2 BULLETIN 1083, U. S. DEPARTMENT OF AGRICULTURE. 



FARM PRICES. 



The leading States in the production of wheat, corn, and oats were 

 considered in compiling local or farm prices. Of the estimated crops 

 produced in the United States for 1920-21, 10 States produced 

 456,000,000 bushels, or 61.5 per cent of the wheat; 9 States produced 

 1,811,000,000 bushels, or 57.2 per cent of the corn; and 12 States 

 produced 775,000,000 bushels, or 71.8 per cent of the oats. 



The farm price for each market represents the average of a combi- 

 nation of the values in those States which from their geographical 

 position could be expected to contribute to that terminal. These 

 States are named in the tables. Farm sale prices for the first day 

 of each month are received by the Department of Agriculture from 

 reporters in the several counties of the different States. Prices for 

 each State are obtained by averaging these county returns, allowance 

 being made for the relative importance in grain production of the 

 various counties. This average State price is used in computing the 

 average price for the combination of States for each market, the 

 estimated monthly sales of the States being used as weights. To 

 allow for changes that may occur in the farm price during any given 

 month, the reported price for the first day of the month is added to 

 the price reported for the first day of the following month and the 

 result divided by two for an average price. 



TERMINAL PRICES. 



The four leading wheat markets in order of importance as to bulk 

 of wheat receipts are Minneapolis, Kansas City, St. Louis, and 

 Chicago. The leading corn and oat market is Chicago. Minneapo- 

 lis, Omaha, and Kansas City are true primary grain markets, while 

 St. Louis, Chicago, and Cincinnati should .be considered as both 

 primary and secondary markets. The terminal market prices are 

 computed from the reported daily cash sales as published by the 

 trade journals for these markets. The total ''cars involved" for the 

 four markets in the cumulative wheat table represent 47.6 per cent 

 of the total receipts of wheat at these markets for the crop movement 

 year 1920-21. All averages are weighted. All grades are included 

 for each class price and all classes for the total average price. The 

 prices are computed by multiplying the reported sale price per 

 bushel by the number of cars sold at that price, totaling the number 

 of cars and the extensions of all sales made and dividing the total of 

 the extensions by the total number of cars. 



PRICE-MAKING FACTORS. 



The several prices reported for the different counties are influenced 

 by local conditions outside of the general market, such as quality of 

 crop, competition in buying, distance from terminal market, home 

 consumption, etc. 



