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The dairy situation . The outlook for exporte of dairy products Is discussed 

 ty Professor Stlce In another section of this review. The Bureau of Agricultural Eco- 

 ncmlcB suggests that prices received "by farmers for dairy products during the first 

 quarter of 19*^6 will "be nearly the same as in the correspcndlng period of 19**^U-U5. 

 Cash receipts from dairy products by farmers in 19^5 will he about 3 percent above the 

 19^1; record of 2,969 million dollars, reflecting Increased production and further in- 

 creases in vhole milk marketings. Not much change is expected in unit returns from 

 sales of vhole milk but, with larger government payments, returns from sales of butter- 

 fat will be substantially higher. The demand for dairy products is expected to con- 

 tinue strong during 19U5 and early 19U6, Unless we have a serious deterioration in 

 pastures, milk production is likely to continue at a record level during the rest of 

 19^5. 



Creamery butter production in 19^1^ sank to the lowest level in 16 years. 

 Output was 1,U88 million pounds, according to the Uhited States Department of Agricul- 

 ture, This was 11 percent under production of the preceding year and I8 percent under 

 the average production in the years 1938-^2, inclusive. On the other hand, new high 

 records were reached In the production of cream, dry vhole milk and nonfat milk solids. 

 Near-record marks were reached In the output of canned evaporated milk, and only in 

 one year was Cheddar cheese production greater than last year. 



Goverraaent payments to aheep raisers and lamb feeders . Secretary Anderson 

 announced that payments will be made through the Coranodlty Credit Corporation to sheep 

 raisers and lamb feeders in order to increase the supply of lamb and mutton by- helping 

 producers meet increased costs. Payments beccme effective on sheep and lambs marketed . 

 on or after August 5 through June 30, 19^6. Payments will be made to producers who 

 sell to legally authorized slaughterers and will range ffom $1.50 to $2.50 per hundred 

 weight for lambs weighing 65 to 90 pounds; from $2.15 to $3.15 per hundred weight for 

 lambs weighing over 90 pounds; and $1.00 per hundred weight for all other sheep and 

 lambs. The highest payments are to "be made on lambs weighing over 90 pounds during 

 the months when fed lambs are usually marketed. Sellers should retain their sales 

 accounts, invoices and other evidence showing the weights and purchasers of all lambs 

 and sheep sold on or after August 5j 19^5. Payments to sellers are to be made through 

 the offices of the county AAA committees. A subsidy of 95 cents per hundred weight 

 now paid to slaughterers by the Reconstruction Finance Corporation was canceled. 



Egg price supports for 19^6 studied . The U, S. Department of Agriculture 

 is preparing plans to support egg prices in 19k6 should that hecone necessary as a 

 result of continued high production and a 8ubst«mtial decrease in the demand for eggs 

 from the amed forces. The department does not expect the current heavy demand for 

 chickens to have any appreciable effect on 19^*6 egg production. It seems that the 

 amy procurement of shell, dried euid frozen eggs is apparently nearing an end. The 

 army has taken more than nlno million cases of shell eggs and better than ^6 million 

 pounds of driod eggs. Last year the eurny took 8 3/^ million cases of sholl eggs and 

 kQ million pounds of dried eggs. 



Lard set-aside reduced . Last week we reported reduction in set -aside of pork, 

 beef, Cheddar cheese, dried milk £Lnd lamb. Since that time the government has reduced 

 the set-aside on lard. The new requirement is h percent of the live weight on hogs 

 Instead of the former 5 l/2 percent. This reduction in sot-aside is expected to pro- 

 vide for the consumption Tsy civilians of the quantity formerly allocated for the July 

 to September quarter, namely, 60 million pounds of federally Inspected lard. This 

 is 10 million pounds more than would have been available under the old set-aside re- 

 quirement. 



