PRICES PAID BY FARMERS FOR COMMODITIES AND SERVICES UNITED STATES t t ,_.,'---t r / Parity *
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1 PRICES PAID BY FARMERS FOR COMMODITIES AND SERVICES UNITED STATES THE PARITY INDEX AND ITS COMPONENTS %OF Interest, taxes, / 500 r-++--and farm wage rates-/-t1 I "'/ I 4 00 t-++t--+-,_.,'t+--1 r / Parity * 3QQ r-+--+-t--/--l \I +-1, I I I I I, -+- :'- Production '20 '30 '40 '50 '60 '70 '80 * PRICES PAID, INTEREST, TAXES, AND FARM WAGE RATES. U.S. DEPARTMENT OF AGRICULTURE NEG. SRS (5) STATISTICAL REPORTING ~ERVICE U.S. DEPARTMENT OF AGRICULTURE Statistical Reporting Service Crop Reporting Board Washington, D. C. Statistical Bulletin No. 319
2 Growth Through Agricultural Progress Pr 1-1 (62)
3 CONTEN'IS Prices Paid by Farmers for Commodities and Services, Specified Months, United States, o Table Table Parity Index 3 Living and Production Index 4 Family LiVing Index 5 Food and Tbbacco Index 6 Meat Prices 7 Meat and Fish 10 Fats 11 Dairy Products and Eggs 12 Cereal. and Bakery Products 14 Cereals and Vegetables. 16 Vegetables 17 Vegetables and Fruit 19 Fruit and Sweets 20 Sweets and Beverages 21 Beverages 22 Beverages and Tbbacco 23 Clothing Price Index 24 Prices Men's Apparel 25 Boys' Apparel 31 Boys ' and Vi omen' s Apparel 32 Women's Apparel 33 Women's and Girls' Apparel 37 Apparel and Dry Goods 38 Household Operation Index 39 Laundry Supply Prices 4o Services 42 Fuel 43 Household Furnishings Index 44 Electric Appliance Prices 45 Appliances and Household Equipment 50 Household Equipment 51 Furniture 52 Bedding and Rugs 54 Rugs and Household Textiles 55 Household Textiles 56 Textiles and Supplies 57 Building Material, House,Index 58 Framing Lumber Prices 59 Framing Lumber and Rough Boa:rds 60 Dressed Boards and Roofing 61 Shiplap and Drop Siding 62 Siding and Flooring 63 Flooring and Roofi1~ 64 Roofing and Abestos Siding 65 Doors and Windows 66 Processed Boards 67 Brick and Blocks 68 Cement and Paint 69 Nails and Gable Plumbing Supplies 71 Autos and Auto Supply Index 72 Automobile Prices 73 Farm Production Index 74 Feed Index 75 Starter and Broiler Mash 76 Laying and Turkey Mash 77 Scratch Grain 78 Mixed Dairy Feed 79 Dairy and Hog Feed 82 13:ran 83 Middlings 84 Corn r~1eal. 85 Soybean Meal 86 Cottonseed Meal 86 Beef cattle Concentrate 86 1\lf a.j..:f a :Hay 8 7 other :Hay... ~ e StoCk Salt e 89 Livestock Index 90 Feeder Cattle Prices 91 Feeder Pigs ~ 92 Feeder Lambs 93 Baby Chicks 94 Turkey Poults 95 Motor Supply Index 96 Gasoline and Kerosene Prices 97 Fuel and Oil 98 Grease and Antifreeze 99 Automobile and '!ruck Tires 100 'IXactor Tires, Inner Tubes, and Spark Plugs 101 Storage Batteries 102!vlotor Vehicle Index 103 'IXactor Prices lo4 Truck Prices 105 Farm Machinery Index lo6 Tillage Equipment 107 Combines 1o8 Cultivating and Planting Equipment 109 Planting, Harvesting, and Dairy ~pment 110 Harvesting and Dairy Equipment lll Manure Spreaders and Loaders ll2 Elevators, Engines,and Motors ll3 Wagons, Hammer mills, and Spr~ers 114 Building and Fencing Material Index 115 Wire and Field and Stock Fence i -
4 CONTENTS Cont'd Table 96 Fence Posts Fertilizer Index Fertilizer, Specified Analyses Fertilizer and Materials Fertilizer Materials Farm Supply Index Axes, Hammers, and Pitchforks Hoes, Sprayers, and Milk Cans Milk Pails and Chicle Brooders Manila Rope and Twine 128 1o6 Baskets, Sacks, and Bags Hampers, Fruit, and Lug Shook 130 lo8 Vegetable Crate Shook,Arsenate of Lead, DDT, and 2, 4--D Seed Index Barley and Oats 133 Table 111 Wheat and Rye Hybrid Seed Corn and Soybeans for Seed Seed Potatoes Alfalfa Seed Red and Alsike Clover Seed Sweet clover and Ladino Clover Seed Common Ryegrass and Tall Fescue Seed Kentucky Bluegrass and KOrean Lespedeza Seed Timothy and Sudangrass Seed Hairy Vetch and Cottonseed Index Numbers of Interest, Taxes, and Farm Wage Rates 144 July ii -
