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. 
