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July, 1926
Extension Bulletin 391
Oregon Agricultural College
Extension Service
PAUL V. MARIS
Director
Report of the Wheat Growers
Economic Conference
MORO, OREGON
February 11-13, 1926
CORVALLIS, OREGON
Cooperative Extension Work in Agriculture and Home Economics
Oregon Agricultural College and United States Department of Agriculture, Cooperating
Printed and distributed in furtherance of the Acts of Congress of
May 8 and June 30, 1914
CONTENTS
Pages
7-10
Introductory
7
Purpose of Conference
The Area Involved
Organization of Conference
Committee Personnel
The Importance of Wheat to Oregon
Permanence of the Industry
Farm Management Group Report
A. The Cost of Wheat
7-8
9-10
11-12
11-12
15-26
16-19
18
The Cash Cost of Wheat
18-19
Variation in Costs on Individual Farms
19
Conclusion on Costs
19-24
B. Major Factors in the Reduction of Wheat Costs
1. Recommendations Relating to Labor Saving Machinery
19-22
and Operation Practices
19-20
Horses vs. Tractors
20
Combines vs. Headers
21
Bulk vs. Sacked Wheat
21-22
Efficient Use of Equipment
22
2. The Effect of Yield Per Acre
23-24
3. The Size of Business
24-25
C. Productive Side-Lines for the Wheat Ranch
24
24
-1. Sheep
Hogs
Poultry
Cattle
D. Farm Food Supply
E. Horses and Mules
F. Labor
25
25
25
25
,
26
27-31
Tillage and Production Group Report
Importance of Efficient Production
Tillage and Production Recommendations
Wheat Handling and Grading Group Report
1. Efficiency of Federal and State Grain Inspection
Protein Testing
Grading of Samples in Advance of Shipment
Scouring and Washing Facilities at Ports of Portland and
Astoria
Wheat Discounts
United States and Canadian Freight Rates
Relation Between Flour Freight Rates and Interior Mills
Effect of Truck Hauling on Branch Line Railroads
Sacked Wheat Differential
Federal vs. State Licensing of Warehouses
Finance and Credit Group Report
A. Data Considered and Summary of Discussion
Mortgage Situation
Other Credit Needs
5
27-28
28-31
32-39
32-34
34-35
35
35-36
36
36-37
37
37
38
38-39
40-46
40-44
40-41
41
Rate of Interest
Licensed Warehouses
Trend of Indebtedness
Poor Risks
'7.
Side-lines
Land Valuations
Credit and Care of Equipment
Need for Additional Financial Facilities
Intermediate Credit Act
B. Recommendations
Wheat Growers Should be Enabled to Utilize Intermediate Credit Bank
Larger Banking Institutions Needed
Federal Licenses Not a Necessity for State Licensed
42
42
42
42
42-43
43
43
43
43-44
44-46
44-45
45
Warehouses
45
Grow Into Side-lines
45
Thirty Days Logical Limit for Credit on Goods Purchased
46
Care of Buildings, Equipment, and Stock
46
Purchasing Additional Land
46
Creation of Sinking Funds
46
World Supply and Demand Group Report
47-68
A. The World Situation as to Production and Use of Wheat
B. World Supply of Wheat and Related Factors
World Production of Wheat
Cost of Growing Wheat
Production of Wheat by Classes, Grades, and Quality
Distribution and Marketing of Wheat
Distributing and Marketing Facilities, Agencies, and Policies
48-49
50-63
50-53
53-54
54-56
56-62
62-63
Milling facilities
Milling in bond
Export and diversion privileges
Futures market
(e) Distributing and marketing agencies and policies
C. World Demand for Wheat and Related Factors
1. Quantity of Wheat Needed to Supply the World
Demand for Special Classes of Wheat
3. Factors Influencing Demand for Wheat
Reclamation
Advertising
Shifts in population
Effect of use of flour for biscuits
Expansion of flour manufacturing
Effect of the tariff on demand
62
62
62
62
62-63
63-67
63
64
64-67
64
65
65-66
66
66
66
Demand for wheat as feed for poultry and farm
livestock
Substitutes for wheat
Price quotations
D. Recommendations
Attendance roll
67
67
67
67-68
69-71
Introductory
Purpose of Conference
The Wheat Growers Economic Conference was called in order to
formulate a program for agriculture in the Columbia River Basin. Many
ideas have been advanced by many people trying to help and stabilize
agricultural conditions there. These ideas have varied widely, some being directly opposed to others. The proposals and ideas covered all
phases of farming, including producing, warehousing, financing, and selling the crop. The wheat conference proposed to consider these things,
to take stock of the available information, to add the farmer's own experience and ideas, and from the mass of evidence to arrive at logical
conclusions.
The conference was sponsored by the 0. A. C. Extension Service
the
as a part of its plan of bringing together all agencies interested inbased
development of state, district, and county agricultural programs
upon a study of fundamental economic facts.
The Area Involved
Participating in the conference were representatives from the major wheat-growing counties of Eastern Oregon. Roughly, this is a district 60 miles wide from north to south and 200 miles long from east to
west. It is bordered most of the way by the Columbia River on the
north, the Cascade Mountains on the west, and a spur of the Blue
Mountains on the south. The main wheat-growing section stops at the
Blue Mountains on the east, but the mountain valleys of northeastern
Oregon also raise wheat and were included.
In Wasco county on the west the rainfall is about 15 inches; toward
the east the precipitation grows less until Umatilla county is reached,
where it increases, due to the Blue Mountains. In the mountain valleys
of Union and Wallowa counties, farther to the east, it is about 20 inches.
The bulk of the wheat of Oregon is grown with a rainfall of from 12 to
16 inches.
Large farms are the rule in this territory and large teams are used.
About 80 percent of the wheat is harvested with "combines." Most of
the balance is cut with headers, and binders are almost unknown.
The farming practices throughout this territory are probably the
most highly standardized of any place in the United States. The branch experiment station at Mbro has worked out many production problems
to a remarkable degree; farmers' results have checked so closely with
the station's findings, moreover, that most growers now have the utmost
faith in the station's recommendations. Such things as date of plowing,
depth of plowing, rate of seeding, date of seeding, varieties, etc., are 100
percent uniform in many communities. In some counties, one can travel
for mile after mile and see only one variety of wheat. The summerfallow system of farming is the only one used except in the northeastern
section where the rainfall is higher.
Organization of Conference
About two months before the conference dates, the subjects that
were to come before the conference were divided into five groups and a
7
8
0. A. C. EXTENSION BULLETIN 391
committee was named to cover each group. Each committee had a chairman and secretary and about twenty members chosen from throughout
the district. In each instance, the secretary, a member of the staff of
the 0. A. C. Experiment Station or Extension Service, spent much time
in advance of the conference in assisting his committee to compile data
on points enumerated. The committees as a whole gathered statistics,
photographs, farm records, and other data for use at the conference.
Many charts were made from the material thus assembled.
There was no speech making at the conference. Those who attended joined the group in which they were most interested. Two days were
spent in considering information gathered and in arriving at recommendations in each conference group. Every one had an opportunity to
express his views. Each group then put its recommendations into a
report that was considered by the joint session of all groups on the last
day, and adopted.
L. R. Breithaupt, secretary of the World Supply and Demand committee, spent a month in Washington, D. C., locating all of the available
information which might be of use. Eugene Merritt of the Extension
Service of the U. S. Department of Agriculture came to Oregon and
assisted materially in putting the mass of information into coherent
form. Byron Hunter of the Bureau of Agricultural Economics of the
U. S. Department of Agriculture gave a great deal of time to finding
and assembling information and having charts made. Dr. W. J. Spill-
man, consulting economist for the U. S. Bureau of Agricultural Economics, came from Washington, D. C., to attend the conference. He helped
materially in presenting information.
H. D. Scudder, head of the farm management department at Oregon
Agricultural College, author of two bulletins on the results of a threeyear cost-of-production survey in Sherman county, made all of this iii.
formation available. R. S. Besse, farm management demonstrator, aided
by preparing some special survey blanks, in preparing charts, and in
assembling information.
The chairmen of the five committees acted as an organization committee in charge of the conference. F. B. Ingels of Dufur was elected
chairman of this committee and also was chairman of the conference.
Other members of this committee were A. R. Shumway, Milton; E. M.
Hulden, Blalock; Harry Pinkerton, Moro; and L. D. Barnum, The Dalles.
These men all gave valuable time toward making the conference a success.
E. R. Jackman, crop specialist of the Extension Service of the Agricultural College, acted as field organizer of the conference and as conference secretary. George R. Hyslop, head of the farm crops department at 0. A. C.; D. E. Stephens, superintendent of the Moro experiment
station; Fred Bennion, county agent of Umatilla county; L. R. Breithaupt, extension specialist in agricultural economics; and Roger Morse,
county agent of Morrow county, acted respectively as secretaries for the
committees on Wheat Handling, Tillage and Production, Finance and
Credit, World Supply and Demand, and Farm Management.
W. L. Kadderly of the 0. A. C. Extension Service edited the conference reports and prepared the bulletin for publication.
WHEAT GROWERS ECONOMIC CONFERENCE
9
Committee Personnel
More than one hundred leading wheat growers served on committees with bankers, transportation men, millers, elevator and warehouse
men, experiment station and extension service workers and representa-.
tives of the United States Department of Agriculture. The personnel of
the five committees follows:
Farm Management Committee
E. M. Hulden, chairman, Blalock.
R. W. Morse, secretary, County Agent, Heppner.
John Padburg, Heppner.
A. R. Coppock, Athena.
C. B. Cox, Heppner.
Hobart Perringer, Pendleton.
Joe Devine, Lexington.
Jim Hill, Pendleton.
Louis Padburg, Lexington.
Tom Boylen, Jr., Pendleton.,
Merrill Moors, Arlington.
W. White, Madras.
J. A. Dyer, Mayville.
Albert Caseburg, Wasco.
R. II. Schomp, Mayville.
W. S. Powell, Moro.
John Withycombe;, Arlington.
Elliott Roberts, The Dalles.
Cal Grawl, Arlington.
Jess Fleming, Maupin.
Frank Loennig, Haines.
Angus McLeod, Dufur.
R. S. Besse, Farm Mgt. Dept., 0. A. C., Eugene Merritt, Extension Service, U. S.
D. A.
Corvallis.
.
D. Scudder, Farm Mgt. Dept., 0. A.
C. Corvallis.
E. L.
Potter, Animal Husbandry Dept.,
O. A. C.
Finance and Credit Committee
L. Barnum, chairman First Nat'l. Bank, The Dalles.
Fred Bennion, secretary, County Agent, Pendleton.
Jeff Jones, Heppner.
George Peck, Lexington.
W. P. Mahoney, banker' Heppner.
branch, Federal Reserve Bank of San W. F. Turner, banker, Madras.
Herbert Root, Wasco.
Francisco.
Marie Barnett Cooper, banker, Wasco.
Asa B. Thompson, Treasurer, Federal
Fred Fortner, banker, Wasco.
Land Bank of Spokane.
A. F. Cardon, Reviewing Appraiser, Fed- 0. G. Sayres, Moro.
J. W. Hoeck, banker, The Dalles..
eral Land Bank of Spokane.
C. L. Dutcher, Pacific Coast District Ad- H. L. Kuck, The Dalles.
George Obarr, The Dalles.
ministration U. S. Warehouse Act.
Art Wheelhouse, banker; Arlington.
W. L. Thompson, banker, Portland.
John Reisacher, banker, Condon'.
W. B. Tucker, County Agent, Prineville.
George Parman, Condon.
S J. Cully, Weston.
A. R. Hunter, LaGrande.
G. M. Rice, banker, Pendleton.
C. L. Jamison, Fossil.
Mac Hoke, Pendleton.
Jay Dobbin, Enterprise.
Roy Ritner, Pendleton.
Ward M. Buckles, Manager Federal Intermediate Credit Bank, Spokane, Wash.
R. B. West, Managing Director Portland
Tillage and Production' Committee
Harry Pinkerton, chairman, Moro.
D. E. Stephens, secretary, Supt. Moro Expt. Station.
Earl Thompson, Pendleton.
Floyd Adams, Hardman.
Charles Gerking, Pendleton.
Dwight Meisner, Tone.
Perry Johnston, Condon.
Charles Irwin, Heppner.
Earl Hoag, Blalock.
Frank Emerson, The Dalles.
Ralph Harford, Blalock.
Ray Kelly, The Dalles.
A. H. Barnum, Moro.
J. A. Gaskill, Alicel.
R M. Rolfe, Grass Valley.
H. G. Avery, County Agent, LaGrande.
Leonard Hegnauer, Extension Service W.
Ward Farrell, Gateway.
S. C., Pullman, Wash.
George Rodman, Culver.
A. K. York, Condon.
Eugene Hampton, Pendleton.
10
0. A. C. EXTENSION BULLETIN 391
Wheat Handling Committee
B. Ingels, chairman, Dufur.
R. Hyslop, secretary, Farm Crops Dept., 0. A. C., Corvallis.
Frank Price, warehouse mgr., Weston.
Charles Swindig, Heppner.
Lowell Stockman, Helix.
Leonard Carlson, lone.
H. Nelson, Pendleton.
T. 0. Turner, Heppner.
J. E. McCormack, Pendleton.
Roy Phillipi, Arlington.
S. R. Thompson, Pendleton.
A. B. Robertson, warehouseman, Condon.
R. R. Stanton, Condon.
0. E. Dyer, Mayville.
Representatives of railroads and Ports of
H. B. Davidhizer, Joseph.
Portland, Astoria and Seattle.
Charles Harth, The Dalles.
W. D. B. Dodson, Mgr. Portland ChamOwen Jones, Dufur.
ber of Commerce.
A. B. Doughty, elevator mgr., Maupin.
C. E. Spence, State Market Agent.
C. W. Daigh, County Agent, The Dalles.
Chas. Wright, Chief Inspector, State InGrover Grimmett, LaGrande.
spection Dept.
W. Ledbetter, Alicel.
B. W. Whitlock, Federal Grain Inspection
Lloyd Pierce, LaGrande.
Service, Portland.
Carl McKean, warehouse mgr., Moro.
N. Bates, U. S. D. A. Wheat Handling
Henry Howell, Wasco.
Investigations, Portland.
Fred Krusow, Grass Valley.
Harry Guard, editor, Madras.
World Supply and Demand Committee
A. R. Shumway, chairman, Milt° n.
L. R. Breithaupt, secretary, 0. A. C. Extension Service, Corvallis.
R. A. Thompson, Heppner.
W. J. Edwards, Mayville.
R. A. Campbell, Lexington.
Lee Hoag, Blalock.
C N Jones, Heppner.
Pete Tensen, Ontario.
Paul Carpenter, County Agent, Baker.
Herbert Egbert, The Dalles.
A. Tom, Rufus.
0. McCoy, miller, The Dalles.
Vic Smith, Wasco.
Frank McKennon, Alicel.
W. J. Spillman, Consulting Economist, U.
J. E. Wilson, Kent.
S. D. A., Washington.
W. H. Ragsdale, banker, Moro.
A. Pattulo, Balfour Guthrie Co., PortJ. C. Hawkins, Pendleton.
land.
W. W. Harrah, Pendleton.
N. A. Leach, Kerr Gifford Co., Portland.
Joseph N. Scott, Pendleton.
L. Kent, Federal statistician, Portland.
The Importance of Wheat to Oregon
The 1919 census shows wheat to be the largest cash item in the Oregon farmers' collective receipts. The values of some of the leading
products were as follows:
Cereals:
Wheat
Oats
Barley
$41,201,480
7,939,537
2,215,065
1,396,959
Corn
Livestock Products:
Dairy products
Wool
Eggs
Meat
Fruits, etc.:
Fruits and nuts
17,651,409
6,598,979
5,921,712
29,793,000
20,393,000
11,762,000
Vegetables
The five-year average production of wheat in Oregon is 22,930,437
bushels.* Of that quantity, 17,461,746 bushels are grown in Eastern Oregon, nearly all of it in the Columbia River Basin and Blue Mountain
counties.
If the Sherman county figures are typical of the state, $4,301,750.00
is paid out in the production of wheat for hired labor alone, a very neat
payroll.j Every year $2,700,000 additional is paid out in cash to maintain the farm machinery needed in growing the state's wheat crop. A
total of $15,000,000 is spent in cash in growing the year's crop. A factory
with an expense budget of this size would be considered quite an asset
to the state.
Another way of measuring the importance of wheat is to consider the
exports from Portland. It seems to be generally agreed that Portland's
ocean commerce is one of the main factors in the growth of the city and
in the development of the state. During the years 1923, 1924, and 1925,
ships loaded at Portland an average of $102,695,336 worth of products.
Of this amount, wheat and flour averaged $35,034,779. Wheat thus furnishes 34 percent of the total outbound cargo from Portland. Large
amounts of both wheat and flour are also exported from Astoria. (The
above wheat exports are not all from Oregon; part comes from Washington, Idaho, and Montana.)
Permanence of the Industry
Wheat farming in most parts of the Columbia River Basin and Blue
Mountain country is less hazardous than in most regions. The black
rust dreaded in the East and Middle West is unknown. There are no
crop failures except on the marginal lands where the rainfall may drop
below 10 inches. Hail is so infrequent that most of the oldest farmers
have never suffered any losses from it. Summer rains are rare, so that
there is no interference with harvesting. The summer-fallow system of
farming stores moisture and plant food from one season for use the next
and insures a fair crop except in the low rainfall areas.
*Figures from 0. A. C. Experiment Station Bulletin 204, Spring Crops for Eastern
f Compiled from Sherman county wheat cost survey by United States Department
of Agriculture, Oregon Experiment Station and 0. A. C. Extension Service, cooperating.
Oregon.