5 Prices Paid by Farmers for Commodities and Services, Specified Months, United States, The statistical data presented herein have been compiled from the records of the Crop Reporting Board of the Statistical Reporting Service. This report brings together for the first time under one cover the complete series of United States averages of prices paid by farmers for commodities purchased as used in the construction of the Parity Index from 1910 through 196o. Comparable data are published annually by the Statistical Reporting Service in the yearly summary of Agricultural Prices. No single series of index numbers has been more closely related to agricultural policy and programs during the last three decades than the Index of Prices Paid by Farmers, including Interest, Taxes, and Farm Wage Rates. The Index {defined legally as the Parity Index} reflects changes :In average prices that farmers pay for a broad selection of commodities and services grouped into five major fields. The first group consists of commodities used for family living; the second, those used for farm production. The other three are interest on mortgage indebtedness secured by farm real estate, taxes payable on farm real estate, and cash wage rates paid to hire<l farm labor. Heretofore, the national price se~ used in constructing prices not appeared, in their entirety, under one cover. This publication, tended to fill a need expressed by those interested in the actual contribute to month-to-month changes in the Parity Index. paid lndexes have therefore, is inprice series that As of June 15, 1961, the family living component of the Parity Index included 231 different commodity price series; the farm production component, 239 items. Prices for 36 of these items are used in the computation of both the family living and production indexes. These series of United States average prices are arranged by groups in the follmdng pages. Prices of i terns for which weight in the Index is divided ai nong more than one group are shown in the group with which they are primarily associated. Prices paid by farmers for commodities purchased were first collected by the Department of Agriculture in Originally, the information was obtained by mailing a questionnaire annually to general stores in rural areas throughout the nation. These reporters quoted prices paid for food, clothing, feed, implements, and other farm and household supplies on a single questionnaire. Following the sharp swings in retail prices during and after World War I, the need for more frequent reports and broader commodity coverage was recognized. Accordingly, beginning in the early twenties the inquiries were mailed monthly. With samples too small to reflect price changes from month to month with precision, however, the information is publumed only on a quarterly basis starting in In 1927, there was a marked expansion in the number of reports received from dealers in all kinds of farm supplies, and questionnaire mailings were made quarterly for most items. Prior to 19?7, prices were estimated for about 100 commodities on the basis of returns from several hundred stores throughout the country. Since 1953, the quarterly estimates of prices paid for commodities bought by farmers reflect the average of price changes at independent and chain stores. Prior to June 1953, the quarterly estimates of prices paid were based almost entirely on returns from independent stores. Then, as now, with the exception of livestock feed and feeder livestock for which prices are estimated monthly, theinterqu~erly mid-month price indexes were based on changes in prices paid at chain stores. Tables in this bulletin have been arranged to show the1953 estimates of average prices separately for independent stores, Prepared under the general supervision of R. F. Hale, Head of the Prices Baid Section. These series are weighted averages of State estimates made over the years by Richard J. Schrimper, B. J. Harrington} Paul A. Walsh, and their predecessors. 1
