Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28
DECREASE IN GRAIN PRICES
CUTS FARM INCOME 20 PER CENT
Season Just Closing Is Declared Worst in
Years-Russia and Drought
Are Factors.

by sterilization measures of the type
already employed or through adopting
any of the proposed measures designed
to dispose of the surplus abroad at
prices below domestic levels.
THE obvious economic remedy is cur
tailment of production so that the tariff
might become effective on American
prices"
And Secretary of Agriculture Arthur
Hyde said: BY this time it is evident
that supply and demand conditions
cannot be set aside by legislation; that
the dumping of SURPRISES abroad IS not
feasible; that the indefinite storing of
SURPRISES tends to prevent rather tia
cause rise of prices; that tt riff duties
are not effective on commodities pro-
duced largely for export, and that sub
sides would increase rather than re-
strain production. Voluntary curtail-
ment of production is the only logical
remedy for the surplus problem.
But the American grain grower EVIL
IDENTIFY does not take kindly to these
suggestions of Government officials.
This is indicated by the fact that the
Winter wheat area seeded is only or
4 per cent smaller than a year ago.
AS 1t was, the 1880 wheat crop of
this country turned out to be normal.
1t totaled 100000, 900 bushels, as COM
pared with 806, 200, 900 bushels in 1929.
Likewise, the world is harvesting only
about an average crop.
Surplus May Disappear.
1t is this factor on which the Farm
Board is counting to dispose of its hold
ing of over 100,000,000 bushels without
upSetting the whole price structure.
One analysis points out that, count
ing in the 275, 900 900 bushel carry-over
Of wheat which this country has, its
total supplies are Ills, 000. 900 bushels
Milling requirements total $40, 000, 900
bushels and 100000 bushels are
needed for seed. reducing the total to
485,000,000. Exports thus far have to-
tailed 100000 bushels and the Farm
Board is holding 10O,000.000 bushels,
for carry-over and feeding require
ments. A normal carry-over Is $780,
100000 bushels. 1t is estimated by the
Bureau Of Agricultural Economics of
the Department of Agriculture that
farmers will feet $4,000, 900 bushels to
livestock, and If this proves to be the
case this country's huge supplies Of
wheat could very well disappear.
The situation in corn became q mat
ter of national concern during the hot
months, owing to a drought that tight
ened its grip at the height of the corn
growing season and ruled over much Of
the belt. Production of this principal
feed grain fell to 2,047, 000, 900 bushels,
or % per cent less than the 1929 pro-
ductioh and "a per cent less than the
average annual production for the pre-
viouS five years. It was the smallest
crop since 1901. Prices of corn natu-
rally scared, and for the first time in 80
years 1t sold above wheat Heavy substi-
tuition Of wheat as feed for livestock
resulted from this price difference.
Eastern industries were able to buy
Argentine corn cheaper than the do
nestle product, even after adding the
15-cent tariff, and Canadian consumers
substituted African, Rumanian and Ar
gentine corn, owing to the cheapness
of those arrivals. However, traders feel
that corn values are going to work
higher because of the small amount of
the crop likely to remain to I'LL COM
mercial needs. Feeders are willing and
able to pay better prices than terminal
markets. In order to prevent heavy
importation of Argentine corn, Con-
gress will be asked to raise the tariff
to Is cents a bushel.
Oats prices toward the close of the
year were 10 to 1914 cents below a
year ago Producers of this grain,
though, have been fortunate this year,
inasmuch as their crop was nearly 200, =
600, 600 bushels more than last season
and Of excellent quality. They ben
Gifted by the disaster to the corn crop.
There was heavy substitution of oats
and barley mixed for corn on the feed
lots. Provisions felt the depressing eff
feet Of low grain prices and the I'M
epa'olOymellt situation