m 



Demand 6utlcx>k for 19^ . In the outlook issue of the Demand and Price Situa- 

 tion, the United States Department of Agriculture said that the "demand for farm prod- 

 ucts is likely to be maintained at a high level in 19^4^, but prices and incomes to 

 farmers eLre expected to be somewhat below the high levels of 19^5. The prices of farm 

 products in 19^5 will apparently average about double the 1910-1^ average and also 

 nearly double the prewar 1935-39 average. With normal conditions for production in 

 the U. S,, prospects are for a reduction in ccwsh receipts for marketings, in 19^> ^ut 

 probably not more thsui about 10 to 15 percent. 



"Total demand for farm products is likely to be maintained at a high level 

 through 19*»^6 by a high level of civilian purchasing power and by the taking of a large 

 volume of farm products for relief and export. The cutback in national expenditures 

 for war materials is reducing national income, but by the middle of 19^/ reconversion 

 will have reached the point at which national production may begin to expand, with in- 

 creasing employment. National income for the year may be reduced, but perhaps by not 

 more than 15 percent, from the high level of 19^5 • 



"Purchasing power of consumers will not be affected as much ae national in- 

 come by the cutbacks frcMi war production. If taxes are reduced, this will leave a 

 larger proportion of current incomes at the disposal of consumers. 



' "Relief takings and exports of farm products in 19^5 will be large if ade- 

 quate financial arrangements are provided. The need exists and arrangements have al- 

 ready been made to move a considerable volume in the next few months. Wheat is moving 

 in large volume and the exports of cotton are likely to increase. Teikinge of some 

 products may decline in the latter pcurt of the yeeir, with the harvesting of crops in 

 Europe and in other exporting countries." 



Slaughter subsidies may be raised . The OPA is revising its slaughter pay- 

 ment schedule in conformity with a recent amendment to the law which requires the OPA 

 to assure profits to slaughterers for all species handled. The increased subsidies 

 are expected to range as follows per hundredweight: Beef, 10 to 12 cents; hogs, 13 to 

 15 cents emd sheep, 20 cents. These payments will be made for the period dating from 

 April 1 to October 31* There is some talk that the OPA may scale down the hog payment 

 but t€dce care of the reduction by permitting a roll-back of prices. 



Red clover and timothy seed prices below 19^^ . Prices to growers of timothy 

 seed advemced 9 cents per c;ft. between September 15 5ind October 15. In Illinois the 

 price to growers for clean fleed was $5-56 per cwt. October 15 this year compared to 

 ^6.10 a yeax ago. 



Prices growers received for red clover seed in northern Illinois on October 

 15 were reported at $30.15 per cwt. compared to $30.50 last year. In central Illi- 

 nois the comparable figures are $30.50 this year, $30.65 last year, and in southern 

 Illinois $30.50 this year, $31 last year. The quality of the red clover seed this 

 year is inferior to that of last year. The average price to growers on October 15 for 

 the country as a whole was $30.6? per cwt. for clean seed. That was I6 cents lower 

 than 19^ but $13.60 higher than the five-year average, 1939-^3 * of $17.07 per cwt. 



Potatoes should be marketed freely . Because of the exceptionally large crop 

 of potatoes this year, the government reports that there will be no shortage next 



