The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-09-07
BUYING POWER
0FFARMERST0
! INCREASE SOON
Agricultural Economist Thinks
Farm Prices Are Now at
Lowest Level
SEES TURN IN THE ROAD
Farmers Who Get Is Bushels to
Acre Of Wheat Will Make
Money, He Says

IdI6O' ~. ~, Sept. 1.-frlCeS O
farm products which have decreased
far below that made by all other com
modities, have probably reached theil
lowest level now. and as other com
modities gradually decrease to norma
prices, the buying power of farm
products will increase accordingly
stated Rex +. Willard, agricultural
economist at fthe agricultural college
| today. Mr.. Willard who recently re.
turned from Washington, d. c., wher<
he testified at the Cong ressional hear.
ing on freight rates, has been engaged
in a careful study of prices and costs
since 1913, and is now directing the
work of studying costs Of production
of farm products in North Dakota
Farmers in the state who had
wheat crops of Is bushels or more To
the acre will pay expenses and make
little profit this year." said Mr.. vii.
lard. Average yields. however, arc
about 91-2 bushels, and since the
average cost Of production is about
$17 an acre this year, few wheat grow
ers are actually making a profit. Dur
ing the past three years those who have
depended on a single crop have found
the practice ITO be disastrous, and
there Is consequently (; marked ten
dency towards dairying. This ten
dency is certainly justified by condi.
tiOns, although Of course it would not
be advisable for large numbers OF
farmers to change thei: whole farm
ing system at one time.
Must Farm Economically.
Best results in farming right now
are being made by farmers who are
producing most efficiently and eco
nomically, and who are placing their
products on the market in the best
possible condition.. according to Mr.
willard. The present critical times
are not times, for sudden and wide.
spread changes.
"Cost of production studies made by
the department of farm management
agricultural college and the U. S. De.
partment of Agriculture" he stated
"Show the trend of almost all costs
from 1915 to 1921 inclusive. Thes.
figures show that while the cost o!
wheat was about $12 before the war
the cost was approximately $23 for
the season of 1920. The various cost
items, such as man and horse labor
feed, seed, threshing, machinery, etc.
increased consistently during this
time. This, increase continued until
1921 when nearly al items entering
into the cost Of production Of farm
products decreased in value again
Due to the drop in feed prices, this
decrease was most marked in the cost
Of keeping horses.
Statistics on Wheat Prices.
"Statistics for wheat prices, for ex.
ample. show that in 1915 the average
North Dakota growermade profit. In
1916 they lost S. or more an acre, In
1918 the CROP was very profitable a.
whole; in 1919 the loss was about
So an acre, in 1920. $11, and in 1921
an average loss of about 81 an acre
The trend of prices throughout the
war period, and following the wal
indicate a situation almost parallel tC
Civil War days. At that time it re-
quired IL to Is years for prices of al
commodities to reach normal leve
again. Prices of farm products have
now just about reached pre-wal
level. but other commodities are still
much higher in proportion. While al
farm products are about Is per cen
above pre-war levels, all other com
modities are still about so per cen
above normal.
"Of the farm products wheat Is
still somewhat above the average IL
buying power, and hogs are still con
siderably above the average. Woo
and hay are below the average, fla,
is at a pre-war level, while dairy pro
ducts are considerably above the leve
for all agricultural products. Single
cropping is not paying well IL Nort'
Dakota in recent years, although NOR
efficient production ald marketin,
methods are bringing best results ii
all cases"