Farm-retail price spreads

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Farm-retail price spreads
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.S US, Mst States Department of Agriculture
..:.. '"' B'eau of Agricultural Economics


1FAM-PZTAIL- PRI CE SPEADS'

December 1941

1 Prices paid t' farmers for a representative group of food products rose
::
>a rly 4 percent from mid-November to mid-December, while the rise in cost of

: te .same domestic foods. to consumers was negligible and marketing charges
: :...
*cliUned. The farmers share of the consumers' food dollar increased from 50

'.: cents in November to 52 cents in December. During 1941 non-farm family income

increased more than food prices. Measured in terms of consumer income, the same

4us8ds now require a smaller share of income than formerly actually the smallest

s hare in 29 years of record.

A further advance of about 2 psrcnt in retail prices of domestic foods

occurred in late December and early January, according tr preliminary information.

TreMds in wholesale markets indicate that prices paid to farmers made substantial

gains during the same period.

Proe Changes in 1941

Food prices in December 1941 averaged 15 percent hig:h-r than in December

1940; nonagricultural consumer income in Deccmb'ar 19411 averaged 17 percent higher

than in December 1940. But the rise in food riches s varied greatly as among

different foods, as did the risp in consumer income among various nonagricultural

occupations.

Increases in food prices range-d in 1941 from advances of less than 1

percent in the case of breakfast cereals to 20 percent for white flour, 23

percent for eggs, 32 percent for pork products, and 42 percent for Irish potatoes.

Greatest gains rIn nonagricultural income have gone to industrial and munitions

workers, relatively small gains to other groups of the nonagricultural population,

and..practically no gains to a large body of salaried workers.

',-i/ ... ,; .,. .. .







-2-

Analyses by the Bumeau of Agricultural Economics show that during the

past year practically all of the rise in reta-il prices of food was passed back

to the farmers, that the marketing margin between fa'rrn and retail prices in-

creased slightly during the first half of the year but then declined, and ended

1941 slightly lower than a year earlier.

The Bureau presents a number of tables and comparp.tive statistics dealing

with prices received by farmers, marketing margins, rctail- food costs, and the

buying poiw'er of consumers. The figures deal ir. aver-gcs and are of value

principally by way of indicating long-time trends in ,rices and margins.

Statistics on the buying power of the various gro-ps making up the whole body of

nonagricultural workers arc not r.7rillabI,.

Of interest is a table showing the trend in nonfarm fail: inr.ome during

the last 29 years as compared with retail food prices. This shov-'s that in

December 1941 the aver-ge nonfarxm family s-nert only <, percent of its income for

food, as contrasted with 27 porc-nt during the five yenrc 1935-39. The highest

proportion in the 29 y,,ears of record was 38 percent irn 1919. The December 1941

figure- 23 percent was the snalilcst on record.

Jn-inunr.r 28, 1942

The 58 Foods in December

In Tabcle 1 there are sunfm.rized b *ir-rs arnd months the coct to consumers
of 58 important retail food ite:.s produced by A-';.,rica:-x. f.r1.crs, together with
equivalent payments to far:. producL-rs, the -nrk-tin,-;: -argin, -nd the farmers share
of retail value. The quantities of the 58 foods are a:anual purchases of a typical
workingmants famil- in 191a. The mn.rkctir.g margin or spread between farm value
and retail value measures the total ch-.rscs for all r-arketing services required
to transfer food products from farncrs to consumers. Loc-.l assembly, transporta-
tion, storage, processing, wholesaling and retailiLz arc i:iclu-ded in these
services,

Retail cost of annual family purclhases of 55 doe-stic foods reached a level
of $366 in December of 1941, 15 percent above December 1940 and 10 percent above
the pre-var-average for the five years 1935-39, The marke-ting margin at $176 in





3 -
Table 1. Annual Family Prchases of 58 Foods l/


Cost
at
ret2i!


