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The poultry and egg situation . The demand for poultry products In 19^6 will 

 probably be somewhat lower than the high levels reached In 19^5 i according to the 

 Bureau of Agricultural Economics. The reduction will be due to Increased supplies of 

 meat for civilians, smaller nonclvlllan takings of poultry products and reductions 

 In consumer Income. Prices received by farmers for eggs probably will decline mate- 

 rially €uid may be near support levels durln^^^nost of the year. Prices for chickens 

 and turkeys are not expected to decline much below the 19^5 level. It is expected 

 that lower egg prices in prospect during the winter and spring will cause a 10 to 20 

 percent drop In the number of chlcke raised In 19^6 compared to 19^5' 



* Farm IncomBB expected to drop . A decllr^e Is expected dxirlng 19^6 in gross 

 farm Income, cash 'receipts, expenses of production and net Income to farm operators - 

 Net Income of farmers in 19l*-6 may decline as much as 15 percent from 19^5* according 

 to the U. S. Department of Agriculture. This would still leave the indicated total 

 more than double the prewar average and higher than in aiiy year prior to 19^5. Cash 

 receipts from farm marketings in 19^6 are expected to be a little over 18 billion dol- 

 lars, with government pciyments bringing total receipts up to about 19 billion dollars. 

 This would be 10 percent less than In 19^5. Production expenses are expected to reach 

 a record peak this yeeur emd to decline In 19^6. Farm wages are expected to fall and 

 more hired help will be available In the next crop year. Expenditures for feLrm equip- 

 ment and farm, rehabilitation in 19^ are expected to Increase considerably as machinery 

 and building materials become available. 



Most feeding ratios still favorable . Compared to the long-time September 

 average, the hog-corn ratio for the United States in September 19^5 was up 6 percent, 

 the butterfat-feed ratio was up ih percent, the milk- feed ratio up 9 percent and the 

 egg-feed ratio down one percent . 



Production estimates . Production of milk, beef and lamb and mutton for the 

 first eight months of 19i»-5 was substantially ahead of 19^^* but production of eggs, 

 pork and lard and all meats was substantially below 19ifi«-. Civilian supplies of fats 

 and oils are the smallest In many yeeurs. Total clviliam use in 19^5 is estimated at 

 65 pounds per capita compared with an average of jh pounds per capita in 1957-^1. 

 Lard output in 19^5 will be at least one billion pounds less than last year. August 1 

 stocks of fats €Lnd oils were 1,751 million pounds, about ^4-00 million pounds less than 

 the year earlier. In connection with the domestic demand for fats and oils, it is in- 

 teresting to note that 70 to 85 percent of the consumption of soybean oil has been 

 used largely for edible purposes during recent years. This is in contrast to the 

 years prior to 1955 when soybean oil was used chiefly in soaps, paints and varnishes, 

 although soybean oil Is suitable for a great number of uses, both edible and nonedlble. 

 In looking forward to the demand for soybeans in the postwar period, we shall have to 

 figure on soybean oil competing in the food market with cottonseed oil, lard and other 

 edible oils for the major part of its use and the soybeeui meal finding an outlet as a 

 protein concentrate for livestock feeding. 



There is little hope now that sugar rationing will end before 19^7* accord- 

 ing to Secret€u:y Anderson. The rationing of butter, margaurine, lard and shortening 

 may have to continue into the spring and possibly the summer of 19^6, but meat may go 

 off the ration list early in 19^6. Part of this tightness has been associated with 

 the fact that the United States has allocated liberated areas of Europe and French 



