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Show KARMJCIW ltt'YIXU POWKH INCREASED $0(10,000.000. Roger W. Dabsou Estimates Effect of Recent Price Rise la Corn, Cotton anil Wheat. Babson Park, Muss. Aug. 8. 1924. Recent rises In the prices of farm products have been discussed much as to their economic and political effect. Many have wondered just how much of this increase would actually get to the farmers who produce pro-duce these orops. Roger W. Bab-son's Bab-son's first estimate of Increase In the farmers' purchasing powers made ; Dubllc todav is. therefore, of unusual Interest. , J "It Is difficult to get exact figures on what the farmer receives for his crop," says the Statistician, "because! of differences in locality, freight j rates, and time of actual marketing. A xellable estimate can, however, be made by applying the recent in- j creases to the actual prices being j paid to farmers this last spring, j Corn for Instance was netting the farmer around 74c a bushel In January of this year. Cotton brought the grower about 28c per pound in March. While wheat was selling from 95c to 96c in the middle of April. These dates represent approximate ap-proximate lows since the beginning 1 of 1924. '.Corn has since seen a rise of j 48 per cent, cotton an Increase of of 27 per cent, and whoat has advanced ad-vanced approximately 30 per rent. The latest cjop estimates by the government forecast a corn crop of 2,516,000,000 bushels; a cotton crop of 11.934,000 hit leu and a whom production of 740,000.000 bushels Corn growers are now rece:velng over $1.00 Instead of the 74c a' bushel prevailing earlier In the yoai and on this expected production their ' purchasing power !s thereby Increas-j ed over $650,000,000. Miuh corn j la of course fed to hogs qui not ! marketed directly. Hog prices have also risen about 4 0 per cent so that the advantage holds either way. Cotton planters are getting around 30c Instead of 27.7c per pound and thereby profit to the extent of more than $135,000,000." The wheat farmer who has certainly had hia troubles these last few years Is receiving $1.20 Instead of 96c and on the basis of Government estimate his political purchasing power is Increased In-creased by $171,000,000. On'these three crops alone the recent .strengthening .strength-ening In prices has added $'JC0,000,-000 $'JC0,000,-000 to the purchasing power of the farmers. "If we compare thone crop estimates esti-mates with the aciiual crop harvested last year we find a decrease of 17 per cent In the probable production of corn despite larger acreage. The price rise offaetB this shrinkage, however, how-ever, and leaves the , corn farmer with an Income at least en.ua! to a yeun ago. I'renent forecasts on the cotton crop meantime Indicate a yield 18 per cent ahead of last year. The South will not only receive a high price per pound, if present prtcea continue, but will have almoin one fifth again as much cotton to sell. Wheat estimates at present Indicate a shrinkage of 1 per cent In production as compared with 1923 uut me present rale or price Increase should rapidly offset this discrepancy. The total Income of the wheat farmer fthould between 25 per cent. and $0 per cent greater .than last year. .Continued drought and the possibilities possibili-ties of early frost may cut them expected yields but such losses In vlume should be compensated for by increased prices. "The political Hlgnlflcfinco of this Increase In prosperity has already been commented upon. If the trend holds until election then the. Third J'nrty should fair poorly. Hares', and .radicalism have n way of evaporating evap-orating In tin: sunshine of Increased pro iperl I y. "The agricultural hccIIoiih lliem-Ivim lliem-Ivim arc already binelli lug ma- to-lally. r'rozen "iiTle, V, couuliy banks are Ileum I li u lila I ei and farm buying Is liicn-iiuliig hod with local merchants and wllh mall order bonnes. (Irftflf. tjernilfhenl I'-'k ll will remit if the farmer -on -Un.,:t to follow bin pn Hunt policy w hich serves to tend toward paying ;hls debts, buying much needed equipment, equip-ment, and Improving his working equipment Inoli'iid of the reckless 'pending mid land speculation that Uiuiitcteil.ed his last season or prosperity. '"Ilils iWiili'iiinn rnadljiis ment In farm prices has been long overdone," i;o n eluded Mr. Ilabtion, "and k )hoed that the general level of jnurlcultural prices and Induiililal jciiminodlly prices may come Into (even closer relationship. It Is only Ion the hauls of cqullahlo purchasing ijiower for lull Hivtlons and clasnei jlhal any real or lasllng prosperity ,c.an lie built. .'(leneral business hh reflected on I ho illibhiuiiicluirl has not yel felt Hie i .il mi lit age of t h in morn iven nd i ini'hl. Aellvlly Is now 2 per , real I, clow iioriual. the same as a , w"c( ago." |
