Show wheat price pegged do at 50 cents local market drops eaily this week local AAA officials announced that the government loan on wheat provided for in the 1938 farm act will be fixed this year at 50 cents per bushel th this 19 rather conflicts with the interpretation placed upon the act by the utah state farm bureau which in an article on wheat loans on its official page in the alie july issue of the utah farmer says the rates tor for wheat loans will likely be announced some time between july 11 and 16 15 according to present indications on account of the reports of rust damage the department will likely wait until after the july 1 crop report which was as released on july 11 before announcing its loan the rate cannot bo be less than 52 per cent of parity which would be approximately per bushel nor more than 75 per cent of parity which 0 would be approximately sac before wheat farmers unanimously holler tor for 86 cents they might stop to remember that the higher the wheat loan the bigger the acreage reduction in wheat will have to be A 60 cent loan on art wheat will permit mi t fairly heavy exports of wheat abroad that will reduce the volume of wheat on hand in this country and will make it easier to keep production under tinder control next season 0 n n iyan an 86 cent 10 loan an would shut oft exports entirely ent liely wheat in liverpool will probably only bring about that much in july with no allowance tor for transportation to keep wheat moving steadily there must be about a 25 cent margin between liverpool and kansas city A high loan that would shut oft off exports would automatically pile up a bigger wheat surplus here and a R bigger wheat surplus here would make necessary a much larger cut in wheat acreage it bo be smarter in the long 0 o ng run to have a wheat loan at GO 60 cents keep wheat exports going and get along with a smaller reduction in acreage at best it may be necessary to cut wheat acreage for or 1939 about one third under that tor for 1938 but if 1 high loans shut off ot exports an even heavier cut may be required the difference in the goe goc which the government Is going to lend for or wheat delivered to federally licensed warehouses and the figure which the writer of the above article believed to be the minimum permitted by law can be explained as interest storage and insurance the triple A undoubtedly elected to charge these services to the farmer at the outset as the wheat will cost coat the government about it at the end ot of the seven months period it ties has not been redeemed and the government la is compelled to take it where loans are made on wheat in approved farm storage the government will pay an additional seven cents per bushel for or delivery to the credit corporation this seven cents probably represents the saving in storage plus the expense of 0 insurance which the farmer anner will be compelled to take the other three cents probably represents interest and carrying charges it is reported that the payson mill had been paying 66 65 cents a bushel for or good wheat up until the time of announcement of 0 the govern 1 dime I neat cent loan aaion und and that it then t the price to SO 60 cents tho the mill feels eels as many farmers seem to that the loan action not only pegs wheat prices from rom going below 60 50 cents but to quite an extent page them from going above that figure egure the only thing that can prevent wheat prices from staying at about GO 50 cents tor for some time to come Is for world markets to make sufficient demand so that farmers will not take advantage of the loan once the government has control of 0 large quantities of 0 wheat at that figure the price Is not ll 11 likely ely to make any immediate Imme date advance TAKES IT ON THE CHIN the outlook for the wheat grower Is certainly not very bright the farm bureau and A A A officials agree that the price of wheat should be about in order tor for the farmers purchasing power to be equivalent to tile the price he roust must pay for or commodities lie he buys in other words that Is about parity price in spite of all planning however ho he must take the price dictated by supply and demand for hla his crop this year with the promise that next year he will probably be allowed to raise only two thirds ot of a crop if wheat farmers would adopt the tactics of organized labor they would probably lump jump the price of wheat immediately to and go on sit down strike until the country has consumed all the crop at that price certain it la Is that the country will never approach recovery as long as one class of workers refuses to produce unless it can earn as much lu in one day as another equally large and important class of workers Is receiving for a full weeks labor |