20 BULLETIN 594, U. S. DEPARTMENT OF AGRICULTURE. 
responding to economic conditions attending the transit of wheat from 
areas of supply to those of demand. These zones vary with each 
product. 
Sectional price ratios are not fixed: dynamic in character, they 
shift slowly with general economic changes. Moreover,, temporary 
upheavals frequently occur in price relationships, in response to 
changes in local and general price factors. 
The lowest farm prices appear in the surplus areas of Idaho and 
Montana, with small consuming populations and most disadvanta- 
geously situated as to foreign markets, having a short rail but a long 
ocean haul westward, a long rail and short ocean haul eastward. 
From this pivotal area wheat prices graduate upward in every 
direction, following closely the movement of wheat toward the areas 
of deficient production. Toward the Pacific they increase, to the 
west and south: toward the Atlantic the price graduations flow to 
the east and south, with maximum prices in the southeast. 
Subordinate to the general price current, localities with higher or 
lower price levels than those in the surrounding territory maybe found, 
responding to peculiarities of the commercial wheat movement. Com- 
parative stability and small local differences in prices appear in the great 
wheat-producing sections, which have great volume of wheat traffic, 
competitive primary markets, and elaborate freight adjustments. 
Where wheat moves in smaller volume, greater price irregularity as 
well as higher prices obtain. In the mountainous areas raising 
insufficient wheat, as, for instance, in the Appalachian region, farm 
prices are higher: on the other hand, western exporting areas unfa- 
vorably situated as to transportation show lower prices, notwith- 
standing geographical proximity to regions of higher price. 
A large part of the commercial wheat appears in a limited number 
of markets, with highly organized distributive systems. Each has a 
territory from which it ordinarily receives its supplies. 
The largest single element in the regional price disparities is 
represented by freight rates. Though subject to change, in their 
main features they are constant in their influence on price conditions. 
FARM PRICES CORRELATED WITH COSTS OF PRODUCTION, BY STATES 
AND SECTIONS. 
Yields to the acre and costs per acre of wheat qualifying sectional price advan- 
tages. 
Factors which enable areas with lowest priced wheat to show greatest net 
return. 
A distinction should, of course, be drawn between gross price and 
net price to producers. Two quahfying factors appear in yields to 
the acre and costs per acre. Price and cost elements have been 
assembled in Table III (p. 22). 
Costs of producing wheat are on an acreage basis; high yields 
depress and low yields increase costs per bushel. Figure 4 has 