11
0. A. C.
12
EXTENSION BULLETIN 391
The following averages indicate the fairly uniform yields:
AVERAGE WHEAT YIELD PER ACRE IN BUSHELS*
Kansas
North Dakota
Minnesota
Oregon
1919
1920
1921
1922
1923
1924
13.8
6.9
9.4
19.2
15.4
9.0
9.8
20.9
12.2
8.5
9.7
23.6
12.6
14.1
13.7
17.3
10.1
7.1
12.0
24.1
16.3
15.7
22.1
16.5
AVERAGE WINTER WHEAT YIELD PER ACRE IN BUSHELS*
Umatilla county, Oregon
Wasco County, Oregon
Kansas
Illinois
Oregon
24.0
21.0
13.8
28.0
23.0
15.4
17.5
21.2
15.1
22.2
30.0
25.0
12.2
16.2
25.5
23.0
22.0
28.0
12.6
17.5
19.0
10.1
18.0
25.0
31.5
22.1
16.0
16.3
16.0
16.7
*Data compiled by Professor G. R. Hyslop, head of farm crops department, 0. A. C.
A yield of 15 bushels per acre is above the United States average.
During the last 18 years the average yield in various states has dropped
below that figure as follows:
State
Minnesota
North Dakota
South Dakota
Nebraska
Kansas
Oregon
No. of times in last 18 years
the average yield has been
below 15 bushels.
10
15
16
7
14
2
In 1917 and 1918 the Oregon average yields were 14.5 bushels and
14.7 bushels respectively. This shows that crop failures are not a factor
in most of the wheat area of this state.
It is not anticipated that the wheat acreage in the state will increase
very much; on the other hand, it may decrease slightly in some counties,
particularly in Western Oregon. A large part of the cultivated land in
Eastern Oregon will be in wheat for decades to come. The industry is
much more permanent than lumbering, for example.
13
WHEAT GROWERS ECONOMIC CONFERENCE
ACRES OF LAND IN EASTERN OREGON COUNTIES
IN WHEAT, FALLOW OR IDLE, AND IN OTHER CROPS.
500
1,.:
2
Legend
MEN
1
1
0
co
t
200-
Acres
in biller C,012s.
.
<
aI
rI
Acres in Wheat
Acres in fallow
=
230 -
10
-
'..'
1
4
g
1
7
50
n
/
MORROW
GILLIAM
Fig. 1.
,-,.,
''
,,-i
7-,
-
/
7
/
JEFFERS014
,.
/
c
IN"
1n/
r,
BAKER.
UNION
WASCO
SHERMAN
UMATILLA
I
'
r, 1
wAlpyva
..
Farm Management Group Report
Salient pointsOn land valued at $50 per acre during the years 1922, 1923, and
1924, it cost $25 to produce an acre of wheat. Of that
cost, approximately $12 was paid out in cash and $13 was
non-cash.
Page 16
The capital investment in the wheat farm is large but in normal
years the family income is good.
Variations in the cost of producing a bushel of wheat ranged from
62 cents a bushel to as high as $5.46 per bushel. The causes
for these variations are found in certain factors in the organization, operation, and management of farms. Many of these
Page 18
factors are largely within control of the operator.
Horse operation as compared with tractor operation, is cheaper
Page 19
and more efficient except on the very large wheat farms.
Harvesting with a combine costs less per acre and per bushel than
harvesting with header and stationary thresher, under average
Page 20
conditions.
Cost of bulk handling of grain on the farm and to the shipping
point is less per acre and per bushel than sack handling, in the
Page 21
case of farms reasonably close to elevators.
Efficient use of equipment is a very important factor in reducing
Page 21
cost per acre and per bushel.
Yield per acre is one of the most important factors in the cost of
Page 22
producing a bushel of wheat.
Size of business is a vital factor in cost of production, whether on
Page 23
a tractor or non-tractor farm.
Side-lines of sheep, hogs, poultry, and cattle are profitable under
Page 24
specified conditions.
Every farm should produce its own garden stuff, milk, eggs, and
Page 25
meat.
There are twenty-five percent fewer horses on Columbia Basin
Page 25
farms than six years ago, and more colts should be raised.
United States Employment Service commended and requested to
Page 26
install branch office at Arlington during harvest season.
It is the belief of this committee that a knowledge and understanding of the cost of wheat production and the factors in the organization,
operation, and management of the farm, which influence cost, are fundamental to the success of the wheat grower. Reduction of his operating
and overhead costs offers the surest means of increasing the margin of
profit and this lies largely within the grower's own control. The efforts
of this committee, therefore, were devoted chiefly to this important
subj ect.
The committee was fortunate in having in its hands the extensive
body of facts obtained through the investigations of the Oregon Experi-
ment Station, the United States Department of Agriculture, and the
0. A. C. Extension Service in a three-year study of the cost of wheat
production and of the wheat-farm organization in Sherman county. All
of the tabulated data in this report are taken from manuscripts by R. S.
Washburn, United States Department of Agriculture, and H. D. Scudder,
Oregon Experiment Station, reporting the Wheat Cost Survey in Sherman county, Oregon.
15
0. A. C. EXTENSION BULLETIN 391
16
This study shows the itemized and total costs of production of more
than 3,800,000 bushels of wheat on 160,000 acres of wheat land during the
three years 1920, 1921, and 1922. It shows the cost of every operation
and differing method under every condition as to soil, topography, and
rainfall, size of farm, equipment, yield, etc., of the section, and all the
factors bearing on cost.
A. THE COST OF WHEAT
Based on this evidence, supported by the statements and comparisons of costs given by members of the committee from different sections
of the wheat belt, it is the conclusion of this committee that the average
total cost of producing wheat for the years 1922, 1923, and 1924 on land
ALL COSTS
DISTRIBUTION OF COST OF WHEAT PER ACRE
SHERMAN COURTYWHEAT.SURVEY ..I922.. ORIGOREXPERIMERT.STATIOR
PER ACRE.
I
1.57
`f* OF
CASH COSTS
it,
TOTAL
6.4
PERCENT
cL
10
1.20
$
I
Of
0
4.9
OTHE
TAXES 8
1.79
7.5
1.79
7.3
1.92
7.8
0.85
34
2.37
9.7
0,35
1.4
S
10
35
3E 0
%
4,4
SAC 5 ETC
$
0.37
7.9
pxlNERY
4.82
19.6
2.94
12.0
MAN, LABOR
8.16
33.2
2.55
10.4
..k.
I
To
INTEREST
.TOTAL
1.07
8.5 2.02
'.R5E LABOR
11.60 47.3 ...CASK COSTS
20
0.0 0.00
INSURANCE
16.01.92
100.0
U.S.DEPT. Of AGRICULTURE
1.5
3.91
*
24.54
i
NON-CAS N COSTS
TOTAL
,
NON- C ASH COSTS-.-
8.1
1.99
7.6
1.88
2.9
.
5.61
4
52.7 12.94
Fig. 2.
having an average value of $50.00 per acre, is $25.00 per acre, of which
approximately 50 percent or $12.00 per acre is the cost in cash and $13.00
per acre is the non-cash cost. Fig. 2 shows in graphic form the distribution of wheat costs per acre.
Variations from this cost per acre in different sections of Eastern Oregon, it is believed, will be due largely to variations in the average yielding
power and corresponding value of lands rather than to differences in the
operating costs. The resultant average cost per bushel, therefore, should
not vary greatly by districts.
Tables I and II show clearly the average capital investment, receipts,
expense, and income per farm, the itemized average total cost of wheat
for the five years 1920-1924, inclusive, and the distribution to cash and
non-cash costs.
-
'
WHEAT GROWERS ECONOMIC CONFERENCE
17
TABLE I. - AVERAGE AREA, CAPITAL INVESTMENT, RECEIPTS, EXPENSE
AND INCOME, AVERAGE OF 153 WHEAT FARMS, SHERMAN COUNTY
Totaling 160,000 acres and an investment of $10,000,000.
Data from wheat cost survey-Sherman county.
Average per farm for year 1921
Tenant farms
Owner farms
No. of farms
Size of farm-acres
Wheat and fallow-acres
87
1133
819
Capital investment
Total receipts
Total expense
Farm income
Interest on investment @ 6 percent
Labor income '
Family income"
Value farm living?
Total family income for year 1921
Percent return on investment-1921
Total family income-for year 1920
Total family income-for year 1922
'
66
'
917
716
$69,434
.
$56,171
11,095
6,689
10,182
5,537
4,406
4,166
3,370
240
1,275
4,597
588
4,765
5,185
5,261
' 496
4.8
6.4
5,342
1,465
7,242
1,831
-*Family income is the farm income plus earnings of members of the family other
than the farmer himself, for work done by them on the farm and included under farm
expense above.
f The farm living is the value of the housing and food furnished by the farm to the
farm family during the year and not included under total receipts above.
TABLE II. THE COST OF. WHEAT-PER ACRE AND PER BUSHEL-FIVE
.YEARS, 1920-1924
(3 yrs.-1920-1922, actual costs; 2 yrs. 1923-1924,. computed on basic units of cost.)
Data from wheat cost survey-Sherman county.
,--Owned farms-Cost per acre-.
Items
1920
Average yield per acre, bushels ,
Labor-Summer fallow and seeding
Man
Horse
Contract
Harvesting and marketing
Man
Horse
Contract
Summer fallow purchased
Material costs
Seed and seed treatment
1923
1924
17.1
30
12
$1.61
2.67
.04
$1.55
2.12
.12
$1.12
1.69
.04
$1.13
2.10
.08
$ .98
2.07
1.51
.88
.63
.99
.67
.65
1.56
1.06
.70
1.27
.68
.70
.66
.31
2.46
1.56
2.45
.99
1.21
1.03
1.43
1.56
.42
.72
1.92
.08
.
Overhead
.32
1.68
1.57
1.37
2.05
4.98
1.58
1,56
1.37
1.63
4.91
Total
$24.27
.35
$23.92
Credit for pasture and insurance collected
Net operating expense
1922
27.8
1.02
.54
.33
Sacks and twine
Other costs
Special crop insurance
Taxes and insurance two years
Use of tractor
Use of combine
Use of other farm machinery
1921
20.9.
.23
.14
1.65
1.55
.14
1.58
1.60
1.14
1.22
3.28
.15
1.60
1.53
1.38
1.55
3.84
1.41
1.45
3.41
$22.19
$16.38
$19.14
$17.20
.38
.42
.42
.42
$21:81
$15.96
$18.72
$16.78
(Table continued on page 18.)
0. A. C. EXTENSION BULLETIN 391
18
TABLE II (continued)
Owned farms-Cost per acre-,
Items
Interest at 6% on :
Land, two years
Combine and tractor
Other farm machinery and workstock
Total net cost per acre-owner farms
Total net cost per bushel-owner farms
Tenant farms
Total net cost per acre
Total net cost per bushel
1920
1921
1922
1923
1924
7.98
.33
7.84
.29
7.16
.25
.49
7.02
.25
.49
.69
.61
7.42
.25
.49
$32.92
$30.55
$24.12
$26.62
$24.54
$ 1.58
$ 1.10
$ 1.41
$ 0.89
$ 2.04
$21.26
$20.16
$14.17
1.26
1.03
1.55
1. THE CASH COST OF WHEAT
The actual cash out-of-pocket cost of wheat production is about half
the total cost.
The total cost includes the non-cash items of wages for the operator's
own time, value of feed of horses, value of seed used, depreciation of
machinery, buildings, and stock, and interest at 6 percent on all of the
investment not covered by mortgage. When the price received for his
wheat equals the total cost, the grower gets cash payment for all items
of cost, both cash and non-cash items, and wheat growing is a good
business.
TABLE III., CASH AND NON-CASH COST PER ACRE OF WINTER WHEAT
Data from wheat cost survey-Sherman county, 1922-72 owner farms
-Non-cash costs----,
Cash costs
Per acre Percent of total Per acre Percent of total
Labor :
Man
Contract
Horse-
Feed
Other
Summer fallow bought
Materials :
Seed
Seed treatment
Sacks and twine
Other :
Special crop insurance
Taxes and insurance
Use of tractor
Use of combine
Use of other farm machi
Overhead :
Labor
Building and fences
Other
Interest on land, machinery and
work stock
Total
4.7
2.8
$ 0.96
3.9
1.0
.4
1.3
1.76
.26
7.2
1.1
.11
.4
1.07
4.4
.02
.72
2.9
.60
2.4
2.5
3.2
$ 1.15
.69
.24
.11
.31
.1
.14
.6
1.65
.95
.53
.44
6.7
3.9
2.2
1.8
1.10
.20
.69
4.5
.8
2.8
2.55
$11.60
.61
.78
.92
.37
3.7
10.4
5.61
22.8
47.3
$12.94
52.7
1.5
2. VARIATION IN COSTS ON INDIVIDUAL FARMS
Great variations in the actual costs of producing wheat are found
on individual farms, ranging from as low as 62 cents per bushel to as
high as $5.46 per bushel.
These variations, as well as the bulk line cost and the sub-marginal
costs, are indicated in Table IV.
19
WHEAT GROWERS ECONOMIC CONFERENCE
TABLE IV. VARIATIONS IN NET COST PER BUSHEL OF WINTER WHEAT
Owner operators ( 77 farms)Sherman county
Data from wheat cost surveySherman county, 1921.
Number of
Variation in net cost
per bushel
farms
$0.71 to $0.90
.91 to 1.10
1.11 to 1.30
1.31 to
1.51 to
1.71
Over
to
13
30
16
4
1.50
1.70
1.90
1.90
6
5
3
3.
Production
(bushels)
134,448
427,578
129,337
41,756
37,258
16,860
11,651
Cumulative percent
of production
16.8
70.4
85.5
91.8
96.4
98.5
100.0
CONCLUSION ON COSTS
It is the conclusion of this committee that the chief causes of these
great variations in cost are certain definite factors in the organization,
operation, and management of the farm, many of which are largely within the operator's own control. We recommend the most careful attention of growers to these major factors.
B. MAJOR FACTORS IN THE REDUCTION OF
WHEAT COSTS
RECOMMENDATIONS RELATING TO LABOR-SAVING MACHINERY AND OPERATION PRACTICES
Comparison of the farms on which the cost of production is low
with those on which cost is high indicates clearly that certain types and
sizes of machinery and certain operating methods are much more efficient than others.
Based on a careful consideration of the extensive data from the
Wheat Survey and supported by the statements of numerous growers
attending the conference, the committee submits the following conclusions and recommendations under this head.
1.
(a) Horses vs. Tractors.
Under average conditions the wheat farms having less than 1000
acres of cultivated land per farm produce wheat at less cost per
acre and per bushel with horses alone than with tractors and horses and hence find horse-power operation more profitable than
tractor-power operation.
Under average conditions wheat farms having more than 1000 acres
in cultivation produce wheat as cheaply and in many cases at lower cost per acre and per bushel with tractor and horse operation
combined, than with horses alone.
Even on large farms horse operation is efficient and need not
necessarily be converted to tractor operation.
(Data showing the cost of horse and tractor operations are submitted herewith (Table V) to substantiate these conclusions.)
0. A. C.
20
EXTENSION BULLETIN 391
TABLE V. TRACTOR-HORSE COST COMPARISONS BETWEEN TWO GROUPS
OF FARMS OF THE SAME SIZE
One group operated by tractors and horses. - The other group operated by horses alone
Data from wheat cost survey-Sherman county.
25
Tractor
farms
Average of three years
Size of farm-acres
Acres of crop and summer fallow
Number of horses per farm
Value of horses per farm
Value of horses per head
Cost of keeping horses per farm per year
Cost of keeping horses per head per year
Hours worked per head per year
Cost per hour of horse labor
Cost of all power per acre
Cost of power and man labor per acre
Total net cost per acre of wheat
Total net cost per bushel of wheat
Percentage return on total farm investment
40
Horse
farms
1183
924
14.6
$1704
1230
905
20.6
$2247
$1424
97
649
$1741
$ 117
$
$ 109
$
.15
3.36
$
$
7.00
32.87
1.34
$
$
$
85
830
$
$
$
$
$
.10
1.92
4.91
26.77
1.06
5.6%
4.4%
(b) Combines vs. headers.
Under this head the conclusions of the committee are:
While each have their advantages, under average conditions
harvesting wheat with the combined harvester and
thresher costs less per acre and per bushel than harvesting with header and stationary thresher.
Motor-driven "combines" harvest wheat at less cost than
ground-power "combines."
Horse-drawn "combines" harvest wheat at less cost than
tractor-drawn "combines."
Data from the Wheat Cost Survey show that it cost 95 cents more
per acre, or 6.2 cents more per bushel, for the harvesting and marketing
of wheat harvested with headers and stationary threshers than for wheat
harvested with the "combine."
Data from the Wheat Cost study show that while the cost of ground-
power "combines" is much less per day of use than for motor-driven
"combines," more horse-power is required for them, much less wheat is
harvested per day, and inferior work is done. These machines are now
regarded by most farmers as obsolete.
The lower cost of harvesting with horse-drawn motor-driven "combines," as compared with tractor-drawn "combines" is clearly shown in
Table VI.
TABLE VI.
Size of combine
9
ft
12 and 14 ft.
16 and 18 ft.
20 and 22 ft.
24 ft
COST COMPARISONS BETWEEN TRACTOR-DRAWN AND
HORSE-DRAWN COMBINES
Average of 3 years operations
Data from wheat cost survey-Sherman county.
,-Average acres cut per day-, ,--Total cost per acre
Tractor-drawn
20.7
22.3
30.7
39.8
Horse-drawn
13.6
18.9
Tractor-drawn
$3.82
3.32
32.24.54
35.33.57
39.33.91
Horse-drawn
$3.41
3.22
3.60
3.51
WHEAT GROWERS ECONOMIC CONFERENCE
21
(c) Bulk vs. sacked wheat.
The conclusion of the committee is that on farms reasonably close
to elevators, the cost of bulk handling of grain on the farm and to
the shipping point is somewhat less per acre and per bushel than sack
handling. This is especially true when the price of sacks is high.
Where the haul is long or roads are bad and when sacks are cheap,
sack handling has advantages.
(Data from the Wheat Cost Survey on this question are available.)
Fig. 3. An efficient bulk handling outfit. The bulk wheat wagon is dropped and
another hitched on without stopping the combine. Frank LaFave ranch, Adams, Umatilla county. Photograph by G. W. Ackerman, U. S. Department of Agriculture.
(d) Efficient use of equipment.
The major equipment of the wheat farmnamely, the work-stock,
tractors, and combinesis costly both in the original investment and in
up-keep and the operation expense.
