm land prices and inflation. The 11 presidents that 

 responded said farm land prices are still on the rise. Seven indicated there have been 

 some recent signs of stabilization and four could see no such signs. Six of the presi- 

 dents said there was likely to be a repetition of the serious farm land situation that 

 "followed the first world war. 



-0- 



Cooperative Extension Work in Agriculture and Home Economics: University of Illinois 



College of Agriculture and the United States Department of Agriculture cooperating. 



H. P. Rusk, Director. Acts approved by Congress May 8 and June 30, 191J4-. 