6 and for independent and chain stores combined. This shows the comparative levels of average prices paid as estimated for outlets of the two important sectors of the retail merchandizing universe as compared with average prices at the independent store sector alone, at the time the combined data were first linked into the Parity Index. Linking also was employed whenever specification changes shifted the level of reported prices significantly, so as to remove the effects of such shifts on the Index. At the present time, several thousand in~vidual reports are tabulated each quarter on all important items. Respondents are asked on the questionnaire to report prices in effect on the 15th of the month, for "the kind and quality most commonly bought by farmers." On most questionnaires, commodities are described generally in the simplest way consistent with a definite identification. The collection of the basic data used in estimating prices paid by farmers is handled jam~ by the field and Washington ~es of the Statistical Reporting Service. Forty-one offices of the Field Operations Division mail questionnaires to voluntary respondents operating independent stores in the 48 contiguous States. Questionnaires are mailed direct from Washington to chain store respondents. Mail returns from chain stores are supplemented by data obtained by spot enumeration of chain organizations in 17 States. Information is obtained from chain stores each month, whereas independent stores report quarterly on most items. The data from chain stores provide the basis for current monthly estimates of most items in the interquarterly months. Returns from these inquiries are summarized as State and National price averages and as index numbers for (1) family living and (2) production items, subgrouped as follows: Family Living Food and tobacco Clothing Household operation House furnishings Building material (house) Autos and auto supplies Production Feed Livestock Motor supplies Motor vehicles Farm machinery Farm supplies Building and fencing materials Fertilizer Seed Information concerning wage rates is obtained from farmers at quarterly intervals. The general inquiry sent crop reporters on the first of January, April, July, and October carries questions on farm wage rates. Information on taxes payable per acre on farm real estate is compiled annually from reports based on tax data obtained from local county or town records, representatively sampled throughout the country. Data on interest payable per acre on farm mortgage indebtedness are derived from annual estimates of farm-mortgage debt, interest rates, and interest charges based on a sample farm survey. 2
7 Table 1.--Index numbers of prices paid by farmers for coiiiiiiodities, interest, taxes, and wage rates, United States, ]:./ ( =100) Year Jan. Average o o o o R g The parity index
8 Table 2.--Index numbers of prices paid by farmers for commodities used in both family living and production, United States, ( =100) Year Jan. May June Average lo o l'{o !~ !~ ) o '
9 Table 3Index numbers of prices paid b,y farmers for commodities used in family living, United States, ( =100) Year Jan o o ' o 28o o
10 Table 4. --FOOD AND TOBACCO: Indexes of average prices paid by farmers, specified months, united states, ( ) Year o o t-farch June September December l lo lo o o o Average
11 Year lijar. Ct. 1:ab1e 5.--FOOD AiiD IDBACCO: Average prices paid by f'armers f'or meat, specif'ied months, United States, y o.o !J, o o o TI ']8.1 TI ~oo ! ']8.0 TI 3 TI TI 9 '] o '] o.9 4o ; At independent stores, chain stores, 95 Annual average prior to Dec. Ct.
