

(91 



-2- 



cr 



September 13 prices at 115 percent of parity . The index of prices received 

 by U. S. farmers dropped 7 points between August 15 and Septemiber 15. The greatest 

 declines vere in truck crops and to a less extent meat animals, eggs, feed grains, 

 tobacco and oil crops. In contrast, prices of commodities used for family living in- 

 creased one point to a new high since 1920. As a result of these contrasting trends 

 in prices received and paid by farmers, the parity ra^o dropped_jtQ^113 compared with 

 ll8 in August emd 115 a year ago. Actual prices (U.S.)^^^B_a_^rcent^e of i)arity 

 were as follows on September 15! \ 



Compared to the 1955-1939 average, Illinois farm prices on September 15 ranked as fol- 

 lows: 



^; 



the month of September were 5 percent below September 19^^. Receipts of calves were 

 down 1^- percent. Receipts of hogs at these 12 mgirkets were down 55 percent in Septem- 

 ber compared with a May- to -September average decline of 60 percent from the same 

 period last year. Receipts of salable sheep and lambs were down 51 percent. Average 

 weights of hogs are extremely high, averaging 29k pounds for barrows fiuid gilts at 

 Chicago, compared to 225 pounds In September 19^4-.' Western meurkets continue to show 

 the greatest increase, 79 pounds at St. Paul and 75 pounds at Omaha. It should be 

 kept in mind in interpreting these hog receipt figures that these are salable re- 

 ceipts and do not include directs. As packers found it more and more difficult to 

 obtain a reasonable quota at terminal markets, there was a tendency for those who were 

 in the best position to do so to buy more hogs direct. 



Wheat eiibsidy increased . The government has announced that the subsidy pay- 

 ments on wheat milled into flour will be 7 cents higher than for the period ending 

 September 50. This additional subsidy will encoui'age millers to offer flour more ag- 

 gressively and will add to a strong demand from domestic consumers and for export. 



L ivestock subsidy . It is expected that livestock subsidies will be gradu" 

 ally eliminated over the next nine months' period. These subsidies were paid both to 

 packers and to producers and were degigned to encourage the raising and fattening of 

 livestock to meet expanded wartime demands and ho3-d down the cost to consumers. Pro- 

 ducers do not like subsidies, but their removal at the present time would result in 

 n Increase in prices of meat to consumers. Both subsidies and price ceiling^ 



