Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1922-11-29
WHY FARMERS FAIL
Prices Received for Products Not
Commensurate with Cost of
Supplies.

Supplies.
In view of the recent press COM
ment in the state in regard to the
unusual number of bankruptcies
among the farmers, the Vermont
Farm Bureau Federation issues some
interesting figures as to the agricul-
tural situation in this part of the
country, as compiled by the Bureau
of Agricultural Economics, United
States Department of Agriculture.
These figures show that the general
index of purchasing power of farm
products in terms of other commodi-
ties stood for September, 1922, at
ga per cent. of the purchasing power
in 1913, as compared with SO per
cent. in August and 72 per cent. in
June. In other words, it is definitely
shown that the farmers dollar, based
on the prices which he is receiving
for his produce today, is worth only
about GA cents when he comes to pur-
chase in the open market.
A glance at the general agricultural
situation in the East shows that milk
prices are advancing as usual this
fall, but that food prices are also
higher. Potato growers are thorough
ly pessimistic, selling at 25 cents to
40 cents bushel at the car. Pota-
toes are rotting considerably. The
apple market is sluggish. Poultry
men, apparently, are more optimistic
than dairy or fruit farmers.
Figures recently compiled in regard
to the profits of the dairy industry in
this section of the country show that
the labor income of the dairy farmer
has been steadily decreasing since
1918, when it reached its peak and is
less today than it was in 1913 before
the war, even though he has to nay
considerably more for things that he
has to buv than he did in the period
just before the war. The term labor
income" represents what the farmer
has left for his years work after
deducting actual expenses and inter-
est on his invested capital.
In commenting on the present agri-
cultural situation in this country,
Prof. G. F. Warren of Cornell univer-
sity, who was in Europe last year as
a representative of the United States
Department of Agriculture to study
various phases of the economic situa-
ton, says in part:
Formerly, European buyers enter
ed strongly into our cash and specula-
tive markets. as soon as the crops
were ready 10 move. NOW CHey nave
great difficulties in fna ncing them
selves. They put off buying until the
last minute. There is strong ten
dency to use the European crops in
the early part of the season and to
buy at the last end of the season just
enough to finish out the year. If
there is any carry-over from one year
to the next, he lets some one else
keep it.
''This change means that America
must retain ownership of it's farm
products for a longer time than be-
fore the war. This is the one way of
financing Europe. The market is like
ly to be weak at harvest time. If,
when European buying begins, there
proves to be shortage, it makes a
strong market at the end of the year.
Before the war, the buyer foresaw
his needs and contracted in advance.
Supply and demand tended to balance
and this tended to steady the mar
ket. Now, with the delayed buying,
the demand is much less certain. 1t is
difficult to foresee at what point sup
ply and demand will find an enuili-
brium
"The financial conditions of Europe
continue to be the most disturbing
factor in the market situation. Most
of the countries of Europe are cOntin-
uing to spend more than their in
comes. The difference is made up in
some cases by borrowing and in other
cases by printing paper money. So
long as this condition continues it will
seriously interfere with the sales of
American farm products"