Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-17
FARMERS ESCAPE
IN MARKET CRASH
Little Damage Caused Grow
ers by Price Collapse.
Grain Sold Early.
BY OWEN L. SCOTT.
,ecial pispatch 70 The Star.


CHICAGO, November 16.-While the
stock market was reaping destruction
in the financial centerS, the Nations
farmers, who had something Of the
same sort Of calamity hit them In 1921,
this time have escaped with little
damage.
Prices Of grains and some other farm
commodities have been smashed by the
general speculative debacie-with 20
per cent Of the value Of wheat knocked
Of in almost no time-but still the re-
turns are but little under q year ago
December wheat at this time last year
was selling around $I.15 a bushel. It
Is there now. The same is true Of many
other agricultural commodities.
Sold Grain Early.
But this year there is evidence that
farmers smelled a rat in the price sit
uation. They dumped their grain to
market just as soon as they could har-
vest and thresh. Winter wheat farmers
obtained relatively high prices-around
81 so q bushel-for their crop Spring
wheat farmers sent their grain to mar
ket in record-breaking volume at a
time when prices were 40 cents above
those now prevailing.
AS a result there now is being re-
fiected q decrease in the volume of
business In Northwest States.
This decrease can be attributed
largely to the abnormally early move
n1ent Of the grain crop this year, which
had carried the September volume of
individual debts to the highest level
on record" the Federal Reserve Bank
in the ninth district reported today
Farm income from cash crops and
hogs marketed during october in this
district was IS per cent smaller than
the income from these sources in Oc-
tober last year. Prices of wheat, oats,
and hogs were higher in October than
. year ago, while prices of corn, barley.
hens, butter, fluid milk, feeder steers,
veal calves and lambs were lower"
Likewise in the present speculative
price collapse, the Government Is be-
ing called upon to bear part of the
burden. The farmer who joins a recog-
nized cooperative organization is as
Sured by the Government of a return
several cents above the price he re-
ceived last year. 1t is evident that the
guarantee of a base price of $118 is
going to cost the farm board some real
money. provided prices do not advances
materially from their present levels, be-
cause loans are being made on that
basis
1t is evident also that this guarantee
might have q decided market infiu-
ence, because 1t makes hasty selling
at q sacrifice by farmers foolish when
by holding they are assured by the
Federal Government of a return higher
than the present market price.
Statistical Position.
The statistical position of the grain
markets is considered bearish because
of the tremendous visible supply, with
terminals glutted and the movement
into consumptive channels relatively
slow. But the record-breaking market
ing early in the season probably ac-
counts for the huge supplies and at
present prices grain is considered very
attractive to buyers.
In the Northwest dairying Is becom-
ing fully as important as grain growing
and live stock raising A study of the
cash income of dairy farmers in Min
neSota, made by the agricultural ex-
pAnsion division Of the University of
Minnesota revealed that this income
totaled $4,465, for the average dairy
man in 1923. OF this amount Sl,61a
came from the sale of dairy products.
81 ,04l from the sale OF hogs, while
poultry and eggs Melted $4l4 and the
sale of cows and other cattle $72s.
With diverSification and an eye TO
marketing when prices look right, the
MidWeStern farmers appear to have
weatheTed the present storm in much
better shape than the financierS.