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About The Omaha morning bee. (Omaha [Neb.]) 1922-1927 | View Entire Issue (Jan. 20, 1924)
Cut the Wheat Acreage 20 to 25 Per Cent— This Is Necessary if Adequate Domestic Prices Are to Be Realized Wuu ft'oild production of wheat piling up an ever growing surplus, With the American surplus equal to nearly HO,000,000 bushels In 192*. If the American farmer la to put himself on a domestic basis, with domestic prices for his product, the American acreage must be cut be tween 20 and iS per cent. At the rate of five bushels per capita for food, which Is slightly lees than prewar average and a slight increase over last year, about <70,000.000 bushels of wheat would be required for seed, the usual feed and waste, and for food in the Unit ed States in 1024-25. With a 10 year averr ge yield per acre of 14.4 bushels, nearly 47,000,000 acres would be required to produce it. Al lowing for average losses In winter wheat area, about 52,000,000 should be sown. This is a reduction from ths area seeded last year of IS, 000,000 acres, or 20 per cent. This reduction properly distributed among growers of durum, hard winter, soft red and white win ter wheat would take ail classes off the export market basis except in years when yields were above the average. The area may be in crease! annually by about 1 per cent to meet the increase In demand by growth of population. Safest en Import Basis. Production of wheat should be gradually on a basis to supply this country only and then should keep pace with growth of population from year to year. Where wheat displaced other crops In response to the demand of wartime. Its pro ductlon should be reduced as rap idly as profitable alternative crops can be substituted Feed crops are the most natural substitute* (or wheat and any matted Increase in food acreage must be accompanied by more live stock. Adjustment of crop acre ages must take Into account the relative price trend* of farm prod ucts. At present cattle and hog prices are tow while thoae of sheep and wool and of dairy and poultry products are higher. Crop adjustments vary with dif (erent regions and with individual farms. What may apply to one may not apply to another. In some cases economical use of labor and equipment and rotation of crops may not make a radical re duction in wheat acreage immedi ately advisable. Many wheat farm ers are restricted in choice of alternative crops. In such instances adjustment must be in tlie direction of economy and efficiency in pro duction. Economies of Production. Wherever possible, lands which give relatively low returns in cul tivat'd crops should be seeded to meadow or be allowed to revert to pasture Cash outlays In the pro duction of crops can often be re duced. A part of the hired labor on some farms may be eliminated and more of the supplies for the household as well as feed for live stock may be produced on the farm. In some sections it even may be possible to supplement the (arm income from sources outside of the farm. farmers in the corn belt and other eastern states have made sub stantial progress in readjusting their crops The wheat area, how ever, is still in excess of the pre-war average, while that of corn is con siderably lower. The value of corn per acre in the region is usually greater than that of small grains which sre Included In the cropping system to permit the fuller utilisa tion of farm labor and equipment and serve as nurse crops for pas ture and hay. Hie spread between the average value T»f com per acre in Ohio and that of either wheat or oats was greater in 1922 than it had bean since 1913, and an acre of corn this year promises to be worth nearly twice aa much as either wheat or oats. At present prices, therefore, it appears that com belt farmers will find it profit able to keep their com acreage at the highest point consistent with a balanced labor program and the maintenance of soil fertility. It should not be overlooked, however, that the present relatively high prices for com may not be main tained If the prices of cattle and hogs remain at present levele. Situation in Nebraska. Conditions in the eastern humid parts of Nebraska and Kansas are very similar to those in the com states to the east. A suhhumid belt In which the rainfall is lower than in the eastern humid region cuts across the central portion of the western winter wheat states. Wheat yields In this belt are more dependable than those of com. and wheat has occupied, therefore, a more important place in the system of farming. The value of an acre of wheat In McPherson county, Kan., which is representative of the subhumid region, has been higher than that of com since 1913, and In a majority of years has exceeded also that of oats, barley and rye. The spread between the acre value of wheat Slid corn Was less in 1922 than it had been since 1917, and on the basis of average yields, present prtces place corn very nearly on an equality wt£li wheat in value pet acre. On the basis of average yield* and present prices the value of an acre of wheat less the cash costs of producing it is about M under the corresponding value of an acre of corn. Since the demand of wheat and corn for labor do not seriously conflict, it appears that in so far as com can be probltably utilized as feed or can supply a local demand it deserves a more important place In the cropping system of the re gion. As grain sorghums are more dependable in dry years than corn, farmers will usually find It advan tageous to grow some sorghums to assure themselves feed in dry years. In the humid portions of Minne sota and South Dakota where dairy ing and hog production have be come the leading enterprises on most St the farms, wheat has already been displaced to a large extent by other crops. Wheat has been the principal crop in the subliumJd portion of the spring wheat region largely be cause the acre value of wheat has usually been greater than that of other crops. With present prices, however, more attention should be given to the production of feed crops, especially com. and likewise to the production of flax. The one crop system of wheat farming hitherto largely followed, has re suited in weed-infested land, reduced soil fertility and in heavy losses in years of crop failure. Profit From Other Crops. The