From convincing data from the Wheat Cost Survey under this head,
the committee drew the following conclusions:
-
The cost of use of work-stock, tractors, combines, and general
machinery is greatly reduced by increasing the number of
days of use and acreage covered per year by all equipment,
particularly the work-stock, tractors, and combines.
On many farms the cost of use of equipment is high because of
the limited number of days of use and acreage covered.
Growers should, therefore, give more thought to this important factor.
0. A. C. EXTENSION BULLETIN 391
22
(3) On some large farms the cost could be materially reduced by
increasing the size of teams and outfit, and of tractors and
combines, to fit the acreage handled. On other smaller
farms the cost could be reduced by decreasing the size of
the equipment, especially the combines.
The wheat grower must be constantly on the alert to devise and
utilize labor-saving appliances.
(Data from the Wheat Cost Survey are available to substantiate
these conclusions.)
Fig. 4.
Rollers on blade weeders double the effectiveness of horses.
2. THE EFFECT OF YIELD PER ACRE
It is the conclusion of this committee that one of the most important
factors in the cost of producing a bushel of wheat is the yield per acre.
Table VII shows the typical effect of yield in decreasing cost per bushel
and increasing labor income.
TABLE VII.
COST AND INCOME AS AFFECTED BY YIELD PER ACRE
Data from wheat cost surveySherman county.
Variation in yield
per acre
Under 15 bushels
15 to 20 bushels
20 to 25 bushels
25 to 30 bushels
30
to 35 bushels
35 and over
Average cost
Per acre
Per bushel
$25.79
25.88
24.77
30.96
33.69
36.95
Labor income
Percent
earned on
investment
$1.94
$-2065
4.1
1.41
1.12
1.12
1.03
1.01
84
400
115
1644
4.7
4.8
4.7
1078
.3
6.3
23
WHEAT GROWERS ECONOMIC CONFERENCE
3. THE SIZE OF BUSINESS
The committee finds that the size of business, as measured by tillable
acres, is a vital factor in cost of production on both tractor and nontractor farms. More economical use is made of labor and equipment on
the larger farms by reason of larger acreage and more days of use,
thereby reducing cost per bushel and increasing labor income. This
conclusion is supported by the representative data (Table VIII) which
show the effect of size of farm on costs and profits.
Fig. 5. Farmstead of a 1218-acre Umatilla county wheat ranch. Each year, 600
acres are devoted to wheat on this ranch, and the average production is about 35 bushels
per acre year in and year out. Photograph by G. W. Ackerman, U. S. Department of
Agriculture.
TABLE VIII.
COST AND INCOME AS AFFECTED BY SIZE OF BUSINESS
Non-tractor farms-1921
Data from Wheat Cost SurveySherman county
Average
tillable
Percent re-
turn on
acres per
Cost per
Farm income
income
450
$1.10
3.5
1.08
1.03
1.03
$1930
3276
5252
7925
$ 231
651
509
1482
2492
7.4
farm
927
1311
bushel
Labor
investment
4.8
6.8
This conclusion is further supported by the fact that wheat farmers
in Eastern Oregon for economic reasons have been increasing the size
of their farms for the past thirty-five years as indicated by the figures
presented in Table IX.
24
0. A. C. EXTENSION BULLETIN 391
TABLE IX. AVERAGE NUMBER OF ACRES PER FARM BY COUNTIES
U. S. CENSUS
Year
1890
1900
1910
1920
1925
Sherman
400
550
799
887
1050
Gilliam
400
1005
1072
1560
Morrow
390
865
1098
1129
1350
Umatilla
Wasco
385
440
524
*457
*495
280
320
408
544
540
Jefferson
770
1175
*Umatilla county shows a decrease due to irrigation development.
C. PRODUCTIVE SIDE-LINES FOR THE
WHEAT RANCH
(See also page 45, Finance and Credit Group report, and paragraph
23 on page 31, Tillage and Production Group report.)
It is the belief of this committee that side-lines of sheep, hogs, poul-
try, and cattle are practical and profitable on those wheat farms where
Waste feeds are available, where there is land not suitable for wheat, and
where labor is available for handling the side-line. On farms where the
following particular conditions exist, the committee recommends the use
of side lines
1 Sheep.
Where scab land pasture is available and where it is practical to
pasture stubble and fallow.
Where it is practical to provide fence and water.
Where it will not interfere with the use of the better land for
wheat.
.4.
Where it is feasible to grow small areas of field-pea pasture for
fattening lambs and providing winter hay or pea straw for
the ewes.
Note: The department of Animal Husbandry, Oregon Agricultural College, adds the
following statement to the committee report :
"While it will be found practical to keep sheep under the above conditions, it
should be borne in mind that attention must be given to supplying sufficient feed the
year around. Keeping sheep on starvation rations during part of the year in order to
have them to utilize the stubble and the weeds on the fallow would be false economy.
Grain pasture should be provided sufficient to keep the flock in reasonably good condition. Wasco county farmers report that it cost $450.00 additional to fence a section and
provide a cross fence suitable to hold sheep on the wheat farm. They recommend a
39-inch woven wire fence with a barbed wire on top."
2. Hogs.
Where it is practical to pasture growing grain until jointing time
and stubble after harvest.
Where it is practical to provide fence and water.
Where pasture or cheap feed, such as field-peas, is available for
use between jointing stage of wheat and harvesting time.
Where hogs will not interfere with the use of the better land for
wheat production.
WHEAT GROWERS ECONOMIC CONFERENCE
25
3. Poultry.
Where suitable housing and equipment can be provided.
Where the farmer is in position to give the detailed attention
poultry require.
Where suitable green feed or substitutes can be provided.
Cattle.
1. Where sufficient pasture, feed, and water not required for workstock are available, cattle may be feasible.
Sufficient evidence was produced by wheat growers who are successfully handling these various side-lines to justify the conclusion that they
are profitable enterprises on wheat farms under the conditions listed
above. We do not yet know, however, to what extent wheat yields are
affected by pasturing growing wheat, and we call this point to the attention of the experiment station.
Fig. 6.
Hogs pasturing off peas at the Eastern Oregon Branch Experiment Station,
Union.
FARM FOOD SUPPLY
It is further recommended that under all conditions the farm should
produce sufficient garden, milk, eggs, and meat for home consumption
and in many instances for paying a considerable part of the store bill.
HORSES AND MULES
This committee finds that all information available shows that there
are about 25 percent fewer horses in the Columbia River district than
six years ago, and that a large percentage of the present horse supply
is getting old. We therefore recommend that the farmers of this district
raise enough colts to replace their present work-stock as needed.
This recommendation is made with the understanding that we do not
know of an available outside horse supply. We suggest some caution,
however, in the producing of a large surplus in the district as it will
likely be difficult to find an outside market.
26
0. A. C. EXTENSION BULLETIN 391
F. LABOR
It is the recommendation of this committee that the Eastern Oregon
Wheat Growers League call a meeting to adopt a uniform wage scale for
transient labor.
This committee commends the work of the United States Employment Service in the distribution of farm laborers and urges that this service continue at The Dalles and be extended to Arlington to serve the
farmers of Gilliam and Morrow counties.
Tillage and Production Group Report
Salient points-
The primary requisite of a successful farmer is that he be an efficient producer.
Page 26
"Yield per acre" often determines the success or failure of a farm- Page 28
ing enterprise.
A list of the most successful cultural practices, best varieties, rates
and dates of seeding as recommended by leading Eastern Ore- Page 28
gon wheat growers and the Moro Branch Experiment Station.
Typical wheat lands should not be devoted to extensive culture of Page 31
other crops.
A. IMPORTANCE OF EFFICIENT PRODUCTION
Problems of tillage and production may seem common and thorough-
ly understood since they consist of every-day activities of the farmer.
Information about improved farm practices and discoveries has been
freely broadcast in bulletins from the state experiment stations and
United States Department of Agriculture, by county agents, and by
farm organizations.
Farmers' problems have become increasingly complex. Information
about world agricultural conditions, marketing, supply and demand,
plots on Sherman County Branch ExperiFig. 7. View of spring-grown experimental
ment Station, Moro.
finance, transportation, and other subjects must now be made available.
The primary requisite of a successful farmer, however, is still that he be
an efficient producer.
If we may be pardoned for alluding to the price control which the
export wheat holds over the wheat consumed at home, it would seem
advisable that a decrease in the amount of total production be brought
If such decrease be necessary, we believe that it should be
brought about by a decrease in acreage devoted to wheat and not by
lower acre yields. In fact, our group has been striving to find ways of
obtaining the maximum acre yield at the most moderate cost.
about.
27
28
0. A. C. EXTENSION BULLETIN 391
The factor which so often determines the success or failure of a
farming enterprise is unit production, or in the case of wheat, acre yield.
An increase of a few bushels per acre in yield, without increasing production cost, will greatly reduce the cost per bushel.
We feel, therefore, that if the recommendations of this group will
lead us to an increase in acre yield, however slight, or if a saving of a
few cents per acre may be realized on operation costs without reducing
yield, then this conference shall have been worth while and shall have
repaid us abundantly.
From replies received from questionnaires sent to representative
farmers in the wheat growing districts of Eastern Oregon, and from
the deliberations of the Tillage and Production group of this conference,
we found a remarkable agreement among farmers in regard to most of
the essential tillage and production practices. Any exceptions will be
noted.
B. TILLAGE AND PRODUCTION RECOMMENDATIONS
After consideration of the information received from farmers, and
the results of experiment stations in Oregon and other states, the committee on Tillage and Production of this conference makes the following
recommendations.
1. Stubble should never be burned in the fall.
The stubble aids in
holding snow and in moisture absorption. The burning of stubble in
the spring should also be avoided whenever possible. The turning under
of any form of crop residues will, in the long run, likely prove profitable
because of the inherent lack of humus and nitrogen in Columbia Basin
dry-farm soils.
Disking stubble ground in the fall has a tendency to hinder moisture absorption and to reduce wheat yields. Where land is badly infested
with weeds that grow after harvest, fall plowing or fall disking may be
advisable.
Spring disking of stubble ground is always advisable if the ground
is to be plowed late. For early spring plowing, disking does not pay.
Wherever possible jointers should be used to turn under stubble more
completely and thereby cause less trouble in the clogging of implements
when cultivating the fallow ground.
Late plowing without previous disking reduces wheat yields.
Thorough spring disking on certain types of light soil may occasionally replace plowing, but for the majority of soils no tillage implement yet invented will take the place of the plow.
Plowing from five to eight inches deep with variations in depth
each time of plowing is recommended as the best farm practice. Plowing deeper than eight inches will rarely, if ever, prove profitable.
7. Packing after plowing does not materially affect the yield of
wheat grown after fallow. For spring plowing and sowing, thorough
packing is advisable.
Harrowing should be done within a week or ten days after plowing.
WHEAT GROWERS ECONOMIC CONFERENCE
29
Tillage tools best adapted for cultivating summer fallow are:
spike-tooth and spring-tooth harrows, and blade or rod weeders.
All weeds should be kept off the summer fallow. Weedy fallow
means lower wheat yields and poorer quality of wheat.
If the seed-bed is not smooth, the harrow should precede the
drill, even when sowing is done in dry ground, except on blow soils. In
moist ground harrowing just prior to drilling is recommended. Harrowing after sowing generally is not necessary or advisable unless weeds
have started.
are obtained after early
Fig. 8. Higher yields and better quality of winter wheat
row, representative plants of
Plowed and properly handled summer fallow. Upperwell
cultivated
fallow.
Turkey winter wheat grown on early plowed andlate spring plowedsummer
summer fallow.
Lower row, same variety sown on the same date on
Photographed April 25, 1921.
The best rate of sowing winter wheat is between 3 and 5 pecks
per acre. The rate should be varied according to moisture conditions,
time of sowing and condition of seed-bed and size of kernel. In Jefferson county and certain sections of Union county, thinner seeding is advised. Comparatively thin seeding is better for shallow soils.
30
0. A. C. EXTENSION BULLETIN 391
For most sections of Eastern Oregon, higher winter wheat yields
can be obtained from comparatively early sowing; i. e., from September
15 to October 15. There is no advantage in sowing early in dry ground.
Later seeding also may be advisable for shallow soils.
Winter wheat should be sown shallow, ordinarily one to two
inches. When sowing early, deeper seeding may be advisable. When
sowing late, always sow winter wheat shallow.
Fig. 9. Heads of Federation (left) and Hard Federation (right) spring wheats.
15. Winter wheat varieties recommended for general culture in Eastern Oregon are: Turkey, Hybrid 128, and Fortyfold. Caution should
be exercised in the planting of Federation in the fall because of its lack
of winter hardiness. Recommended spring wheat varieties are: Federation, Hard Federation, and Baart.
16. Spring wheat should always be sown early. The most profitable
rate for Federation is 3 to 5 pecks; for Hard Federation and )3aart 4 to 6
pecks. Thinner for Jefferson county.
WHEAT GROWERS ECONOMIC CONFERENCE
31
Use the same variety as the rest of the field for hay strips if
possible. Sow a white wheat if field is a white wheat; and a red wheat
if field is a red wheat.
The use of copper carbonate is strongly recommended for treating wheat for smut. Copper carbonate will not control smut in oats and
barley.
Always sow good, clean seed, free from weed seeds.
Grain certification work has been of value. It should be continued.
Weeds are a constant menace to the wheat grower and will conuse
tinue to grow more troublesome. Farmers are strongly advised to The
from weeds.
every possible precaution to keep summer fallow free
best time to kill weeds in when they are small. Fence rows and roadways should be kept clean.
For the control of morning glory, the application of salt is the
best remedy yet found for small patches. Carbon bisulfide is being
tried but definite results are not yet available. For larger areas, clean
cultivation is the most practical method of eradicating this noxious
weed.
The general or extensive culture of other crops on the typical
wheat lands of Eastern Oregon is not recommended. Under certain
conditions and in certain localities, field-peas and corn, to a limited
extent, may be profitable for farmers who keep livestock. In Union
county, and in some sections of Wasco and Umatilla counties, alfalfa,
sweet clover, corn, and peas are profitable crops. On limited areas in
Union and Umatilla counties, potatoes and beans are also profitable. We
strongly recommend the keeping of enough livestock and poultry on
every wheat farm to utilize advantageously all by-products, and to make
use of land not suited to profitable wheat production.
(See also Farm Management Group report and paragraph 4 on page
45, Finance and Credit Group report.)
Wheat Handling and Grading Group
Report
Salient pointsCriticism of State and Federal Inspection services found to be not
Page 32
justified.
Almost $1,500,000 lost in 51 years through freight charges on and
Page 33
handling of wheat dockage.
Protein tests should be requested by producers in some instances,
but this test should not be included as a grade factor in fixing
Page 34
United States wheat grades.
Producers should avail themselves of the opportunity open to them
in securing grades on samples of their wheat in advance of
Page 35
Wheat growers should take more active part in fixing discounts. Page 36
Canadian wheat producers have substantial freight rate advantage
Page 36
over United States growers.
Wheat and flour rates in Oregon are on a parity in order to ProPage 37
tect interior flour mills.
shipment.
Truck hauling is breaking into railroad wheat tonnage at some
Page 37
points.
Four-cent dealer differential in favor of sacked wheat evoked arguPage 38
ments pro and con.
From the producers' standpoint, Federal licensed warehouses have
some advantages over those carrying only an Oregon license,
but the wheat growers' interests are protected in well-managed
Page 38
warehouses licensed under state regulations.
1.
EFFICIENCY OF FEDERAL AND STATE GRAIN
INSPECTION
Because of reports emanating from various sources criticising the
efficiency of the State Grain Inspection Department and the Federal
grain supervision in Portland, the Wheat Handling and Grading Committee gathered considerable data and made a thorough investigation of
the charges. This investigation brought out the following material:
During the crop years 1920 to 1925 and the first half of the 1925-26
crop year, the Inspection Department has inspected incoming grain to
the amount of 167,225,823 bushels. Of this, 130,300,384 bushels were
sacked and 36,925,439 bushels bulk.
The inspection records show considerable fluctuation in the amount
of ordinary dockage, with a tendency toward increase in amount of
wheat with dockage during the past three years.
The number of inspections showing smut dockage has increased
through several years until the current season, when it has dropped to
about half that of former years. The smut dockage does not consist
wholly of smut, but consists in part of bran and brush scoured from the
kernels in the removal process. Mr. E. N. Bates, of the Grain Investigations Division of the United States Department of Agriculture, showed
32
WHEAT GROWERS ECONOMIC CONFERENCE
33
that successive handlings of wheat containing smut results in the smearing of smut over the kernels. This requires more thorough scouring for
removal. Because of this, wheat containing only smut balls may receive
but a slight smut dockage, while if extensively handled and again graded
more scouring may be necessary and, therefore, a greater smut dockage
is assessed.
The State Inspection Department presented figures showing that
during the past five years 24,914 tons by weight of smut dockage has
been shipped into Portland, and that 23,112 tons of ordinary dockage
have also been shipped. The transportation charges on this material,
if hauled from some point having a freight rate like that of Pendleton,
amount to $177,696. The handling charges on this amount of waste material are $16,809 and the smutting charges are calculated at current
rates to be $997,798. The ordinary dockage, often consisting of cobs,
other grain, wild oats and such material, is frequently used for feed purposes, and if valued at ten dollars per ton is worth during this time
$231,120.
This enormous sum lost to wheat growers, $1,423,423, may be substantially reduced by better threshing and cleaning at country points.
Tables I and II show the incoming cars inspected, the percentage of
different grades, the percent of inspections showing smut dockage, and
ordinary dockage.
TABLE I. INCOMING CARS INSPECTED
(Data compiled by the Grain Inspection department of State Market Agent's office)
Crop year
Total bushels inspected
1920-1921
1921-1922
1922-1923
1923-1924
1924-1925
First half 1925-1926
Totals
Bushels sacked
Bushels bulk
29,647,576
41,837,348
23,584,432
36,824,093
20,735,973
14,596,401
23,716,433
34,272,191
16,593,313
29,468,850
15,100,189
11,149,408
5,931,143
7,565,157
6,991,119
7,355,243
5,635,784
3,446,993
167,225,823
130,300,384
36,925,439
TABLE II. GRADES OF WHEAT RECEIVED AND DOCKAGE
(Data compiled by the Grain Inspection department of State Market Agent's office)
Percentage with
smut dockage and
ordinary dockage
Crop year
1920-1921
1921-1922
1922-1923
1923-1924
1924-1925
First half
1925-1926
Percentage of different grades on all wheat received
No. 1
No. 2
No. 3
17.6
29.7
34.0
20.0
38.3
48.4
41.2
46.5
38.4
19.0
40.5
28.0
19.1
19.7
30.4
17.0
'
31.4
28.0
No. 4
.
