Evening star., 1934-07-24
U.S.FARM SURPLUS.
VANISHING.
Government Control and
Nature Combine TO Cut
Production.
Special Dispatch 70 Tn. star.

Special Dispatch 70 The Star.
DIES MONIES. Iowa, July ~ CN-A-
NA).-The farm surplus In the United
States IA rapidly becoming thing Of
the past
Huge stocks Of farm commodities.
which In recent years have constituted
milestone about the neck Of agri-
culture. have been liquidated.
Partly through planned Government
crop reduction and partly through un-
planned. but nevertheless effective
grains are being reduced below the
domestic needs.
Farmers, the A. A. A. and nature
have co-operated to cut production Of
hogs, corn. wheat, cotton and feed
grain crops to a point where producers
should have nothing 10 fear from
price depression resulting from ex-
cessive supplies.
Farther Reduction.
Arguments have been waged as 10
whether any farm surplus has existed
and whether farm woes have been due
10 overproduction or TO underconsump-
ton. The fact remains. however, that
farm markets have been depressed by
supplies Of agricultural commodities
for which there has been no effective
demand.
But this condition now largely has
been remedied and further reduction
in probable supplies next year Is being
effected with the 1884 short crops.
The fact that the supply side of the
agricultural situation has been or is
being brought under control does not
solve all the problems Of agriculture,
because the demand side Of the situa-
higher price levels.
Foreign Markets Out.
Foreign markets in any volume do
not exist and the levels at which the
American public viii buy volume Of
farm commodities have remained low.
The most noticeable decline in sup
plies is that in progress at present In
wheat and In hogs.
The drought has been the principal
factor In reduction Of wheat stocks.
and this has been factor worldwide
In its scope.
Instead Of q wheat carTyover Of
38T ,o00, 900 bushels as was the case
in 1888, estimates for this year place
the figure In the neighborhood Of
250 0,000, 900 and the prospect Of a re-
duction Of 100000 year from
now. II the crop Is cut further by
drought, the carryover next year viii
be even less and may drop 50 low
that the A. A. A. will reconsider its
plan to continue the fun wheat acre
age cut Of Is per cent for next year.
Carryover Desirable.
Secretary Wallace has declared his
belief that reserve stocks should be
maintained from year to year, indi-
eating that a carryover of from l50,-
000, 900 to 100000 900 bushels is de-
sirable.
The Nations wheat crop for this
year was estimated July at ass, ,662,-
900 bushels. or 5000. 900 below the
annual domestic consumption of 625,-
900 900 bushels.
The combined crop Of 50 countries
Of the world was 3.149, ,000, 900 bushels
in the 1929 year, 2.S90, 900 900 In
the ls33-4 crop year and is estimat-
ed at 1854. .0oo. 900 bushels for the
current year.
The Nations corn crop July was
estimated as one Of the smallest on
record, and the continued drought in
the Southwestern States Is said fur
ther to have cut the 1894 crop below
the estimate of 2,1ls.000. 900 bushels
on July /. This is nearly half bill
lion bushels below the five-year aver
age.
One Of the most startling reduc-