ECONOMIC INFORMATION
FOR   INDIANA   FARMERS
No. 25     April, 1944
Division of Agricultural Economics
April, 1944
DAIRY AND POULTRY SITUATION
Prices Paid Producers for Milk, Butt erf at, and Poultry During 1944 Will
Continue Above Those of 1943. Egg Prices If ill Rise to 1943 Levels and Are
Likely to Exceed Those of Late 1943 Before the Year Ends. Production Costs,
Especially Feed and Labor, Are Expected to Continue to Rise. Even So, Dairy
and Poidtry Enterprises Will Continue Profitable for Established, Efficient Producers, W ho Grow Most of Their Feed or Are Able to Get It Reasonably Close By.
The Dairy Enterprise During 1944 Will Be in an Especially Strong Competitive
Position Compared to Other Livestock.
Producers Should Provide for Adequate Feed Supplies and Insure Against
Higher Feed Prices by Growing as Much Feed as Possible and by Obtaining
Necessary Purchased Feed Well in Advance of Needs. With a Tighter Feed and
Labor Situation in Prospect, Producers Should Cull Low Producing Cons and
Hens and Fully Use Labor Saving Ideas and Equipment to Help Offset the
Narrowing Margin of Profit.
Demand for Food W ill Continue to
Exert Upward Pressure on Prices
During 1943, non-agricultural income rose
13.5 per cent and in 1944 will be greater than
last year. Additional dollars in the pockets
of American workers means more purchasing power to buy more food at present prices,
or to pay higher prices for the same or
smaller quantities of food. In 1944, the
amount of food available to consumers is
likely to be somewhat less than in 1943.
Thus, with higher consumer incomes and no
increase in food supplies, the upward pressure on prices is expected to continue
strong.
When the war in Europe ends, some temporary weakening of prices can be expected
for a short time, after which prices are
likely to recover and reach a peak higher
than during the war period.
Tighter Feed Situation in Prospect
In 1943 our feed production was not as
great as in 1942. But livestock numbers
continued to increase and began to cut down
accumulated feed supplies.
On January 1. 1944, U. S. supplies of
corn and oats per grain consuming animal
unit were 20 per cent less than on January
1. 1943. Indiana, also had 20 per cent less
than a year earlier. It is evident that our
carryover into the new crop year will be
very small and after the middle of the
year the feed situation will depend upon the
size of the 1944 crop.
During the past year feed supplies were
augmented by heavy feeding of wheat and
rye. Supplies of these grains for feed will
be much lower in 1944. Supplies of protein
feeds will continue to be scarce in relation
to what farmers would like to get. They will
have difficulty in getting straight protein
meals and will have to depend mainly on
mixed protein feeds, the prices of which are
likely to move upward in line with grain
prices.
Though hay supplies are adequate, some
areas are short. Hay prices, which are relatively free from price controls, will continue well above those of a year earlier.
How acute the feed situation will be in
late 1944 and 1945 will depend largely
upon the size of the 1944 crop. Even with
a record crop like that of 1942 some liquidation of livestock will be necessary. Liquidation of hogs and chickens is likely to be
greatest because they depend heavily upon
grains. Producers should expect shorter supplies and higher prices. It seems wise for
producers to grow as much feed as possible
and obtain purchased feed supplies well
in advance of needs. Cows and hens should
be culled more closely than usual to obtain
the maximum production from feeds fed.