production of flj* in ties United States in now confined aV most entirely to the spiing wheat region Flax production has bee* befcur domestic consumption la every year since 1909. and while the aoroage this year is ths .high est sines 1911, the indications aie that the consumption during the present year (July I9?3 to July 1, i*!4l will be at leant double this year’s domestic production. The present tariff of 4© cents per bush el has resulted in an increase in price to growers in the United States, and so long as production is below consumption and the tariff remains in effect flax prices will probably be attractive. The average value per acre of the 192! flax crop in North Da kota was (9 more than the average value per acre of the wheat crop This is a greater difference in fa vor of flax than had existed since 1914. Present indications are tha» the spread bet wen the value per acre of the two crops this year Wilt be nearly as great as it was last year. Records from ISO farmers in northeastern Montana show that the average yield of wheat for the 1© year period 1913-19!! eras 13 busii els and that of flax six bushels per acre. At these yields flax will be more profitable than wlieat when ever the price pet bushel of flax i.« more than twice as great as the price of wheat. Flax usually doe» best as the fir^t crop on newly broken sod. but it probably is ad visable to confine the growing of flax to those farms where it can compete successfully with whea* ot* old, but clean land. Small Part of American Wheat Goes to Foreign Markets The American wheat fuimer has been exporting wheat for the rea son that there was no other wav to dispose of It. It la not essential that the American farmer produce for export. Of the other countries of the world that raise wheat, many of them do not have domestic pop ulations large enough to consume anywhere near the production. , Sound conclusion la to let them have the world market. They pro duce plenty for world needs, why need the American farmer seek to oompete with them. There is a sufficient domestic consumption in America to absorb the production of a vast wheat acre age. It is enough. On the haaia of domestic prices, protected by an adequate tariff, the American wheat farmer can be prosperous and happy. Looking ahead beyond this sea son. prospects are not good for mar keting n surplus of wheat at satis factory prh-es. European agricul ture Is returning to pre-war pro ductiveness. I#ast year Russia ex ported some rye and a little wheat. The area of all cereals this year Is estimated to bo !0 per cent greater than last, but yields ate lower and the total crop probably will be about the name as last year. Great effort* are being made to export both wheat and rye, and already this year's export* exceed the total for Last year. The Increase In the area of crops in Russia Is a definite indication of • tendency to return to an export basis. High prices during the war period greatly stimulated production In Canada. Since the war low prices for cattle In Australia and Argen tina have encouraged the production of more wheat. In Canada, since the western provinces are better suited to produce wheat as a cash crop than to produce anything else for market, the area and production of wheat continue to expand. With small populations th<%e countries must either find foreign markets for a large part of their crops or abandon a considerable area of wheat production. It Is evident, therefore, that competition for the Kuropean markets will be Increas ingly keen and will tend to elimin ate those countries in which the rel ative mst of production is highest. Struggle for Markets. Foreign competition is becoming increasingly keen, not only in quan tity but also in quality of wheat and flour produced. The return of Russia will bring back into the market a large supply of Durum wheat in competition with the Unit ed States and North Africa. The expansion of production in Canada increases the quantity of high-grade hard wheat available to Europeon markets, and the flour made from this wheat is gaining In reputation In Europe. The commercial, financial and political relations of some European buyers make it more advantageous for them to purchase wheat from our competitor! than from the United States. In so far aa busi ness interests follow the flag, the colonies and dependencies of the United Kingdom and France are in favorable positions l'or marketing their surplus wheat, and the war has strengthened their positions. The purpose of the recent negotia tions between business men In Ger many and in the United Kingdom with Russian organizations is to facilitate the exchange of manu factured goods for grain and other Russian raw materials. High and fluctuating exchange rates also handicap the United States in trading with European countries. In the last year Ger man grain dealers have had great difficulty In financing imports, not only because of the fluctuations in exchange but also on account of le strictions upon the purchase of ex change. In some cases exporters of other countries are more liberal in terms of sale than are the exporters of the United Stales. For example it is reported that whereas Canadian mills are quite satisfied to accept cash documents. Hamburg. Amei i can nulla will sell only on New Yoik sight draft, which handicaps the German importer who would buy from the United States. Outlet in Germany. American credit advances on fa vorabls terms t® German import ers would faciliate the sale of American grain and flour la Ger many. German Importers need short-time credit* at reasonable rates. A large grain importing company has expressed a keen in terest in any possibility of secur ing American credit on easier terms for the handling of grain imports into Germany. This company re ports that the restricted capital which they have available for ex tending credits limits sales of American wheat and flour, that they could sell much more if they had “gold capital" with which to work. They further report that the company has been doing a good and s-eadv business ,u both •he*' and Dour with America and Can • da and that even in the first wee' in October, when German busine* seemed at a standstill, they had continued to do a steady business They were able to carry on this business, however, only by talcing up foreign documents an! giving short term' credit to a selected Its* of mills and wholesalers. The lowi.