Evening star., 1924-10-29
FARMERS INCOMES
NOW UNDER PROBE
Merchants and Manufactur.
ers Figure Out Profits on
Years Leading Crops.
by J. c. ROYLE.
Special Dispatch to The Star

Special Dispatch to The Star
NEW YORK, October 29-Mer-
chants and manufacturers have been
doing a lot of bookkeeping for the
farmer in the last month. They ex-
pect to get a very sizeable portion
of the farmers money between now
and next Spring and they are anxious
to know how much he has and how
he got it. Their computations have
been based on figures of the De-
partment of Agriculture, supplement-
ed by those of individual investiga
tors. The results are important not
only for the farmers and merchants,
but for practically every American
citizen, since each is affected in some
degree by the swelling or shrinking
of the farmers buying power.
Profits in High Figures.
The figures obtained indicate that
the profit to the raiser of wheat this
year will be from II to u cents a
bushel, and to the grower of oats 13
cents a bushel while returns from
corn will be slightly less than last
year. The profits from cotton and
potatoes viii be about the same as
last year. In terms of dollars this
means, according to the latest esti-
mates, that wheat growers will have
100000 in profits to spend and
that corn growers will have profits
of not less than $319,645.170.
These figures were arrived at as
follows: According to the Depart
ment of Agriculture the average
gross cost of producing a bushel of
wheat was $1.25. The average sales
value of the wheat was 90 cents. or
loss of 25 cents a bushel. These
figures included labor used in pro-
n,
tilizer, seed. land rent and other
costs. The loss shown in 1928 means
that many farmers either did not get
full pay for their labor or full rental
value for their lands
Cost To he Deducted.
Farm wages, land values fertilizer
prices and other costs have remained
practically the same this year, max
ing the cost per acre in 1924 practical
ly the same as in 1928 The average
yield per acre this year is estimated
at "a bushels an acre higher than
the average for the entire country
last year This would indicate that
the average cost oE producing q
bushel of wheat was about % cents
less than in 1923. The farm price
or wheat last month was about %
cents bushel higher than last year
The reduction in cost and increase
IN value makes total gain of AZ to
46 cents a bushel
Deducting the 25-cents- -bushel loss
which took place last year. this
would mean profit of II to 81 cents
Tor the 1924 crop. Multiplication of
this figure by the yield of the ave
rage locality would give a fair gem
eral idea of the farm profits of the
growers.
COmparis With 1923.
In 1929 the average cost of produc-
ing oats was So cents a bushel and
the average price received 40 cents.
a loss of 3 cents a bushel. The WELD
this year has risen 1.3 bushels per
acre, making the cost of production
about Z cents less than last season
Last month the farm price of oats
was cents higher than in 1928 This
makes a net improvement in returns
of 16 cents a bushel. or profit Of
l3 cents when the ; cents loss is
subtracted.
The net cost of producing corn in
1923 was estimated at s23.75 an acre.
or 6S cents a bushel. compared with
a sales value of 81 cents. This meant
profit of 13 cents a bushel. This
year the yield has diminished 20 per
cent, so that the apparent cost of
producing bushel of corn would be
19 cents higher.
Farm prices are 23.5 per cent high
er than last year, but this does not
mean the farmers will derive more
benefit from the years yield of corn.
as most of the crop is fed on the
farm where grown and marketed in
the form of milk, meat and other
animal products. The loss in feed
ing value will offset any gains re-
suilttng from the higher prices for
that corn sold. Favorable Fall weather.
however, may add materially to the
yield.
Potato Profits Lower.
No estimate of the cost of grow
ing a buShel of potatoes was made
for last year. but this year the yield
is about 4 per cent more per acre.
But shipping point prices in most
of the chief commercial districts are
lower than last year. If this ratio
continues, the potato crop will be
hardly as profitable as that of 1923.
AS to cotton, the yield per acre
is forecast as 19 pounds above that
of last year, but the drop in farm
prices, amounting to around Is per
cent, will offset most of the reduc-
ton in costs brought about by the
higher yield Thus average profits
about equal to those of last year are
cd