The Monmouth inquirer., 1921-04-28
Department of Agriculture De-
cIares Prices Are High.
CITES COST Of MATERIALS
Manufacturers Are Warmed That They
Must Recognize the Downward
Trend of Prices-Declares Rates
Fixed for Entire Spring Trade Of
1921 Are Not Justified-Subject Is
of Vital Interest to Farmers Of
Country.

Country.
Notwithstanding the fact that some
of the raw materials used in the manu-
facture of fertilizer were bought at
prices higher than those now prevail
ing, the Department of Agriculture,
in a statement to the manufacturers
setting forth its stand on the fertilizer
question, says that it feels that In
view of existing market conditions, the
prices of mixed fertilizers quoted for
the spring trade are too high, ana
warns the manufacturers that while
the Lever food control act does not
authorize the fixing of prices for fer
tilizers, those who exact an unjust or
unreasonable profit will be subject to
prosecution.
The statement continues that the
consuming public is vitally concerned
in this matter for the reason that the
maintenance of high prices for fert1-
lizers, at a time when the price of farm
products have greatly declined, may
result in curtailment of the use OF
fertilizers and reduction in acreage
! and in yield per acre of crops planted.
If the prices the manufacturers are
now quoting, which are based upon
the unit costs of September 20, 1t con-
tinues, prevail during the entire sea-
| son. it will be necessary for the in
diyidual farmer who uses fertilizers
to exercise unusual care in shaping
his operations so as to avoid UNDUE
risk of financial loss in his effort to
maintain normal production of essen
tial crops
Ask for information.
SIN executing its duties under the
Lever food control law and the Presi-
dents proclamation regarding fertillz-
ers" SAYS the statement, ''a letter was
addressed, on September 25, to all fer
tiIizer manufacturers under license re-
auesting them to submit information
regarding their prices for mixed fer
| tilizers for the spring season of 1911
This was shortly after the prices or
raw fertilizer materials had begun to
| decline. At that time the estimated
average purchase price of ammonia
was around $5 per unit of twenty
pounds. which was a dollar a unit
less than for the fall of 1920; acid
phosphate 81 unit, which was the
same as for the fall and potash $2.25
per unit, which was so cents unit
below the fall price. The prices OF
raw materials, together with manu-
featuring costs, allowances for shrink
age and for profits, form the basis
upon which the fertilizer manufac-
turers established selling prices.
'The prices quoted by the larger
manufacturers for the spring of 1921,
according to statements submitted by
them, were based upon unit cost
of ammonia of $525, phosphoric acid
so cents and potash $3.50. When these
prices were received early in Octo-
Der, a communication was sent to some
of the principal manufacturers which
said:
"'With the break in general COM
modify prices there has been a recent
break in the prices of many of the
fertilizer materials. This price ADJUST
ment has not yet been accomplished.
The indications are now that we are
on a continually falling market with
certain of the materials. Therefore
the department is strongly of the opln-
ion that prices fixed for the entire
spring trade to July L, 1921, on the
basis OF present values, are not Justi-
fed. Your prices for spring delivery
should be lowered now to the fullest
extent having in mind the reductions
which recently have taken place in
MANY of the fertilizer Materials and
also the probable future prices OF
these materials, and they should be
still further lowered later If condi-
tions in the fertilizer material mar
ket justify
Downward Trend of Prices.
"The department has repeatedly
urged the fertilizer trade in determin-
ing their prices for the spring season
of 1921, to recognize to the fullest
extent the downward trend of prices
of raw materials and to give their
customers, the farmers of the United
States, every possible price concession.
Their attention has been called to their
insistence during the war years up
on the application of the replacement
principle in determining their price
quotations during the period of rising
prices and to their abandonment of
this theory under changed conditions
of a falling market
sThe larger manufacturers allege
that In order to provide their enor-
nous tonnage, it is necessary for them
to contract for considerable part of
their raw materials several months
before their prices are set. At this
particular time they claim to have pur-
chased or contracted for large part
of the materials for the spring trade
of 1921 before the beginning of the
break in prices of fertilizer materials.
The smaller manufacturers, of whom
there are around 750, make no such
.y~s,,oe< h,+ IN tho contrary mopv of