Smyrna times., 1955-12-29

y
and most of them will be able to
find jobs. Full employment COUP
led with rising wage rates will in
crease the amount of disposable
, income by approximately billion
dollars to a total of 275 billion
annually. This is the most inn
portant item influencing the de-
mand for farm products. About
one-fourth of the disposabe in
come is spent for food.
Population growth is one of the
important immediate and long
time trends affecting the demand
for farm products. Over 2 million
consumers are added to the ma
tons DINNER table" each year
IA million since 1850. Looking
ahead, We can expect an increase
in population of about 25 million
people in the next decade-almost
as many as are now living in the
states of New York and Pennsyl-
vania.
Full employment, high wage
rates, more disposable income,
plus a growing population means
an expanding market demand for
farm products in 1856.
Supply of Farm Products
The demand for farm products
is only one-half of the farm price
picture. The supply of products
available to meet this demand
must be considered also. In 1855
new records were set in the pro-
duction of both livestock and
crops. The use of improved farm
ing methods, technology, and ma
chimes enables the farmer to pro-
duce more than enough to offset
population growth and increased
consumer demand.
Farm Prices and Income
The pressure of large supplies
of many commodities in the mar
ket place keeps farm prices low.
Unless some effective means of
reducing the burdensome supplies
of farm commodities is found,
prices to farmers in 1856 can be
expected to decline some more.
In an effort to bolster income,
farmers will boost volume of
sales. Increasing, output per an
imal and acre will help reduce the
unit cost of production and give
more units to sell. At the same
time it is likely to add to the
market supply, thus putting addi-
tional downward pressure on
price.
Average prices paid for items
used in farming and family living
are not expected to change much.
Farm machinery and other indus
trial items and wages will be
higher, but items produced by
other farmers-seed, feed, live
stock-will be lower. Fertilizer
prices have declined since 1852,
but probably will not change
much next year. Lower farm
prices and continuing high costs
will result in a parity ratio below
that of 1855.
Gross farm income may be
about equal to the past year If
the farmer is successful in in
creasing his volume of sales. Net
income from farming will be de-
termined largely by the ability of
the farmer to reduce costs and
improve the efficiency of his farm
business. Good management and
careful planning will be Keys to
profitable farming in 1856.
Farm Outlook by Commodities
The preceding statements apply
to agriculture in total and not to
any specific commodity. This does
not meet the need of the individ-
ual farmer who is interested in
surveying the various alternatives
for his farm or who is planning
to make a major capital invest
ment in particular enterprise.
In general, field and vegetable
crops (annuals), broilers, eggs,
and turkeys are sensitive to
changes in the supply-price rela-
tionship. Unless delayed by price
supporting or other programs,
these commodities adjust readily
as profit opportunities change
particularly is this true where
several alternative uses for the
resources exist. On the other
hand, dairy, fruit, and meat an
imals that require large fixed in
vestments with long production
cycles, are not easily or quickly
adjusted when supply and require
ments get out of balance.
Dairy