THE SITUATION IN AGRICULTURE


declined to a low point of 71 in 1932. From this point they have ad-
vanced to 81 in 1934. On the same base the prices of commodities sold
by farmers during this period declined to 43 in 1932, from which
point they have advanced to 52, the average for 1934. The purchasing
power of farm products, therefore, declined about 40 per cent during
the first three years of the present depression. Since that time it has
advanced about 5 points, the average for 1934 being 65 per cent of
1929. The rise in the prices of things farmers sell which has come
since 1932 has been largely offset by advances in the prices of things
farmers buy, leaving only a small advance in purchasing power of
farm products during that period, which has elapsed since the low
point of the depression was reached in 1932.

                   The Trend of Farm Production

  Physical production studies have been made on the agriculture of
Wisconsin in connection with the calculation of the income and price
indexes. The state's measure of physical production in agriculture
goes back to a 1910-14 base as do the other principal indexes such as
farm income and farm prices, thus making possible a comparison of
them all. As indicated in the chart, changes in production have been
very much smaller than the changes in farm income and farm prices.

         WISCONSIN FARM INCOME, PRICES, AND PRODUCTION
                     COMPARED wITH PRE-WAR
                     (Average 1910-14-= 100)


Year
1.910
1911
1912
1913
1914
1.915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934


                             Index of
                             Farm
                             Prices
                                99
                                91
 -------------------------102
 -------------------------104
 -------------------------105
                               101
                               122
 ------------------------      173
                               196
                               214
 -------------------------203
                               128
 -------------                 125
                               137
                               128
 -------------144
------------------------ 151
-------------------------154
  - ---                  ---   156
-------------------------155
-------------------------129
                                90
                                66
                                70
---       -----------           81


Index of
Gros-
Income
    90
    93
    95
    109
    113
    116
    138
    188
    222
    245
    216
    143
    146
    164
    156
    180
    188
    191
    190
    196
    161
    115
    83
    91
    108


  Index of
Net Physical
Production
      89
      94
      98
      106
      113
      114
      106
      109
      112
      113
      116
      110
      119
      118
      117
      119
      123
      122
      121
      124
      125
      127
      120
      120
      118


51