Milford chronicle., 1959-10-30
Federal Reserve Bank Of Phila.
From the October Business REVIEW
Farmers Had Good Crops
But LOw Prices

appear to have experienced the
greatest problems, not the least of
which was low prices.
Fruit Prospects Look Promising
Peaches were labeled a good crop
almost everywhere this year. The
fruit was well-sized, had good color
and market prices were not too
bad. In the case of summer apples,
however, supplies seemed to run
well ahead of the demand. Reports
from the commercial growing
areas of fall and winter apples. con-
tinue encouraging. All three states
in this district are looking for
much larger crops this year than
last and production is expected to
be considerably above the ten-year
average. Most growers say they ex-
pect a better price on packaged
fruit; moreover, professors prices
in southern Pennsylvania are re
ported somewhat higher than a
year ago.
Dairymen Are Well Off For Feed
Two successive seasons of excell-
ent feed and forage crops have
strengthened the position of virtu-
ally all our dairymen. Milk pro-
duction has continued high all year.
Markets have shown considerable
stability and price-wise we have
heard few complaints. Production
costs, always high on a dairy farm,
have been held down as a result of
the abundant pasturage available
throughout the season. Winter
feeding is just beginning from
barns well filled with hay. Most of
our agents tell us their dairymen
will have to buy very little feed
this year. They also say, that with
the good returns from this season s
operations, most dairymen can con-
tinue their spending to increase the
size and quality of herds, modern
ize or enlarge dairy barns, and in
stall additional labor-saving equip
ment.
POultrymen Had Another Bad Year
production, that plagued the
poultrymen in 1858 appears to have
stayed with them this year. The
situation has been especially bad
for those who raise broilers. Most
farmers with laying flocks are said
to have Jared little better until late
in the season, when egg prices rose
a little. Some are inclined to blame
integration in the broiler indust-
ry for too heavy production and
continued troubles marketwise. Un-
der this plan the poultryman
builds the houses and cares for the
birds, but does not own them. They
belong to the companies who
supply the feed. Usually the far
mer receives a flat fee for raising
the chicks to marketable weights.
When this operation shows a pro-
fit, the grower receives a share
but this year profit margins are
said to have about reached the van
ishing point on persistent low
prices.
Production Costs Are Creeping Up
The living expenses of farmers
are still riSing-just as are those
of everyone else. But, more import
antly, it costs the farmer more to
produce the things he sells. This
was an especially good year for vir-
tually all feed crops, so in this re-
spect the drain on his pocketbook
has eased bit. Not so with the
wages he must pay for help. The
farmer must compete with the ris-
ing wages paid by industry. Mach
lnery, an increasingly important
item in the struggle to improve eff
ficiency, also costs more this year.
Rising land values are a fine thing
in themselves, if a farmer decides
to part with some of his acreage.
But many times they also imply
higher taxes, particularly for those
who live near growing urban devel-
opments. Thus from the cost stand
point, 1859 is just another year in
which expenses weighed a little
more heavily against income.
Farm Cash Income Is Off From A
Year Ago
Receipts from the sale of farm
products in the three states includ-
ed in the Philadelphia Federal Re-
serve District have been running
below 1858 levels since early
spring. The decline has not been
very great, but it must be remem-
bered that 1858 was not a spectac-
ular year from an income stand
point. Over much of the current
season, cash income from crops has
continued well above year-ago lev
els, offsetting in large part sharp
declines in receipts from livestock
and livestock products. Lower
prices received this year for pouI-
try, eggs, and hogs were chiefly
responsible for the relatively poor
showing made by the livestock
component of cash income.
AS shown by the accompanying
table, Pennsylvania farmers are
making out better this year than
their neighbors in Delaware and
New Jersey, where the agricultural
economy is less diversified. Broil-
ers and eggs, respectively, are big
cash crops in these two states. And,
as previously indicated, there
seems to have been just too much
poultry around this past season.