Yo.r
and
ronth

1913
1914
1915
1916

1920
1921

1929


S 415

no27


353
521
311

342
0z.,,


1935-39 average :


1940
JManuar7


July


December
1941
January ,
February
March
April
Key
June

July
August
September
October
N over.mber


December :


S 310



* 719


319
513


3 r- 11
327
331
345

348
349
357
331
355
366


Paid
to
fr.rn e rs


134
137
154
155

272
179

195


160
139
126
132
164

141


152
1. 07









InC
141
151
12:3

161

171
173
1P2
1 0
13
190


Marketing
nart.in


252
258
286
285

514
404


Retail price avcraes
EBrr. prices estimated


for 51 cities fro:, U.S. hurc.au of
by Agricultj.ral Marketing Service.


Lt.0o0r St'tiztics


I/ Important food products nroducnd by American frr'-.crs ccbi:r.ic in
quantities reprcsortir.- annual purchase by a typical vor:irLr...': s family.
2/ Preliminary estinites.


2.18
121
124


242
25

220

182

193
191
185
182
173

191


172

13c

177

175
172
130
176
1783
1841

177
175
175
121
18.2
176


1932

1938
19,78
1939
1940
1941 2/


:Farmer' s share
S of
: retail value


'.10

54

r3
L. -
144

47






4-

December was slightly lower than a year earlier and -,as 8 percent below the
pre-war level.. This left the December level of paymeents to farmers for these
food products at $190, .34 percent higher than the December 1940 level of $142,
which was about equal to tho pre-w-ar average.

Prices are finally deter-in-d in the consumer's mnr':Pt. Consumers' incomes
available for spcndr.n have risen -o all-time. record hi:hs in rc-,r.t months.
Farmers have been pro 'Lucin- foods in greater vol'uaf than e:er before but this
expansion could not keep ppce within the rise in p.vcra; frmily irccrnoe. Already
certain normal channels of spendij.- such ss fo- autom:.bilcs andi tir.s have been
closed leaving larger -.'o'm..: of -""nr.ds with which food prices ar- bid up through
competitive buying among corCIunCr-S.

In any see.son with fixed supply of far-n production, th farnm price equals
the payment by consi-ers less th-a marn-eting rrir.in between farm and retail values.'
Middlemen's changes for merkctir-.i food !products have been dcclinir.g for several
ears and do not yet sh:-iow any aTr,-ciaLle u ,ow-.rd trend. This mea.s that the
advances in retail food prices ctikial.tcd by higher consumer incomes have been
passed back to the farmer in full with none of the i:cre-so absorbed into higher
marketing margins. The resulting percentage increaseso tn fp.arm pricess exceed
percentage incr-7aset in retail prices. Fi-u.re 1 shows that while the level of
retail food prices followed quite nloscly the trend of nonagricultural inoone
from.lS29 through 1935 the same pricc!. L-rve failed to rise in normal relation tO
the advancing income levels since 1935.
\
Income and food cost er n:-.--f'rm f.mi]-:"- An att-&.nt is n.de in table 2 aid
figure 2,to estimate the levels c' ty-:,icol income npr farily si.cc 1913 and to
show how retail food costs nave c. d in terms of a b _-ket of qll foods and a
bas'ret of 58 domestic farmr food -roducts. arantities of foods in these two
baskets are held umch'-.'ed at th;. levels rurc'.-hsed nnnu'2lly b" a wor:i-ngranS'
family in 1918, The striking feature of th-sr.- cor.:-.arisons is tho relatively low.
cost of foods during 1941 a:'.d cortinuinr.: through D,-ce-be-. ]hirix; the first thrpe
years of ',orld War I, the family food-bns':st re-quired 32 percent of ir.come with
the 58 domestic foods 'taking ?5 percent. At the deprc.ssion depths of 1932 the
basket of all foods could have been' prcr--_sed with 29 percent, the 58 domestic
foods with 22 percent of income. D-i.rinr. recent mo-.t-.s f-.ily inco-me has risen
more rapidly than food prices. 3-B Decc-i-cr l'-1 f.-mil].:' inoo? had riscn 33 per-
cent above the pre-war l9.-75-39 average l-vel T..ile r,-tail prices of all foods rose
13 percent anrd prices of domestic foi .'.:Pre un 10C o rce.t. The s..me foods could
be purchased in December 1941 wit> r' ;:K:,:cr ''.re of inc mc t.'an during 1940, *
193B-39, or any earlier :-e -.. 'The a.l f:ods b.s-.S:et requir-d 23 percent, the 58
foods 18 percent, of income in Dccember.

