since 1952. If about 13 million acres of wheat are placed in the Soil Bank and average yields are realized, a substantial reduction in carryover is in prospect during 1957-58. Feed The total feed concentrate supply for the 1956-57 feeding year was estimated in December to be slightly larger than in 1955-56, setting a new record of 200 million tons, 15 percent above the 1950–54 average. The harvested acreage of feed grains in 1956 was 10 percent smaller than in 1955. Production was down 1 percent, but carryover stocks increased 4 million tons. The estimated supply per grainconsuming animal unit also was slightly above the 1955-56 record. With an average rate of feeding per animal, the big supply in 1956 would be sufficient to take care of our total prospective requirements and increase the carryover into 1957-58 by around 15 percent. With the big carryover of feed grains in prospect for next year, ample feed supplies are likely again in 1957-58, even though there may be some further reduction in feed grain acreage under the Soil Bank. Over the next few years, if the general objectives of the Soil Bank program are realized, reduced acreage and output of feed crops would result in a gradual reduction in these big carryover stocks. The bumper corn supply for 1956-57, more than 4.5 billion bushels, dominates the feed picture. Although corn acreage dropped to the lowest level in more than 60 years, yield per harvested acre reached a new high. Production in 1956 was the second largest on record. Supplies of each of the other feed grains are smaller than in 1955-56: oats, down 16 percent; barley, 8 percent; and sorghum grain, 20 percent. The combined utilization of these grains in 1956-57 and the carryover at the close of the season are expected to be smaller than in 1955-56. Cotton A sharp rise in exports is expected to reduce the cotton carryover during the current season. This would be the first reduction in cotton carryover since 1951. Part of the heavy shipments reflect replenishing of stocks abroad. The Soil Bank should contribute to smaller production and further reductions in stocks in the 1957-58 season. Fats and Oils The supply of food fats and oils is about the same for the marketing year that began October 1, 1956, as in the preceding year. Soybean production set another record. Exports of fats and oils in 1956-57 are expected to be close to the 1955-56 record. Food Consumption Total domestic utilization of food in 1956 was a record, more than half again larger (53 percent) than in 1935-39. Civilian consumption of food per person in 1956 was on a par with the record rate reached in 1946. Although only 1 percent larger than in 1955, it exceeded the rate of the immediate pre-World War period by 14 percent and that of the immediate postwar period by 4 percent. Per person, our people consumed more beef and poultry meat—both chicken and turkey-than ever before. There was a slight increase over the 1955 rate for both milk and butter, a moderate advance for fresh vegetables, and a sharp increase for frozen vegetables. Civilian consumption of "red" meats in 1956 was more than 163 pounds per person, an alltime high. U. S. DEPARTMENT OF AGRICULTURE Price and Income BASED ON FIRST THREE QUARTERS OF THE YEAR Farmers' realized net income was $11.8 billion in 1956, compared with $11.3 billion for 1955. Cash receipts from farm marketings in 1956 were up 2.5 percent over 1955, owing to an increase in the volume of farm marketings. Farmers' nonmoney income, including the value of homeconsumed farm products and the rental value of farm dwellings, was about the same as in 1955. However, the new incentive payments for wool, started in July, and payments for participation in the Soil Bank of 1956, beginning in September, together added about $300 million to farmers' income in 1956. Farmers' realized gross income, including cash receipts from marketings and Government payments plus nonmoney income, was up about 3 percent. Production expenses have also risen, but only about 2.5 percent. The result was a 1956 1958 NEG. 443A-56 (10) AGRICULTURAL MARKETING SERVICE 4-percent increase in realized net income. Prices of farm commodities in 1956 averaged 83 percent of parity. Farm real estate values continued to advance in 1956. During the year ended July 1956, the average value of farmland increased 3 percent. From July to November 1956, land values increased another 2 percent. New record highs were established in 29 States as of mid-1956. The national index advanced to 143 (1947-49-100) as of November 1956. The volume of farm sales increased for the second year during the 12 months ended March 15, 1956. The rate of voluntary sales was 4 percent higher than in the preceding year. Moderate increases were also reported for foreclosures, tax sales, and sales in settlement of estates, but the number of distress transfers was still low compared THE OBJECTIVE FOR AGRICULTURE Our objective is a prosperous, expanding, and free agriculture-for the benefit of farmers and the entire American people. We seek a constantly improving abundant life for farm people fairly related to that of other groups of our population. But prosperity for farm people requires an expanding agriculture. Nobody, of course, can predict with mathematical accuracy how much. food will be needed in the future here at home, or what world demand will be. But certain facts are evident: Farming efficiency is on the increase, and farming efficiency means abundance. Abundance going to waste does nobody any good. Therefore, we and the other free nations of the world must use all available measures to better our resources, to push ahead with research and other advances, and to market what we produce. Future farm programs should be based on abundant production, rather than on scarcity. The economy of the future will be an economy of abundance. It will not be static. Our agriculture must be dynamic to keep up. An expanding and prosperous agriculture in turn must be based on freedom-freedom for the individual to make his own decisions, to manage his own affairs. We are a prosperous people today because of a free enterprise founded on spiritual, not material, values. Free enterprise is based on freedom of choice-free agency-an eternal God-Given principle. The Founding Fathers, inspired though they were, did not invent the priceless blessing of individual freedom and respect for the dignity of man. No, that priceless gift to mankind sprang from the God of Heaven and not from Government. The Founding Fathers welded together the safeguards as best they could, but freedom must be continually won to be retained. Some say our free enterprise is inefficient and wasteful. But let them show us another system that has contributed equally to the free progress of mankind. Our free-enterprise system is not perfect; it is operated by human beings who have their full quota of imperfections. But this system, founded on inalienable rights-eternal principles—has given the American farmer, and the Nation as a whole, more of the material good things of life than any other system this world knows anything about. More than 90 percent of our families own property in the form of real estate, industrial stock, and liquid and other assets. Here in America we have the world's highest level of material living-and it is the product of free enterprise. There is always the danger that, as nations enjoy higher standards of living, they may become more interested in preserving their comforts and luxuries than in preserving the ideals and principles that made them great. This must never happen to our agriculture or to our Nation. We, here in America, as Theodore Roosevelt said a half century ago, "hold in our hands the hope of the world, the fate of the coming years; and shame and disgrace will be ours if in our eyes the light of high resolve is dimmed, if we trail in the dust the golden hopes of men." With God's help, we shall go on building a prosperous, expanding, and free agriculture in a prosperous, expanding, and free America. |