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TARLE 4.—Colton produces: Average retail cost of a family's purchases of 42 articles
and of 3 individual articles of clothing, farm value of equivalent quantities of cotton,
marketing margin, and farmer's share of retail cost, 1927–57 –Continued

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Annual estimates are simple averages of data for March, June, September, and December.

*Retil costs were originally computed from prices collected by the Bureau of Labor Statistics, weighted
by overage number of articles purchased annually by families of wage earners and clerical workers (from
*34-3 orvey. Reginning 1943 retail costs are based on indexes of retail prices of cotton clothing and
hournishings prepared by the BLS.

* Estimated prices received by farmers for cotton of grade and staple lengths used in the manufacture of
they arious articles, weighted by quantities of cotton required.

"Before payment of processing tax which was in effect from August 1933 to January 1936. The tax on the

*::::: of cotton required amounted to 37 cents in 1933 and 89 cents in 1934 and 1935.

Preliminary.

o Marketing Costs and Margins, Marketing Research Report No. 159, April
os.

Lamb Prices, AMS, Leaflet No. 413, April 1957.

from Shrinkage and Quality Deterioration of Corn Stored in Country

Elevators and at Bin Sites in Iowa, AMS-173, April 1957.

Social Margins and Costs Studies, Marketing Research Report No. 167, April

1957. (Reprinted from hearings (pt. 2) before the subcommittee of the Com-

mittee on Appropriations, House of Representatives, 85th Cong., 1st sess.)

*keting Molasses in the Feed-Mixing Industry, AMS, Marketing Research

Report No. 174, May 1957.

*: Stamps and the Consumer's Food Bill, Marketing Research Report No.
!, May 1957.

"mnzo Tree to Breakfast Table: Marketing Costs and Margins for Florida

Oranges, Marketing Research Report No. 164, June 1957.

Processing Poultry Byproducts in Poultry Slaughtering Plants, Marketing Re-

*arth Report No. 181, June 1957.

The Tse of Packing Labor in Florida Citrus Packinghouses, Florida Agricultural

Experiment Station Agricultural Economics Mimeo Report 57-8, June 1957.

*Method of Allocating Citrus packinghouse Costs, Univ. of Florida Agricultural

o Mimeo Report No. 58–1, July 1957. Univ. of Florida in cooperation
AMS.

"oversion of Small Hydraulic Cottonseed Oil Mills into Higher Oil-Yiel 'ing

Mills, Marketing Research Report No. 187, July 1957.

I o: Colorado Peaches in 1956, Marketing Research Report No. 179,
uly 1957.

How Bulk Assembly Changes Milk Marketing Costs, Marketing IResearch Report

No.190, July 1957.

Reting Margins and Practices for Turkeys Sold in Three Eastern Markets,

Marketing Research Report No. 191, August 1957.

***

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Use of Trading Stamps in Marketing Food, Agricultural Marketing, January 1957.

Trends in Marketing Costs, Agricultural Marketing, January 1957.

Marketing Margins for Beef and Pork, The Marketing and Transportation Situa-

tion, January 1957.

Marketing Margins for Poultry and Eggs in the United States and Selected Cities,

The Marketing and Transportation Situation, January 1957.

Marketing Costs and Margins for Fruits and Vegetables, The Marketing and

Transportation Situation, January 1957.

Marketing Costs and Margins for Dairy Products, The Marketing and Transpor-

tation Situation, February 1957.

Trends in Marketing Lamb, Agricultural Marketing, May 1957.

Farm Food Marketing Bill, Agricultural Situation, September 1957.

How Can Dairymen Decide Whether to Use Tanks? Agricultural Situation,

October 1957.

Slicing Up the Chicken Costs, Agricultural Marketing, October 1957,

Retail Marketing Costs for Turkeys, Agricultural Marketing, November 1957.

The Wage Factor in Retailing Meat in 4 Cities, Agricultural Marketing, November

1957.

Turkey Growers Like Selling on Grade-and-Yield Basis, Agricultural Marketing,

December 1957.

Livestock Markets Are on the Move, Agricultural Marketing, December 1957.

Marketing Costs Keep Going Up, Agricultural Marketing, January 1958.

Changes and Trends in Food Marketing Industries, Agricultural Marketing, Jan-

uary 1958.

The Shorter Workweek in Agricultural Marketing Industries, Agricultural Mar-

keting, January 1958. -

How Do You Sell Your Turkeys? Agricultural Situation, January 1958.

Marketing Margins for Dairy Products. The Marketing and Transportation Situ-

ation, January 1958.