No. 5
Smut
Sample dockage
9.3
.6
1.7
.4
.5
2.4
1.2
.8
.6
.4
26.0
43.5
46.5
45.9
61.5
9.4
2.3
.8
29.1
9.0
2.1
6.8
1.5
'
.
3.0
Ordinary
dockage
-
55.2
34.8
40.9
30.0
31.2
45.4
Relative to charges of inefficiency on the part of inspectors, Mr.
B. W. Whitlock, chairman of the Federal Board of Review for the
Pacific Northwest, said that while he was not at liberty to present the
0. A. C. EXTENSION BULLETIN 391
34
individual records of efficiency of the various state inspectors, statistics
from the different large supervision districts showed the efficiency of
Oregon inspection to be the best in the United States; further, that the
total number of appeals from the placings of the inspectors was very
small and that but few arose in Oregon. Committee investigation and
thorough discussion brought out the fact that the State and Federal
inspection forces are cooperating in the development of efficient inspection. The Federal supervisors bring about the cancellation of the
licenses of inefficient inspectors. No inspector is in the employ of the
department who has had less than five years experience.
RECOMMENDATIONS
On motion of J. W. Shepard of Grass Valley, seconded by S. R.
Thompson of Pendleton, the committee by unanimous vote passed the
following:
Resolved, That we commend and express approval of the work of
the State Grain Inspection Department.
.
On motion of Fred E. Kiddie of Island City, seconded by H. B.
Davidhizar, of Joseph, and L. A. Young and J. M. King of Madras, the
following passed unanimously:
Resolved, That we heartily endorse the work of the Federal Grain
Supervision office in Portland.
2.
PROTEIN TESTING
Fred Krusow of Grass Valley called attention to protein testing as a
means of determining milling wheat values reporting that Hard Federation wheat tested 14.76 percent protein.
Protein testing is becoming an important factor in the marketing of
wheat for special milling purposes. The hard wheat sections producing
hard red winter wheat, hard red spring, and hard white are depending
more and more on the protein test to determine the milling quality of
wheat for bakers' flour purposes. High protein wheat showing from
121 to 131 percent in protein has during the current year frequently commanded a premium in the eastern markets of from two to over five cents
a bushel above the medium protein lots.
On the other hand, wheat for pastry and biscuit flour manufacture
requires a low protein and high starch content. The State Inspection
Department reported making protein tests to determine wheat of low
protein content for this type of flour.
Owing to the fact that the protein test is of a nature not suited to
general application by warehousemen, because under their conditions exceedingly variable results are secured, it was thought that the protein test is a special test to be made by experts. It is not practical for
all wheat, but suited only to the special milling lots. Owing to its variability, it is not practical as a grade factor. There is some agitation in
some sections of the middle west to make protein tests compulsory and
a definite factor in grading.
WHEAT GROWERS ECONOMIC CONFERENCE
35
RECOMMENDATIONS
On motion of Fred Krusow of Grass Valley, seconded by H. B.
Davidhizar of Joseph, the following was unanimously passed.
It is recommended that farmers send accurate samples of their
wheat to the State Inspection Department and secure a grade, and in
special cases a protein test, and that this information be used as the basis
for selling their wheat.
On motion of Sam R. Thompson of Pendleton, seconded by J. E.
McCormack of Pendleton, the following resolution was adopted:
We recommend that the protein test be considered as a special
test and that it be not included as a grade factor in the United States
grain grades.
GRADING OF SAMPLES IN ADVANCE OF SHIPMENT
In connection with the selling of grain, a number of points were
established that are of interest to the country-point shipper. The State
Inspection Department will grade samples sent in, and in this way the
grower or shipper may know in advance the grade of grain, if his sample
was carefully taken. Upon shipment of grain to Portland, if the inspection department is notified of the day of shipment and the car number, they will send by return mail, without charges, a postal card report
of the findings on the car. This allows the shipper to file an appeal in
time if he is dissatisfied with the grade established. His time for appeal
on interstate shipment is limited to 48 hours, but he may call for reinspection and appeal on interstate and intrastate shipment within 60 days.
RECOMMENDATION
Appeals should be filed just as promptly as possible, as a late appeal
must be based on the sample secured by the inspection department.
After the car has been unloaded, such an appeal is not so likely to be
satisfactory. Shippers should avail themselves of the facilities of the
inspection department and in this way avoid the slow return frequently
secured through the grain trade.
SCOURING AND WASHING FACILITIES AT PORTS
OF PORTLAND AND ASTORIA Facilities are available at Portland and Astoria and at the respective
ports for cleaning and conditioning and washing and scouring wheat.
Scouring gives a substantial increase in test weights. Washing smutty
wheat results in an increase in the moisture. Terminal rates for scouring and washing are somewhat less than those of private docks.
The costs of scouring and washing were very carefully studied by
E. N. Bates, grain investigator of the United States Department of Agriculture. It is his belief that the scouring and washing rates should be
the same and that the rates charged by the ports of Portland and Astoria
are satisfactory.
36
0. A. C. EXTENSION BULLETIN 391
The scourings from wheat consist of smut, wheat, bran and brush,
land-plaster or lime, and miscellaneous material. Scourings are being
used to some extent as commercial fertilizer. They should be used in
this way only on crops other than wheat and should be applied with
great care to avoid the smut spores affecting wheat fields that are likely
to be planted within a short time after the fertilizer application.
RECOMMENDATION
It is suggested that farmers carefully investigate the use of facilities
for cleaning and conditioning the grain at the ports of Astoria and Port-
land in order that they may determine whether to sell the grain on a
clean and graded basis or without conditioning and grading.
5. WHEAT DISCOUNTS
Wheat discounts as assessed by the grain dealers' association were in
some cases considered to be unfair. It was again brought out that wheat
can be sold without a discount loss if the grade is known, and, in the
case of some pinched wheat, the protein content is also known. The
same is sometimes true of certain kinds of dockage.
RECOMMENDATION
It is recommended that growers and interior warehousemen attempt
to confer with the dealers' organization and work out discounts on a
more equitable basis.
6. UNITED STATES AND CANADIAN FREIGHT RATES
(See also pages 60, 67, and 68, World Supply and Demand Group
report.)
Railroad rates were considered. Growers presented the failure of
freight rates to decline with farm price reduction. Mr. H. E. Lounsbury,
general freight agent of the 0. W. R. & N. Company, presented the
railroad's problems and point of view.
It was pointed out that the Canadian railroads carry wheat for much
longer distances for export purposes for a given rate than is true of the
American lines. Wheat from Edmonton, Alberta, is carried 835 miles to
Vancouver, B. C., at 21c per 100 pounds, while the rate from Condon,
Oregon, to Portland, 182 miles, is 221c. Wheat from Moosejaw, Saskatchewan, is hauled 1067 miles to Vancouver, B. C., for 25 cents per cwt.,
while the rate from Spokane to Portland, a distance of 468 miles, is 24
cents per cwt.
It was stated that the Canadian railways were given cash subsidies at
various times on an agreement to maintain low rates on certain commodities. It was reported that during the war the rates were raised,
but that since the war the railroads were required to resume the old
rates. In effect, the Canadian farmer is thus presented with a cash
bonus which is made up by increasing rates on other products and
through millions of dollars in appropriations from the Canadian treasury.
Rates on the American lines are the same for wheat for domestic
WHEAT GROWERS ECONOMIC CONFERENCE
37
and export purposes except from Montana west, while on the Canadian
lines the export rates are substantially below those on wheat for domestic use, thus making an effective subsidy on Canadian export wheat.
The rates on lines affecting the Northwest were raised twice during the
war, and have since been reduced to a limited extent. The Oregon
Public Service Commission has issued an order requiring "continuous
distance" rates applying to two or more lines. The effect of this rate,
if it is sustained, will result in substantial reductions on wheat and some
other agricultural commodities. The railroads have enjoined the commission from enforcing this ruling and the matter is now pending in
court. None of these reductions has been put into effect.
7. RELATION BETWEEN FLOUR FREIGHT RATES
AND INTERIOR MILLS
Discussion brought out the parity of rates on wheat and flour in
Oregon. In the eastern states a higher rate is secured on flour, the car-
riers being permitted to secure up to 12 percent more for flour than for
grain. Railroad representatives stated that the northwest roads have
maintained the same rates on wheat and flour to protect the milling
industry at interior points. Should a higher rate be charged on flour
than on wheat, coast mills would have such an advantage that interior
mills would be forced out of business. Owing to special privileges in
connection with grain, in some instances higher rates are charged than
for some other commodities involving less special service. In connection with the movement of grain, rates are established for milling, cleaning, or storage-in-transit privileges. Railroads must provide hold tracks
for inspection and diversion purposes and later rehandle the cars to the
respective unloading tracks. This sometimes requires as many as 36
additional engines on the 0. W. R. & N. tracks in Portland.
Different rates were proposed for bulk and sacked grain. It was
admitted that there is an advantage for bulk grain in loading and unloading time required. A better type of car, however, is required for
bulk grain service and more bulk cars are hauled back empty because
they are being restricted pretty much to bulk service.
8. EFFECT OF TRUCK HAULING ON BRANCH LINE
RAII,ROADS
Truck hauling in competition with branch lines has developed in
some sections. This affects carriers and branch line warehouses and
elevators. With continued high rates, this may develop trucking to the
Columbia and result in main line or boat shipment. This is being looked
into by the Port of Astoria. Truck hauling has become competitive at
some points where the branch line has a high rate or at some points
where there is considerable rate difference within a few miles, as from
some branch line point near a main line. If the Public Service Commis-
sion order requiring "continuous distance" rates is sustained by the
courts, the present advantages of truck hauling are likely to disappear
because of lower rates.
38
0. A. C. EXTENSION BULLETIN 391
9. SACKED WHEAT DIFFERENTIAL
Extensive discussion led by Mr. Sam R. Thompson, of Pendleton,
and participated in by a very large part of the committee, brought out
widely different opinions on the present four-cent dealer differential
against bulk grain and in favor of sacked grain. It was shown that the
handling, as evidenced by cost, unloading time, and published terminal
charges, is substantially less for the clean bulk grain and still less for
grain requiring cleaning, scouring or washing than for sacked grain
requiring similar treatment. A number of growers believe that the bulk
handling is substantially cheaper on the farm and that they are discriminated against in the case of the present sack differential. Other
growers using the sack system consider the used sack worth something.
A. B. Robertson, of Condon, reviewed the early development of the
grain shipping business in the Northwest, calling attention to the necessity for sack handling in the early days. He pointed out that the use of
sacks was not thrust on the Northwest by any group of people, but that
it was a matter of economic necessity at that time. He set forth the
idea that the used bag has some value and that there is an advantage in
the case of sacked grain where special piling is desired.
Advocates of the bulk handling system, including J. W. Shepard,
of Grass Valley, and A. G. Bornstedt, of Enterprise, both of whom are
elevator and warehouse managers, indicated that the grower whose
grain is properly graded into the elevator suffers no loss from mixing
with other grain and that he may in many cases store his grain separately in special bins, thus preserving its identity. Fear was expressed that
high protein wheat might lose its identity in bulk elevators, and the
farmer would not receive any advantage from it. This was disclaimed
by elevator men present and it was pointed out that in the sections now
generally using the protein test system all grain is handled in bulk and
much of it through rather small elevators. After much discussion, the
following motion by L. A. Young, of Madras, seconded by 0. E. Dyer,
of Mayville, was passed.
RECOMMENDATION
We recommend that the northwest grain dealers quote on "wheat"
and if they prefer wheat in bags that they state in their quotation the
premium on the bags.
10. FEDERAL VERSUS STATE LICENSING OF
WAREHOUSES
Considerable discussion took place on the merits of the warehouses
licensed under the Federal or the State Warehouse acts. Several warehousemen licensed under the Federal Warehouse Act expressed their
entire approval of the service secured, believing that the customer was
better protected and that the warehouse receipts were more generally
useful in securing credit.
A number of men licensed under the State Warehouse Act felt that
this act is satisfactory in operation, that it is more easily complied with,
and that no difficulty is experienced in securing loans on their ware-
WHEAT GROWERS ECONOMIC CONFERENCE
39
house receipts, especially when loans are made through local bankers.
The discussion may be generally summarized by the following:
Because of careful inspection of warehouse facilities and the
resources and experience of the warehouseman, the farmer is assured a
somewhat greater protection under the Federal act.
The frequent inspections on the part of the Federal warehouse
representatives assure the maintenance of an adequate quantity of grain
to cover all outstanding receipts.
The Federal Warehouse Act has an advantage over the State
act in that it applies to some commodities other than grain or hay.
In times of financial stress, the Federal warehouse receipts
would have a wider use.
On the other hand, the State warehouse regulations are considered easier to comply with and if the warehouses are managed with
any reasonable degree of efficiency the farmers' interests are protected.
(See also, pages 42 and 45, Finance and Credit Group report.)
Finance and Credit Group Report
Salient pointsThere are sufficient facilities to take care of the financial needs of
Page 45
the wheat grower.
2..
The possibility of utilizing the Intermediate Credit Act where
banks are unable to make loans on a competitive basis will be
Page 44
investigated.
Under present systems of financing, changes in warehouse regulaPage 45
tion are not necessary.
"Side-lines" are worthy of study by wheat farmers, but should be
Page 45
"grown into."
The need of wheat-producing districts is fewer and stronger banks
Page 45
rather than more.
Page 46
Extended credit for merchandise should not be granted.
Good care of farm buildings, equipment, and stock greatly im-
Page 46
proves financial rating.
Rather than increase land holdings in times of high wheat prices,
Page 46
a working capital should be built up.
A. DATA CONSIDERED AND SUMMARY OF
DISCUSSION
MORTGAGE SITUATION
The war period reached the peak of financial fluctuation in 1921.
During this period prices of agricultural products were good, land values
were doubled, credit was easy to obtain, and mortgages increased tre1.
mendously.
Along with this came increased costs of production and
rapid development of spending habits. Following 1921 came an almost
as rapid deflation with low land values, more difficult credit, and low
prices of agricultural products in comparison to costs of production,
which came down very slowly. In 1911 the mortgage indebtedness in
one of the best wheat counties amounted to $1,141,700 in 1911; today the
mortgage indebtedness of that same county is about two and one-half
times as great.
Table I does not show the real estate mortgages held by private
parties, insurance companies, or commercial banks, but represents probably 75 percent of the land indebtedness of the counties named.
TABLE I. MORTGAGE INDEBTEDNESS IN WHEAT GROWING COUNTIES'
County
Gilliam
Jefferson
Morrow
Sherman
Umatilla
Union
Wallowa
Wasco
Number
of loans
302
236
275
259
506
494
338
371
Delinquents
Amount
$1,549,054.10
437,980.22
1,293,959.57
1,937,627.50
2,716,131.58
2,058,690.88
1,357,331.91
1,661,262.75
16
32
17
4
18
16
42
23
Average
amount
of loan
$5,129.02
1,855.85
4,708.95
7,481.18
5,367.85
4,167.40
4,015.77
4,477.80
Percent of
bad loans
5.3
13.5
6.1
1.5
3.5
3.2
12.4
6.2
6.0 Av.
168
$4,682.43
2,781
$13,012,038.51
Totals
*Compiled during January, 1926, from data received from mortgage companies, joint
stock land banks, the state land board, and the Federal farm loan board.
40
41
WHEAT GROWERS ECONOMIC CONFERENCE
Many of the delinquencies named are located in the parts of the
counties where there is low rainfall and light or shallow soil. Table II,
prepared by the Federal farm loan board, shows the relation between
rainfall and delinquencies in representative Eastern Oregon counties.
A. F. Cardon, chief reviewing appraiser for the Federal farm loan
board, says: "Where the rainfall is fairly uniform year after year, even
though the average is low, success attends farming, so far as payments
on loans are indications. It appears that dry-farming in districts of less
than 12 inches of rain is hazardous from a loaning viewpoint. Especially
is this so when the rainfall is highly fluctuating year after year."
TABLE II. RELATION BETWEEN RAINFALL AND MORTGAGE
DELINQUENCIES
Loan associations
Average rainfall
Years covered by rainfall record
Years with rainfall under ten inches
Percentage of bad loans
A
12 inches
1909-1925
3 out of 17
None
B
121 inches
1909-1925
5 out of 17
7
c
10 inches
1903-1925
13 out of 23
-
20
Note: "Bad loans" are foreclosures and loans over 90 days delinquent.
That a large percentage of farms are mortgaged for a much higher
percent of the real value of the land than was the case ten years ago
is shown by the answers to a questionnaire sent out by the committee
requesting information concerning the financial conditions and financial
practices. In the five leading wheat growing counties, 78 percent of the
farms are mortgaged, the range being from 70 to 90 percent. They are
mortgaged for an average of 48 percent of the real value with a range of
from 38 to 58 percent in the various counties, and from 25 to 75 percent
in the various communities.
While the areas with higher and less fluctuating yields are entitled to
a higher percentage loan value, as a matter of fact land values in the
lighter rainfall districts have decreased so much since the inflated period
when the mortgages were made, that the percentage of mortgage loan
to farm valuation is about the same regardless of soil and climatic conditions.
The percentage of farms mortgaged in Union, Wallowa, Crook,
Wheeler, and Deschutes counties is lower than in the leading wheat
growing counties, but the percentage of delinquencies is higher.
The Federal farm land bank, joint stock land banks, and the state
land board hold approximately 70 percent of the real estate mortgages
in Eastern Oregon. The banks hold less than 10 percent.
2. OTHER CREDIT NEEDS
In Morrow, Umatilla, Sherman, Gilliam, and Wasco counties, 50
percent of the farms have mortgages on their outfits, averaging $3,100.
