Evening star., 1942-10-03
Food Cost Rise Seen
Following Passage Of
Anti-Inf|dtion Bill
Degree to Depend on
Interpretation of
Farm Price Sections
BY the Associated Press.

By the Associated Press.
/ Farm price provisions Of the anti
imitation legislation are expected to
raise food costs, but Government
economists were not prepared today
to estimate the exact amount OF
increase.
In establishing ceilings on prices
of agricultural products, President
Roosevelt would be directed to take
into account increases in farm labor
costs since January /, 1941.
At the Agriculture Department,
officials said any increases in food
costs would depend on the way the
farm price provisions are interpreted
by price control authorities.
"It is possible" said one economist,
that the administration might find
that present parity prices-the min
imum level at which ceilings could
be established-ref1ect increases in
farm labor costs.
"Or, it might find that labor costs
are adequately reflected by parity
prices of some products and made
quately reflected by parity prices OF
Others
81 Billion Rise First Seen.
Original demands of the congress
sional farm bloc for revision of the
present parity price formula to in
clude all farm labor costs would
have resulted, administration Off
cials said, in an annual boost OF at
least $3,5O0,0oo,0 900 in the Nations
food bill.
Government economists generally
agreed that the compromise bill
would result in increases consid-
erably less than that amount.
Agriculture officials expected CELL
ings on hogs, cattle and lambs to
be established at or near prices pre-
vailing September IS. Those prices
were considerably above parity
However, ceilings at such levels
could be expected, they said, to re-
suit in keeping meat prices from
advancing.
These same officials believed II
likely that ceilings on milk ano
other dairy products would be set
at levels above those prevailing In
mid September and above parity
They said dairy farmers had been
hit harder by advancing farm labor
costs than any other type of farmer
Because of this situation, some
dairymen have been reducing their
herds-a development the Govern
ment wants to halt because Of war
food needs.
Grain to Be Unaffected.
The price ceiling provisions would
have no effect-at least not imme-
diately or in the near future-on
prices of grains. All are selling be-
low parity, due in part to large sup
plies and in part to Government
price policies designed to stabilize
feed prices at levels favorable for
the feeding of livestock and poultry.
Farm officials expect the admin
istration to allow higher ceilings,
relatively speaking, for essential
foods than for those not so greatly
needed in war times.
Products now being classed as
essential include meat animals, poul-
try, eggs, dairy products, vegetable
oil crops, corn and other feed grains,
potatoes, common vegetables and
tree fruits.
The legislation directs the Gov
ernment TO make price-supporting
loans on the so-called basic crops
cotton, corn, wheat. rice, tobacco
and peanuts-at 80 per cent OF
parity rather than at the present
rate of IS per cent, unless the latter
rate is found to be necessary to
prevent an increase in livestock and
poultry feed costs.
Forecast Loan Rates.
Agricultural Department officials
said that in all likelihood loan
rates would be established at 80 per
cent of parity for cotton, tobacco,
rice and peanuts and at IS per cent
for corn and wheat. The latter two
crops are being used as livestock
feed. Of1cials said an increase in
the loan rate would increase feed
costs, upset the present favorable
relation between livestock and feed
prices and discourage livestock pro-
duction.
They explained, however, that
corn and wheat farmers co-operat-
ing with Federal farm programs
would receive benefit payments suf
f1cient to bring their returns to full
parity.