Economic and Marketing Information for Indiana Farmers, v. 01, no. 01 (Jul. 1947) |
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FOR INDIANA FARMERS Prepared by members of the Agricultural Staff of Purdue University ECONOMICS AND MARKETING By H. J. REED, Director OVER A long period of years Indiana farmers receive — about 50 cents out of each dollac. which consumers pay for their products. The other 50 cents goes to those who perform marketing services. Last year, 1946, the farmers' share of the consumers food dollar was a little larger than this. The cash income from Indiana farm marketings was three quarters of a billion dollars (778 million). Marketing services amounted to an additional 400 to 450 million dollars. k During periods of rising prices, the producer gets a rela- f tively larger share of the consumer's food dollar and during periods of falling prices he gets less. In the years immediately ahead, the farmers' share of the consumer's expenditures for food is expected to shrink. This is because farm prices will likely fall more rapidly than marketing costs. The 1947 session of the State Legislature made an appropriation to study and promote efficient and economical marketing of farm products. As a part of this service a new periodical "Economic and Marketing Information for Indiana Farmers" will be made available. The purpose of this publication is to provide Indiana farmers and others with timely market and economic information. It is our belief that this information will aid producers in marketing their crops to the best advantage and in making adjustments in their production programs which will increase and stabilize Indiana farm incomes in the difficult years ahead. To the extent that this objective is accomplished, both producers and consumers will benefit. This is the first issue of this new publication and is a sample of those which will follow. It will be published each month by the Agricultural Extension Service of Purdue University and will contain articles prepared by various members of the staff. It will replace the smaller leaflet, "Economic Information for Indiana Farmers", formerly prepared by the Agricultural Economics Department. The new publication will be sent to those people whose names are on our mailing list for our former publication. | Others may receive it, without cost, by writing to R. H. Bau- mon, Extension Economist, Purdue University, or by making application through your local County Agricultural Agent. PRICE ADJUSTMENTS LIE AHEAD By E. L. BUTZ, Agricultural Economics DRICES received by Indiana farmers, on the average, probably reached postwar highs last October and again in March, 1947. They may be expected to work moderately lower in late 1947 and in 1948. However, seasonal increases in certain livestock prices in late summer may temporarily obscure the overall downward price trend. The high points came last October following relaxation of price controls, when the Indiana farm price index stood at 268 % of the 1935-39 average, and again in March, 1947, when a speculative flurry sent the index to 263% of the 1935-39 level. In January and February of this year, the index was 30 points below.its last October high. In May it was 15 points below last October. (See Chart.) Farm Product Prices To Fluctuate Near Present Levels During Next Few Months Farm product prices will probably fluctuate around their present levels, on the average, for a short time longer in the summer of 1947 with weather and crop developments being principal influencing factors. However, farm prices may be expected to decline some in the last quarter of 1947 and in 1948. Livestock prices will likely increase seasonally in the two or three months immediately ahead, and then decline relatively more than will grain prices. This decline will be neither as rapid nor as drastic as that which occurred in 1920, although it may be as much as one-fourth to two-fifths from present levels. This will put prices received back about where they were in the last year or two of the war. The decline will be more in the nature of a cost-price realignment than a recession. The most important single factors affecting prices received by Indiana farmers are the general level of all prices in the United States and, tied closely with it, the status of consumer purchasing power. It is therefore pertinent to examine these carefully. General Price Level Probably Near Post War Peak The general level of wholesale commodity prices in the United States is now nearly as high as it was c*t the previous peak in 1920. (215 in May, 1947, compared with 225 for the year 1920; 1910-14-100). The index reached 240 in the single month of May, 1920. During the war period from
Object Description
Title | Economic and Marketing Information for Indiana Farmers, v. 01, no. 01 (Jul. 1947) |
Purdue Identification Number | UA14-13-econ194707 |
Date of Original | 1947 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 02/26/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ194707.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers, v. 01, no. 01 (Jul. 1947) |
Purdue Identification Number | UA14-13-econ194707 |
Transcript | FOR INDIANA FARMERS Prepared by members of the Agricultural Staff of Purdue University ECONOMICS AND MARKETING By H. J. REED, Director OVER A long period of years Indiana farmers receive — about 50 cents out of each dollac. which consumers pay for their products. The other 50 cents goes to those who perform marketing services. Last year, 1946, the farmers' share of the consumers food dollar was a little larger than this. The cash income from Indiana farm marketings was three quarters of a billion dollars (778 million). Marketing services amounted to an additional 400 to 450 million dollars. k During periods of rising prices, the producer gets a rela- f tively larger share of the consumer's food dollar and during periods of falling prices he gets less. In the years immediately ahead, the farmers' share of the consumer's expenditures for food is expected to shrink. This is because farm prices will likely fall more rapidly than marketing costs. The 1947 session of the State Legislature made an appropriation to study and promote efficient and economical marketing of farm products. As a part of this service a new periodical "Economic and Marketing Information for Indiana Farmers" will be made available. The purpose of this publication is to provide Indiana farmers and others with timely market and economic information. It is our belief that this information will aid producers in marketing their crops to the best advantage and in making adjustments in their production programs which will increase and stabilize Indiana farm incomes in the difficult years ahead. To the extent that this objective is accomplished, both producers and consumers will benefit. This is the first issue of this new publication and is a sample of those which will follow. It will be published each month by the Agricultural Extension Service of Purdue University and will contain articles prepared by various members of the staff. It will replace the smaller leaflet, "Economic Information for Indiana Farmers", formerly prepared by the Agricultural Economics Department. The new publication will be sent to those people whose names are on our mailing list for our former publication. | Others may receive it, without cost, by writing to R. H. Bau- mon, Extension Economist, Purdue University, or by making application through your local County Agricultural Agent. PRICE ADJUSTMENTS LIE AHEAD By E. L. BUTZ, Agricultural Economics DRICES received by Indiana farmers, on the average, probably reached postwar highs last October and again in March, 1947. They may be expected to work moderately lower in late 1947 and in 1948. However, seasonal increases in certain livestock prices in late summer may temporarily obscure the overall downward price trend. The high points came last October following relaxation of price controls, when the Indiana farm price index stood at 268 % of the 1935-39 average, and again in March, 1947, when a speculative flurry sent the index to 263% of the 1935-39 level. In January and February of this year, the index was 30 points below.its last October high. In May it was 15 points below last October. (See Chart.) Farm Product Prices To Fluctuate Near Present Levels During Next Few Months Farm product prices will probably fluctuate around their present levels, on the average, for a short time longer in the summer of 1947 with weather and crop developments being principal influencing factors. However, farm prices may be expected to decline some in the last quarter of 1947 and in 1948. Livestock prices will likely increase seasonally in the two or three months immediately ahead, and then decline relatively more than will grain prices. This decline will be neither as rapid nor as drastic as that which occurred in 1920, although it may be as much as one-fourth to two-fifths from present levels. This will put prices received back about where they were in the last year or two of the war. The decline will be more in the nature of a cost-price realignment than a recession. The most important single factors affecting prices received by Indiana farmers are the general level of all prices in the United States and, tied closely with it, the status of consumer purchasing power. It is therefore pertinent to examine these carefully. General Price Level Probably Near Post War Peak The general level of wholesale commodity prices in the United States is now nearly as high as it was c*t the previous peak in 1920. (215 in May, 1947, compared with 225 for the year 1920; 1910-14-100). The index reached 240 in the single month of May, 1920. During the war period from |
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