AT PARITY PRICE OF $2.50 PER BU. WHEAT FARMERS WOULD HAVE RECEIVED AN ADDITIONAL 0.74. THIS ADDITION WOULD HAVE RAISED THE RETAIL PRICE TO 19.5.

U. S. DEPARTMENT OF AGRICULTURE

NFG. 4773-58 (1)

AGRICULTURAL MARKETING SERVICE

CONSUMER'S BREAD PRICE

Urban consumers paid an average of 18.8 cents per pound loaf of white bread in 1957. For the wheat and other ingredients used in that pound of bread, farmers received 3.2 cents or 17 percent of the retail price.

THE CONSUMER'S MILK DOLLAR

Urban consumers paid an average of 24.2 (average BLS prices, based mainly on single quart rather than multiquart containers) cents per quart of milk in 1957. Farmers received about 10.9 cents per quart or 45 percent of the retail price. This was the share that they received in 1955 and 1956.

The marketing margin accounted for the remaining 55 cents out of each retail dollar spent by consumers on fluid milk. The chart indicates the breakdown of that 55 cents.

ALLOWANCE FOR WASTE AND SPOILAGE DEDUCTED

TYPICAL CAR OF U. S. FANCY GRADE SWEET CORN SHIPPED FROM FLORIDA TO BALTIMORE, MAY 1955

U. S. DEPARTMENT OF AGRICULTURE

NEG. 4035-56 (3) AGRICULTURAL MARKETING SERVICE

MARKETING MARGINS AND COSTS FOR FLORIDA SWEET CORN

Farmers around Belle Glade, Fla., received a gross return of $0.67 per crate for sweet corn shipped to Baltimore during May 1955. Out of the $0.67, the grower had to cover all costs of production. After the cost of containers, picking, packing, and shipping point marketing charges were added, the f. o. b., shipping point price was $1.70 per crate. The wholesale selling price was $2.75 and the retail price was $3.87 per crate.

A typical cotton business shirt sold for around $3.65 at retail in 1957. The farm value of the amount of cotton required to make this shirt was about 28 cents or around 8 percent of the retail price of the shirt.

CIGARETTES: ESTIMATED FARM VALUE OF LEAF TOBACCO, MARKETING MARGINS, AND TAXES

The average retail price of cigarettes for the fiscal year 1957 was 23.8 cents per package. Of this amount, 3.64 cents or 15 percent was the farm value of the leaf tobacco. The marketing margin accounted for around 40 percent and Federal and State excise taxes accounted for the balance of 45 percent.

THE EXPORT MARKET

Mr. WELLS. The second great stream of demand for American farm products is to the export market. Some 8 to 10 percent of our farm products go into the foreign market.

On this chart here we show by fiscal years what has been happening to shipside value of American farm exports, breaking our total farm exports down into the lower portion of each bar showing those financed directly by one means or another by the United States Government with the upper portion showing those moving chiefly through the commercial trade. I say "chiefly" because this commercial portion does include wheat, which received assistance through the International Wheat Agreement payments by the Commodity Credit Corporation. Also it includes, Mr. Chairman, the cotton which is sold at the world price by the Commodity Credit Corporation, which involves losses to the Commodity Credit Corporation.

You will note the steady increase in agricultural exports from 195253 into fiscal year 1956-57.

I would call your attention to the fact that in fiscal year 1956-57 the increase in exports was appreciable in the commercial portion of this bar, as well as in the Government-financed portion.

Mr. WHITTEN. Mr. Wells, look at your dates and look at the black line, which shows the amount that was financed by the United States Government, and look at the slanted line which shows that that moved by commercial means. Looking at the increase from 1952 and 1953, that shows when you were not offering any agricultural commodities in world trade at competitive prices, although I was insisting at that time that you should.

In 1953-54 we finally persuaded the Secretary to offer some relatively minor commodities, and the exports were around $500 million, I believe. Then in 1954-55 we finally got him to offer a relatively small quantity of cotton and he hoped to sell a million bales in 6 months. But instead he sold that amount in less than 6 weeks.

In 1955-56 we really got started and in 1956 we really offered it, and the record itself shows the great improvement in exports for dollars, after we once broke the ice and began using the authority that always existed in the Commodity Credit Corporation Act for this sale. Mr. WELLS. Mr. Chairman, I think we all remember those arguments, and the past hearing records of this same committee indicate your position very clearly.

Mr. WHITTEN. Now we have a graph which proves the wisdom of those arguments.

Mr. SANTANGELO. Mr. Wells, the farm exports you refer to, are they basic commodities or the nonbasic commodities?

Mr. WHITTEN. If the commodities were in private hands and continued there, presumably they were moving outside the Government. So what I have reference to are all the commodities that the Govern