F .ily income for December 1941 *-..s sli;-',htly- higher than for 1929 while
retail cost of the food baskets w're. subt-..tially lower t-.an in 1929.

Prices and mar'irns for im.'ortant fc.:d it.r.s:- Indi--idurl commodity data for
December 1941 arc- summarized in tle ,. Ta.bl. s ,1 to 7 co:.':.arc- retail price per
Unit, equivalent payments to fnr--ro, t:-ic mir:.ti:-g :.rjir- oni ti"E for.-iers' share
of retail price for Dcce.ber 1941 'ith the two preceding months, the same month a
year ago, and the five-yPar pre-war average 19.55-39. Some prices which -.re high
in relation to December 1940 are moderate in relation to the pro-war 5-,'ear
average,









RETAIL PRICES OF ALL FOODS AND NONAGRICULTURAL
INCOME PAYMENTS, UNITED STATES. 1929-41
INDEX NUMBERS(1925-29=100)


Food prices 1


110






100






90






80






70






60


1931 1933 1935 1937 1939
BASED ON DEPT OF COMMERCE DATA. BEGINNING 1929
ABASED ON BUREAU OF LABOR STATISTICS DATA


U. B. DEPARTMENT OF AGRICULTURE


NEG 39432 BUREAU OF AGRICULTURAL ECONOMICS


FIGURE I


PERCENT


Nonagricultural
income payments *


1929


1941






NONFARM FAMILY INCOME AND COST
FOOD PURCHASES. UNITED


OF COMPARABLE FAMILY
STATES, 1913-41


DOLLARS


1.750 -


1,500


1.250


1.000


750 -


500


250


09
1913


1916 1919 1922


1925 1928 1931 1934 1937 1940 1943


*DECEMBER 1941


U.S. DEPARTMENT OF AGRICULTURE


NEG.39888


BUREAU OF AGRICULTURAL ECONOMICS


FIGURE 2
I r'l... ... .. ,.......""






- 5-


Table 2. Non-farm fairly income and cost of family food purchases, 1913-41


Ret ail
umnilv : cost oi


: Retail
: cost of


SFood cost as percent-
: __ are of incom-e


income : all : 58 : All : 58
Sfoods : foods : fooJs : f f-c.Is
DollarDollas dollars : Dollars : Percent : leercnr:t
1913 1,035 326 252 32 2
1914 1,006 334 258 33 26
1915 : 1,022 D330 _2 ?2 ___2
1916 1,168 370 285 32 24
1917 1,331 477 370 '6 ,3
1918 1,513 '548 424 36 2X7
1919 1,617 611 41,70 38 29
,__ 12___ 1.847_____________638___________.1________37_ ______2___
1920 1,847 688 514A__ 2_
1921 1,593 523 404 2
1922 1,620 489 374 30 23
1923 1,802 506 384 28 21
1924 1,822 501 381 28 21
1925 __ 1,95.- 2 410 29 22___
1926 1,935 560 418 29 22
1927 1, 921 539 406 2S 21
1928 1,935 533 407 28 21
1929 : 1,968 540 415 27 21
S1930 1,795 514 39i 29 22
1931 : 1,549 424 322 27 21
1932 1,210 353 270 29 22
1933 1,116 343 264 31 24
1934 : 1,260 382 295 30 23
1935 1,.343 _.09 __ 31 30 25
1936 1,540 413 342 27 22
1937 : 1,609 429 353 27 22
1938 1,478 399 321 27 22
1939 1,557 338 311 25 20
1940 : i,1645 394 314 24 19
1S41 : 1, 88____ 430_ 42 23 18
l93a-39ave.: \,505 408I 332 27 22
D(- -. 'C.o : 1i,993 41 366 23 ____ 18

