Show carmah 1 L sug TH i E 0 BIGGS county agent the squeeze play on farmers is now on oil in earnest warns G alvin carpenter assistant extension director for county services the peak of dollar income for farmers was reached in 1947 the peak in farm production costs has not been reached yet he said cost of items which farmers buy for production purposes are increasing more rapidly than prices of farm products product si farm wage rates are now more than three times prewar level 0 the real problem ahead tor for the average farmer is to obtain sufficiently high prices for his products to cover his high cost of production emphasis must be placed i laced on low cost production and diore more efficiency in use of labor supplies plies and equipment and in marketing practices mr air carpenter formerly ex extension tens i on marketing specialist recently returned from au an annual USDA outlook conference in washington D C where agricultural economic specialists from f rpm all parts of the country discussed and analyzed the farm price situation and prospects present indications are that economic activity and consumer demand will continue high atlease at least well into 1949 he reported the demand for farm products product should con continue tintie strong because of high economic activity at home and large needs abroad the level of farm prices will iiii be e greatly influenced by these four factors mr air carpenter explained 1 possible revision in price sup ports 2 size of foreign aid appropriations 3 defense expenditures 4 trends of industrial wage negotiations farmers as a whole are now realizing less net income than last year or in 1946 carpenter stated this is especially true with fruit and vegetable growers and cash grain farmers producers of meat animals dairy and poultry products however are in a better position demand and prices for products is holding up well and feed costs are decreasing farm production costs are now more than three times the prewar average lie he continued they are expected to climb even higher in 1949 with the exception of feed grains rains which are declining in price because of large grain crops this year and declining foreign exports |