< on credit advances thus far have ben almost negligible in relation to the volume of their business German banking and credit o gamut ions also have made pio posals for the financing of Arne;: can grain in Germany By the; suggestion banks would arrange t« provide secnrttien tor an Ameri can exporter. or they would tab over the documents as trustee au. cover these documents by spe. < contract or acceptance against the mi Us receiving the grain, whi would remain the property of th seller until payment was mad To summarise briefly, change* in international commercial, Rnan< i.-' and political relations as well a* the Increase in quantity and im provement in quality of wheat pro du<?ed by competing countries hav inoreaeed the difficulty of sell r; our surplus wheat. Vast Canadian Wheat Production Is An Eye Opener The one single factor, which proha lily more than any other, has brought home to the American wheat farmer the necessity for put ting lilinself on a domestic basis, W secure behind an adequate tariff. ^ 1s the tremendous Increase in Canadian production. The Canadian wheat crop this season is almost 470.000.000 bushels, as compared with an annual aver age production of 197.0O0.0p0 hush els in the period 1909 1913. This represents an Increase of 273,000. 000 bushels, or 13H per cent. The population of Canada 111 1921 num bered a little leas, than 9.000,000. Canada's wheat production is hence greatly in excess of domestic re quirements. It must, therefore, find and hold foreign markets for its wheat or materially reduce Its acre age. As a competitor in the world markets, the position of Canada Is measured by its exports of wheat ^ sad flour, which In the year 1922 IS • amounted to 274.0OO.OOt) bushels net, as compared with a prewar aver age of 94.000,000. The United States exported In 1922 23 less than 20!. #00.009 bushels net. as compared With 1SS.000.S0S before the war. The prairie provinces of Mani toba, Saskatchewan, and Alberta account for moat of the expansion In Canadian wheat production. These three provinces contain 97 per cent of the 1923 wheat acreage and have produced about 95 per cent ot the crop. The average wheat area of these provinces before the war was about 9.000.000 acres; in 1923 it Is reported at over 21.500.000. , Although rapid progress has been made during recent years In the set tlement of western Canada, large bodies of virgin land suited to wheat production are still undeveloped. Various estimates place the arable land in these provinces at figures ranging from 170.000,000 to 270.000, 000 acres. At present less than 40. 000,000 acres are In cultivation, of which 66 per cent is in wheat. A network of railroads covers the southern half of the region and ex tensive tracts of virgin land lie within reach of transportation. The further development of these lands hinges In no small measure upon the Increase In population. Im migration to Canada, which was rel atively heavy preceding the war. declined materially during the years 1916 to 1919, but ha* since revived considerably. During the fiscal years 1910 and 19!1 the Immigrant arrivals In Canada numbered over 265.000. One third of these immi grants went to the prairie provinces and a large number of them no doubt engaged In farming. Shortly after the war, the Western Canada Colonisation association was formed with the purpose of promoting the settlement of Urge numbers of Im migrants on the vacant lands of western Canada. In developing this program, that association, according to an official statement, has secured the cooperation of the imperial government as well aa the domin ion and provincial authorities and the transcontinental railway com panies. Canada Has Advantage. The Canadian wheat farmer en joys aubstantUl advantages over the American producer in the matter of yielda. land values, the quality of wheat he produces, and lower freight rates from points equally distant from markets. The yield of wheat, which la a very Important factor In the coal of production, is materially hlghar in western Canada than in many of our wheat producing states. The average yields of spring wheat in the prairie provinces during the 10 year period 131J 19SI varied from II to 1* bushels per acre. In Minne sota, North Dakota. South Dakota, and Montana for the correspond ing period they ranged from 10.6 to 14.3 bushels. Winter wheat yields on harvested acreage In Nebraska. Kansas. Colorado, Oklahoma, and Texaa averaged, for the same per iod, from If .6 to 16 5 bushels. These figures do not reflect the losses resulting from abandoned acreage In the Pacific northwest yields have been somewhat higher than In Can ada. but this advantags has been offset to a considerable extent by higher land values. The significance of Canada's higher yields Is appar ent. A recent study of wheat costs in the United States brings out the fact that tha cost per bushel for farmers who had yields ranging from 13 to 16 bushels per acre was 31 per cent less than for thoee who had yields varying from T to 1* bushela I -and Prices Lower. The capital lev rated in land is •Iso materially lower In Canada than in the I’nited State*. The a. erase value of farm lands ;n 19r for Canada as a whole was *40 p acre as compared with *79 for t - I'nited States In the prairie pro inces average land values range from *24 to *J2: in 11 of the west err wheat states the range was fi-on *44 to *119 Montana is the only t» portsnt wheal state in which th* average value of land is not n.t teriaily higher than in the prasrie province*. It is significant also that land values in Canada durit c the war were marked up to a rela tively slight degree. Between 19!* and 1920 she average value of land in the I'nited States increased I* per acre: In Canada the average in crease was only *11. In the son e period lands in the prairie provinces advanced on the average from * to *11 per acre, in 11 western whes' states the increase ranged from *19 per acre in Colorado to *41 in Ne hraska It is evident, therefore that the American wheat fame haa a much heavier per acre u vestment in land than his Canado competitor and a corresponding.? larger interest burden. Canadian fanners hare aaoth -v irswllwwed ea r»s* wo