C i'n.ri:-ons in this table arp ver, rough estimates w'>hich refer to the typical
*o-ing-nan's family of 4.9 persons represen-tin-; the average obtained in the 1918-19
C.-kt of Living Survey of the U.S. Bureau of Labor Statistics. The survey av-raes
vie vl,, 513 for family income and $548 for total food expenditure and it was assumed
T.heat these represented the calendar year 1918.
The s3cries of family income estimates was obtained by ar:l,,-'in- to the ,$1 513 in
1918 the changes in per capital nonaLricultural income fay.Tnts to individuals.
The series of family cost of all foods was obtained by applying to the .548 cost
in 1918 the changes in the index of retail food prices as cor:cutted by the U.S.
Bureau 3f Labor Statistics. The cost of 58 foois is from table 1 of this report.
These series should be interpreted with care. Beth the cost of all foods and the
lost nf 58 foods refer to fixed quantities of each food as purchased in 1918. Under
circumstances of changing income and chani.nc7 food prices a typical farly vould
aa.ter quantities purchased and alter the food outlay.
The nrmoarisons do show the costs at .'ihich a fardly could purchase identical
quantities of foods and what share of income this would require in each year.


F


Fa


Yoa-






- 6-


Retail prices of important pork products including lard declined slightly
from November to December and reached a level exactly ecquaal to the pre-war
average but 32 percent above December 1940. The marketing margin for pork products
has been narrowing in a manner typical of rising price periods undcr the influence
of st.3rreoperations and time lag between purchase of live hogs and sp.le of
products at retail. Payments to farmers for live hogs rose 5 perc-?nt during the
nonth ending mid-December and are 83 percent above December 1940 and 24 percent
over Pre-war.

Both farm and retail prices of dairy products as a grouc 1"volec off from
To':-crer to Deccmber but are up 11 percent at retail and 18 percent .at the farm
over a -yesr ago. Eggs declined by 6 percent in retail price to 49 cents a dozen
for December, but are 23 percent higher than December of 1940, anrd 35 percent
above ore-w-ar. The marketing margin on eggs of 14.9 cents a dozen in Dccmber was
9 percent lower than INovember, but 15 percent higher than P yc'.r c.?rlier. Prices
paid farmers drooped front 35.5 cents in November to 34.1 cents in December, a
level 7.3 cents higher than last year and 12.4 cents abo-re thr prc-war average.

During 1941 the farm value of wheat going into a pound of broad roa0.5
cents while the retail brrad price rose 0.8 cents with an incre-se of 0.3 cents in|
the marketing spread. The retail price of rice rose.froe' 9.1 cents in November to
9.4 cents in December compared with 7.9 cents in December 194C0 .and a pre-war level.
of 8.2 cents for 1935-39. Equivalent payments to farmers for ro-.',.h rice rose froq
2.6 cents in December 1940 to 4.0 cents in November and -4.8 cents in December 1941:
White potatoes sold at the farm for 1.6 cents a pound in Docomber, retailing for
2.7 cents, both representing sli.:ht advances over November. A ,crr earlier the
prices were 1.9 cents at retail and 0.9 cents at the farm.

1Tourl,- earninCs in m-nrketin:- Labor costs make u' nearly -alf of total costs of
marketing. Table 8 shows trends of ho*Jrly earninjTs in selected occupations
associated with the marketing of farm products. These ho'urly earnings are affected
by amounts of overtime at higher pay Cni by shifts a iong t;-pes of ,,or- as well as
by changes in basic %.:i.ae rates. In the field of fcod. rcr7tir., e-rnings in food
processin:; show the rnst rapid rate of increase with earnir:gs in distribution and
transportatioirt more stable. By October hourly earnings ir- food processing had
risen 18 percent above the 1935-39 pre-war level, while '-arninurs in all food
marketing, were up 11 percent.

In October the ho-'rly earni r.-s of railway emplo:,ces were 3 percent above
pre-war. Subsequent -,rants of general w.je increases to railway omnioyecs should
result in raising their hourly e.rning-s by about 10 percent above t-.t level.





