r • 4 



J, 



* 



NRA Price Raising Hurts 

 Movement Toward Parity 



Increased prices for things the 

 farmer must buy to a large extent 

 have nullified the benefit of advancing 

 farm prices according to figures taken 

 from the National City Bank bulletin 

 showing actual farm prices and par- 

 ity prices as defined in the Adjust- 

 ment Act. The table shows figures as 

 of May 15, 1933 when the Adjust- 

 ment Act was passed, and May 15, 

 1934. 



Since May 15 this year certain 

 farm prices have advanced consider- 

 ably as a result of the production 

 control program and the drouth. For 

 this reason present prices are nearer 

 parity than they were the middle of 

 May. Because wool is on an import 

 basis and is protected by a substantial 

 tariff this is the only farm crop which 

 has reached parity. Incidentally wool 

 illustrates the possibilities in raising 

 all farm prices by controlling produc- 

 tion so as to make the tariff effective. 

 '. The table is not quite fair because 

 it fails to take into consideration 

 benefit payments made or to be made 

 for wheat, cotton, corn and hogs 

 which should be added to the market 



TREVOB JONES, MAKAGEB OF CIMCO 



FARMS. HAVANA, HASON COUNTY, LEFT, 



AND FARir ADVISER C. S. LOTE 



Cimco Farms, owned by the Chioairo lUinoit 

 Mid-Land Railroad running: from Taylorville to 

 Peoria, it demonstrating the poBsibiUtiea of orop 

 production and soil improvement on the sand 

 lands of the Hlinois Valley. Thronyh the use 

 of limestone, ground rock phosphate, super phos- 

 phate, aweet clover and alfalfa, the sand land 

 on this farm is being: made to produce food 

 crops of com and wheat. 



Several varieties of edible soybeans brought 

 from Japan by Prof. Morse of the TJ. 8. D. A. 

 are being tried out this year. The farm pro- 

 duced 1,600 turkeys last year at a nioe profit 

 after charging all expenses including labor. Mr. 

 Jones is aiming to market 8,000 turkeys this 

 year. 



Cimco Farms has entertained more than 20,- 

 000 farmers from the surrounding oounties on 

 its annual field day. Mr. Jones states that the 

 C. ft I. M. R. R. has painted 760 ears with 

 soybean oil paint. 



COMMODITY 



■■■'; :■ ■■• ■■•■■''- . ■;• \ * . • ' 

 ^J9%^Ou ••••••• •••••••••••••• ILf • 



Inf BCAC • •• •• • •••••• • • •• •• •••IIV* 



Hegs 100 lb. 



Beef cattle 100 lb. 



CMaK^ff •••••••• ••••••••••••• ^b"A» 



Vv U9« •••••••• •••••••••••••• m" • 



FARM 



PRICES 



$ .982 

 .389 

 .600 

 .437 

 3.880 

 3.900 

 .118 

 .177 



$ .110 



.48a 



- .6M( 



'■, .787 



8.170 



4.180 



.183 



' .234 



PARITY PRICES 



May 



16, 

 1988 



May 



16. 

 V 1984 



$ ,129 

 .666 

 .902: 

 .711 

 7.S9e 

 6.810 

 .197 

 .182 



I .160 



.777 



f 1.079 



.843 



8.740 



6.800 



.198 



.218 



% OF PARITY 



May 



16, 

 1983 



May 



16. 

 1984 



65 

 69 

 65 

 61 

 63 

 74 

 71 

 97 



•..•....*.*.•.•.•.•...•...•*•.•< 



Farm Prices Received 



Prioea Paid by Farmers 



Ratio of Prices Received to Pricee Paid 



INDEX NUMBERS 



. . MAY 16. 



• • • • • • • 



• ••••• 



162 

 61 



MAY 16, 

 1984 



74 V-; 

 121 

 61 



'.• > (• 



PERCEMT 

 CHAHGE 



19.4 



18.6 



0.0 



price. Furthermore crop adjustment 

 has hardly had full opportunity to 

 make itself felt in market prices, 

 particularly on corn and hogs. Corn 

 and hog prices should feel the full in- 

 fluence of the reduction program dur- 

 ing late 1934 and 1935. 



