The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-01-31
NORTH DAKOTA FARM OUTLOOK
FOR FEBRUARY
BY Rex E. Willard, Farm Economist
North Dakota Agricultural College

Tho next report of the North Da-
kota Farm Outlook will consist of
tho annual outlook for prices of farm
products for North Dakota for 1927.
This report will be based upon the
facts and information compiled by
the United States department of agri-
culture, and will be edited and re-
vised to fit the North Dakota condi-
tiOns.
Price Conditions
The year 1927 opens with prospects
for continued commercial prosperity.
Last year was one of the most pros
porous ever seen. from the industrial
standpoint. Prices of industrial
goods, on the average, dropped about
s per cent during the year. Greater
production at lower cost per unit, due
to increased efficiency, was respon-
siblc for greater profits.
Long-term interest rates have drop
ped somewhat and farm mortgage
rates likewise have declined. Seven
of the twelve Federal Land Banks are
now loaning at per cent, and four
of them made reductions during the
past year.
There is evidence of considerable
saving on the part of industrial work.
ers during the past year, there being
three million more persons who had
savings accounts at the end Of 1926
than at the beginning. There was an
increase of about z per cent in the
sale Of life insurance during the
year. The national debt was reduced
approximately one billion dollars dur
ing 1926.
Farm Prices
The index of farm prices decreased
three points during the last month,
due chiefly to drops in the prices Of
cotton and hogs. The index of agri-
cultural prices is l27 compared to
the index of 16l for non-agricultural
commodities, giving purchasing
power Of farm products of 70 cents on
the dollar. During the year, prices
OF farm products, on the average,
dropped IL per cent compared to a
lesser drop in non-agricultural
prices. At the beginning of the year
the average purchasing power Of
farm products was 81 cents on the
dollar.
While the general tendency for
farm prices has been to increase
1ncc 1920, they reached the peak in
1926 and have been falling somewhat
through 1926. The aggregate value
Of crops produced in the United
States in 1926 was billion dollars
less than during the previous year
in spite Of the larger volume Of pro.
duction. The value Of the cotton crop
was one-half billion dollars less in
1926 than in 1925, but the crop was
four million bales larger than in
1926.
Wheat
The immediate outlook for in.
creased prices of wheat is not good,
prospects Of considerable quantity
coming on the market from the
southern hemisphere having q tend
ency to hold down the world price
level. The total production. Of wheat
in 1926 in North America is 16h per
cent higher than for 1926. Appar-
emily, the short world crop Of 1924
has been made up for through 1926
and 1926 and the reports from Argcn-
tina and Australia show that there il
an, increase Of % per cent in those
two countries over 1925.
Rye
Some slight advance should be cx-
pccted rather than decreases in the
price Of rye according to the surplus
available at this time. The produc.
tion Of rye in North America is 1874
per cent lower than in 1925. Euro
pean production is l4h per cent be-
low last year.
Il Flax
The flax crop Of Argentina now
being harvested is estimated at about
20 ~ lillian hs,sho1a e.,hs~h - n,.1u