Table 3. Price


Retail
COemmOCittJ


Pork products

Dairy products

'^ens
Dn S

Errs

White flour

Whi to broaci

Corn mcal

Rolled oats

Corn fla~ke s

Vh.eat cc-real

Rice

Uavy beans

Oranges

Potatoes

Apples

Lax.b products

Sweet potatoes

Rye bred

"Whole wh. brea

Macaroni

Soda crackers

Peanut butter
5"S foods
coLmlbin e d


7 -
Srreads Betiveen the Farmer and the ConsumerFood Products,Deci,19l,

" : Retail : rm cquive.lr i jnt :-!-nrli va ue
:Table: :: :Ac- :as percen-
T o. : Unit :Price: Quantit-y :Value:tual :tage of re-
l/ : : : : :mnaigLn:tail price
: I TSer bs : ~ Ce etfs 2Cnts: I Percentt
11 :1 lb, principal: :l.O lb. live : : :


14

15



17

* ir:.,
:19

20

21

-22

21

25

55



58

59



14l

:L2
"


d


:pork products
:100 lb. !fillk
Equivalent
:1 lI,

:1 dozen

:1 lb.

.1 lb.

-1 lb.

:1 lb.

8-oz. pkc.

:28-oz. pkg.

:1 Ilb.

1 lb.

-1 dozen

:1 lb.

:1 lb.

.1 lb. prin.
Slajib cuts
.1 lb.

1 lb.

1 lb.

:1 lb.

:1 lb.


: 25.5: ;.ng
: :.)0 lb. irlk
:588.8: equivalent
: 32.1:1.11 lb.


*t


49.0:1 Cozen

4.9:1.41l lb. wheat:

&.5: .97 lb. wheat:

h..i:I.L lb. corn :

S.6 1 ''5 Ib. bats

7.1:1.275 lb. corn:

25.9:2.065 Ib.wiheat:

9., 1.51 lb. rou-zh:
: rice
8.5.1 lb. dry
Sbr. ans
30.0:1/17 box

2.7: 1 lb.

5.6:i lb.
561 Ib
28.6:2.16 lb. live :
1.l'ctb
4:1 .2.b

9.1:.> lb. ryn &
l .-,vne .t
9.9 .92 lb. -.vheat

1L.O01.72 lb.duruir:
: wheat
15.3:1.085 lb.wvhcat:


:1 lb. : 20.0:1.753 lb.oemaurts:


: 8 :;.ualQ family


: 3.9:


202.5 186. 5:
17.5: lL.6:

53.. : 1l.94

2.b: 2.5:

1.7: e.8:

1.8: 2.6:

2.5: 5.1:

1.5: 5.6-

3.5: 20.4

h.u 4.6;

4.9: 3.6:

6.8. 25.2:

1.b: 1.3:

2.3 3.3.:

21.3: 7.5:

1.6: 2.8:

1.5: 7.6:

1.6: 8.5:

2.6: 11.4:

1.8 13-5:


52
55
70

49

20

41

55
33

21

15

51

58

23

52



74

56

16"

16

19

12


8.5: 11.7:


:3-66 :Annual famnil, :$190 :176 : 52


Consumption : : consumption :
I1/ Table numbers refer to numbering in original 1756 report and annual supplements
entitled "Price Spreads Between the Fa.rn.er Pnd the Consumer."
Farm price data from the Agricultural Marketing Service, retail-prices from
the United States Bureau of Labor Statistics. ...









