The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-14
FEDERAL FARM
INCOME GUESS
HELD TOO HIGH
Cash Return Slightly Under
S6,0OO,OOO,OOO Seen
in Study.

BIZ Times Special
NEW YORK. Aug. 1.-THE Bu-
reau Of Agricultural Economics es-
innate of $500, 900, 900 as this years
annual farm cash income appears
to be too high from the standpoint
of other figures bearing on the sit
uation, the Alexander Hamilton In
stitute declared today.
Since the bureau states that in
come from marketings may be
somewhat higher than a year ago
during the last six months of 1885. it
seems fair to take $4,000 900 900
compared with 1896, 100000 last
year as figure to represent the
bureaus expectations. The bureaus
estimate of The annual income from
marketings this year may thus be
placed at 5000 100000 and its esti-
mate of income from benefit pay
ments at s63O.O0O,OO0 atotal of So
7oO.OOO.OOO.
Neither the figure on last years
harvest" the institute said. ON
which the quantity of farm prod
ucts marketed this year depends,
nor the present price level nor the
current price trend warrants the
conclusion that farm income from
marketings in 1885 will be as high as
5000, 100000.
Marketings Are Lower
Last years harvest, as reported
by the Department of Agriculture.
was 216 per cent smaller than the
1885 harvest. 1t may thus be as
sumed that the quantity of farm
products marketed this year will be
approximately PIG per cent lower
than in 1884 While it is possible
that the decrease may be less than
this. due to the marketing of cap
ital livestock, the decrease should
not be much less.
This is indicated by the fact that
even if the increase is as much as
ZIG per cent, the index of the GUAM
tity marketed this year will be
higher than the index of the pre-
vlous years harvest, an unusual &C.
currence. On the basis of PIG per
cent decrease. the index of the
quantity marketed this year, taking
1929 as equal to 100, will be 70.8 as
compared with the 1884 harvest in
dex of 6S.4 an increase of "a points.
An index of 70.8 for the quantity
of farm products that will be mar
keted this year means that it will be
necessary for the price index of
farm products to average 818 if the
income from marketings in 1885 is
to amount to 5000 100000. The
price index during the last five
months must consequently average
93.5 since the average during the
first seven months was 1875.
Price Stability Seen
"A price average of 93.5 during
the remainder of the year would ne
cesSitate very sharp rise since the
price index in July was only 500.
Such rise is not in prospect. Prob
ably the most which can be ex-
pected is that prices will be MAIN
tanned at the July level The price
trend has been downward since
April when the index was rs and
the promise of a good sized harvest
this year continues to be a depress-
ing factor in the price situation.
Even if prices do not sink lower
but are maintained at the July level.
the price index for the year will av-
erage only 70. Thus, the indicated
price index and the indicated GUAM
tity of farm products that will be
sold point to an income from mar
ketings of IS 344,0OO,OO0 this year.
Since the Bureau of Agricultural
Economics apparently expects that
benefit payments will amount to
S630,O00.000 in 1885, total farm in
come this year will consequently
amount to S5974 900 900 as COM
pared with the bureaus forecast OF
Sc, 700 100000.
In other words the prospective
indexes Of the price level and the
quantity marketed indicate that
farm income this year will be SIS per
cent lower than the S6,387 900 900
received in 1884. whereas the Bu-
reau Of Agricultural Economics
forecast places this years farm in
come 40 per cent above that of last
year"