In the other counties, only 12 percent of the farmers have mortgaged
outfits with an average loan of $1,650.
42
0. A. C. EXTENSION BULLETIN 391
3.
RATE OF INTEREST.
The rate of interest on real estate mortgages is fairly uniform,
ranging from 5-1- percent to 8 percent. Short time loans draw from 8 to
10 percent. In 90 percent of the cases, 8 percent is the prevailing rate.
Approximately 43 percent of the farmers use wheat receipts for collateral
after harvest. Except in a very few cases, these wheat receipts draw S
percent interest. Most of the farmers operate on borrowed capital. On
the average 58 percent of the farmers are able to finance the seeding
without borrowing, 37 percent can get through their plowing and summer fallowing without borrowing, but only 18 percent are able to harvest
their crops without securing additional loans.
4. LICENSED WAREHOUSES
All grain warehouses in the state are required by law to be licensed
under the State Warehouse Act. This act provides for the bonding of
the warehousemen, states certain practices which they must follow, and
allows investigations of violations of the act. The Federal Warehouse
Act provides for bonding and inspection. Eight firms operating large
strings of warehouses throughout the state are licensed under the Federal act.
In response to the question submitted by the committee as to whether or not banks made any difference between Federal and state warehouse receipts when loans were made, all of the banks replied that no
difference was made. In the committee meeting, R. B. West, manager of
the Federal Reserve Bank at Portland, stated that they did not discrimi-
nate between Federal and state warehouse receipts in rediscounting
paper. He stated that they depended upon the endorsement of the local
bank as a means of determining the risk involved.
5. TRENE, OF INDEBTEDNESS
On the average throughout the district, the banks reported that during the past three years the real estate indebtedness had shown an increase. Seventy-five percent of the banks reported a slow decline in
current indebtedness; others reported no change. Only one bank reported any increase.
6. POOR RISKS
According to most of the banks, wheat farmers who are poor risks
are placed in this class chiefly because of the light or shallow soil and
low rainfall areas in which they are operating, but also in many cases on
account of the fact that they are not good farmers. A few banks stated
that some farmers were poor prospects because they had not curtailed
extravagant practices developed in the period of inflation.
SIDE-LINES
All except three of the banks questioned stated that the farmer who
had some other source of income than wheat was a better risk than the
straight wheat farmer. The opinion seemed to be quite general that
7.
WHEAT GROWERS ECONOMIC CONFERENCE
43
except where conditions made side-lines impractical a wheat farmer's
financial condition could be improved through securing an additional
source of income. Representatives of the Federal Farm Loan Board
stated that in 95 percent of the cases where a small farm-flock of sheep,
some poultry, or cows, were found they could depend on the farmers meeting their payments without asking to be carried over until after
harvest. It was pointed out that there would be much more diversification if it were not for the large percentage of leased farms.
LAND VALUATIONS
Land valuations have fluctuated somewhat according to the prices of
wheat. While in general land values are based on the earning power of
the land over a period of years, it was pointed out that it was impossible
to gauge land purely on its productive value. The community in which
the land is located was declared to be a considerable factor. Mr. Cardon
cited an example of six communities where soil and climatic conditions
were almost identical. In three of these communities the farm loan
associations had no delinquencies. In the other three they had quite a
8.
number.
Community pride and clan spirit played quite an important
part in the communities where credit was good.
9. CREDIT AND CARE OF EQUIPMENT
Asa B. Thompson, director of the Federal Farm Land Bank of
Spokane, pointed out that when a Federal appraiser goes onto a farm the
first thing he looks at is the care given to buildings and equipment. The
impression which he receives is reflected in his report and the amount
of the loan influenced thereby. In the discussion which followed, it was
generally agreed that poor care of equipment often hindered the granting
of loans.
10. NEED FOR ADDITIONAL FINANCIAL FACILITIES
SUCH AS THE INTERMEDIATE CREDIT BANK
The need for additional financial facilities is covered largely by the
statement concerning the Intermediate Credit Bank and the resolution
made a part of this report. It was generally agreed that wheat farmers
should secure loans on their wheat receipts at the same rate of interest
that any one else might obtain loans on the same security.
11. INTERMEDIATE CREDIT ACT
The Agricultural Credits Act of 1923 created the system of Federal
Intermediate Credit banks for the purpose of loaning money at a lower
rate of interest and on longer time for the production and marketing of
agricultural products and livestock.
The Federal Intermediate Credit bank of Spokane has demonstrated
its usefulness in aiding the cattlemen, wool growers, and those engaged
in other lines of agriculture, but has never been used in this district by
the wheat growers.
44
0. A. C. EXTENSION BULLETIN 391
The act provides that money may be obtained from the Intermediate
Credit Bank in three ways:
Direct loans to cooperative associations handling staple agricultural commodities.
Discounts through local banks.
By forming local agricultural credit corporations or livestock loan
companies.
The formation of a cooperative association seems impractical at this
time.
The second of these is of little interest to wheat growers as it is
concerned only with banks, most of which are already well served by
the Federal Reserve Bank.
Farmers, however, are interested in this feature: that banks cannot
rediscount farmers' paper with the Intermediate Credit Act if such paper
bears more than 11 to 21-, percent above the rate of the Federal Intermediate Credit Bank.
Farmers have the third method open to them, that of forming a lo-
cal credit corporation, but the full benefits of this plan cannot be secured for wheat growers unless changes are made in the administration
whereby loans can be made on growing crops instead of on warehouse
receipts only, as is now the case.
Briefly the following provisions are made for the formation of a
local credit corporation,
A group of individuals subscribing a minimum of $10,000 capital
stock may organize a corporation.
This corporation can then secure funds from the Intermediate
Credit Bank on certain types of paper.
Funds are obtained by the bank by selling secured debentures but
when reloaned through credit corporations cannot bear an interest rate
in 'excess of 1 percent above the rate at which the debentures are sold.
The corporation must reloan to the farmer at a rate not in excess
of 1A- to 2 percent above the rate of the Federal Intermediate Credit
Bank. The rate charged may be just high enough to cover the cost of
operation if it is desired to operate such a corporation on a non-profit
basis.
B. RECOMMENDATIONS
1. Wheat growers should be enabled to utilize intermediate credit bank.
"WHEREAS, The Agricultural Credits Act of 1923 created the system of
Federal Intermediate Credit banks for the purpose of rendering financial
assistance to agricultural interests; and
"WHEREAS, The Federal Intermediate Credit Bank has demonstrated its
usefulness in aiding the stockmen, wool growers, and those engaged in other
lines of agriculture; and believing that the wheat growers should avail them-
selves of the facilities of this bank where equal rates are not otherwise
obtainable; therefore, be it
WHEAT GROWERS ECONOMIC CONFERENCE
45
"Resolved, That this conference appoint a committee to develop a plan to
present to the Federal Intermediate Credit Bank whereby the wheat growers
will be in a position to avail themselves of the facilities this bank can offer."
The above resolution was prepared by a special committee consisting
of 0. G. Sayrs, Moro; Roy Ritner, Pendleton; and W. B. Tucker, Prineville. It was unanimously adopted.*
Larger banking institutions needed.
"In the past we have had a number of small banks with a heavy
overhead and with restricted service. Believing it to be for the best interest of the agricultural communities to have fewer banks with larger
resources, therefore, be it
"Recommended, That this conference go on rec rd as approving a policy
encouraging larger institutions that will confine themselves strictly to
commercial banking, thereby creating a more lik1uid condition for the
benefit and protection of depositors."
The above resolution was proposed by special committee consisting
of 0. G. Sayrs, Roy Ritner, W. B. Tucker. Adopted unanimously.
In the discussion which followed, it was agreed that there were too
many financial agencies functioning in the wheat-producing sections.
-
It was agreed that the Federal Farm Loan Bank, the Joint Stock
Land Bank, and the State Land Board, together with other agencies, are
fully taking care of the real estate mortgages on farms. It is recommended that wherever possible the farmers should avail themselves of
the facilities offered by the above-named agencies.
Federal licenses not a necessity for state licensed warehouses.
"In view of the fact that bankers and loan companies are accepting
warehouse receipts for grain stored in state licensed warehouses as collateral security, we deem it unnecessary for warehousemen to obtain
Federal licenses. Therefore, be it
"Resolved, That we go on record as being friendly to the United States
Warehouse Act as it now stands, it being optional with warehousemen
whether or not they wish to obtain Federal licenses and operate as Federal bonded warehouses. We further recommend that state warehouse
operators study the Federal Warehouse Act."
Grow into side-lines.
We recommend that side-lines of all kinds be studied and grown
but we do not recommend immediately transforming wheat
into,
lands into pastures and purchasing flocks of sheep or dairy cows,
poultry, and hogs. It is the belief and recommendation of this commit-
tee that one or the other of these lines, and in many instances more
than one of them, might become profitable in the operation of nearly all
of the farms in the territory covered by this conference.
In accordance with this resolution, the Eastern Oregon Wheat League, formed at
the conclusion of the conference, appointed such a committee, which, as this is printed,
is investigating the possibility of organizing a credit corporation for the purpose of
securing money for wheat growers through the Intermediate Credit Bank. This committee is composed of the following : Sam Thompson, Pendleton, chairman ; ; J. Hill,
Pendleton ; A. B. Robertson, Condon; F. B. Ingels, Dufur.
0. A. C. EXTENSION BULLETIN 391
46
(Also see page 24, Farm Management Group -report, and page 31,
Tillage and Production Group report.)
Thirty days logical limit for credit on goods purchased*
The question was asked and discussed pretty generally as to the
advisability of farmers asking for and being extended credit for merchandise. It was definitely recommended by this group that it would be
beneficial if credit were not extended and that none of the farmers attempt to purchase goods upon terms exceeding 30 days.
Care of buildings, equipment, and stock.
It is recommended that farm equipment, buildings, and stock should
be taken care of in a manner which will extend their life over as long a
period as possible in order to maintain the loan value of the farm and to
reduce costs of production.
We recommend that so far as possible communities have a clean-up
day or clean-up period and that each district give special attention to
the disposal of worn-out and obsolete machinery and other abandoned
material, the wooden parts of them being torn down and burned and the
iron castings and other- materials centralized and sold for junk where no
other profitable disposition is possible. Neatness of the farm buildings
and surroundings is a credit asset.
Purchasing additional land.
Before purchasing additional land careful consideration should be
.given to the effect that it might have upon present holdings. Sometimes
it is more profitable to have a good neighbor than it is to acquire additional holdings. Farmers should especially guard against making pur-
chases in times when the prices of grains are higher than the ten-year
average. It was pointed out by the various agencies who loan money
that community interest was sometimes -more valuable than the return
from an individual tract.
Creation of sinking funds,
We recommend that farmers generally give serious thought to the
advisability of creating a sinking fund to take care of the lean years
rather than purchasing farms with what they might term surplus. In
other words, we believe it advisable for farmers when they have good
years to invest money in some good liquid securities rather than to be
continually adding to their holdings..
Note: Recommendations three to eight inclusive were made by a
sub-committee consisting of A. G. Bornstedt, Enterprise; S. R. Thompson, Pendleton; W. H. Ragsdale, Moro. Their report as unanimously
adopted.
World Supply and Demand Group
Report
Salient points1.
-2.
North America is the leading exporter and Europe the leading imPage 48
porter of wheat.
Combined exports from Canada, Australia, and Argentina have inPage 49
creased very rapidly since 1909.
Foreign exports of wheat and flour from the Pacific Northwest have
about doubled since 1909. Flour exports from Vancouver, B. C., in
1925 were eight times greater than in 1921, and wheat exports
from that port jumped in that period from 1,250,000 bushels to
Page 58
33,400,000 bushels.
The world acreage and total bushels of wheat can be trebled if need
Page 50
be.
Economic conditions governing expansion of wheat production have
been more favorable in other leading export nations than in the
United States. Alberta, Canada, is developing large Pacific Coast
export business in competition with Pacific Northwest states.
Pages 51 and 52
Cost of producing a bushel of wheat is lower in Alberta, Canada, than
Page 53
in the Pacific Northwest.
Canadian growers have a distinct advantage over Northwest producers
in freight rates on export wheat and on wheat moving eastward for
Page 60
domestic markets.
Page 60
Ocean rates from Pacific Coast ports are relatively high.
Foreign Trade tonnage of Portland is unbalanced as compared with
Page 61
New York City, for instance.
Hard Red Winter wheat is the leading export wheat in the United
Page 56
States, while Canada exports mostly Hard Red Spring wheat.
Page 54
The Pacific Northwest produces mostly white wheat.
Page 56
Oregon's wheat crop grades relatively high.
Estimates indicate that the wheat-eating population of the world will
Page 63
double in the next 75 years.
Demand for hard wheats is increasing. Good quality wheats of low
protein content also are in demand. Semi-hard and semi-soft
wheats are at a disadvantage. Growers should specialize on classPage 64
es of wheat in greatest prospective demand.
Reclamation projects provide a domestic market for at least two
Page 64
bushels for each peerson who lives on them.
Page 66
Flour milling in the Northwest should be encouraged.
Other factors influencing demand for Northwest wheat are: advertising, population shifts, use of flour for biscuits, the tariff, use
Pages 65, 66, 67
as feed for livestock, wheat substitutes.
Wheat quotations should be on a uniform basis throughout the country. To that end, Pacific Coast wheat should be quoted on basis
Page 68
of No. 2 bulk wheat.
47
0. A. C. EXTENSION BULLETIN 391
48
A. THE WORLD SITUATION AS TO PRODUCTION AND
USE OF WHEAT
North America is the leading exporter and Europe the leading importer of wheat.
The approximate world supply and demand for wheat under present
conditions is set forth roughly in round numbers in Table I. It will be
noted that surpluses are produced in North America, South America, and
Oceanica, and these surpluses are consumed in Europe, Asia, and Africa
NET WHEAT IMPORTS.
1910-1914 AND 1922-24.
COUNTRY
MILLIONS OF BUSHELS.
50
100
I
I
110
200.
I
215.
UNITED
KINGDOM.
205.
68,5.
GERMANY
47
FRANCE.
43.
Legend
35.
5Year Average. 19/0-/4.
3 Yea r Average 1922-24,
22.
NETHERLANDS,.=
22.
53
ITALY
90
.51
BELGIUM
38.
A C E./ens,en
Fig. 10.
...,... ,,,.. as ...,./44,--,,,, ....- ....<
Although the leading wheat exporting countries, aside from Russia, are
increasing the quan ities of their exports as compared with pre-war years, the main
wheat importing countries are using less wheat than before the war.
49
WHEAT GROWERS ECONOMIC CONFERENCE,
TABLE I. ROUGH TABULATION OF PRODUCTION, NET IMPORTS OR EXPORTS, TOTAL CONSUMPTION AND PER CAPITA CONSUMPTION
OF WHEAT IN SIX WORLD DIVISIONS*
Production
(Millions of
bushels)
North America
Europe
Asia
Africa
South America
Oceanica
1,200
1,700
1,000
100
250
-135
Net
exports
Net
imports
(Mil-
Con-
sumption
(Mil-
(Mil-
lions of
lions of
bushels)
bushels)
'
,
lions of
bushels)
400
550
35
800
2,250
1,035
115
135
50
15
115
85
Population
(Millions)
1
Per capita consumption
(bushels)
140
475
921
140
65
9
5.6
4.7
1.1
.8
2.
5.5
4,385
600
4,385
1,750
25
600
*Compiled from data furnished mostly by the Bureau of Agricultural Economics of
the United States Department of Agriculture.
WHEAT EXPORTS FROM
THE LEADING EXPORTING NATIONS.
Averages for 1900-04, 1909-13, 1921-24
Legend.
U.S, 'Wheel!' Exhorts.
nad Ian
ISM Argentina.
= Au sl- ra L n
245,829,000
204,946.00
16.3.7oi.o oo
2056,000
1900 -'04.'
0
104. 047 coo
1909-13.
1921-24.
Exte,s/on Scewce
Fig. 11.
There has been a steady increase in the combined exports from Canada
Argentina, and Australia.
0. A. C. EXTENSION BULLETIN 391
50
B. WORLD SUPPLY OF WHEAT AND RELATED
FACTORS
1. WORLD PRODUCTION OF WHEAT
The world is physically capable of producing for a long time to
come all of the wheat for which there will be demand. This is shown
in Table II, which outlines roughly the potential wheat production of
the world as limited by (1) Nature, (2) Good farming practices. It will
be noted that the acreage of wheat apparently can be trebled when the
demand comes for it.
TABLE II. AVAILABLE WHEAT LAND IN THE WORLD"
Square miles of land
Factors limiting wheat production
Total land area of the earth
1. Land area of earth, excluding polar continents
2. Less 11,000,000 sq. mi. with unfavorable temperatures
3. Less 30,000,000 sq. mi. with unfavorable moisture conditions
4. Less 4,000,000 sq. mi., account unfavorable topography
5. Less 1,500,000 sq. mi., account unfavorable soil
57,000,000
52,000,000
41,000,000
11,000,000
7,000,000
5,000,000
1,500,000
500,000
6. Less 70% to 75% account good farming practices
7. Approximate present world wheat area
"Estimated roughly from data published in "Economic Geography," by E. 0. Baker,
of the United States Bureau of Agricultural Economics.
To illustrate the trend in wheat production and the potential production in bushels, Table III has been prepared. The figures in this
table are rounded approximations, determined after consideration of data
from various sources. Potential production means the greatest possible
production to be expected in the future with a proper balance between
wheat and other products. The potential production estimated in the
table could not under any circumstances be brought about in less than
two or three generations.
TABLE III. PRODUCTION OF WHEAT BY WORLD DIVISIONSPRE-WAR,
POST-WAR AND POTENTIALROUGHLY ESTIMATED TO ILLUSTRATE TRENDS AND POSSIBILITIES
Pre-war
Current"
bushels
Potential
bushels
-
bushels
900,000,000
1,325,000,000
900,000,000
100,000,000
175,000,000
100,000,000
1,200,000,000
1,700,000,000
1,000,000,000
100,000,000
250,000,000
135,000,000
3,000,000,000
3,500,000,000
3,000,000,000
800,000,000
1,300,000,000
400,000,000
Totals
3,500,000,000
4,385,000,000
12,000,000,000
North America
Europe
Asia
Africa
South America
Oceanica
*Current production, as used in this report, is an estimate of 1925 production, with
abnormality in yields eliminated through consideration of yields and acreages in other
recent years.