Farm-Retail Spreads for Poultry and Eggs in the United States and Selected

Cities, The Marketing and Transportation Situation, January 1958. -

Price Spreads for Eggs in Washington, D. C., The Marketing and Transportation

Situation, January 1958.

Farm-Retail Price Spreads for Fruits and Vegetables, The Marketing and Trans-

portation Situation, January 1958.

Concentrated Whole Milk is a Qualified Challenge, Agricultural Marketing,

February 1958.

Power and Labor Costs, Agricultural Marketing, February 1958.
The Changing Market for Vegetables, Agricultural Marketing, February 1958.
Use of Soybean and Cottonseed Oil in Margarine and Shortening, Agricultural
Marketing, February 1958.

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0THER DISSEMINATION of PRICE SPREAD INFokMATION,
JANUARY 1957–FEBRUARY 1958

Marketing Costs, by D. B. DeLoach, statement presented at the Annual Outlook Conference, November 1957. Marketing Costs, Farm Prices, and the Farmer's Share, by Kenneth E. Ogren, Statement presented before the Subcommittee on Agricultural Policy, Joint Economic Committee, December 17, 1957. Costs of Marketing Major Farm Products, by D. B. DeLoach, statement presented before the Subcommittee on Agricultural Policy, Joint Economic Committee, December 17, 1957. USDA Television Service Package Program No. 190, Why Marketing Research? February 14, 1957 (based on general publications, includes information On margins and costs). USDA Television Service Package Program No. 207, Delivering Your Food, June 13, 1957 (based on Miscellaneous Publication No. 738). USDA Television Service Package Program No. 248, Beef Goes to Market, November 28, 1957 (based on Miscellaneous Publication No. 710). TSDA Television Consumer Series: Where Does Your Food Money Go?— No. 1. The Price of Bread, July 1957 (based on Miscellaneous Publication No. 712). No. 2. The Price of a Peach, September 1957 (based on general publications). No. 3. The Price of Milk, October 1957 (based on Miscellaneous Publication No. 733). No. 4. The Price of Pork, November 1957 (based on Miscellaneous Publication No. 711).

LINE PROJECTs CoverED BY APPROPRIATION For SPECIAL STUDY of PRICE SPREADs AND MARKETING PRActions, JANUARY 1, 1957–FEBRUARY 1958

PROJECTS ACTIVE

"1-13. Flaxseed storage practices related to deterioration, costs, and returns to growers,

"...; Effects of different methods of handling sugar on costs, margins, and officiency.

001-20. Costs of grade change and shrinkage of wheat in different types of storage.

" 1-2, Quarterly measurement and analysis of margins, costs, and efficiency in distributing fluid milk and cream products for 80 selected plants.

" 1-4. Marketing costs and efficiency in the mixed feeds industry.

" 1-2. Efficiency of marketing western grown head lettuce.

" 1-2). Measurement of components of farm-to-retail price spreads for selected food commodities on a continuing basis.

" 1-4. Costand efficiency of distributing milk through vending machines.

". .34. Marketing margins and costs for eggs cartoned in the Midwest and sold indistant cities.

"1-36. An economic analysis of costs and practices in handling and packing tarly-crop potatoes.

'', 1-37. Economic analysis of poultry-dressing plants in New England.

0' 1-41. Economies in converting small cottonseed oil mills into higher oilyielding type mills.

%. 1-43. Cost and efficiency in wholesaling frozen foods.

o

o:

'''. H. Costs and margins of marketing livestock, meats, and meat products.

00 1–46. Analysis of farmer-to-consumer price spread in relation to marketing Agencies involved and services performed in the marketing of dairy products in selected cases.

"140. Economic and engineering studies of fruit and vegetable handling, looking, and packaging.

"1-3. Effects of mandatory inspection on costs and efficiencies of poultry. Naughtering plants. '1-55. Economic effects of electronic and mechanical egg-grading devices on the marketing of eggs.

1-57. Costs and benefits of treatment and disposition of sewage from poultry

slaughtering plants through irrigation systems.

*1494-58—pt. 3–4

OC 1–59. Evaluation of economic effects of trading stamps and other promotional

devices. OC 1–61. Development of improved costing procedures for poultry-slaughtering

plants. OC 2–53. Extent and effects of major labor-employment practices on the costs,

adequacy, and structure of agricultural marketing. OC 3–1. Marketing situation and outlook reports. OC 3–2. Development, maintenance, and analysis of farm-to-retail price spreads and other marketing statistics on entire marketing process. OC 3–14. Providing statistical and economic information relating to the marketing of agricultural products.

