Imperial Valley press., 1919-09-02
VALLEY WHEAT.
GROWERS may
Upon
PRICES

lmepflal Valley Will harvest CHe
bumper wheat crop OF it's history in
1920 and unless there is an extension
of the government garantee, which,
according to official notice from the
United States Grain Corporation, does
not come within it's limitation the
price that Valley growers get for
their crop will depend upon the oper-
alton of the law of supply and de-
mand. The probable price under this
return to normal conditions is. there
fore of vital Importance to the farm
ers, who will have wheat to sell.
The remarkable increase in wheat
acreage is testimonial to the whole
hearted way in which Imperial VAL
ley answered the call issued by the
President, in behalf of the world, to
raise more wheat. In 1916, the VAL
ley's total wheat acreage was 1906.
This was more than quadrupled in
1918, while the increase this year
over 1916 is almost twenty fold, the
grand total being 37,288 acres. If
the estimate of 80 bushels average to
the acre is borne out by the crop, the
total production will be 1,118,640 bu-
shells, worth at the present market,
approximately two millions and
quarter dollars. A slump of ten cents
a bushel in price would mean loss
on the crop Of over 100000.
Study of the economic conditions
throughout the world is calculated to
remove any fear that the removal Of
the guarantee will depreciate the
wheat price. There is no indication
that the government will lose any
money upon it's guarantee, notwith-
standing the precautionary measure
which was taken by congress against
that contingency. The government
price of wheat is not out of proper
ton to the prices of other commodi-
tiesofor which there was no guaran-
tee.
Statistics show that not withstnd-
ing the tremendous efforts made in
all countries to keep up their wheat
production it declined steadily during
the war and Russia, next to North
America, the greatest exporting
country is not likely to be in condition
to export before 1921, if by then.
Certainly, it will not be in condition to
export in competition with the I'm
perial Valleys coming crop.
Demand fro wheat upon America is
shown by the figures of the Depart
ment of Commerce which reports that
5,834,154 bushels were exported in
July, 1919, as compared with 25,381
bushels in 1918, while the exports for
the first seven months of 1919 were
79,733,41S bushels at the value of
1892, 2,511, ,187 as compared with 6,719,-
175 bushels in 1918.
The Imperial Valley crop will come
upon the market Immediately after the
expiration of the price guarantee. The
government will have large stocks
on hand at that time. 1t is not at all
probable that the government, con-
trolling most of the visible, supply,
will permit the price to drop.
Reports from throughout the coun-
try, while they show a wonderful crop
for this year indicated a shrinkage of
more than 10O,OOO,OOO bushels from,
the early forecast made by the De-
partment of agriculture.
Wheat is one product that Europe
must have whatever else it may do
without. It is the cheapest food there
is at the present price to which hun
dreds of millions of people are accus-
toned and the indications are that
with the high prices of meats the per
capita consumptio nof wheat is in
creasing.