( 180 ) 



During these seven years man's efforts to attain parity 

 were of little avail. Whether the efforts were in the form of 

 loans or restricted production or both, and regardless of the 

 efforts of the farm bloc and farm organizations, the net re- 

 sult was that parity was not restored. 



The general inflation of the last three years has increased 

 prices of all farm products, and by April 1943 they had risen 

 to 14 per cent above parity. From August 1939 to April 1943 

 there was a striking increase in the purchasing power of farm 

 products. The percentage increases were as follows : 



Potatoes 140 Barley 54 



Hogs 105 Chickens 52 



Corn 90 Cattle 43 



Wheat 63 Butter 31 



All farm products 61 



Most of this improvement was due to the fact that, during 

 inflation, farm prices rise more than articles farmers buy. 

 The price whip swung in favor of the farmer, as is usual with 

 rising prices. Three years of moderate inflation brought 

 about what seven years of legislation and administrative 

 controls failed to accomplish. 



Formerly parity was thought to mean equality. Now the 

 man on the street thinks parity is a method by which farmers 

 are attempting to get more than they deserve for their prod- 

 ucts. Formerly parity was the goal to which farmers hoped 

 that prices might rise. Later, parity was a limit beyond 

 which city folks hoped food prices would not rise. 



Despite hopes, plans, and legislation, farm prices react in 

 accordance with economic laws. The efforts to hold farm 

 prices down during the past two years probably have been 

 no more effective than the previous efforts to push them up. 

 During the past two years farm prices have continued to rise 

 despite price ceilings, "stabilization," and the fortunes of 

 war (figure 4) . 