PRO.JECTS INITIATED

OC 1–38. Marketing costs and practices for peaches. OC 1–45. Marketing margins for oilseeds and animal fats used in the manufacture of food products. OC 1–62. Costs of marketing fresh citrus fruits grown in Florida and Texas. OC 1–63. Margins, costs, and trade practices in marketing chicken fryers, eggs, and turkeys in the San Francisco area. OC 1–64. Buying turkeys from producers on the basis of ready-to-cook weights

and grades. OC 1–65. Effects of keeping and utilizing proper records on the costs and efficiency

of processing and distributing dairy products. OC 1–66. Effect of dating regulations on costs of milk processing and distribution. OC 1–67. Margins, costs, and trade practices in marketing frying chickens, eggs,

and turkeys in the Northeastern States. OC 1–68. Analyzing price spreads, margins, and costs for grain and feed products, OC 1–70. Costs and efficiency in marketing eastern apples. OC 1-71. Costs and efficiency in operating alfalfa dehydrating plants. OC 1–73. Marketing costs and efficiency and the organization of the California

date industry. OC 2–99. Marketing of products of class III milk in the New York milkshed.

OC 2–100. Effect of marketing changes upon marketing costs and upon demand and consumption of poultry meat.

Projects completed

OC 1–40. Handling practices and marketing costs for Florida sweet corn.

OC 1–42. Power and labor utilization in cottonseed oil mills.

OC 1–47. Impact of St. Lawrence seaway on costs of marketing agricultural products, with emphasis on grain and grain products.

INFLUENCE OF PRICE ON VOLUME OF FOODS CONSUMED

Mr. WHITTEN. Dr. Paarlberg, I think it will get us into a real depression if raw material prices continue to go down and down. It is my belief that it has led to depressions in the past. It disturbs me to see the press and many national leaders argue that the thing to do is spend more money on defense contracts. Defense contracts, at best, may be essential to our safety, but the defense dollar never contributed an earned income dollar to the Nation in history. It is a dead weight that we have to carry and it would be so much more sound, in my judgment, to see that the base of our economy, which is the raw-material level, got its fair share of the national income dollar.

You and the Secretary constantly insist that by reducing the prices to the farmer you will increase consumption. Now it is my under: standing that the lack of food is not what is bothering the United States, that we rather eat too much.

If the people in Florida gave away the citrus on the trees, or the people growing tomatoes in my State, around Crystal Springs, gave them away, or if the fellow producing cotton in my section just gave it to the mills, under our system I honestly wonder whether there would *| be any increased consumption at all. It might shift from potatoes to and hamburger to steak, but in total quantity of food consumed or inclothes worn, the average fellow ol. wear one suit a day. If the ** farmer gave it all away, I doubt if you would increase consumption 3 percent. so And under our system the commission man goes down to Florida and buys citrus and ships it north, and everybody marks it up to the *| point that they can get by with and still sell it. You might have a little drop in the citrus-fruit market the first 2 weeks but, so help me, after that if it were all given away the retail price would be right back at the thing which controls it, and that is buyer resistance. to Now do you still believe that reductions in these prices would increase consumption? so Mr. PAARLBERG. Putting the whole thing together, in the aggregate, ** a reduction in price |. accompanied by a much, much smaller to increase in consumption of agricultural products. If you dropped the overall average price of farm products by 10 to percent in the short run, the consumption would go up—well, different researchers have come out with different figures. I have heard figures like 1, 2, 3 percent—I don't know exactly what it would be. Now, over time, this figure would become larger as people became so adjusted to it, as new markets were developed, export markets would

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grow. or Mr. WHITTEN. Well now, let's put it this way. Let's don't get export mixed up with this. There has never been any connection be* | Ween export and support. Insofar as the law is concerned, there iro o * been any tie between export prices and support levels, has there Mr. PAARLBERG. The CCC operations permit exports at competil, tiveprices, Mr. WHITTEN. Let's take your family, the neighborhood in which you live or anywhere in this country. Now, you may have some lazy People, you may have some indigent people, you may have some elderly people, but is there anybody that |. eat about as much now as they would if the prices were different. o Willachange in prices change what you eat? st so Mo, PAARLIERG. It will change what you eat. Given more time the to chang's will be larger. isso Here is what would happen. They would consume more of highly no palatable and highly nutritious foods like beef, livestock products in to general. These products take a lot more in the way of human labor sol and land to produce a man's food supply than do some of the other lso products, lo So that if the overall level of prices was dropped, as you indicated, old some time went on to permit the adjustments, we would consume, o Ithink, pretty near the same amount of calories. We would consume to more proteins, we would consume more meat and milk and eggs. We (not would consume more— * Mr. Whitten. You are talking about changes now. , so Mr. PAARIBERG. We would consume more fruits and vegetables. We so would consume probably less of wheat, potatoes, and similar foods. o o

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