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Show Expect Farm Income to Increase i i ' sn Map of Business Conditions KSI X KITH 11 jT X Income of farmers throughout the country is expected to rise over five per cent this year. Hie shrinking foreign export market is still more than replaced by an increasing domestic demand. The gain in income, however, will be slightly offset by higher prices of production. By L. G. ELLIOTT (President, LaSalle Extension University) The farmers of the country will probably receive $500,000,000 larger income this year than they did in 1940. During the next few months they will be marketing the remainder remain-der of their last year's crop, which was larger than average. For most of these crops they will receive prices which are above the level of a year ago. Farmers benefit when employment employ-ment and pay rolls in the cities are high. Demand for their products is increased whenever the income of industrial workers rises, as it has - been doing for several months. Defense De-fense expenditures are already double dou-ble the amount of six months ago, and are scheduled to go much higher high-er soon. While it lasts, this spending spend-ing provides employment to a larger number of workers and thus increases in-creases their ability to buy. The gain in income from higher prices and greater demand may be partly offset by higher costs of production pro-duction during the coming year. In spite of this, however, the outlook for agriculture during 1941 is favorable. favora-ble. Farmers and business men in rural communities are very likely to have the best year in more than a decade. Prospects for industry are also favorable, fa-vorable, and the output of factories is expected to be around 10 per cent higher than the all-time peak production last year. Those industries indus-tries directly affected by war orders or-ders and defense expenditures, such as steel, machinery, aircraft, and shipbuilding, will continue to make the greatest gains. Other lines of industry are moving forward under the stimulus of greater consumer purchasing power. The outlook is that a balanced upward trend will continue for both agriculture and industry. |