Apparently all divisions of the world have potential wheat land far
in excess of that now devoted to the crop. It follows therefore that
expansion of wheat acreage will keep pace with demand. Where this
expansion will take place first, however, depends upon economic factors.
51
WHEAT GROWERS ECONOMIC CONFERENCE
From a world supply standpoint it may be enlightening to set forth
those countries where economic factors have been sufficiently favorable
to bring wheat lands into production to meet world demands in the
past. These countries are listed in Table IV.
ACREAGE OF WHEAT IN LEADING PRODUCING COUNTRIES.
FOR 'YEARS 1909 - 192.5.
Year 'Oct
2
,i
'
1
'/1
'12
'14
'16
'1$
'17
'18
11
'70
'21
'22
',.
vim
somm--,lems
'24
vm
,.,
Innem_rameammail
54
11111Malre321111111111
4.
'
in
30
2:
in
As
,
ill
MO.
MINSMIIIMPII
WIC/a
IIM
MI
11111111112011
EMI Emu
ME
01
111711111111111
111111111EWArMirli
MEENNIIIIMINEMISTill ZZEilii
iiiiIIPLASEN
MMINIE
- --BilirdillEMENIE
NMI
ratiMIWNITM47-
IIMPRIMMIN
-Eli
Fig. 12. A steady increase in the Canadian acreage and the violent fluctuations in the
United States acreage are the outstanding features of this figure.
TABLE IV. PRE-WAR AND CURRENT WHEAT PRODUCTION AND EXPORTS AND POTENTIAL PRODUCTION OF COUNTRIES PROVIDING WHEAT FOR INTER-WORLD DIVISION COMMERCE
Figures are rounded approximations from data from various sources.
Pre war
ProducNet extion
port
(Millions
(Millions
of bushels)
of bushels)
United States
Canada
Argentine
Australia
Totals
690
197
147
90
1,124
103
95
95
49
343
Current
ProducNet extion
port
(Millions
(Millions
of bushels) of bushels)
800
390
215
126
1,531
Potential
production
(Millions
of bushels)
200
250
130
90
670
1,250
1,300
1,150
430
4,130
About 50 percent of the increased world production has been in Canada.
To indicate further the effect of economic conditions on the production of wheat in four countries which compete in supplying the world's
deficit divisions, Table V shows the approximate number of acres sown
to wheat, pre-war, in 1921, and the approximate current seedings. Apparently, conditions have been more favorable in the competing countries than in the United States.
0. A. C. EXTENSION BULLETIN 391
52
ACRES SOWN TO WHEAT IN PRINCIPAL COUNTRIES WHICH
SUPPLY THE DEFICIT WORLD DIVISION WITH WHEAT
TABLE V.
PRE-WAR, 1921, AND CURRENT
Pre-war
Current
1921
acres
acres
acres
United States
47,097,000
9,945,000
16,051,000
7,603,000
63,696,000
23,261,000
15,014.000
9,072,000
52,000,000
22,000,000
18,000,000
10,000,000
Totals
80,696,000
111,043,000
102,000,000
Canada
Argentine
Australia
WHEAT PRODUCTION IN THE NORTHWEST
ACRES HARVESTED IN OREGON,WASHINGTON AND IDAHO.
1913 - 1925.
ACRES.
4500
4.000
3.500
A
11/11/1.
Ur
OAH
r '71
EOM
3.000
IIII
2500
2,000
IS0 0
moo
SOO
11.111111VRA70.all
. 7.5.- S
IMIIPPPN \ MK
\ ASHINGTON
r,NNN1
\'IN'INNNN&"\NINN
\ \ \ \ .\ \ \N'N'NN.N
\ \M
, "6NEa
.N.
& \1 6,.\_
1 N
NM
\k
k N.
N
.
.
'Si
....
YEAR 1913
4
'16
't
19
'20
'2
22
'23
'24
1925.
Fig. 13. The drop in production in 1924 was due to a very dry year. Expansion
of the Northwest wheat acreage, due to the influence of the World War, is noted be-
tween the years 1918 and 1922.
Inasmuch as the Pacific Northwest forms a production and export
unit more or less independent of the rest of the United States it is en-
lightening to compare the acreage of wheat in Oregon, Washington, and
Idaho,pre-war, in 1921, and current, against the United States as a
whole and against Alberta, Canada, to illustrate the relation of economic
conditions elsewhere on the growing of wheat in the Pacific Northwest.
It will be noted that expansion and contraction of wheat acreage in the
53.
WHEAT GROWERS ECONOMIC CONFERENCE
Pacific Northwest has been about proportionate to the whole of the
United States, but Alberta expanded much more rapidly and has continued to plant a large acreage.
TABLE VI.
ACRES SOWN TO WHEAT IN PACIFIC NORTHWEST, THE
UNITED STATES, AND IN ALBERTA, PRE-WAR, 1921, AND CURRENT
Pacific Northwest
United States .
Alberta
Pre-war
1921
acres
acres
3,462,000
'47,097,000
1,201,000
Current
acres
4,000,000
52,000,000
5,500,000
4,755,000
63,696,000
5,123,000
2. COST OF GROWING WHEAT
Reliable figures on cost of growing wheat in competitive countries
are not available. If it is conceded that Alberta, Canada, represents the
most important competitor of the Pacific Northwest in the world markets, and that the exporting soft red winter states are the chief competitors in the United States domestic market, some comparison of cost of
growing wheat can be made from the summary in Table VII.
TABLE VII.* APPROXIMATE AVERAGE COST OF GROWING WHEAT FOR
THE YEAR 1923 IN THE PACIFIC NORTHWEST, ALBERTA, CANADA,
AND OUT-OF-STATE-SHIPPING SOFT RED WINTER WHEAT STATES
,Cost per acre, Average ,Cost per bushel,
Without
interest
on land
With interest
on land
yield
per
acre
Without
interest
on land
With in.
terest
on land
$0.67
.52
$1.02
bushels
Pacific Northwest
(Idaho, Oregon, Washington)._
Alberta, Canada
Soft Red Winter states (Missouri,
$27.50
18.64
$18.00
14.55
27
29
.66
1.17
.87
15.7
18.50
13.65
Indiana, Kansas, Oklahoma)._
"Compiled from figures published by the United States Tariff Commission and the
United States Department of Agriculture.
The yields of wheat in the producing districts compared in Table
VII were somewhat higher in 1923 than the average for the ten-year
period 19/2-/921. When these' average yields are used, together with the
identical acre costs used in Table VII, the production cost per bushel is
more nearly equal in the three districts. This is shown in Table VIII.
TABLE VIII
Pacific Northwest
Alberta, Canada
Soft Red Winter states
Cost per
Cost per
acre without
interest
average
yield
$18.00
bushels
21.1
17.5
14.5
14.55
13.65
1912-21
bushel -
exclusive
of interest
$0.85'
.83
.94
To make the figures abo-ve strictly comparable (so far as that may be
possible), it would be necessary to make allowance for a somewhat reduced acre cost due to lowering the yield figures for each district. It is
0. A. C. EXTENSION BULLETIN 391
54
not certain, however, that Alberta is not inclining toward higher average
yields.
Thus it may not be far from correct to estimate the Pacific
Northwest and Alberta cost at from 75 to 80 cents per bushel without
interest and out-of-state-shipping states growing soft red winter wheat
about 90 cents. When interest on land is allowed it becomes necessary
to add about 20 cents per bushel for Alberta, 45 cents in the Pacific
Northwest, and 35 cents in the soft red winter surplus states. If rentals
are substituted for interest, the land charge will ordinarily be considerably less.
3.
PRODUCTION OF WHEAT BY CLASSES, GRADES AND
QUALITY IN THE UNITED STATES, THE PACIFIC NORTHWEST AND COMPETITIVE COUNTRIES
The production of wheat in the United States for the past six years
by classes is set forth in Table IX.
TABLE IX..
ESTIMATED PRODUCTION OF WHEAT BY CLASSES IN THE
U. S. FOR THE YEARS 1920 TO 1925 INCLUSIVE
Soft Red
Winter
247,300
237,393
247,882
271,631
236,754
188,806
1920
1921
1922
1923
1924
1925
(Thousands of bushels)
Hard
Hard Red
Spring
Winter
Durum
White
138,993
131,075
169,615
126,876
191,441
141,093
52,180
56,974
90,817
55,255
73,601
74,148
91,207
99,413
79,325
101,767
57,353
71,922
302,447
290,053
279,957
241,852
313,524
190,535
The data for estimating the production of wheat by classes were taken from various
sources.
The estimated production for 1920 to 1923 inclusive was taken from the
October 26, 1925, issue of Foreign Crops and Markets. The data showing the production
for 1924 and 1925 were obtained as follows : The estimated production of all wheat by
states for these years was taken from the December, 1925, issue of Crops and Markets.
To these data were applied the percentages of total production of wheat by classes, reported
by the Bureau of Crop Estimates for the year 1923, and published in Crops and Markets
for April, 1925.
TABLE X. THE APPROXIMATE PRODUCTION OF WHEAT BY CLASSES IN
THE PACIFIC NORTHWEST
(Thousands of bushels).
White
Soft Red
Hard Red
Hard Red
Year
Spring
Winter
Winter
Wheat
Mixed
Total
1920
1921
1922
1923
1924
10,842
5,409
4,366
7,561
3,771
14,018
22,484
13,624
30,952
11,369
5,907
9,969
5,570
13,586
8,227
41,526
15,870
15,590
8,731
11,577
4,856
88,165
106,058
75,271
118,137
57,132
52,605
42,980
54,461
28,909
The above figures were calculated from total production multiplied by the percentage of each grade as inspected for the respective years. It is probable that the figures
cover some wheat shipped from other states, of which Montana Hard Red Spring is
probably an example.
The production of wheat by classes in foreign countries is not available in detail. Some light is shed on the subject in the statements below
taken from the United States Department of Commerce Trade Information Bulletin No. 210.
55
WHEAT GROWERS ECONOMIC CONFERENCE
European wheat generally soft; S. E. Europe semi-hard.
Russian export wheat mostly hardfrom dry regions; same strain
as Turkey Red and Kanred. Durum exported also.
IndiaSoft White Winter, comparable with Pacific Coast wheat.
AustraliaSoftnot as white as India's; semi-hard some years and
usually quite dry and sells accordingly.
Canadadark, hard. Mostly hard red spring of very fine quality.
Argentinevaries; mostly semi-hard; comparable with Europe's and
our semi-hard.
PERCENTAGE OF NATION'S WHEAT BY CLASSES
PRODUCED ON THE PACIFIC COAST
Variety of wheat
10
WHITE
Et2
20
Percentage oi Wheat
70
3o
40
.50
40
Too
qo
34%
HARD RED SPRING
HARD RED WINTER
SOFT RED WINTER
2s%
1%
Legend
Percentage Produced by Oregon.
Wasiaington
Ez=
04 r
Fig. 14.
CanIornka.
All other Stoles.
L..,
IvIce
s
/
The Pacific Coast, it will be noted, is a factor only in the production of
white wheat.
0. A. C.
56
EXTENSION BULLETIN 391
The percentage of each grade of wheat for all classes, both spring
and winter, in Oregon, Washington, Idaho and the United States is set
forth in Table XI.
CLASSIFICATION OF WHEAT BY GRADES-AVERAGE FOR
TABLE XI.
FIVE YEARS, 1920-24
Grade Nos.
1
Oregon
Washington
Idaho
United States
....
42.9
24.7
35.7
27.3
2
3
4
5
Below 5
37.8
40.5
45.3
33.9
13.4
23.1
13.8
20.4
4.1
8.1
2.9
10.2
1.2
.6
1.2
2.1
1.1
4.9
1.1
3.4
4. DISTRIBUTION AND MARKETING OF WHEAT
Something of the trend of export in the United States and competing
countries is shown in Table XII. The 1924-25 figures reflect a high yield
in the United States for the crop of 1924.
TABLE XII.
NET EXPORT OF WHEAT, INCLUDING FLOUR, PRE-WAR,
POST-WAR, AND CURRENT, IN MILLIONS OF BUSHELS
United States
-
Canada
Australia
India
Argentine
Russia
Danube country
1909-14
1920-24
1924-25
108.5
218.6
95.6
244.1
55.1
84.8
253.7
192.1
123.6
38.2
123.0
9.4
23.1
49.8
84.7
164.5
109.0
12.5
123.3
negligible
18.6
The approximate average annual exports of wheat from the United
States from July 1, 1920 to June 30, 1925 are given in Table XIII.
TABLE XIII. APPROXIMATE AVERAGE ANNUAL WHEAT EXPORTS FROM
UNITED STATES, 1920-1925
Class
Millions of bushels
Hard Red Spring
Durum
Hard Red Winter
Soft Red Winter
8.7
84.7
21.7
Mixed*
10.6
47.0
Pacific White
Total
13.4
180.1
Percent of total
7.1
4.6
46.7
11.4
5.5
24.7
--
100.0
'Hard Red Winter, Soft Red Winter, and Durum make up the bulk of mixed whet..
Exports of wheat for the five-year period, July 1, 1920 to June 30,
1925, for leading ports of the United States, by classes, are shown in
'fable XIV. The figures are compiled from data furnished by the Div,
sion of Statistical and Historical Research of the Federal Bureau of
Agricultural Economics and are based on inspection-for-export data.
57
WHEAT GROWERS ECONOMIC CONFERENCE
TABLE. XIV. WHEAT EXPORTS FROM LEADING UNITED STATES PORTS
Average Yearly Shipments in Thousands of Bushels-July 1, 1920 to June SO. 1925
Hard Red
Ports
Durum
Spring
Portland, Me.
Boston
New York
Philadelphia
Baltimore
Newport News
Norfolk
New Orleans
291
66
33
75
16
1,165
1,162
320
342
2,511
1,067
2,051
160
30
55
75
73
114
Galveston
203
Seattle
Tacoma
Astoria
Winter
2,065
3,282
202
5
Texas City
Port Arthur, Tex,
Portland, Ore.
Hard Red Soft Red
121
34
14
San Francisco
Winter
White
Mixed
8
4,646
2,505
1,071
221
136
11
138
1,338
2,003
4,424
36
42
2,492
376
26,393
29,327
3,588
2,530
2,438
302
3
5
622
707
11,734
10,041
8,074
164
25
118
5,187
5,003
54
82
19
7,185
767
655
96
29
1,252
588
122
20
122
82
All
classes
3
11,219
1,087
1,290
198
345
509
32,637
34,725
3,642
2,530
22,277
2,865
2,221
410
378
PERCENTAGE OF WHEAT CROP EXPORTED.
UNITED STATES AND PACIFIC NORTHWEST
BY THREE YEAR PERIODS 1890-1923.
70%
60.
50.
.
40.
30.
--...
..,. ----°- --\
\
\
20
\
\
er--
Legend
_-...._
10.
%
of
\so'z /
//
i
/
/
.
__o
.\
245N
\ \\\
U.S. Crop Exporred.
Pacific Northwest Crop Exported.
0A
1890-92
Fig. 15.
189C-98
1902-04
1908-10
1914-17
1921-23.
Domestic trade is of less importance in the marketing of Pacific Northwes
wheat than in the marketing of wheat produced in other parts of the United States
0. A. C. EXTENSION BULLETIN 391
58
The trend of shipment of wheat and flour out of the Pacific North-
west by water is shown in Table XV. The figures represent yearly
averages for the respective periods. The year July 1, 1923 to June 30,
1924 is also shown.
TABLE XV. TREND OF SHIPMENT OF WHEAT AND FLOUR BY WATER,
PACIFIC NORTHWEST
Flour in terms
Crop years
Columbia River
Ports
Puget Sound
ports
Totals
of wheat Wheat and flour
(Millions of
(Millions
bushels)
of bushels)
Wheat (Millions
of bushels)
4.3
8.3
12.8
16.0
33.7
38.7
18.0
16.3
6.1
11.3
10.5
14.2
18.4
30.9
32.0
15.6
18.8
27.0
34.0
49.7
59.0
1909-1913
1920-1923
1923-1924
25.1
25.9
1909-1913
1920-1923
1923-1924
5.8
1909-1913
1920-1923
1923-1924
11.7
6.7
20.3
The trend of shipments out of the Pacific Northwest by water and
rail for foreign and domestic markets is shown in Table XVI. The
periods are the same as in Table XV. The data cited are adapted from
the thesis by J. B. Watkins, "The Development of the Export Market for
Wheat and Flour of the Pacific Northwest," and from Federal reports.
TABLE XVI. TREND OF SHIPMENT OF WHEAT AND FLOUR BY WATER
AND RAIL, PACIFIC NORTHWEST
(Figures are in millions of bushels)
Foreign
Domestic
California Other Total Europe Orient Other Total
Wheat
Flour
Total
1909-1913
1920-1923
1923-1924
6.9
.8
.1
.9
2.3
.4
2.7
8.5
19.8
14.5
1909-1913
1920-1923
1923-1924
3.8
5.2
.0
.7
.8
3.8
5.9
3.6
8.2
.8
1909-1913
1920-1923
1923-1924
10.7
6.0
9.7
.0
10.7
6.8
10.9
8.6
23.4
7.4
.0
.8
1.2
6.9
.1
15.3
2.3
11.3
9.6
.5
1.2
17.5
.0
9.0
11.6
18.0
1.3
1.3
10.4
16.5
5.9
24.7
11.3
21.2
35.5
1.8
21.7
47.1
56.7
2.5
5.9
30.6
32.0
59
WHEAT GROWERS ECONOMIC CONFERENCE
The trend of Canadian exports of wheat and flour westward is
brought out in Tables XVII and XVIII.
