The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1942-04-08
THE FARM PRICE BOOM


War II; strait jacketed with the
threat Of p.ice control at first signs
OF initiation. promises to be mild as
compared with what occurred 4
quarter Of a century ago.
Unless fundamental market con
ditions change materially and unless
government controls are relaxed
World War prices-when wheat
was worth more than 50 oushel,
corn above s.. hogs % cents pound
and cotton over 40 cents pound
are not likely 70 be duplicated. al
least In the next year or so.
Several definite recent develop
ments in commodity markets have
indicated the government position
10 check undesired price gains even
before invoking controls granted oy
recent legislation. Some commodi'
ties already are within So-ealled
price control ground.
Farm commodity prices, rising
about per cent since United states
entry into the war. are the highest
since October. 1929, the peak OF the
pesce.time boom, but are scarcely
half way UP the advance regis
tered during World War J and the
post war period. The general level
now is slightly above parity deemed
necessary to bring producers pur-
chasing power equivalent 10 that
they enjoyed in the period OF So
called normal agricultural prosper
it. l909-lf.
Prices are higher than a year ago,
with such commodities as rice. hogs.
cottorseed, tobacco. milk. chickens,
eggs. hogs, beet cattle, veal calves
lambs ana WOOL above parity. Some.
particularly livestock, are above no
per cent OF parity. and within price
control ground. Grains are well be-
low parity.
II Is not obligatory however. that
ceiling prices on farm commodities
be placed At 100 per cent OF parity
or al any of the other minimums
provided for under the law. These
are merely the levels below which
ceilings cannot be fixed. Ceilings
placed on some Items, II IL becomes
necessary, may be substantially
above the minimums, depending on
numerous factors.
Prices OF items much in demand
because OF the war, such as certain
oil producing products and live
stock. are expected to be permittel
TO reach Whatever levels are con-
sidered the best incentive for pro-
duction. Also, az the cost OF things
the farmer consumes rises. parity
prices will also advance, so that
the whole price structure can
change
Restraints OF price control already
are effective. Ceilings have been
placed on certain fats and oils. in
directly affecting prices Of oil pro-
ducing products. including soy.
beans and hogs Increased produc-
tion also is In Itself an important
brake on price increases. The gov
eminent owns large stocks OF wheat
and corn which II is offering for
sale at prices below parity. thus re-
stricting. for the present. advances
in grains and feeds. Federal agen-
cies buying pork, lard butter aud
eggs and many other items. includ-
ing fruits and vegetables. have GER
tain control OF prices, depending on
the extent Of their buying and
prices paid
Advances OF such items as pork.
lard end hogs we're recently
checked by this leverage.
The government Is guaranteeing
original prices 10 producers equlvs-
lent to about s. per cent OF parity
for grains eggs and butter. This
guarantee is. in effect, a bullish FAC.
tor in times OF sessonslly large mar.
ket receipts and besrish in the off,
seasons, when prices might rise
above these levels.