Evening star., 1933-06-18
FARMERS CHEERED
ASPR|CESPR0M|SE
MORE READY CASH
Largest Income for Last Two
Years Will Ease Rural
Troubles.
BY OWEN L. SCOTT.
Special Dispatch to The Star.


CHICAGO, June 17.-Hard cash in
volume not enjoyed for more than
two years continues to roll into the
pockets of this country's farmers.
The wheat harvest now covers a
wide area in the Southwest, where pro-
ducers are marketing a short crop at
prices about 25 cents per bushel higher
than last year. This means a return
above the cost of production for the
first time since 1880 in many instances.
At the same time, advices from the
dairy sections OF the Middle West and
from the wheat districts of the North
west, now being received here. sound
almost like bullish market letters when
compared with similar reports of only
two or three months ago.
There is sweet music for the ears of
the Southwest in reports that the Sec
retary of Agriculture plans processing
tax on wheat to apply to the present
crop. While this tax would be levied
and distributed on the basis of prom
ised reduction in next years acreage
it will mean real cash for many farm
ers who otherwise would have faced
barren year because of drought in Win
ter wheat districts.
Expect Money to Spend.
The vision of tax bounty just adds
to the general indications that agri-
cultural regions are going to have
money to spend this Fall.
Yesterdays report from the Federal
Reserve Bank Of Minneapolis, covering
the Northwest section of the country
said that 1.-The volume of business in the
district continued to improve during
May and an increasing number of lines
Of activity exceeded the volume of the
preceding year"
Cash income OF farmers whose
marketing during the month was set
at S23, ,692 900 for the district compared
with S15,348,000 a year ago. Most of
this gain was In wheat and hogs Wheat
marketings were shown to have been
particularly heavy as producers who
had held their grain for better prices,
turned to selling.
The list of farm commodities show
ing an increase included wheat, corn,
rye, fax, butcher cows, feeder steers,
tatoes.
The Wisconsin crop reporting service
advised that the average price Of milk
in Wisconsin for May was 95 cents
per hundred pounds, or cents higher
than in April, and IS cents above
year ago. This increase came in a
period when declines are normal. Prices
OF farm products in the state were
set at SO per cent of the pre-War level,
compared with 81 per cent In April
and SO per cent in March.
Grain Prices Climb.
Grain market this week touched
the highest level of the season and
then reacted somewhat, partly as
result of hedge selling against the
movement of the new crop. Live stock
prices moved lower owing to heavy
supplies. Packers have taken an op-
portunity to build up inventories and
marketing of hogs and sheep direct to
big killers has been unusually large.
Packing interests have been work
ing on a plan for applying provisions
of the new farm marketing act to live
stock 1t Is expected that soon their
scheme for insuring higher returns to
the producer for hogs will be an
nounced. Controlled marketing Is at
the base of the plan.
Farmers are not likely to find them
selves rolling in wealth this Fall, but
their position no longer appears hope
less Higher prices suggest that the
farm debt burden Is not to be un-
bearable and trouble in the agricul-
tural districts has died out. Fore
closures are decreasing in number,
while farm strike talk is absent. The
feeling among hard-preSsed farm pro-
ducers Is that happier days are here
again.
Copyright, 1889