TABLE XVII. SHIPMENTS OF FLOUR FROM VANCOUVER, B. C., TO DESIGNATED PORTS FOR CALENDAR YEARS
Data from "Harbor and Shipping," January, 1926
Destination
1922
1921
United Kingdom and continent__
Other ports
Total
1925
barrels
barrels
barrels
746,106
58,517
878,393
56,517
1,841
315,480
163,381
5,476
744
1,123
701,629
109,444
2,357
100,333
484,377
805,247
936,033
813,430
barrels
Orient
1924
1923
68,302
30,190
barrels
APPROXIMATE
/FOREIGN/ EXPORTS
DISPOSITION OF THE PACIFIC
NORTHWEST WHEAT CROP,
50 MILLION BUSHELS
TOTAL PRODUCTION
80 MILLION BUSHELS
VIIPWN
9 MILLION BUSHELS
TO CALIFORNIA
.
TO OTHER STATES
.
I MILLION
\ USED IN 'OREGON`,
I \ Vs/A)41NOTON
Ai4D\
O.A.C. extenslon Xerwice
\\\ \
\
BUSHELS,
20 MILLION BUSHELS
}._
The above figures vary widely from year to year. Foreign exports, for
example, some years ago went mostly to the Orient and in other years to Europe. In
years when the Middle West wheat crop is short, the larger part of the Northwest crop
may go to eastern states.
Fig. 16.
TABLE XVIII. SHIPMENTS OF GRAIN FROM VANCOUVER, B. C., TO
DESIGNATED PORTS BY CALENDAR YEARS
Data from "Harbor and Shipping," January, 1926
Destination
United Kingdom
and continent
Orient
Other ports
Total
1921
bushels
1922
bushels
1925
1923
1924
bushels
bushels
bushels
359,429
891,642
3,681,150
10,783,738
4,193
5,397,108
18,771,505
494,404
13,817,083
40,772,974
156,403
11,105,779
22,094,704
205,389
1,251,071
14,469,081
24,663,017
55,873,788
- 33,405,872
The cost of transportation for Pacific Northwest wheat by rail and
water in both domestic and foreign commerce, compared with the cost
of transportation in competing states and countries is shown in tables
XIX, XX, and XXI.
0. A. C. EXTENSION BULLETIN 391
60
TABLE XIX. RAILROAD FREIGHT RATES ON WHEAT PER HUNDREDWEIGHT WESTWARD FOR EXPORT
From
Rate
Pendleton; Oregon
Baker, Oregon
Lewiston, Idaho
Spokane, Washington
Nampa, Idaho
Portland
Portland
Portland
Portland
Portland
Pocatello, Idaho
Twin Falls, Idaho
Great Falls, Montana
Portland
Portland
Portland
Havre, Montana
Calgary, Alberta
Vancouver
Edmonton, Alberta
Moosejaw, Saskatchewan
Regina, Saskatchewan
Vancouver
Vancouver
Vancouver
TABLE XX.
Miles
cents per cwt.
To
218
344
356
370
18.5
26.5
24
24
Wheat
Flour
34
39
474
718
44
44
701
Domestic 39
32
Export
38.5
Domestic 41.5
21
Export
21
Export
25
Export
Domestic 5.1.5
26
Export
Portland
896
902
641.7C.P.R.R.
996 C.N.R.R.
835
1067
1108.6
RAILROAD FREIGHT RATES ON WHEAT PER HUNDREDWEIGHT FOR EASTWARD SHIPMENTS
From
Pocatello, Idaho
Pocatello, Idaho
Nampa, Idaho
Baker, Oregon
Portland, Oregon
Pendleton, Oregon
Pendleton, Oregon
Spokane, Wash.
Spokane, Wash.
Havre, Mont.
Regina, Alberta
Calgary, Alberta
Rate
cents per cwt.
To
1455
1 60
2044
1700
81
I62
1
j 65.5
.
New .Orleans
Duluth
Port Arthur
Port Arthur
Miles
f 56.5"I
St. Louis
New Orleans
St. Louis
St. Louis
St. Louis
St. Louis
Nashville
St. Louis
1830
2014
65.5
65.5
65.5
85.5
65.5
83
23.7
12
2169
2758
933
780
1247
Domestic 26
Export 15.6
*Proportional rates apply on traffic destined beyond.
TABLE XXI. OCEAN RATES ON WHEAT FROM THE PACIFIC NORTHWEST
PORTS AND COMPETITIVE COUNTRIES
From
Portland
Portland
Portland
Vancouver
Montreal
New York
Argentina
Australia
Karachi, India
Portland
To
,United Kingdom
japan
China
United Kingdom
'United Kingdom
'United Kingdom
United Kingdom
United Kingdom
United Kingdom
Gulf and Atlantic
Coast ports
Rate
cents per cwt.
Wheat
Flour
Wheat
Wheat
37.5
34.8
22.3
24.5
Approximately the same as
Portland and other Pacific
Ports
12.5
7
23
36
25
Wheat 45c
Flour 35c
A balanced movement of tonnage is a factor in freight rates., The
situation in this respect is brought out by a comparison of ocean rates
in the schedule already given and the tabulation of foreign trade tonnage
presented in Table XXII.
61
WHEAT GROWERS ECONOMIC CONFERENCE
TABLE XXII FOREIGN TRADE TONNAGE OF NEW YORK AND PACIFIC
COAST PORTS FOR THE FISCAL YEAR 1922 (ALL COMMODITIES)
Compiled from thesis of J. B. Watkins, "The Development of the Export Market for
Wheat and Flour of the Pacific Northwest."
Ports
Outgoing
Inbound
Thousands
Thousands
of long tons
of long tons
Portland
Seattle
Tacoma
Total
San Francisco
Los Angeles
Total
Total of five Pacific Coast ports
New York City
"Net, outgoing --.
Net, inbound +.
Net outgoing
or inbound"
of long tons
1,505
653
446
46
197
199
1,459
2,604
1,339
372
442
762
183
2,162
1,711
945
1,387
9,737
4,315
9,263
-
Thousands
456
247
577
189
766
.
2,928
± 474
Below is a compilation of seacoast cash prices at leading ports. The
"pre-war," Portland, figures are taken from records of the Federal Grain
Standardization Laboratory at Portland for the years 1907 to 1916 as
compiled from the daily newspapers on the first day of each month on
about seven leadir g varieties. Other figures are taken from "Wheat and
Rye Statistics" and 1924 year-book of the United States Department of
Agriculture. Quotations for Liverpool "current" were not at hand and
1925 prices were not available except for Portland, hence "current" prices
are given for 1923 and 1924.
TABLE XXIII. CASH PRICE OF WHEAT AT SEACOAST
Ports
Liverpool, England
Port Adelaide, Austra ia.
Karachi, India
Buenos Aires, Argenti la
Portland, Oregon
Pre-war
Average price per bushel
Current
Post-war
1912-1914
1.15
.94
.94
1.02
.93
1920-1922
1.84
1.42
1.23
1.40
1.40
1923-1924
1.11
1.12
1.18
1.19
Except for Portland, 1925 prices were not available, hence only 1923 and 1924 are
used in "current" computations.
*Source of information does not give satisfactory price quotations for Liverpool for
recent years.
The price of No. 1 Soft White wheat at Portland on the fifteenth
day of each month as given in the Northwest Daily Produce News is
compared in Table XXIV with the average monthly price of No. 2 Soft
Red Winter wheat at St. Louis as given in "Wheat and Rye Statistics"
compiled from St. Louis Daily Market Reporter.
0. A. C. EXTENSION BULLETIN 391
62
TABLE XXIV
Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.
1922
1.08
1.37
1.29
1.16
.99
1.16
1.86
1923
1924
1925
2.10
1.21
1.39
1.28
1.18
1.01
1.18
1.75
2.02
1.24
1.36
1.26
1.14
.98
1.14
1.68
1.86
1.25
1.39
1.26
1.13
1.00
1.13
1.57
1.77
1.26
1.33
1.23
1.12
1.06
1.12
1.59
1.86
1.14
1.23
1.10
1.16
1.14
1.16
1.58
1.89
1.13
1.12
1.00
.97
1.27
1.35
143
1.59
1.06
1.09
1.04
.99
1.35
1.38
1.56
1.72
1.07
1.14
1.05
1.09
1.41
1.40
1.47
1.71
1.12
1.23
1.05
1.16
1.53
1.56
1.38
1.70
1.24
1.29
1.02
1.12
1.55
1.63
1.49
1.71
1.25
1.36
1.02
1.14
1.70
1.79
1.56
1.84
A-No. 1 Soft White wheat at Portland.
B-No. 2 Soft Red Winter wheat at St. Louis.
5.
DISTRIBUTING AND MARKETING FACILITIES, AGENCIES
AND POLICIES
Milling facilities.
The milling facilities in the Northwest are more than ample to
grind all the wheat grown in the territory. Consequently many mills
are idle, either all or part time, resulting in an economic loss to the owners.
Milling in bond.
There is no milling in bond in the Pacific Northwest, nor any prospect for any so long as Canadian freight rates are so favorable to Canadian ports as at present.
Export and diversion privileges.
The Canadian wheat country enjoys an export freight rate only a
little more than half that of the Canadian domestic freight rate. The
export rate from Calgary to Vancouver, a distance of 642 miles, is 21c
per hundred pounds. Compare this with our rate of 22,],; per hundred
from Heppner to Portland, a distance of 200 miles; or our rate of 18ic
per hundred from Pendleton to Portland, a distance of about 220 miles.
This advantage is undoubtedly of great benefit to Canadian producers
and any reduced rates for export privileges in this territory would ce,
tainly benefit growers.
Montana has an export rate of 7c less than the domestic rate west-
ward.
Futures market.
This is a subject upon which we have little information. Seattle is
planning to open a futures market, but the grain dealers of the Northwest last year turned down the proposition of a futures market at Portland. A cash and futures market in the Pacific Northwest would probably be of some benefit to millers, grain dealers, and farmers in providing a means for them to protect themselves by hedging.
Distributing and marketing agencies and policies.
The present plan of distributing and marketing is through the grain
dealers, and it undoubtedly has some faults. The cooperative plan, however, was tried, and because the farmers would not participate generally
in the undertaking, was not satisfactory. Statistics published by the
United States Tariff Commission and the United States Department of
Commerce, indicate that the Canadian wheat growers are benefited ap-
63
WHEAT GROWERS ECONOMIC CONFERENCE
proximately 3c per bushel, as compared to the United States wheat grow- .
ers, by reason of lower costs for country elevator and terminal market
service.
E. WORLD DEMAND FOR WHEAT AND RELATED
FACTORS
1. QUANTITY OF WHEAT NEEDED TO SUPPLY THE WORLD
The population of wheat-eating races of the world as estimated by
E. 0. Baker is shown in Table XXV.*
TABLE XXV. POPULATION OF WHEAT-EATING RACES OF THE WORLD
1925
1950
1975
2000
400,000,000
500,000,000
600,000,000
800,000,000
The above figures indicate that the wheat-eating population of the
world will double in the next seventy-five years. The per capita consumption of wheat may increase somewhat also. It has already been
pointed out that the average world per capita consumption of wheat is
2.5 bushels, whereas the United States consumes 5.6 bushels and some
countries; notably France and Italy, materially more. Figures published
by the United States Department of Agriculture indicate an increased
demand of about 2i percent, or 80,000000 bushels of wheat per annum.
These figures indicate that by the end of this century the world requirement for wheat will be about 2i times its present production. In the
light of figures on potential production already given, it would appear
that potential production and world demand will about balance in the
year 2000.
At the present time Europe consumes half of the wheat grown in
the world. Nearly all of the wheat going into inter-world division commerce goes to Europe at the present time, principally to Western Europe.
Some wheat goes into Egypt in Northern Africa. Asia, principally Japan
and China,, takes about 35,000,000 bushels more than is exported from the
Continent. Aside from a few minor importing countries within world
export division's, the world demand at present for export wheat is limited
to Western Europe and Eastern Asia.
From the Pacific Northwest there are important markets, both foreign and domestic, in addition to Europe and Asia. Among the foreign
countries which import wheat and flour from the Pacific Coast, are
Mexico, South Africa, certain countries in South and Central America
and British Columbia.
There are important domestic markets in California, the \Southern
States, Hawaii, the Philippines, and Alaska.
*These figures are calculated on the basis of a full bread ration or wheat, which
varies greatly between various countries.
.1
64
0. A. C. EXTENSION BULLETIN 391
2. DEMAND FOR SPECIAL CLASSES OF WHEAT
The percentage of bakers' bread has increased enormously in the
recent past and there is reason to believe that it will increase still further. The baking business tends more and more to be industrialized.
It is well known that American bakers demand a high-protein flour.
Bakers in European and other foreign countries are learning to demand
similar flour. This tendency, together with the industrialization of the
milling business, is increasing demand for hard wheats. This demand is
reflected in substantial premiums paid for high-protein wheat.
On the other hand there is a special demand for good quality wheats
of low-protein content for blending purposes and particularly for making
flour for biscuit, crackers, cakes, and pastry. This demand at the pres-
ent time is reflected in premiums paid for this special class of wheat,
examples of which are the Soft Red Winter of the Eastern States and
certain varieties of Soft White wheat of the Pacific Coast.
This tendency may continue as industrialization of milling and baking and knowledge of flour qualities progress in the world, leaving the
semi-hard and semi-soft wheats, and wheats which do not make a white
flour, at a disadvantage in the markets. Competition is especially keen
in the production of hard wheat, both in the Eastern United States and
Canada, and may be expected to continue so. On the other hand, the
production of soft wheats is not expanding so rapidly, particularly for
export purposes.
3.
FACTORS INFLUENCING DEMAND FOR WHEAT
(a) Reclamation.
Considerable interest centers about the effect of reclamation on sup-
ply and demand for wheat. The tabulation below prepared from data
published by the United States Bureau of Reclamation indicates that tile
normal production of wheat on Federal reclamation projects in the
United States is about 3.8 bushels per capita for the people on the reclamation projects, both on farms and in the towns. The average per capita
consumption in the United States is 5.6 bushels. It will be noted that
the ratio of country to town population as given is about one to two,
whereas the ratio for the country as a whole is about one to three. It
would appear, therefore, that the reclamation projects provide a domestic
market of at least two bushels per capita for the people living on them,
and in the towns dependent upon them in whole. Siace most of the
irrigated land is in the West this is of particular interest to Pacific Coast
wheat growers.
65
WHEAT GROWERS ECONOMIC CONFERENCE
TABLE XXVI. PRODUCTION OF WHEAT ON IRRIGATED LANDS ON FEDERAL RECLAMATION PROJECTS IN THE UNITED STATES IN RELATION TO PER CAPITA CONSUMPTION
,----Population
,...,
t
'9;', 1 m
,. V
. Z..,'
-a
1,290,890
. .1
37,186
.
0
142,689
VI
''S
''
. i: Q
U.S.R.S. Projects 1924_.
.--,
0
-cl
0, nfl
''
..0
73'
Z
(5
.
.
E.
337,336
f., ,
a
.,
480,025
86,861
cn
$_,,
-17; .
.
ff,...
rn .6
FP
C4
00
1,857,167
al
a
. ft
0 0,
21.3
"(I;U
t.
0 0.,
cn
FP
3.8
UNITED STATES PRODUCTION OF WHEAT UNDER IRRIGATION
IPAIGAT ED
2,4 %
NO IRRIGAT ION
97, 6 %
ADAPTED ROM
UNITED STATES CENSUS
FOR T NE YEARS 099,1909 AND 1919
O. AC. Extension Seruxee,
Fig. 17. During the last 35 years, the percentage of the nation's wheat crop raised un
der irrigation has remained practically constant.
Advertising.
About the only effect advertising has had on the demand for wheat
and wheat products has been in connection with breakfast cereals. In
this field advertising has probably materially increased the demand.
Systematic publicity might prove of value in bringing to attention the
superior qualities of Pacific Northwest Soft White Wheat for specialized
purposes.
Shifts in population.
The general shift of population from rural to urban communities
is shown in Table XXVII. Increased efficiency in farming has reduced
the need for labor on the farms and thus contributed to the population
shift indicated. The disparity between farm and city income and living
conditions has also been a factor in recent years. This tendency will
probably result in much more rapid increase of population in Coast states
than in the country as a whole. There is also a
tendency for population
to shift toward the Pacific Coast from the Eastern States. This is shown
0. A. C.
66
EXTENSION BULLETIN 391
by the fact that between 1910 and 1920 the population of the three Pacific Northwest States increased 20.2 percent, while the population as a
whole increased only 14.9 percent. This has an important bearing on local demand for Pacific Northwest wheat and may become increasingly
important.
TABLE XXVII. POPULATION IN MILLIONS AND PERCENTAGE RURAL
Millions %
Rural
United States
36
57
63
Millions %
39
76
51
Millions %
42
92
46
Millions %
42
106
40
From 1890 to 1920 the percentage of rural population, in the United States has fallen
from 57 to 40. In the three Pacific Northwest States, the percentage of rural population
in 1920 was 51.
Effect of use of flour for biscuits.
As has already been stated, the soft wheats are especially adapted to
the manufacture of pastry, crackers, and hot biscuits. There is now going forward a development of dairying in the Soft Red Winter wheat
district of the United States, which is expected to reduce somewhat the
production of that type of wheat. This opens an increased market for
Pacific Coast Soft White wheats. It appears desirable that biscuit making
in the home be not discouraged through adverse propaganda by baking
interests or lack of aggressiveness on the part of producers of soft
wheats and soft wheat flours in supplying and merchandising their
products.
Expansion of flour manufacturing.
The milling of wheat in Pacific Coast states to as large an extent as
possible would have the following advantages: (1) It would increase the
industrial population, thus enlarging local markets for farm products
generally. (2) It would provide mill feed for further development of
livestock enterprises such as dairying, hog raising, and poultry keeping.
The milling industry is therefore worthy of encouragement. The
tendency toward commercialization of milling and baking must be considered, as Pacific Coast mills must be supplied with the kinds of wheat
which will enable them to hold and expand demand in the markets.
A giant baking corporation, such as was recently formed, that would
become the sole purchaser of a large proportion of American flour might
easily become a menace to the producer of wheat. We do not believe
such development is consistent with the general welfare nor the welfare
of the wheat industry.
Effect of the tariff on demand.
The present tariff on wheat imported into the United States appears
to have little effect on the price of wheat in this country except along
the northern border, and little or no effect except on the price of hard
wheats, particularly hard spring wheat. Tariffs on poultry products and
other livestock and livestock products may indirectly affect the demand
for wheat.
