WILL MORE FORAGE PAY' 



15 



in the United States under different assumptions regarding employ- 

 ment, income, prices, and related factors. These, partially summarized 

 in table 5. have been related to actual periods in the past. 



The period 1942^46 nearly approaches the full-employment situa- 

 tion, whereas prices and costs of 1925-29 approximate the situation of 

 intermediate employment-average level. The period 1935-39 is most 

 closely identified with the situation of intermediate employment, de- 

 pression level. 



Price-cost data for the 1942-40 and 1025-20 periods have been used 

 as general guides to test the fanning systems discussed subsequently in 

 this study. The relationships shown in table 5 for the country as a 

 whole have been generally adapted to those actually prevailing in 

 areas in which case farms are located. In the interest of simplification, 

 reference is made to the "high level'' and the "medium level" of prices 

 and costs. The historical periods as such have little significance other 

 than to aid in establishing general levels of farm prices and costs 

 and internal price and cost relationships that conform with situations 

 that have prevailed for agriculture. Indeed, general adoption of the 

 forage-using systems of farming that are described would in all prob- 

 ability generate an entirely new set of farm price and cost relationships. 

 These could have a considerably different effect upon farm returns 

 from those used in this study, which assumes moderate rates of 

 progress in the extension of forages in the near future. 



Tablk 5. — fndi xes of prices rect ived and paid by farmers^ and parity 

 ratio, assumed situations and selected historical perwds, 1910-14= 



100 



Situation 



Prices 



received by 



farmers 



Hish emplovment 3 



1942-46 (high price level). __ 



Intermediate employment 3 __ 

 1925-29 (medium price level) 



Intermediate emplovment 3 __ 

 1935-39 (low price level) 



200 

 196 



150 

 149 



100 

 107 



Prices 

 paid by 

 farmers 



200 

 170 



175 

 168 



150 

 128 



Paritv 

 ratio 2 



100 

 115 



86 

 89 



67 

 84 



1 Including interest and taxes. 



2 Ratio of prices received to prices paid, for commodities, interest, and taxes. 



3 For a more complete description of the conditions assumed to accompany 

 these levels of employment see Long-Range Agricultural Policy (33, table 4)- 



NORTHERN STATES— PRELIMINARY FINDINGS 

 Technical Possibilities for the Production of Forages 



Xew and extended uses of forages in the Northern States — Corn 

 Belt. Lake, and Northeastern State- — are based upon species of grasses 

 and legumes long known to be adapted to the soil and climatic con- 

 ditions of this part of the United States. As these conditions vary 



84366G' — 19 3 



