The answer may partially be accounted for by a lower Maine farm 

 price, a well-graded product, and a steady supply through the greater part 

 of the year, conditions which are not met by local producers who are inter- 

 ested in selling on these markets. 



There may be additional institutional reasons, such as wholesale prefer- 

 ence for Maine potatoes or trade agreements between handlers, which have 

 not been explored, but which influence the source of supply. Local pro- 

 ducers are not supplying these markets. 



Price quotations used as the basis for sales are influenced by the Boston 

 market. The quotations used by a sample of growers are given on Table 8. 



Table 8. Potato Price Quotations Used by a Sample of New Hampshire 



Growers 



The larger growers used the Boston wholesale price more extensively 

 and the small growers, to a greater extent, used the New Hampshire Market 

 Bulletin which reflects local sales. 



GOVERNMENT PRICE SUPPORT PROGRAM 



Wartime food needs called for increased production of potatoes. The 

 Congress enacted legislation which by government procurement programs 

 "would protect producers of perishable or non-storable commodities from 

 Icsses due to increased production. While total government procurement 

 in the United States reached as high as 105 million bushels in 1946, the 

 New Hampshire share was 205,000 bushels in 1946 and, in 1949, 504,563. 



A support price announcement is the price at which the Federal Govern- 

 ment purchasing agency will take delivery. Their final use is decided upon 

 by the government. The market price will tend to be equal to or exceed 

 the announced price i. 



The proximity of Maine supplies and the announced price in Maine 

 influenced the supplies moving into New Hampshire markets. In 1949-50 

 New Hampshire and Maine support prices were as shown on Table 9. 



This meant that if the support price were the same as the market price, 

 dealers in New Hampshire could buy supplies cheaper from Maine pro- 

 ducers than they could from New Hampshire producers at an equal dis- 

 tance. This condition was exemplified on the Berlin market and there was 

 incentive for local producers to sell to the higher priced market, which 

 "was the Federal Government. 



The higher support price level in New Hampshire combined with 

 favorable freight rates from Maine has tended (1) to withhold potatoes 

 which are locally produced from New Hampshire markets and (2) to in- 



tone exception is noted in Presque Isle, Maine, for January, February, 1949 when the sale price was 

 consistently below the support price. 



16 



