The Bismarck tribune., 1929-02-11
POTATO, WHEAT
! AND HOG RETURNS
EXPECTED TO RISE
CurtaiIment Of Acreage Due
: to Low Prices on Some
y
Products May Help
FLAX OUTLOOK IS BETTER
Cattle Still in Strong Position
but Sheep Expansion Is
Held Questionable

s -s Held Questionable
.1-~
~ Some hope for expansion Of agri.
~4cultural income is held out for 1926
In the government outlook issued by
the agricultural department through
sTthe bureau Of agricultural economics
s.tiivision of crop and livestock esti.
mates, as announced from Grand
Forks by Paul G. Newman, agricul-
a.4ural statistician for this region.
~ ~. The increased income expected Is
biased on the expectation Of improve
..ynent in returns from potatoes, wheat
r~And hogs. Increased consumption Of
Wheat is regarded as likely to offset
~tOther factors not favorable. Foreign
.sdemand in hog products is expected
TO rise. Low prices for potatoes In
ss1028 are expected to curtail acreage
and increase prices for 1029.30. The
Outlook report continues:
.--4 Returns from beef cattle, dairy and
-Apoultry products not likely to show
much change, unless production
~.ehanges. Meat animal production is
IN strong position, but too great an
Expansion should not be made, es-
~'pecially In sheep.
..~~ Increased oats acreage will weaken
~iuats prices. Low world prices for
wheat may result in higher prices for
wheat. Flax continues an attractive
alternative for spring grains in suit
able areas.
. @ss Low potato prices will probably re-
suit in smaller acreage and increased
: prices. Increased foreign competition
TOR wheat may be expected. Dairy
products will continue to find ex-
-panding markets in cities. Present
prices of cattle cannot be maintained
with marked increase in production.
-~s Domestic demand situation seems
to indicate that during the latter part
~sof 1929 and the first half Of 1880 the
demand for farm products may not
he SO good as during the 1928-29 sea-
ION.
-se Foreign Demand About Same
.s.- Foreign demand for our 1929 agri-
~acultural products will probably re-
main about the same as for 1928
products. The purchasing power,
generally, of foreign consumers should
be as good as at present. Less COM
petition may be expected for pork,
wheat and rye, but more competition
for corn, apples, tobacco, flax, dairy,
products and wool. In general. for
eign wheat competition is increasing.
but low present prices will probably
cause curtailment Of 1929-30 acreage.
Foreign rye production will probably
be under 1926, when the large pro-
duction resulted from unusually fav-
orable weather conditions. Foreign
flax competition may be keener as the
Argentine acreage continues to ex-
pand.
The agricultural credit outlook is
less encouraging than IL months ago,
because Of high interest rates prevail
ing in central money markets. The
upward trend In cost Of credit Is prob
ably only temporary. But, in any
case, bank credit is certain to be rea-
sonable in cost compared with the
cost represented by the difference
between cash prices and time prices
on farmers credit purchases.
Wheat Curtailment Looms
Increased carryover of wheat in all
surplus producing countries will like
~ be offset by increased consumption
and acreage curtailment caused by
low prices. Probability Of another
good crop OF hard red winter wheat
should check any increases in hard
red spring wheat. Higher relative
returns from flax may be expected
than from spring wheat. Continued
low prices Of durum may be expected
unless the acreage is cut down ma
terially. Spring wheat farmers may
find it advantageous to decrease their
acreage, particularly II the winter
wheat crop comes through the winter
In good condition. Even though do
mestic consumption of durum Is In
creasing. United States producers can
expect little improvement In prices In
the face OF increasing Canadian COM
petition so long as the United States
produces q surplus Of durum.
Domestic rye production continued
to decline in 1923, but as rye prices
depend upon wheat prices, the re-
duced production cannot be expected
to improve prices, unless there Is
some improvement In wheat. Some
rye Is exported from the United
States, and domestic prices are large-
" determined by rye and wheat rrices
tn other countries.
Flax May Pay Better
Flax will probably be relatively
moro profitable in 1929. than other
spring grains grown for market Ia
areas suitable to flax. A 30 per cent