-5- 



Potato prlco celling . The producer's colling prices for potatoes f.o.b. 

 country shipping point for the State of Illinois during the month of July 19lv5 ie 

 $2.95 per hundred pounds, Nev ceilings will he estahlished for the rest of the cal- 

 endar year. In goneral they will ho the same as those used during the corresponding 

 months of last year for late and intermodiate potatoes. The level of retail ceiling 

 prices for potatoes will not he affected hy the new prices. 



Land hank presidents fear further land price rise . The United States Depart- 

 ment of Commerce polled the presidents of the 12 federal land hanks concerning farm 

 land prices and inflation. The 11 presidents that responded said farm land prices are 

 still on the rise. Seven Indicated there have heen some recent signs of stahillzation 

 and k could see no such signs. Six of the presidents said there was likely to he a 

 repetition of the serious farm land situation that followed the first world war. 



The Department of Commerce called attention to tlie differences hetween the 

 situation now and that following World War I particularly with regard to the fact that 

 farm mortgage indohtedness, instead of rising rapidly as it did during and following 

 World War I, has decreased in this war. Operating farmers compose a great majority 

 of purchasers and the proportion of cash used in purchases is higher now than during 

 the previous war period. On the other hand, the land price rise is more widely dis- 

 ■Irihuted over the country this time than in World War I. At that time the Midwest com 

 holt experioncod the wildest land price Inflation, It seems that those lessons have 

 not all heen forgotten in the com helt. 



Postwar possihilities. The Bureau of Agricultural Economics has made an 

 estimate of prohahle agricultural prices, production €uid Income under full employment, 

 intermediate employment, and serious depressiai. The following statements summarize 

 their conclusione and are to he interpreted as possihilities under the different 

 assumptions made and not forecasts of what will happen after the war, 



"What peace can mean to American farmers depends more on the level of huei- 

 ness activity and nonfarm employment that can he maintained after the war than upon 

 anything else. With a general price level ahout the same as in 19^3 and with no more 

 than 2 million workers 'frictionally' employed, the national income, after reconver- 

 sion — or ahout the year 19pO--would stand at approximately 150 hlllion dollars; and a 

 sustained export outlet could ho maintained for ahout 6 hlllion dollars' worth of 



American goods — almost 20 percent or 1,2 hlllion dollar's worth of which would he ag- 

 ricultural products. This could he done with a moderate degree of international col- 

 lah oration, 



"Under these circumstances, and without any governmental programs to support 

 farm prices or to induce changes in farm production, the prices for farm products on 

 the average would stand at ahout parity, compared with 119 percent of parity in 19*^3. 

 Cash income from farm marketings would amount to ahout 1? hlllions, or only ahout 2 

 hlllions less than in 19^5. Some farm prices, however, would he suhstantially lower 

 than others, as compared with recent wartime levels. 



"With current technology, the cropland needed to meet requirements in 1950 

 under full employment would he some 18.6 million acres more than were used in 19^5. 

 Allowing, however, for moderate improvements in technology hetween now and 1950, all 

 the products required to meet foreign and dcxnestic demand at that time under conditlaie 

 of full empldymont could he produced on 327 million acres of cropland or ahout 25 mil- 

 lion acres leas than was used in 19^3. This suggests the posslhility that agrlcultuxal 

 production generally might outrun demand even under full employment. 