8 -

Table Price spreads betwwn the farmer and the ensumer-
Food products, retail prices


*- :Percentage cha es
rtity :itil I Petmil prices_ :tm Dec. 1941 from
unit 1935-39: Dce. : Oct. : !mv.: DC. Tc. : NOV
::average: 1940 : 1941 : 1941: 1941: 1940 : 1941
S: Cents Cents Cents Cents Cents : Percent Percent

Perk : 1 lb. prin.: 25.3 19.1 26.3 25.5 25.3 : 32 1
products tnrk products:
DAiry lOfn lb. milk: 324.0 349.1 386.2 389.4 38.0 : / 11 I/
products : enuivalnnt
Fens 1 lb. 31.7 20.9 32.4 31.7 32.1 7
Fgs. I1 doz. : 36.0 39.8 48.7 51.9 4.0 n: 23 3
Whit0 flqur 1 lb. : 4.5 4.1 4.8 4.4 4.9 5 20 2
Whitp brernd : 1 lb. : 8.2 7.7 F.6 P.F 8.5 : 1
Cern Rnel I lb. : 5.0 4. 4.4 4.4 4.4 : + 2 0
lRlled Kts : I lb. : 7.4 7.1 7.4 7.,5 7.6 : 9 7 f 1
Corn flok-s : 8-oz. pkg. : 7.8 7.1 7.1 7.1 7.1 : A
Whea.t mereal- 2S-Az. pkg. 24,3 23.6 23.6 ?3.0 23.9 : 1 /
PiRc : 1 lb. : 8.2 7.9 9.1 9.1 9.4 : 19 4
Nny boan : I lb. : 7.0 6.5 8.1 8.3 n.5 : 4 31 4 2
Orngns I doz. 31.5 27.9 37.5 38.1 30.0 : 0 -21
PDtatoe s I lb. : 2.5 1.9 2.3 2.6 2.7 : 42 4
Applns I lb. : 5.5 4.P 4.9 5.3 5.6 Z 14 '
Lrmb :I Ib.prin. : 27.2 25.n 29.3 26.4 20.6: 4 14 1
producrts : lr.b cuts:
SwiRt 1 lb.. : 4.4 4.6 4.3 4.2 4.4 : 4 4 5
plotato)Ps : I
Rye brr-d : 1 lb. : 9.0 O.r 9.1 9.1 9.I : .
Whole whnt : 1 lb. : 9.3 9.2 9.f 9.9 9.9 : 0
br r.a
:nmrmni 1 Ib. : 15.0 13.9 14.0 14.0 14. : 4 1 0
S1da 1 lb. : 16.: 14.9 15.2 15.2 15.3 : 3 1
Srnmoke rs
P'anut : I lb. %: 3. 17.7 19.3 19.6 2n.0 : 4 13 f 2
butter ;
573 fds :Anrunl famiSy:3 $, ,19 "1 *1 3 65 r, 36 : 15 I/
,-mbinad cAnsz,5ptioe:n "


I/ Less than 0,5 percent*


Rftail prics are 51-city averages as published by the U. S. Bureau


cf Labfer






9-
Table 5.- Price spreads between the farmer and the co;.sumner--
Food productss, far.n value


:~~~~~ F- i, ,7 ," ,-i-, tq ", -;._ r
Sarm value :
Co m L.F : Farm %o -I rc. 1 A1 .rom
qommouivalent :35 d. Leo. : 0.,t. : I..--. Let::. .;---
i p.- --i ,n|rp 1 C *^ U Q '"r .. .. : ,3.'>* i i-" ,"' .' *"

C'e- s : ; Jens u.2.-ts : Ccis : s-F ncr :.re t
_____:_____: ve;,ts : 19nts : ,Ue;t : 19.,1 : 1.',ts : .lr^e : 1e ^1n


Fork :1.-C lb. live
products : h).s
Dairy : 100 rb. i-
products : eqiivalert
Hens :1.11 lb.
Eggs :1 do .
White flour :1.41 lb.vwh.e&t
White breal : .17 ].b.vnrieat
Corn neal. :1.5 11.. corn
Rolled cats :1.7;? lb. oats
Corn flakes .:1.275 !lb.c:'rn
.,heat cereil:2.O 1L'..wie-t
Rice :1.51 lb. rruri:

Navy beans :i 1b. dr.y
:beans


Oranges
Potatoes
Apples
Lamb
products
Sweet
potatoes
IRye bread

!i-hole wl:eat
bread
i.:acaroni

Soda
crackers
Peanut
butter


:1/17 b.ox:<
:1 lb.
.1 b.
:2.16 lb. live

:1 lb.

