( 92 ) 



corn program and an animal expansion policy which cannot 

 be maintained. It looks both backward and forward, and not 

 very far forward. 



Impending Livestock Liquidation 



The corn-price problem is the administration's worst head- 

 ache as far as livestock is concerned. The numbers of hogs 

 and chickens are expanding rapidly. Reports from the Corn 

 Belt indicate twenty-five per cent more sows farrowed in the 

 spring of 1943 than the previous year. Apparently the great- 

 est expansion in hog production occurred on cash-grain farms 

 of the Corn Belt rather than on their typical hog farms. 3 In 

 that event, market supplies of corn will be curtailed much 

 more than the declining stocks or increasing disappearance 

 would indicate. Since the cash-grain farmer was forced to sell 

 his corn at a low fixed price on the regular market, he kept 

 the corn and expanded hogs, which returned him more. 



Normally the farm carry-over, which is in the hands of 

 cash-grain farmers rather than livestockmen, provided the 

 market with supplies of corn during September, October, and 

 November. Since many cash-grain farmers are now hog-pro- 

 ducers they will be loath to release their usual supplies ex- 

 cept at much higher prices. Deficit areas outside the Corn 

 Belt will suffer the most. 



It has been estimated that 1943 fall farrowing will be 

 about 25 per cent over a year ago. The War Food Administra- 

 tion recommended that the increase be limited to 15 per cent, 

 but another arm of the government, through price, recom- 

 mends that farmers increase hog production just as much as 

 possible. Experience has shown that price is a more potent 

 force than exhortation. To prevent hoarding, the govern- 

 ment called outstanding corn loans, prevented corn-proces- 



3 Since they lacked equipment, lumber yards in these districts were busy 

 making portable hog houses. 



