Milford chronicle., 1955-12-30

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 production
Of both livestock and crops. The
use of improved farming methods,
technology, and machines enables
the farmer TO produce more than
enough to Offset population growth
and increased consumer demand.
Farm Prices Aad Income
The pressure Of large supplies
of many commodities IN the market
place keeps farm prices low. I'm
less some effective means Of re-
ducing 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 animal and
acre will help reduce the unit cost
Of production and give more units
to sell. At the same time it is like
ly to add to the market supply,
thus putting additional 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 high
er, but items produced by other
faTmers-seed, feed, livestock
will be lower. Fertilizer prices
have declined since 1852, but prob
ably will not change much next
year. Lower farm prices and con-
tinuing 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 farm
er is successful in increasing his
volume Of sales. Net income from
farming will be determined largely
by the ability Of the farmer to re-
duce costs and improve the effici-
ency 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 individual
farmer who is interested in survey
ing the various alternatives for his
farm or who is planning to make
major capital investment in a
particular enterprise. In general,
field and vegetable crops (annuals),
broilers, eggs, and turkeys are
sensitive to changes in the supply
price relationship. Unless delayed
BY price supporting or other pro-
grams, 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 ami
mails that require large hSsd in
vestments with long production
cycles, are not easily or quickly
adjusted when supply and require
ments get out Of balance.
palry
Not much change in dairy prices
is expected in 1868. if any change
it will be on the low side. Glass /
prices will hold up, EuL the blend
price for all milk next spring and
early summer may average below
that Of 1855. Milk prOdnctiOn will
be up again as farmers Increase
the size of herds and rates Of pro-
duction per COW. Lower feed pri-
ces and a plentiful supply Of hay
will encourage heavier feeding and
bigger herds. Milk supplies will ex-
ceed demand and purchases by the
Commodity Credit Corporation will
be required to bolster returns to
farmers.
Reducing costs and increasing
the volume Of milk sales provide
the we'll established and equipped
dairyman with large fixed costs
the best opportunity to maintain
or enlarge his income in 1856. Low
er feed costs through improved
pasture and roughage programs;
high producing cows, better usage
of operator and hired labor, end a
well-planned cropping program are
some Of the ways farmers can re-
duce costs and increase sales in
1856.
Some dairymen may be able to
improve their incomes by chang
ing to a better market. Milk pro-
duced for manufacture again this
year will sell at very low prices.
Farmers producing for manufac-
ture may find it to their advantage
to make the changes necessary to
sell to a fluid milk market. Other
farmers already selling to q fluid
market may be able to change to a
market where a larger part Of
their production is used as Class /,
bottled milk.
In recent years the dairy indus
try has embarked on an all-iSut
campaign to increase the use Of
dairy products. Although i is too
early to evaluate the effects Of
these efforts, some data are avail
able. With lowering of price sup
port levels and the relaxation OF
some market restrictions, the price
of some dairy products to cOnsum-
ers has been lowered slightly. In
1866 retail prices of milk were
about percent lower ana were az
cOmpanied by about one pound
per capita increase in use of milk.
Retail prices Of butter were about
10 Dercent below that Of 1853 and
butter consumption is up about z
percent. Cheese consumption has
not changed much in the last 2
years. The use. Of cream, ice cream.
and milk fat in total is down and
this trend is likely to continue.
Total use Of milk in all farms in