Evening star., 1953-02-27
By Don Whitehead

DES MONIES, Iowa, Feb. 27.-
Midwestern farmers have had
some Of their financial fat
scraped off by falling farm
prices. but their economic situa-
ton today is far from approach
ing disaster.
| There appears to be greater
Farm Belt uneasiness over the
future than over what already
has happened.
The warnings and alarms
sounded in Washington could
spread across the Farm Belt
with political repercussions
against the Republicans. should
price falls continue. But any
undue alarms, at this stage at
least, are not reflected in the
attitudes Of farm leaders and
= others in the farm country.
Safety Margin Narrowing.
A trip through this country
discloses that farmers generally
while worried over the trend
do not consider themselves dis
aster victims at this time, al
though they say the safety mar
gin Is narrowing.
They aren't trading in their
Cadillacs for Chevrolets (al-
though one Texas fur dealer told
me he isn't selling as many mink
coats to cattlemen'S wives as he
used to-. And there is no panic
over the situation.
Time after time, farmers and
non-farmerS, businessmen and
others gave me this story as re-
Election Of the general situation:
Farmers as whole still can be
considered prosperous. They
built up a cushion Of profit-fat
during the good years which had
the stimulation of war buying.
They have liquid assets still in
reserve. Their credit with the
banks Is good. There is no dis
position on the part Of banks to
put the squeeze on farmers, al
though credit generally has been
frightened. There were no un-
usual reports Of farm foreclos-
ureS.
The price decline has been un-
derway for months. falling a to-
tai Of IL per cent last year with
continued drops in most crops
since January /. So, even though
the situation was born in a Dem
ocratic administration, it is the
adopted child Of the Republicans
now. and theirs to cope with.
1947 Was Best Year.
Farmers had their best year in
1947. After paying production
costs, taxes and other expenses
they had net income of $16.7
billion. This net income had
dropped to $14.2 billion in 1851,
and it remained about the same
last year because farmers had a
record production year to offset
declining prices.
The real pinch on the farmer
has not been entirely in the
fall in prices-but in the fact
the things he buys have not
fallen in price proportionately.
And he doesn't like to be the
only group in the American
economy to take the rap on
price adjustments.
I'VE don't like to have a
monopoly on adjustments" one
farmer said.
1--WE know farm prices have
been too high and there had
to be q levelling of. But a lot
Of other things are too high,
too"
But while most prices have
been declining, prices of hogs
have been on the upgrade and
all signs are they will go higher.
The reason: Fewer hogs-high-
er prices.
The hog situation is just the
reverse Of the cattle situation.
While cattlemen and farmers
have increased cattle herds to
the highest point in history
hog growers have been cutting
down on production. In the in
evitable way Of supply and de-
mand, cattle prices have taken
a tumble and hog prices are
up almost 81 on 100 pounds
above the January, 1852, price.
There is a great hope among
farmers that the Eisenhower