w* 



y Extension Sferviee in Agricultiire and Hom6 Economics 



. University of Illinois College of Agricultural Urbana 



3 ^^* ' 



T^loL^^ WEEKLY PSVIEW Ain) FARM OUTLOOK LETTTER 



C^ ^ By G, L, Jordan 



Professor^ Agricultural Economics 

 (Prepared August 9) '^, '^ ^ 



Not all of the repercussions from the use of the atomic 'bomb and Russia *s 

 stand were felt in Japan. Prices on the commodity and security exchanges dropped in 

 anticipation of an earlier ending of the war. Most commentators say that the country 

 is not prepared for a shift from militeu:^ to civilieui industrial production in the 

 Immediate future and that unemployment would rise temporarily to several million in 

 case of immediate cessation of hostilities. A collapse in Industrial employment would 

 affect prices of farm products in spite of possible heavy exports for relief purposes. 

 Most people do not realize how much farm output has increased during the war period 

 and the extent to which prices have been supported by payrolls in war industries and 

 military requirements. I am of the opinion that prices of farm products have reached 

 their peak and that the next trend will be downweurd. 



Secretary Anderson stated July 30 that he had no intention of recommending 

 an increase in com price ceilings. He indicated that "fetrmers are receiving a full 

 parity price," that "there is an urgent need for com now in deficit areas and farmers 

 will be doing a real patriotic service by marketing as rapidly as possible the com 

 they do not need for their own operations." 



The government has announced a loan program on oats to producers of the 19*+5 

 crop. The loem will average k& cents per bushel nationally. All loans will be admin- 

 istered by county committees of the AAA. They will be made until December 51; 19^5; 

 and will mature on April 30, 19^6, or earlier on demand, 



A private crop reporter predicts a corn crop of 2.8 billion bushels on the 

 basis of conditions existing the first of this month. This would be up 150 million 

 bushels from the government's July report. His oats estimate is also 125 million 

 bushels larger than the official estimate last month. In fact, it looks as if we 

 would have plenty of feed grain during the coming yeair, especially if any substantial 

 quantity of wheat is used for feed. 



As of July 15; Illinois farm prices were higher than the 1955-1959 average 

 by the following percentages: 



Potatoes up lQOf> 



Apples up l60 



Soybeans up 155 



Milk cows up ll6 



Oats up 106 



Sheep up 98 



Chickena up 90 



Beginning August 15; when an Illinois feurmer or poultryman, in carrying on 

 normal culling operations, has hens to sell, he must sell them only to authorized 

 suppliers providing army poultry under the government program. The order prohibits 

 shipment or delivery of live poultry to a point more than 100 miles from the farm on 

 ^ which it was produced, except with special permission. 



-0- 



Jooperative 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 50, 191^ 



