Evening star., 1953-01-04
Agricultural Output
At Record in 81, but
Farm Income Dropped
By Ovid A. Martin
,eeio,sd Pres, AurievI,ur. Write,

By Ovid A. Martin
Asseeioisd Press Agriculture Writer
The year 1852 turned out to be
a record production one for agri-
culture, but it raised many ques-
tions about the economic future Of
farmers.
Declining farm product prices,
a lower level Of agricultural in
come. reduced exports and an in
creasing farm debt led to specu-
lation in some circles that q new
agricultural recession might be In
the making.
The year opened with the level
of farm prices at 105 per cent of
the parity price goal set by
farm aid laws. Parity is a stand
ard for measuring farm prices,
declared by law to be equally
fair to farmers and those who
buy their products.
Price Level Drops.
But by the end of the year, the
price level had dropped below
the parity goal for the first time
in nearly two and a half years.
Farm production cosGs-ma-
chinery, fertilizer, insecticides,
other materials and labor rates
went up. AS a consequence. the
amount farmers had left after
paying these costs was less than
in the previous year despite the
fact that the volume Of produc-
ton was larger.
The new income for the year
has been officially estimated at
$14.2 billion compared with SAB
billion in 1851 and a record of
$16.774.000.00 900 in 1947.
Government experts expect q
further drop in farm income in
1853, largely because Of prospects
Of q weaker export market and a
likelihood that total production
will drop below this years peak.
Last year was marked by q siz-
able increase in marketingS of
food grains. cotton. livestock feed
crops, beef cattle and poultry Hog
production, on the other hand,
eased off some because of less IA
vorable prices and higher feed
costs.
Reserves Mount.
Both the wheat and corn crops
were the second largest of record.
The big wheat crop had the effect
Of raising reserves to high levels
and raising the prospect of top
heavy surpluses in 1858 should
production again be large.
The large corn crop was well
coined because it assured the Ma
tion Of ample livestock feed grams
to maintain a high level Of pro-
ducing Of meat animals, dairy and
poultry products. as well as of a
reserve for possible emergencies.
An early summer drought
threatened the cotton crop, but
late rainfall retrieved the situa-
ton. Production was more than
adequate to meet anticipated do
meStic and export requirements.
The bumper output put new
pressures on the Governments
farm price support program. The
extra production caused prices to
dip. AS a consequence, growers
moved to place supplies under
price support loans. The Govern
ment also found it necessary to
buy butter for the first time in
nearly two years to keep prices
from dropping below guaranteed
levels.
u. s. Investments Gain.
BY the end of the year, the
Government's investment in farm
products stored under price sup
port programs exceeded 50 bill
lion. or an increase Of more thar
$500.000 during the last half OF
the year.
Farm price declines were
sharpest for beef cattle. They
closed the year about Is per cent
lower than at the start. This de-
cline largely reflected the fact
that cattle numbers had been in.
creased to q record number. Live.
stock is among the farm com.
modities which do not have the
benefit Of Government price pro.
lection.
The farm debt-real estate anC
montreal eState-climbed above
the $14 billion mark, an increase
Of nearly 81 billion during thu
year.