Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-08
SMALLER COTTON
CROP IS FORECAST
Estimate Is 6,958, 900 Bales
Below Last Years Figure
of 1896; 900. a
~ the Associated Press,

The Federal Crop Reporting Board
forecast today an 1885, 000-bale cot
ton crop for 1898. an estimate $685.
900 bales below last years production
and smaller than any crop since 1885.
The Agriculture Adjustment Adj
ministration awaited price reaction
from the estimate to determine
whether loans will be mandatory under
the new Farm Act.
A loan program is required to be
established under the law If the av-
erage price on the principal markets
falls below So per cent Of parity. or
about 827 cents a pound on the basis
of the present parity figure OF 1873
cents a pound.
Price Average $40 Cents.
The price on the principal markets
averaged $40 cents Saturday, COM
pared with 1853 a week earlier. After
the usual recess, while awaiting the
report today. December contracts re-
opened on the New York Cotton Ex-
change at s.34 cents. compared with
the days opening Of s44.
The A. A. A. has authority to fix the
cotton loan rate, if a loan becomes
necessary, between about 827 and
1872 cents pound.
The Crop-reporting Boards esti-
mate of average yield for 1888 was
2l7.9 pounds an acre. which was 40
pounds less than in 1887, but other
wise is the highest since 1898, when
223.l pounds per acre were produced.
The estimate was based on the con-
dition of the crop August /, which was
$50 per cent Of normal, and on the
area in cultivation July l. less the 10
year average abandonment. which was
estimated at 26,347 900 acres.
Yield in Acres.
The condition OF the crop indicates
an acre yield OF 2l79 pounds COM
pared with 1863 pounds last year.
which was a record yield. and 1898
pounds, the 1926 average
The crop totaled 1896 900 bales
last year, record production. while
the average for the 10 years, 1926,
was l3.20l 900 bales.
The condition of the crop August
l compares with 81 per cent of nor
NAL a year ago and 50 per cent, the
l0-year average.
The cotton report is the first
which will guide farm officials on the
question OF whether they must poll
farmers on advisability OF marketing
quota for corn. The corn report is
due Wednesday.
Under provisions Of the new crop
control law. the Agriculture Depart
ment must propose marketing quotas.
restricting sales by individual corn
growers when the August crop report
indicates excessive" supplies. as de-
fined by the act.
Would Store Surplus.
II quota system were imposed.
each corn belt farmer would be re.
CURED to store what the Agriculture
Department decided was his share of
the total national surplus Of corn.
or pay penalty of IS cents a bushel
If he sold 1t or fed 1t to stock.
Excessive supplies Of corn are de-
nned by the farm law as 1T per
cent more than the quantity needed
to meet a normal years domestic con-
sumption and export requirements.
While not yet finally determined, the
excessive supply level may be set
somewhere between $500, 900 900 and
1850, 100000. bushels, officials said.
Private forecasts place the crop in
excess of $500, 900 900 bushels. Such
a production added to a surplus from
last year-of1icially estimated at be-
tween 375.00o00O and 400 .o00, 900
bushels-would place the indicated
total supply above the level making
marketing quota referendum manda-
tory
Anticipating a report indicating
bumper crop. Agriculture Department
offcials have made tentative arrange
ments to conduct corn growers ref
erendum about September 3.
Marketing quotas already have been
approved for cotton and the major
types Of tobacco.
Wednesdays crop report also will
include revised estimates on the wheat
crop. A month ago the crop was fore
cast at 967.O00,0 900 bushels, or the Sec
ond largest on record.