The Federal Land Bank of St. Louis 

 states that loans are now being closed 

 with a second issue of bonds bearing 

 three per cent interest and maturing 

 in 15 years. The bonds are selling 

 above par and are tendered farmers 

 and their creditors in coupon form in 

 denominations of $100, $500, |1,000, 

 $5,000 and $10,000. During May the 

 St. Louis bank distributed $ll,167,t 

 500 in 3,975 land bank and commis- 

 sioner loans, the second largest month 

 in its history. . '-,:. 



' . ■ ' ' ' ' '. : *' ; . ^ . * 



... ., -, .. ^ ., ^ ,_ . • ' • • 



■ .. ••• • •.■■::■■•.'!.,..■ b' •••'■■• •-••^\;-''.''-v ':■'•'''- Z-^' "-■■^■■^^■ 



■• -• ■ ■ - ' ■ • ■■ •• ■ ; •■ 1 • . ' • ■ ■.>■^ > .- . • _ . .' ■ .. .•• • 



JULY, 1934 •'::; ■ 



Ask Governmenf To f 



' ■ ' . ' * ■ 



Force Sale Sealed Corn 



Reports from Washington state 

 that pressure is being brought upon 

 the Commodity Credit Corporation 

 and the Agricultural Adjustment Ad- 

 ministration to force the sale of corn 

 under seal on which loans of 45 cents 

 per bushel have been made. Grain 

 merchants and grain exchanges are 

 said to be back of the movement. 

 Prospects for higher corn prices, it is 

 believed, are responsible for the move- 

 ment by grain buyers to purchase 

 stored corn as cheaply as possible 

 with the expectation of reaping the 

 benefit from any rise in price. .■ 



Sealed Corn Moving 



New Rules on Release 



.' M- , 



W. W. MoLAUOHLnr 



A number of Illinois farmers are 

 taking advantage of the opportunity 

 resulting from higher prices to gret 

 part of their sealed corn released for 

 feeding or sale. The owner may se- 

 cure a release on 

 part of the corn 

 by paying 47 

 cents per bushel 

 on the number of 

 bushels removed. 

 The extra two 

 cents are to cover 

 interest, i n s u r- 

 ance and inspec- 

 tion charges. All 

 partial with- 

 drawals of corn 

 will ^ be made un- ^ 



der ;supervision of an official state 

 sealer who will then reseal the crib. 

 Payment for the amount released is 

 to be made to the local bank acting 

 as agent for the CCC and Reconstruc- 

 tion Finance Corporation. The amount 

 paid is endorsed on the back of the / 

 note given originally by the owner. 

 The warehouse certificate similarly 

 will show the bushels withdrawn. 



As we go to press, Walter W. Mc- 

 ; Laughlin, state director of agricul- 

 ture, reports a letter from the Com- 

 modity Credit Corp. to the effect that 

 owners of sealed com may obtain iti 

 release if they have a bona fide con- 

 tract to sell such com to a responsible ; 

 1 purchaser for an amount sufficient t# - 

 ; cover the government loan plus ac- , 

 cumulated charges. While the buyer is 

 expected to pay for the corn, the ' 

 producer is liable for the loan until it 'i 

 is paid, although the loan need not 

 be paid until Aug. 1 when it expires. 

 Full information as to the necessary 

 procedure may be obtained from the ^ 

 county supervisory board. Such boards 

 may pay sealers for supervising the 

 full or partial withdrawal of com 

 from sealed cribs, out of funds or 

 hand in lieu of assessing an additional : 

 charge against the owner of the com. 

 Producers ar^ also liable for short- 

 ages of corn. 



. The Chicajro br&nok of the ReeoastmetioB 

 Finance Corpor&tien ii receiTinf apFroximately r 

 200 letters daily larfely from niinoia and ltm%'^ 

 asking for release of part or all of sealed esra. 

 A low perconta^e of sealed eorm is beinc seld 

 in Illinois. There seems to be a distositlMi to 

 wait for hicher prices. — Editor. •:.. 



A total of 77 Illinois counties have 

 been designated as secondary drought 

 area by the AAA. Southernmost 

 counties include Washington, Jeffer- 

 son, Wayne. Counties south of these, 

 and along the Mississippi up to Jer- 

 sey are not included. Counties south 

 of Crawford along the Wabash also 

 are left out of the designated area. : 



U 



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