PRICES PAID TO FARMERS 
The average prices paid to farmers for 31 farm products in the Unite'd States 
are shown in Table XVII, pages 37 to 45. 
To determine accurately the conditions in a particular State, prices for that 
State must be used. Prices for the United States include many States that 
are importers of the product, rather than exporters of it. For example, New 
York farms consume much more corn than they produce. For this reason, 
the New York farm price is a consumer's price. It is determined by the price 
in surplus States plus the cost, profits, and trouble of getting it shipped. United 
States farm prices include a mixture of some prices that are characteristic of 
city wholesale prices and some that are farmers' selling prices. The fact that 
wholesale prices do not show farm conditions is discussed on pages 17 to 18. 
This principle holds with most farm products, but does not apply to wool or 
cotton, because neither of these is consumed on farms without going through 
the process of manufacture. Wherever produced these are for sale. 
Any change in freight rates also makes it impossible to determine the status 
of a particular State from United States figures. * During the period when prices 
were rapidly rising, but while freight rates were held down, freight constantly 
became a less important factor. Farm prices at distant points rose much more 
rapidly that did prices near the centers of consumption. Also great quantities 
of bulky products, like hay, were shipped long distances from regions that 
naturally do not ship any. This stimulated types of farming not permanently 
adapted to such regions and handicapped farmers in near-by States who had 
developed types of farming to supply city markets near them. Freight rates 
were raised after prices had begun to fall very rapidly. This made the farm 
prices in distant States fall much more rapidly than farm prices in near-by 
States. The stimulated shipment due to low freight rates combined with high 
prices was all stopped and much of the normal shipment was likewise checked. 
Farm prices in distant States then fell excessively. For example, horses in 
Montana are 43 per cent of the prewar price, while on New York farms to which 
horses are shipped, the price is 82 per cent of the prewar price. (See pp. 17 
to 18.) 
The data in Table XVII can be brought up-to-date by adding figures as 
published by the Monthly Crop Reporter. 
For convenience in calculating index numbers, the prices for the five years 
August, 1909, to July, 1914, are given separately, followed by five-year average, 
for each month. Yearly averages are given at the end of the table. The yearly 
averages are higher than the average price received by farmers, because in the 
months when sales are largest, prices are lowest. 
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