COST OF WHEATGROWING IN THE UNITED STATES.

Otago Witness, Issue 1893, 2 March 1888, Page 7

COST OF WHEATGROWING IN THE UNITED STATES.

In an address before the British Association for the Advancement of Science, MiAtkinson, of Boston, U.S., made the following statement: — "Since the period of 1870-73, when the cost of American wheat in England was about 50s per quarter, the cost of conveying wheat in America from the Western States to the sea-board or port of shipment has been reduced no less than 11s per quarter by the extension of railways, the reduction of rates, and the use all over the country of improved machinery. In the same period the freight by sea to England has been reduced another 2s, while the cost of growing the whoat has been simultaneously lessened by improved methods of agriculture, and a great reduction on the rates of interest on borrowed money. The result of all these changes is that 34s per quarter in England pays the American farmer as well as 50s per quarter paid him 14 years ago ; and that 34s in Mark Lane will maintain the American supply in increasing volume with certainty in the future." The above statement is discussed and tested by elaborate. figures in " Bradstreet's " (New York), October 22, and from which the following particulars connected with the wheatgrowing industry of the States are abridged. " Bradstreet's " furnishes detailed statistics showing the reductions in cost of transportation of wheat from Chicago to New York and New York to Liverpool within the past 15 years. Summed up, the figures stand thus : "Bradstreet's" calculated reduction cost transportation on wheat Chicago to New York, 1870-72 to 1887, per bushel ... ... 26c "Bradstreet's" reported reduction handling charges, per bushel ... ... ... 3c "Br.idßfcreefcV'roported reduotion ocean freights, per bushel ... ... ... ... 8c 37c The total saving, therefore, in transporting one bushel of wheat from Chicago to Liverpool is 37c; but the reduction in the price of wheat from 50s to 34s per quarter is equivalent to about 4Sc per bushel, of which only 37c is accounted for on the grounds of cheaper freight and handling, or if 4c be added, as it appears was done in Mr Atkinson's calculations, for improved means and nieLhods of production, a total saving of only 41c per bushel can be shown against a fall of 18c. It is added, "We are inclined to be very sceptical concerning close estimates of reduced cost of producing wheat owing to the use of improved machinery, lower rates of interest, and the like." The subject was of so much public interest that "Bradstreet's" caused extensive inquiries to be made of f aimers, millers, and bankers in Ohio, Indiana, Illinois, Michigan, Nebraska, Missouri, and Kansas, as to —

Ist. The general financial condition of wheatfarmers as compared with five years ago. , 2nd. The cause of its improvement or the reverse.

3rd. As to the ability of farmers to continue raising wheat in excess of home wants at prices which have prevailed of late years. In these winter wheat States 41 per cent, of the total wheat crop of the country is raised, and 60 per cent, of the winter wheat. In reply to the inquiries the following prices arc stated as having been received by the farmers for their 'wheat in the winter of 1886-87 as compared with 1881-82 :— Per bushel. Per bushel. 1886-87. 1881-82. Ohio ... 75c to 81c ... Idol 05c to Idol 20c Indiana ... Goc to 7-ic ... 90c to Idol 25c Illinois ... 65c to 75c ... — to Idol Ode Michigan ... <58c to 75c ... Idol 00c to Idol 12^c Missouri ... 6iscto7sc ... Idol 00c to Idol 2ftc Kansas ... 00c to 720 ... 85c to 950 Nebraska ... 40ct0600 ... 65c to 75c Three-fifths of all the replies reported the general financial condition of the wheatfarmer not as good as it was five years ago, and that he is unable to continue to grow wheat to any extent at a profit, at late ruling prices. There are numerous reports of decreasing wheat acreage, with farmers going into stock-raising, clover, grass, corn (maize), and other lines.

"Complaints of wheat farmers are frequent of low prices, the tariff 'overproduction,' competition from the North-west, rates of interest, high wages of labour, and crop failures. Where the farmers are relatively better off it is generally noted that they have depended less on wheatgrowing than formerly. Of the remaining two-fifths of the replies, the larger share report the farmers no worse off than five years ago, which, taking the reports together, shows the movements of the wheat-raising centre to the North-west, with outlook for decreasing wheat production in States which last year produced 41 per cent, of the entire crop. The farmers of Missouri, Illinois, Indiana, and Ohio cau only save 37 cents a bushel as compared with 15 years ago, and the price is lower by 47 ogjjt» than in 1870, and 75 cents

lower than in 1872. The statistical position of wheat is no doubt very strong, but Mr Atkinson's statement (as reported here), even if accepted, can have no application until wheat sells in New York at 97 cents per bushel."

In reference to the assumed saving in labour by the use of improved machinery and other appliances, "Bradstreet's" says: "In the North-west, in the spring wheat country, the saving by these means, and through wheat-raising being conducted on a very large scale, it is quite likely that the cost of production may have been reduced 25c per bushel in that way alone. But in the older (winter wheat) States, small farms with diversified crops are more common, and here the « improved machinery ' claim will not apply. Whether the American farmer could or could not compete abroad as successfully with wheat at 34s as at 50s at London, in the Central Western States, he is doing so now at a profit only iv exceptional instances."

In a letter on the same subject, addressed to " Dombusch's Floating Cargo List," the editor of " Bradstreet's " says in reply to an inquiry as to the cost of raising wheat in Wisconsin, Minnesota, and Dakota, &c: — " I have no data showing cost of growing wheat in individual States which I consider worth printing. The circaii stances under which wheat is raised in tie region from Ohio West to Kansas (including Michigan, Indiana, Illinois, Missouri, and Nebraska) are widely different from those under which it is grown in Western Wisconsin, in Minnesota, and particularly in Dakota. In the former (Central Western region), where 41 per cent, of the entire wheat crop of this country is produced, wheat - raising has grown more aud more unprofitable of recent years as a single crop, and is unfrequently so cultivated at this time. Again, the farms there are more generally small in extent, which prevents the larger economies through the use of self-binders and other laboursaving devices which, have obtained of late in the spring wheat region — Minnesota and Dakota. Many formerly large wheat farmers in the Central Western States have sought refuge in diversification of crops, by going into live stock-raising and the like. No small number of them who rent farms are worse off financially than they were five years ago, while many who owned farms .have improved their condition, though generally by raising less wheat and more ,maize, oats, lire stock, fee. Not a few of them complain of competition from the North--west (Minnesota and Dakota), in much the isame strain that they refer to Indian or Jlussian competition. At the figures quoted by States there is very general complaint of the unprofitable nature of wheat farming, •except upon a reduced acreage, and there is .good reason to believe that the tendency to •decrease the acreage sown in wheat in the Central Western States is marked. In the ■North-west the reverse is the case, but the production of wheat there upon an enormous scale must eventually deteriorate the soil."