:.39 lb. ry.-e u
.64 Ib. "'ileat
:.92 lb. v;neat1

:1.72 lb.

:1.085 Ib.
iwhea t,
: p1.73 ii.
perinIits


15.7


10.6 19.2


1S.4


12 .4


146.0 171.0 198.9 .C2.0


-.5
21.7
2.0
1.3
1.3

1.:j
1.
2...
2.5


3.5

i.3
.'1

1^..

1.5

1.3

1.3


1.5

6.1


14.L
!4L
25.8

1.27

1.5
1.8
1.2
2.5
2.6

2.8


C.
.,.*1
17.0C


1.5

1 .1

1.1

1.?

1.3

5.o1


17.3
)It,. -J






3.1
3.2

4.4

14.4
3.1
1^.8

1'. F:j
"C.9


1 ./.

2.3


1.6

7.6


17.2
I5 :*
35.5'
4.. -
1.5
1.7


1 3
1.3

1.5
/' --
". 3

i..-
1.3

-C -)


1. -~

1.4

'C.. ~ 2




I. ~.


-- .-.
;.17.5


-*1

1 Rl

',-I. I -^
A J




] L
1./4
r,
..._1 .r


,.5


2.5


-I- ~

.3


58 fnods
combined


An:-.ual f'Lil ,r
Sc.'1-is:r t ion


p Ll V.'4d2


:4. 1


tlRjI ~- 90


+ 34 + 4


Lt .0 t,.n 1.5 percent.

Far;.n values are cqlculatnir frmn :. S. av.ra-e 4ar',ii p-zce. s ;LS ;uiabishi by
the Arr c'.e.tiral .,r.e.etir., Serv ce.


+ 5


+ i

+ 22
+ 27
+ ']_
+

+ '3)
+3?
+ I-
+ L'
+ 7.,


-+- r

+ ;6

+ 45

+ 44



+
-r3?

+ Ac


+ 7




+ 14

+ 13

+ 6

+ 4


+ 2


1.6






- 10 -


Table 6. -, Price spreads between the farmer and the consumer--
Fond products, margirns


Cor-modity


Retail
unit


: .:Percentage ehan&e :
_": M- rrin D-:tc 1941 fron.
:I.7JC)-.AC': Dec. c: GCt. : Ncv. : Dec. : 2e : 'INov.
a,: 7 r__e:; 1140 1 1 I l : 19 : I I ]941 : -19
T .rt C e Z -n s r_ S ..... s : P--r-tjrrt Percent


Pnrk
nro ducts
Da i ry
products
lHens

White flour
Whit.o bread
Cnrn meal
Rolled oats
Corn flakes
Wheat cereal
Rice
Nav. beans
Oranges
Potatoes
Apples
Lsmrb
products
SwJeet
pot atoe a
Rye bread
Whicl= wheat
bread
i ocaroni
Soda
(ran'kers
Ptenut
butter

58 foods
combined


1 Ilb. prin.:
:porl: products:
: 10,0 1b. ntlk:
S 1eq.ival,:1rt
1 Ib.
1 dozen .' :
: Ilb. :
1 lb.
SI lb.
:I lb.

22-oz. pr.:
: 2O-oz. p'-,E-. :
: I lL.
1 lb.
1 1Ib.
: I dozer.
I Ib.

I I lb. p rin.
: a- i Cuts:
1 lb.
1 Ib. print :
la.-l. cuts:
1llb.

: Ilb.
SI lb.

: 1 lb.
SI lb.

: I lb.


