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2?5 



PREFACE 



THIS book is written for all those who may be interested in the 

 matter of prices of agricultural products, but more especially 

 for tlie farmers of the corn belt states, students of agricultural col- 

 leges, count}^ agricultural agents, and leaders of farm organiza- 

 tions. Its purpose is to promote a better understanding of the 

 factors which influence prices of farm products and stimulate an 

 intelligent interest in statistical economics. 



Aside from a rather small number of specialists at the larger 

 terminal markets, few of the people who buy or sell farm products 

 have any verj' definite ideas concerning the legitimate price-making 

 forces. A better understanding of such forces by farmers gener- 

 ally should in itself gradually bring about prices which will ap- 

 proach more nearly cost of production, and tend to reduce the 

 violent fluctuations above and below the compensatory average. 



A careful study of the facts herein set forth should aid leaders 

 of farm organizations to avoid costly mistakes which too often re- 

 sult from hasty and ill-considered action. 



While not Avritten primarily for economists, I trust many of 

 them may find something of practical value in the matter herein. 

 They may, perhaps, feel that at times I have not been as respectful 

 as they would like toward many of the ideas of the classical school, 

 but I have no apologies to offer on this score. In anticipation of 

 possible criticism of my treatment of cost of production, I shall 

 ask them to remember that I use "cost of production" as a ratio 

 concept (if need be, a shifting ratio) and not as a cost-accounting 

 concept. I may say, also, that I hold to no particular philosophy 

 of economics unless a very firm belief in the utility of thoro math- 

 ematical price studies might be considered as constituting the basis 

 of a philosoph}'. 



While the book is frankly written from the farmer's point of 

 view, there is no bias whatsoever to the mathematics used, and it is 

 believed that so far as it may influence opinion and practice, the 

 results will in the long run benefit both farm producer and city 

 consumer. 



Students who may take up this book for serious study will get 

 the greatest good from it by following prices of agricultural prod- 





