Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-21
WHEAT FARMERS
FACE TUG-OF-
TO RESCUE PRICES
World Economic Forces Are
Converging to Depress
Market Levels.
MILLERS RELUCTANT
TO BUY BEYOND NEEDS
Bumper Crops on Every Hand and
Keen Competition in Markets
Drop Rates.
BY the Associated Press.

BY the Associated Press.
The American wheat farmer is en-
gaging in tug of war" with power
full economic forces to keep prices for
his grain from tumbling to the de-
preston level OF about 80 cents
bushel
Those forces are worldwide in char
acter and influence. In the main,
they are the result Of economic law
and not the manipulation OF indi-
viduals
Here are some of the factors:
l. Prospects for bumper crops in
most wheat-producing countries and
record world supply of 1850 ,00O, 900
bushels, or at least 100000, 900
bushels more than a normal years
requirements. The United States will
hold, Agriculture Department officials
say, at least a third OF this price,
depressing surplus.
Faces Sharp Competition
2. Poorer prospects for selling Amer
lean wheat in world markets becaus
OF larger supplies and sharper COM
petition on the one hand and q small
er world consumer buying power ON
the other. Secretary Wallace has said
that unless some special action"
such as an export subsidy. is taken
this country may have difficulty in
selling more than $4,000, 900 bushels
during the current marketing year
Exports during the past year totaled
90. 900, 900 bushels.
5. Reluctance on the part OF Amer
lean millers to buy grain beyond cur
rent needs in anticipation of possible
lower prices. Deferred buying tends
in itself to force prices down.
The farmer is trying to counteract
these price depressing factors by with
holding from the market, for possible
higher prices, a part Of the surplus
from this years near-record crop.
Acting under provisions of the new
crop control act. the government is
offering to finance farmers desiring
to withhold sale Of their grain. 1t is
doing this by making loans on grain
stored on the farms or in commercial
warehouses. The loan rate averages
about 80 cents q bushel-about 8 cents
above the current average farm price.
Leans Hold Prices
Agriculture Department officials de-
clare that but for the loan program
the price would be much lower.
On the other hand, the price might
be higher. they said, If more wheat
were eligible for loans. The farm law
denies loans to farmers who did not
cooperate with the Agriculture De-
partment's wheat acreage control
program. The fact that 10000 900
acres were seeded for the crop, COM
pared with an acreage program of
62,500,000, shows, officials explained
that many growers are ineligible for
loans.
Ohicials have estimated that only
between l50,000,000 and OO,OO0 600
bushels OF this years crop of 954. O00.-
900 bushels may be put under storage
loans and thereby kept OF the market.
Inc remainder of the crop, plus a sur
plus of l54 ,000, 900 bushels from last
year, would provide more than enough
grain to supply normal domestic and
export needs.
The Government may enter the sit
uation in another way. In order to
place at least 100000. 900 bushels of
the surplus grains into foreign mar
kets. it may subsidize exports. secre-
tary Wallace has announced that q
subsidy is being considered.