Evening star., 1924-12-08
S5OO,OOO,0l|O GAIN
. IN VALUE Of CROPS
Farmers, However, Not Fully
Out of Depression, Says
Annual Report.


100000 as compared with s11, 500, 900.
"C0 in 19231924. says the annual re
port of the late Secretary of Agri-
culture, Henry c. Wallace, as trans
mitted to President Coolidge by his
successor, Howard NJ. Gore. Mr.. Gore
pointed out that while Secretary Wal
lace had not seen the final draft of
the report, ii bore out the Late agri-
cultural heads policies.
The report pointed out that
favorable readjustment has taken place
in the price ratios between agTicul-
ture and industry. Although the pur-
chasing power of farm products is
still Is per cent below the pr'e-war
level it has exceeded the purchasing
power of the Spring of 1921. De-
preston touched the bottom in that
year and the harvests this year have
been pronounced the best in half a
decade.
Recovery Not Complete.
The President was told in the docu-
ment. however, that il yet would be
a mistake to conclude that the Amer
lean farmer is done with the troubles
of depression" REIMBURSEMENT left to
blind economic forces ii was
stated, would continue that difficulty
for many years" Farm commodity
price levels, the report continued,
are headed toward a better position
but they still have a large gain to
make before a Agricultural products
will be on parity with other
products"
Frankly declaring that this means
that agriculture is still laboring under
heavy disadvantage, the report
points out that the Improvement
noted has not been of sufficiently long
duration 10 mark edly improve the
average farmers finances. 1t is ad-
nitted that the suffering of many
farmers is, perhaps as intense today
s at any time during the first years
or the depression because the effects
OF the depression are cumulative"
Prosperity Is Nearer.
Present favorable possibilities"
the report went on. will have to be
turned into realities before it can be
fairly said that agriculture gain is
enjoying normal prosperity. Never
he less the showing OF 1924 brings
prosperity nearer"
Though the crop story o: 1924
spells Improvement TO a agriculture as
whole, the Improvement will not be
shared by all sections of the farm
population, il was pointed out. Grain
producers may earn approximately
$500, 100000 more than last year, but
of this the wheat growers stand 10
gain by far the greater share. Corn
growers will have less to sell this
Year, and IS a whole the corn belt
must look for increased returns from
higher hog prices. The large cotton
crop should enable the South to hold
its relatively satisfactory position.
DairHinS continues to increase. but
heavier marketing may not result in
& greater income. There is no certain
prospect of increased income from
cattle and sheep production.
IL, h. I I,,f
the year will bring increased income
TO the surplus-producinG regions, TO
the corn belt and possibly TO the cot
ton States the report continued.
The tobacco, fruit, vegetable and
dairy producing States probably viii
not contribute much to the estimated
increase in the gross agriculture in
come of the year.
The increase is $500, ,oOo, 900 in income
this year over last year. Returns on
the estimated present value of farm
capital from this income. if operating
costs were not greater than those Of
the crop year of 1928, would amount to
3.S per cent. This return is much below
the average return TO other capital In
come from agriculture has not in any
Year since the price decline of 1920 suf-
feed TO allow both a commercial return
on capital and adequate rewards for the
farmers labor, risks and management"
Wheat Outstanding Crop.
The outstanding event in the agricul-
fural history of 1924 has been the wheat
situation, the report said. Apparent
surpluses OF bread grains have been
much reduced. and the worlds crop
promises to be between 800 000, 900 and
$50, 600 900 bushels below that of last
year. EXportabe surpluses in the prin-
cipal producing countries have been re-
duced. and requirements of the import
ing countries have been increased.
The demand for wheat from the
United States should be stronger than it
was last year. Wheat promises large
yields per acre, and a total crop larger
than that of last year is expected on
reduced acreage. Reduced yields i'll for
cign countries have brought about
market situation in which the American
farmers are receiving higher prices Tor
d larger crop. Nevertheless, the rise in
she price of wheat has not Yet sufficed
10 give a bushel of wheat it's pre-war
purchasing power. While the wheat
situation has greatly improved, 1t has
not yet reached point where farmers
should think no further TeadJustments
are necessary. 1t would be mistake to
suppose that the wheat acreage may
he again expanded with the expectation
af high prices.
This years crop should contribute
auproximately $500. 100000 to the
purchasing power of the cotton grow
ers. Cotton yields this year have,
for a time at any rate, set at rest
any fear that American cotton produc-
tion will not again be able TO meet
the world demand.
Live stock Doing BETTER.
The live stock industry is on firm
Ell foundation than at any time since
the price collapse of 1919 and 1920,
said the report. although 1924 was
not year of good profits for cattle
and hog producers. Cattlemen have
had a harder time than any other
group of live stock producers. Slow
hut steady liquidation has been going
on in the cattle industry for three
wears. Today, however, many of the
war time loans, with high interest
rates, have been paid. Money is
available on more favorable terms,
conditions in the cattle country are
improving. and the prospective re-
duction in hog raising should
strengthen the market for beef.
Speaking of the tax burden of the
farmer, the report said too often the
amount of the tax has little or no
relation to the amount of the farm
er's income. Selling values of land,
which serve as basis for taxation,
do not rest only on current earnings
but also on anticipation OF future
earnings. This often means that
taxes have to be paid on fictitious
values.
Perhaps the general property tax
system should be modified" said the
report Another defect in our tax
system which tends to increase the