The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1923-11-29

college in 1920, it was found that
the net averag cost of producing
milk on some SO farms was 1924 per
100 pounds, ranging from $1.91 per
100 pounds on the best operated
farms to $4.56 per 100 pounds on the
poorest. In the best herds there was
a profit of $61.72 per cow and in the
poorest loss of $3.50 per animal.
The difference was due largely to the
quality of cows used, high prOduc-
ing cows furnishing milk at low
cost and low producing cows at a
high cost. Similar results have been
found in practically every cost of
production study in farming sections
throughout the United States and
furnish evidence that while many
farmers are exceedingly able as pro-
ducers and business men, there is
yet much room in comparatively
large proportion of farms to increase
efficiency and lower producing costs.
On the other hand, prices of prod
ucts sold must be such as to more
than cover costs of production on the
average farm if in the long run there
is to be sufficient production to cover
the needs of the country. Even on
the best managed farms under the
most ideal conditions, the income for
the last few years has been far too
small for the labor, capital and en-
ergy expended. When, according to
the reports of the United States de-
partment of agriculture. the average
farm income on the owned operated
farms of the United States in 1922
was only SIT plus food and fuel from
the farms valued at 1924, and the
average capital employed was $16,-
400, it is clear that the farmer bare
ly received enough to cover interest
on the investment let alone returns
for his labor. We're this condition to
continue indefinitely, it would be dis
astrous not only for agriculture but
for the country As whole.
Agriculture Price Question
The times are indeed out of Joint
as far as prices for agricultural pro-
duction are concerned and the returns
for the farmers products are too small
when measured in prices of goods
which the farmer must buy. In this
connection much has been said about
the purchasing value of the farmers
dollar. The United States department
of agriculture makes monthly COM
putations to show the comparative
value of farmers products and man.
ufactured goods and expresses the
result in what is known as the spur
chasing power of the farmers prod
ucts." By this is meant "the rela-
ton between prices at the farm of
unit quantities of farm products and
wholesale prices of unit quantities of
commodities other than farm prod
ucts." Using the year 1918 as basis
and expressing the purchasing power
of the farmers dollar as 100, we find
that it rose to 112 in 1914, was
lug in 1915, 80 in 1916, log in 1917,
IL in 1913, Ill in 1919, sc in 1920,
81 in 1921 and 50 in 1922. The low
point OF % was reached in July and
August of 1922. Then it slowly went
up until it reached n in Nav and
June of 1928. Here is the funda-
mental reason for the extremely diff
ficult situation on many farms TODAY.
The most general and deadly handi-
cap Ito agricultural is that disparity
which persists between prices Of the
things that farmers have to sell and
those they must buy. The matter is
still the very root Of such agricultural
disturbances as exist" says the Unit
ed States department of agriculture
IN an August report. Only the excep-
tienally managed farm can keep tn
balance on the right side of the led
ger under these conditions, and a
large portion of farmers have been
living on credit of capital account
and have been falling farther and
farther behind.