P.6

178.0

1.5.1
14.3
2.5
t.9
5.1
5.5
6.2
21 .4
5.7

2 .2
1.3
7.6
f].0

2.5

7.8
e.0

12.7
1I.4

13.2


:A:-nu?.l f l ?:
A nnunlt^ri:n 1 191
0_con Ampt-c:n:


8.5 7.1 7.1 5.9

178.1 187.4 1G96.6 186.5

15.5 14.6 14.5 14.6 :
15.. 1G.C.0 1.4 14.9 :
2.4 2. 2.6 2.F :
7.1 7.0 '.F :
2. 2.7 2. 27 2.
5.2 5.2 5.2 5.1
5&9 5.6 5. r.a6
?1.I 1 20.5S 2n..o 2,.4 :
5.2 5.9 5.1 4.6
.7 3.7 3.5 3.6
2 ., 23.1 29.0 2..
1.0 1.2 1.3 l.a
3.1 3.1 3.3 3.3
S.O .,I 7.9 7.3


3.1

7.5
P.I

12.1
13.6

12.1


,t 177


2.7

7.8
S.'i

11.7
13.6

11.7


:S1 81


2.7

7.7
5.5

11.7
13.5

11.6


$ 162


- 31

.- 5

6
15
4
.5
7
4
-5
3
- 15
- 13

30
-6
-9


2.8 : 10


7.6
3.3

11.4
13.5


" 1
a 2

- 6
- 1


11.7 : 3


- 1


I/ Less than 0.5 percent.


- 17.


4 1
- 9
- 4
-3
4
-a2
o


-10
93
20
o

- 8 t

" 4


- 2'

- 3
0

A 1


- 3







- 11 -


Table 7. Price spreads between the farmer nnd the cnsumer -
feod products, farm value as percpntagn nf retail priep


Commodity


Farm value as


1935-39: Dec.
average: 1940
Percent Percent


percentage of retaiT price


Oct.
19c41
Percent


1941 n
Percent


Pmrk Products
Dairy Products
Hpns
Eggs
White Flour
White bread
Corn meal
Rolled oats
Corn flakes
VWheat cereal
Rice
Navy beans
Oranges
Potatoes
Apples
Lamb products
Swent potatoes
Rye broad
Whole wheat bread :
Macaroni
Soda crackers
Peanut butter


58 foods combined : 12 45 50 50 52


Doe.
1941
Percent


72
52
54
68
46
18
39
51
21
13
L14
58
24
50
58
72
36
15
14
16
11
41


: Far value as


m I






Table 8 Indexes of food cc.sts, consumer income and of charges and hourly earnings in marketing, 1935-39 = 100


Year and month


Monthly : : Hourly earnings in markitirn cntcrnrisas
Retail :]onagri-: earnings :Payments :Markuting: Class I :
:cost of :cultural: per : to : margin : steam : Food : Food : Cotton
:58 foods : income :employed :farmers : of 58 : railways : processing :'marketing :processing
:payments: factory : for : foods: 3/ / : 5/ 4
i/ workerr 2/ :58 foods: .


1929 ............ :

1935-39 average

1940 ............

December 19040....:

1941-
Jan........... .
Feb .... ....... :
Mar .... .....
Apr ..... .. .. .. .........
May.......... ..
June..........
July..........
Aug.......... .
Sept...........
Oct.......... :
Nov............ :
Dec.......... :


125

100

95
96


96
96
97
98
100
10'4
101
105
108
109
110
110


122

10.

113

120


122
125
126
127
130
13 -
134
136b
13b
138
139
140i


118

10.

111
119


120
120D
121
123
129
134

135
139
140
.140
141


138

10h.


ll5

10Z


101


102
99
100
icc
107
o109
114
121
123
129
12g
130
135


100
105

107


106
108
io6
104
104
i0,
103
103
10i4
103


100

110

112



114
114
117
117
117,5
115
115
115
118
121


12.0

105

105


107
10g
108
108
110
111
110
ilol


110
110
111


100"

1O6

lO6


108
108
109
i11
116
116
121
122
124
129
130o


L/ United States Departinmnt of Commerct, estimates. Adjusted for seasonal variation,.
/ Prepared in the Bureau of Agricultural economicss from data of thie U.S. Bureau of Labor Statistics, adjusted for
seasonal variation.
Compiled from data published by the Interstate Commerce Commission.
SUnited STates Bureau of Labor Statistics. '
SWeighted composite of earnings in stuan railways, food processing, wholesaling, and retailing.
Preliminary estimates. ^^n 771 i


AuIO~ dOALIwAI


WaOWk




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