-2- 



Seme talk of lomb aubsldy . According to a press release the government Is 

 coneldoring a now sul)flldy to Icoab producers , , This suhsldy is intended to slow up the 

 liquidation of lonibs. Producers ccmplain that they cannot meet costs at present cell- 

 ing prices and as a result they are selling off flocks at record rates and Jeopardiz- 

 ing the future lamb supply. In order to slow up this selling movement, a proposed 

 subsidy would "be paid to producers of all lambs marketed now or over a stated period 

 of a year or so. ?ntaile have not been vorked out "but $1 per hundred pounds has been 

 suggested. TVji c'j^if)3t is to assure producers a good price for a substantial period so 

 that they would n:c rush their flocks to market, thereby depleting breeding stock. 

 Seme opponents of the plan believe that producers would rather take the present market 

 prices than gamble on the future when the demands for meat may drop and that the real 

 cause of flock liquidation is the lack of experienced sheep herders instead of low 

 prices. 



Livestock receipts in June . Receipts of livestock at 12 public markets in 

 June showed the following percentage changes from June 19Mi-: Cattle, -5; calves, -l8; 

 hogs, -62; and sheep and lambs, -9. 



The average weight of barrows and gilts at Chicago in June was 269 pounds 

 coapared with 2lf0 pounds in June ISkk, At St. Paul the average weight was 285 pounds 

 ccanpared with 225 pounds last year. 



The feed situation . The feed situation will be dominated by the outlook for 

 the corn crop. However, livestock-feed price ratios probably will continue favorable 

 to livestock producers for at least several months, according to the Bureau of Agri- 

 cultural Economics. Prices of feed grains are likely to be about as high in the 

 months of heavy marketings in I9U5 as in V^kk» On June 1 the oats prospects were good. 

 In fact, the second largest oats crop in 20 years was indicated. The carry-over of 

 oats and barley on July 1 is expected to be slightly larger than a year ecLrlier emd 

 the carry-over of com next October 1 probably will be materially larger than on Octo- 

 ber 1, 19ifif. If we have a reasonably late fall which will permit the com to mature, 

 the 19^5-^ supply of feed grains will compare favorably with the relatively large 

 19kk'k'^ supply. Hay supplies may be slightly larger than in 19li-i4-U5. 



Meat exports from Canada to U.S. put under permit . Export permits are now 

 being required by Canada for shipments of dressed and live poultry and meat to the 

 United States. The permit system was inaugurated because of increased American con- 

 sumer purchases of Caiiadian products and was done to safeguard supplies for troops 

 and other priority users. Canada has a contract for 50 million pounds of chicken to 

 feed the United States aiined forces and is committed to ship all surplus moat to the 

 United Kingdom and other European countries for emergency relief. 



Agricultural prices on June 13 . Between May 15 and June 15 prices received 

 by farmers for agricultural commodities increased to a new high since I920 and stood 

 at 206 percent of the five-year average, August I909 to July 19lif. Prices rose 6 

 points during the month and were 13 points above a year earlier. This was the greatest 

 rise in any one month since March 19^3. The index of prices paid by farmers, includ- 

 ing interest and taxes, was unchanged at 173 percent of the base period. Consequently 

 farm prices averaged II9 percent of parity, a new record high since June 19^3. 



Prices of truck crops advanced 76 points during the month to raise the index 

 of prices received by farmers for all crops to 210 percent of the base period or 12 

 points higher than on May 15 . Fruit prices also rose during the month. There was 

 little change- in prices of livestock and livestock products. 



