25c Wheat

25-c- Wheat

Kansas farmers, in the midst of harvesting a record-breaking crop of 200,000,000 bu. of wheat last week, were getting 25-c- per bu. cash for their product. On the Chicago Board of Trade July futures dipped to 50 1/4-c-, the lowest figure since the exchange first opened in April 1848.* Around Hutchinson, Kans. the country was dotted with great mounds of wheat--10,000 bu. to the pile--which had been dumped out of doors for lack of elevator space. At Bucklin, one Forrest Kennett got his name in the papers by scorning a 27-c- per bu. offer, decorating his truck with jackasses labelled "Farm Board" and "Wheat Farmer," and driving away with the tail board down so his load dribbled out through the town's streets. Here & there growers plowed their crop under rather than take the loss of harvesting it. In Pratt County one Marvin Shetterly, unable to harvest his 155-acre stand, watched 2,800 bu. bring $100 at auction--about 3 1/2-c- per bu. or less than the cost of the seed. Declared Governor Woodring: "There is panic in the midst of plenty."

Such was the price wheatmen in Texas and Oklahoma as well as Kansas had to pay for their bull-headed refusal to heed the Federal Farm Board's plea to reduce acreage. Over & over had they been warned that the bottom would drop out of their staple market if they persisted in overproduction. Now they were literally reaping as they had sowed.

To make matters worse the Department of Agriculture last week dismally announced: "The present prospects point to another year of very low prices. No bumper crop is expected for the world as a whole but the very, large stocks remaining in North America, Argentina and Australia promise a plentiful world supply. . . . The total wheat crop of the U. S. is likely to be one of the largest of recent years and to provide a large surplus over domestic requirements."

Observers in Kansas, however, noted one new sign last week. Instead of plowing in their stubble immediately after the harvest preparatory to seeding next year's crop, many a farmer was letting his wheat fields stand idle and barren as if he did not intend to plant again. One explanation of this unusual post-harvest inaction was that producers had received so little for their 1931 crop that they could not finance the start of their 1932. In that event Kansas next year would see a large involuntary reduction of wheat acreage.

Low prices, however, did not deter the tycoons of southwestern wheat production from harvesting crops larger than ever. By far the biggest wheat farmer in Texas is Hickman Price, oldtime newsman (New York Sun, Nashville Democrat) who three years ago gave up a $50,000 per year job with Fox Film to apply modern industrial methods to husbandry in the Panhandle. Last year smart, efficient Mr. Price harvested 17,000 acres in Deaf Smith, Castro and Swisher counties. Last week he was getting in a 500,000-bu. crop from 23,000 acres. Next year he plans to expand to 30,000 acres. He believes that intensive cultivation and proper use of mechanical equipment should produce wheat at 10-c- per bu.

To get in his 500,000 bu. Farmer Price uses 25 combines, all painted a glittering silver and labelled HICKMAN PRICE. Fifty tractors do the heavy hauling. A crew of 250, including mechanics and factory "troubleshooters" keep this mechanical army moving by day, cleaned, serviced, repaired by night. Their sleeping quarters are wheeled about with them from one section of the farm to another. Five motorcycles carry special messengers back and forth across the miles of wheat land with reports to Mr. Price on the progress of the harvest. One hundred trucks haul the wheat to Kress where Mr. Price sells it direct to the big city terminals in carload lots at a price 5-c- or 6-c- per bu. above that which the small farmer gets at the local elevator.

George and Henry Hitch of Guymon are Oklahoma's biggest wheat producers. This year they are harvesting 85,000 bu. from 4,500 acres, about the same as last year. Officials last week estimated that Oklahoma's acreage (3,750,000) in wheat will be reduced 30% next year because farmers cannot finance larger plantings.

In Kansas, Wheat Farming Co. of Hays is the largest corporate producer. Last year it worked 25,000 acres. This year it harvested 32,500 acres. William Layton of Salina and Simon Fishman of Greeley County are tied as the State's biggest individual wheat producers. Each has 10,000 acres.

A rival of Hickman Price in winter wheat acreage is James Jelinek who was waiting last week to harvest his 28,800-acre kingdom near Alliance, Neb. Mr. Jelinek uses 20 tractors, 14 combines, 12 trucks, 40 men. His harvest is 620,000 bu. He has his private elevator on the Burlington track.

Meanwhile in Washington wheat prices produced political palpitations. The drive to get the Government to DO SOMETHING was centred on Farm Board Chairman Stone. But Mr. Stone's head and heart were steeled against the clamor. He persisted in his refusal to hold all stabilized wheat off the market, explained that only small sales were being made to millers, that the Board would not sell in competition with the 1931 crop at current prices. Said he: "There is no price to which wheat might fall that would persuade the Board to resume stabilization buying. . . . Wheat is selling too low. Farmers can make more by feeding it to live stock. If they would hold back their wheat, it would tend to help prices." But farmers remembered that the Board had advised the same holding process last year and those who did not sell in the first rush lost progressively more and more thereafter.

What disturbed President Hoover most was a new note of attack sounded by the erstwhile friendly Kansas City Star. Editorialized the Star: "If the U. S. can relieve Germany of $250,000,000 in debts, the Government can afford to pay $60,000,000 to hold back its wheat. If a foreign nation is entitled to a moratorium the American farmer should have one."

Apparently in reply to the Star, President Hoover soon telegraphed Kansas' Senator Capper: "A considerable part of the price difficulties of Kansas wheat farmers is due to the present paralysis of the export market arising from economic crisis in Central Europe. . . . The major problem has been solved by aid given to Germany in postponement of reparations . . . and I am confident we will bring about a solution to the remaining difficulties. I know of no greater immediate service to the Kansas farmer than re-establishment of normal economic life in that [German] quarter."

*Previous record low: 50 3/8-c- set July 26, 1894.

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