WHEAT GROWERS ECONOMIC CONFERENCE
67
Demand for wheat as feed for poultry and farm livestock.
In practically all cases, wheat has more value per pound as a feed
for livestock than has any other cereal. For this reason, the price of
no other cereal can rise long above the price of wheat.
The value of wheat as a feedstuff is, to a certain extent, a protection
against extremely low prices. The demand for wheat as feed is influenced by the price and supply of other cereals and the number of poultry
and other grain-fed livestock kept in the country. The use of horses
has a direct bearing on the demand for farm products.
Substitutes for wheat.
The important wheat substitutes used by the wheat-eating population of the world are rye, rice, and potatoes. The rye-eating peoples, to
a degree at least, prefer rye to wheat, but the use of substitutes is largely
governed by price. Industrial conditions in all countries have a bearing
on the use of wheat substitutes, but especially so in the Orient, where
rice and wheat compete largely on the basis of price.
Price quotations.
The practice of quoting the price of wheat on a different basis in
different markets tends to obscure the true relation between price and
thus discourages free trading between producers and consumers of wheat.
The fact that Northwest markets are quoting wheat on the basis of
No. 1 sacked wheat while the large eastern markets quote on the basis
of No. 2 bulk wheat causes the eastern wheat buyer to think that western wheat is higher than it actually is.
D. RECOMMENDATIONS
In the light of the foregoing, your committee on World Supply and
Demand recommends:
That wheat growers should specialize so far as practical on those
classes of wheat most needed (a) for the domestic trade in the Pacific
Northwest and (b) superior grades of soft white wheat for the export
demand, both foreign and domestic. We recognize the importance of
the work being done by our experiment stations in developing highyielding and smut-resistant varieties and strains and suggest that in this
work particular attention be given to superior soft white varieties.
We recommend to wheat growers that in deciding the question
of the kind of power to use they take into consideration the fact that
horses are consumers of farm products while tractors are not.
Report of Sub-Committee on Transportation.
Inasmuch as the railroads are charging for the transportation of
wheat all the traffic will bear regardless of the service rendered, placing
the rates arbitrarily regardless of the fact that wheat is one of the
very best freights for hauling, and regardless of the fact that their roads
follow lines of least resistance, and,
Inasmuch as there has been heretofore no formal protest made
against the said discriminatory rates to the seaboard by the farmers of
the Inland Empire and in the meantime the rates have been steadily
if
68
0. A. C. EXTENSION BULLETIN 391
growing higher and higher until now in some instances our rates are
three and even four times the rates per-ton-mile of those for Canadian
farmers and,
Inasmuch as these differences of rates represent the difference for
the producer of a loss or a gain; therefore be it
Resolved, by this group in convention assembled, That we ask from the
railroads most earnestly that they carefully consider and that they revise
the said rates so as to make them comparable with the domestic and
export rates enjoyed by the Canadian and other groups who are very
close competitors to the farmers of the Inland Empire; and that their
refusal to do so will compel us to appeal to the Public Service Commission and the courts for relief.
Appended:
From Edmonton, Canada, to coast 835 miles. Rate 21c per cwt.
From Heppner, Oregon, to coast 200 miles. Rate 22c per cwt.
From Pendleton, Oregon, to coast 232 miles. Rate 18.5c per cwt.
From Regina, Canada, to coast 1108 'miles. Rate 26c per cwt..
Note: Discussion after the adoption of the above report brought out
the fact- that certain agreements between the Canadian Government and
the Canadian railways amounting to substantial government subsidies
were made for railroad construction, under which the railroads are.
obliged to haul wheat at low rates.
(See page 36, Wheat Handling and Grading Group report.)
,
We recommend that price quotations be placed on a uniform basis
throughout ,the country so far as possible 'and to this end urge that
Pacific Coast wheat be quoted on the basis of No. 2 bulk. (See also
page 38, Wheat Handling and Grading Group report.)
In order to increase demand for our wheat, publicity is recommended to encourage the use of biscuits and other hot breads in the
home, setting forth the superior qualities of Pacific Northwest soft white
wheats for making biscuit and pastry flour.
We recommend that commercial bodies in the Pacific Northwest
give special attention to the acceleration of industrial development of the
Pacific Coast as the most important means of assisting the wheat grower.
This would create a larger local market for wheat and balance the present one-sided ocean traffic of the Pacific Northwest.
.
Attendance Roll
The name, address and occupation of every one who registered at
the conference follow. It will be noted that thirteen Eastern Oregon
counties were representd and that of the total of' 261 who registered,'184
were actively engaged in farming.
County
Postoffice
Baker:
Paul Carpenter, Baker
J. F. Scholl, Baker
A. V. Swift, Baker
Occupation
County
Sherman:
County Agent
Miller
Farmer
Crook:
J. W. 'Boone, Prineville
Farmer
W. B. Tucker, Prineville....County Agent
Deschutes:
Jay H. Upton, Bend
Lawyer
Gilliam:
A. B. Clough, Arlington
Grain dealer
E. J. Clough, Condon Warehouseman
George Huntington Currey, Arlin ton
Editor
Dr. J. M. Donnelly, Arlington
Physician,
Earl P. Hoag, Blalock
Farmer
E. M. Hulden, Blalock
Farmer
T. T. Hurlburt, Condom...Warehouseman
Perry N. Johnston, Condon
Farmer
C. R. McMillin, Arlington
Salesman
Merrill B. Moores, Arlington
Farmer
G. W. Farman, Condon
Merchant
L. G. Parisian, Condon
Farmer
A. B. Robertson, Condon.:Warehouseman
E. W. Snell, Arlington
Automobile dealer
Charles F. Story, Arlington Insurance
A. Wheelhouse, Arlington
Stockman
John Withycombe, Jr., Arlington
Farmer
Hood River:
A. A. IIukari, Hood River Orchardist
E. L. Pierson, Hood River Orchardist
D. B. Thomas, Hood
River
Farmer and grain buyer
Jefferson:
W. J. Baimbridge, Culver
Farmer
J. L. Campbell, Madras
Farmer
H. Ward Farrell, Gateway
Farmer
Perry Henderson, Madras
Farmer
Harvey Johnson, Culver
Farmer
J. M. King, Madras
Farmer
Roy Newell, Madras
Farmer
G. L. Paxton, Madras
Farmer
George Rodman, Culver
Farmer
James Vibbert, Gateway
Farmer
G. H. White, Madras
Farmer
L. A. Young, Madras
Farmer
Morrow:
R. L. Benge, Heppner
Farmer
Charles B. Cox, Heppner
Farmer
Vawter Crawford, Heppner
Editor
C. H. Erwin, FIepprier;
Farmer
C. N. Jones, Heppner
Farmer
Jeff Jones, Heppner
Farmer
A. A. McKabe, Tone
Farmer
Fred Mahrt, Heppner
Farmer
W. P. Mahoney, IIeppner
Banker
E. Harvey Miller, Lexington
Farmer
Dwight Misner, lone
Farmer
R. W. Morse, Heppner
County agent
J. H. Padberg, Heppner
Farmer
Wm. H. Padberg, Lexington
Farmer
George N. Peck, Lexington
Farmer
J. 0. Turner, Lexington
Farmer
0. C. Wageman, Heppner
Farmer
'
ss
Postoffice
Occupation
James B. Adams, Moro
Land company agent
R. Abell, Kent
Warehouseman
Farmer
E. M. Alley, Grass Valley
Arvid Anderson, Wasco
Farmer
Emil Anderson, Wasco
Farmer
C. B. Andrews, Grass Valley
Farmer
C. R. Axtell, Moro
Farmer
I. K. Axtell, Moro
Farmer
P. C. Axtell, Moro
Farmer
A. H. Barnum, Moro
Farmer
V. S. Barr, Moro
Farmer
C. R. Belshee, Moro
Stock buyer
Roy Belshee, Wasco
Farmer
Wilford Belshe, Moro
Farmer
R. P. Birks, Wasco
Farmer
W. D. Birks, Wasco
Farmer
H: P. Bischoff, Biggs
Farmer
S. P. Brisbine, Moro
Farmer
F. L. Burnet, Moro
Farmer
Farmer
Id. Christianson, Moro
Farmer
L. E. Clark, Kent
A. Coffey, Wasco
Farmer
Marie Barnett Cooper, Wasco
Bankerfarmer
R. Cothran, Moro
Farmer
Farmer
E. A. Gushman, Moro
Thomas Douma, Moro
Merchant
A. A. Dunlap, Kent
Merchant
Karl Eaton, Grass Valley
Farmer
Herbert Ellsworth, Moro
Farmer
Farmer
Gus Engstrom, Grass Valley
Harvey Ferrell, Klondike
Farmer
W. J. Ferrell, Klondike
Farmer
J. S. Fowler, Rufus
Farmer
G. L. French, Grass Valley
Farmer
H. A. Fuller, Moro
Farmer
Wesley C. Fuller, Moro
Farmer
R. J. Grim, Moro
Merchant
W. Haggerty, Kent
Farmer
Fred Haynes, Kent
Merchant
L. A. Heath, Grass Valley
Farmer
E. M. Helyer, Kent
Farmer
Farmer
W. C. Helyer, Kent
Fred Hennagin, Wasco
Farmer
George Hennagin, Moro
Farmer
Dayton Henrichs, Moro
Farmer
S. B. Holmes, Grass Valley
Farmer
G.- L. Hoskinson, Kent
Farmer
Fred W. Hutchcroft, Moro
Farmer
Fred Krusow, Grass Valley
Farmer
Theodore Johnston, Moro
Farmer
J. M. Landry, Moro
Farmer
0. C. Luttrell Moro
Farmer
J. C. McKean, Moro
Warehouseman
II. McKean, Wasco_Warehouseman
J. E. McClure, Wasco
Farmer
Carl Melzer, Moro
Farmer
M. G. Melzer, Moro Farmer
W. C. Miller, Moro
Farmer
W. A. Mills, Wasco
Farmer
George A. Mitchell, Moro
Assistant
superintendent experiment station.
Collis P. Moore, Moro
Farmer
B. Owens, Grass Valley
Farmer
L. L. Peetz, Moro
Farmer
J. F. Peters, Moro
Farmer
70
County
Sherman:
0. A. C.
Postoffice
EXTENSION BULLETIN 391
Occupation
G. W. Pickard, Wasco
Farmer
Emile Pierson, Moro
Farmer
Harry B. Pinkerton, Moro
Farmer
R. W. Pinkerton, Moro
Farmer
A. S. Porter, Wasco
Warehouseman
Farmer
W. S. Powell, Moro
W. FI. Ragsdale, Moro
Banker
Dave Rantser. Moro
Farmer
Farmer
T. S. Reese, Moro
T. M. Rolfe, Grass Valley
Farmer
G. TI. Root, Wasco
Farmer
J. F. Royse, Wasco
Farmer
Arch L. Russell, Grass Valley Farmer
Farmer
Carroll Sayrs, Moro
Omer G. Sayrs, Moro
Farmer
J. J. Schaeffer, Erskine
Farmer
Herman Schilling, Grass Valley Farmer
Banker
J. L. Searcy, Moro
T. B. Searcy, Moro
Farmer
J. W. Shepard, Grass Valley
Warehouseman
Farmer
Arthur Smith, Grass Valley
H.
Smith,
Wasco
Farmer
V.
Clarence Spading, Moro
Farmer
D. E. Stephens, Moro
Superintendent
experiment station.
Hans Thompson, Moro
Farmer
W. A. Thompson, Grass Valley....Farmer
Roy E. Tiller, Grass Valley
Farmer
W. C. Todd, Grass Valley
Farmer
C. A. Tom, Rufus
Farmer
Theodore C. VonBorstel, Grass ValIcy
Farmer
Francis T. Wade, Wasco
Lawyer
Farmer
C. P. Walker, Moro
H. A. Walker, Wasco
Farmer
Farmer
W. W. Walker, Klondike
H. A. White, Wasco
Farmer
J. J. Wiley, Grass Valley
Farmer
J. E. Wilson, Kent
Farmer
Farmer
J. H. Wilson, Kent
School SuperinA. M. Zevely, Moro
tendent.
Umatilla:
Fred Bennion, Pendleton....County Agent
Farmer
Charles Gerking, Pendleton
Farmer
J. 0. Hales Pendleton
W. W. Harrah, Pendleton
Farmer
James Hill, Pendleton
Farmer
C. W. Howell, Pendleton
Farmer
Wm. Kupers, Pendleton
Farmer
J. E. McCormmack, Pendleton....Farmer
Hans Pahl, Pendleton
Farmer
Farmer
Roy W. Ritner, Pendleton
A. R. Shumway, Milton
Farmer
S. R. Thompson, Pendleton
Farmer
C. L. Woodward, Walla Walla, Wash.
Farmer
George B. Woodward, Walla Walla,
Wash.
Union:
Farmer
County Agent
H. G. Avery, LaGrande
J. A. Gaskill, Imbler
Farmer
Farmer
Rover Grimmett, LaGrande
W. A. Hudelson, North Powder Farmer
H. H. Huron, Imbler
Farmer
Fred E. Kiddie, Island City
Grain dealer
Farmer
Frank McKennon, Imbler
L. .B. Pierce, LaGrande......... . __Farmer
Wallowa:
A. G. Bornstedt, Joseph
Farmer
Farmer
H. B. Davidhizar, Joseph
County
Wasco:
Postoffice
Occupation
Banker
A. R. Altermatt, Shaniko
Merchant
B. A. Avery, The Dalles
George W. Barnet, The Dalles....Fa'rmer
Banker
L. Barnum, The Dalles
Banker
G. D. Brodie, Dufur
Farmer
E. E. Burtner, Dufur
Farmer
M M. Burtner, Dufur
Farmer
Eben Butler, The Dalles
Banker
R. E. Casebolt Shaniko_.
Thomas A. Connolly, Maupin
Stock raiser
C. W. Daigh, The Dalles..County Agent
Farmer
J. DeBuhr, Friend
Martin W. Delaer, The Dalles....Farmer
Farmer
J. W. Donnelly, The Dalles
Herbert Egbert, The Danes
Farmer
Farmer
F. Emerson, The Dalles.
Bert W. Emerson, The Dail, Farmer
Farmer
Thomas C. Fargher, Dufur
M M. Glavey, The Dalles
Grain buyer
B. H. Grady, The Dalles
Eugene Hammel, The Dalles
Farmer
F. Hayden, Friend
Banker
J. W. Hoech, The Dalles
Farmer
F. B. Ingels, Dufur
Farmer
E. R. Jaekel, The
Dalles
.
J. C. Johnson, The Dalles
Farmer
Warehouseman
Owen Jones, Dufur
Farmer
Ray F. Kelly, The Dalles
Farmer
Henry L. Kuck, The Dalles
Farmer
A. H. McLeod, Dufur
Farmer
E. H. Matheny, The Dalles
Farmer
L. D. May, The Dalles
Farmer
J. C. Moe, The Dalles
Orrin W. Moore, Dufur
Farmer
Farmer
George A. Obarr, The Dalles
Ralph M. Osvold, The Dalles
Bank teller
Merchant
E. A. Read, The Dalles
Albert S. Roberts. The Dalles Farmer
Farmer
E. P. Roberts, The Dalles
Loren C. Roberts. The Dalles Farmer
Roscoe D. Roberts, The Dalles_Farmer
Farmer
Edward L. Ward, Boyd
Farmer
J. W. Ward, Jr., Boyd
Wheeler:
J. W. Dyer, Mayville
Orva E. Dyer, Mayville....
W. J. Edwards, Mayville
E. J. McPherson, Fossil
R. H. Schimpf, Mayville
Loyd E. Smith, Mayville
Jay Wright, Mayville
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Miscellaneous:
E. N. Bates, 519 Postoffice Bldg.,
Grain investigations
Portland,
United States Department of Agri.
culture.
C. L. Dutcher, 516 Postoffice Bldg.,
Federal warehouse agent
Portland
F. L. Kent, Custom House, Portland
Statistician, United States Department of Agriculture.
R. H. Kipp, Oregon Building, PortState Chamber of Commerce
land
0. A. Myrand, Walla Walla, Wash.
Warehouse examiner
Albert F. Nelson, 803 Lewis Bldg.,
Grain supervisor
Portland
W. H. Nelson, Astoria
Port of Astoria traffic manager
C. E. Spence, 714 Court House, PortState Market Agent
land
11
WHEAT GROWERS ECONOMIC CONFERENCE
County
Postoffice
Miscellaneous:
Occupation
W. Whitlock, 525 Postoffice Bldg.
Portland In charge, Federal grain
inspection.
W. Wright, Court House, Port-
land Chief inspector, state inspection service.
G. F. Dinwoodie, S. P. &. S. Railway,
Portland
Transportation
II. A. Lounsbury, 0. W. R. & N.
Railway, Portland
Transportation
J. C. Wright, S. P. & S. Railway:
Portland
'Transportation
E. Merritt, Washington, D. C United States Department of Agriculture
Dr. W. j. Spillman, Washington, D.
United States Department of
Agriculture.
Ward M. Buckles, Spokane, Washington
_tanager, Federal Intermediate Credit Bank.
A. F. Cardon, c/o Federal Land Bank,
Spokane, Wash
Banker
Postoffice
County
Miscellaneous:
Occupation.
A. B. Thompson, c/o Federal Land
Bank, Spokane, Wash
Banker
R. B. West, Portland.....Manager, Portland Branch Federal Reserve Bank.
Glenn Glass, Roosevelt; Wash
Farmer
Charles L. Powell, 336 Thompson .
street, Portland
Farmer
J.
A.
Thompson,
street, Portland.
1516
E.
Lincoln
0. A. Tschanner, Portland
Farmer
George N. Angell, 411 Stock Exchange
Bldg., Portland
Editor
Roy C. Stewart, c/o Oregon journal,
Portland
Associate Editor
R. S. Besse, Corvallis
0. A. C.
L. R. Breithaupt, Corvallis
0. A. C.
0. A. C.
G. R. Hyslop, Corvallis
Paul V. Mans, Corvallis_
0. A. C.
E. L. Potter, Corvallis
0. A. C.
0. A. C.
H. D. Scudder, Corvallis