12 Year Table 5.--FOOD AND TOBACCO: Average prices paid by farmers for meat, specified months, United States, /--continued Frying chicken, per lb. Bologna, per lb. Frankfurters, per lb. I June I Sept j Dec 1 I I Mar. Mar. June l Sept. Dec. Mar. June 1 Sept. l Dec. Ct. Ct. ct. Ct. ct. ct. Ct. - - Ct. Ct. Ct. Ct Ct o.l o ]) At ~ndepe11de11t stores, At ~ndepcndent and crm~n stores, o
13 Year Table 5.--FOOD AND TOBACCO: Average prices paid b;y farmers for meat, specified months, United States, o!/--continued Bacon, sliced, per lb. Ham, not sliced, per lb. Pork chops, per lb. I June I Sept. I Dec. g/ I June I Sept I Dec. I June I I Mar. Mar. Mar. Sept. Dec. ct. ct. Ct. Ct. ct. ct. ct. ct. Ct. ct. ct. ct ~ o o o.o o / At independent stores, At independent and cllal.n stores, i~)3-bo. Ef Annual average prior to
14 Year Table 6.--FOOD AND TOBACCO: Average prices paid by farmers for meat and fish, specified months, United States, ~/ Pork sausage, per lb. Frozen haddock, per lb. Salmon, pink, per 16-oz. can Mar. I June I Sept. I Dec. June I Dec. Mar. I June I Sept.. I Dec..!..:. Ct..!..:. ct. Ct. Ct. Ct. ct..!..:. Ct ~ J At independent stores, At independent and chain stores, 1953-bO. -10-
15 Year Mar. Ct. Table 7.--FOOD AND TOBACCO: Average prices paid by' farmers for fats, specified 1110nths, United States, o!} " " " " ~ " l At independent am chain stores,
16 Year Table 8.--FOOD AND TOBA.CCO: Average prices paid by farmers for dairy products and eggs, specified months, United States, 191o-6o 11 Ice cream, per hal. Mar. r June I Sept. J Dec. 2_Ll Mar. I June I Sept. I Dec. 2/ I June I Dec. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Butter, per 1b. I American cheese, per lb. I o o o.o o.o o o o.8 6o o.8 6o f32.1 JJ At indepe~de1t stores, At independent and chain stores, 1953-bO. :?:.1 A@ua1 averar.>e prior to
17 Year Table 8.--FOOD AND TOBACCO: Average prices paid by farmers for dairy products and eggs, specified months, United States, ~--continued Eggs, per doz Milk, fluid, per qt. Milk, evaporated, per 14~ oz. can J June I Sept. I Dec. I June I Sept.J Dec. I June j Sept. I Dec. Mar. Mar. Mar. Ct. Ct. Ct. ~ Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct o o o ]:_/ At independent stores, At independent and chall1 stores, o. -13-
18 Year Table 9.--FOOD AND TOBACCO: Average prices paid by farmers for cereal and bakery products, specified months, United States, / Baking powder, canned, _E_er lb. Mar. r June I 'Sept. I Dec. 2/1 Mar. 1 June I Sept. r Dec. 2/J Mar. J June L Sept. l Dec. Dol. Dol. Dol. Dol. ct. ct. ct. ct. Ct. Ct. Ct. Ct. Flour, per 25-lb. sack! Bread, white, per lb loaf J l$ l.o o o o l.o o 9.6o Q o o n o f3o o o lg ];/. At independent stores, At inqependent and chain stores, ~/ Annual average prior to
19 Year Table 9.--FOOD AND TOBACCO: Average prices paid by fa.rmers for cereal and bakery products, specified months, United States, !/--continued Ce.ke mix, packaged, per lb. I Soda crackers, per lb. I Corn meal, per lb. Mar. I June I Sept. I Mar. I June I Sept, I Dec. I Mar. I June I Sept. I Dec. 2/ Ct. ct. ct. ct. ct. ct. Ct..9!:. Ct..9!:. Ct o o o o o o At independent stores, At independent and chain stores, Annual average prior to ~~ -ls-
20 'lb.ble 10,--FOOD AND TOBACCO: Average prices paid by farmers for cereal and vegetables, specified months, United States, !/ Corn, No. 303 can E,/ Mar. j June j_ S~t. I Dec. _L Mar. J June J S~t. 1 Dec ~ II Mar. I June.I S~t. j Dec. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Year Corn flakes, per lb. I Rolled oats, per lb. I o o o o o ::S o / At independent stores, At independent al'j.d chain stores, o. ~/ Price per pound prior to 'lj Almual average prior to
21 'l.s.ble 11. -FOOD AND TOBACCO: Average prices paid by f'armers f'or vegetables, specif'ied months, United States, ~/ Year Peas, No. 303 can g/ Potatoes, Irish, per 10-lb. Catsup, per bottle Mar. r June Ct. Ct. Ct. Ct. ct. Ct. ~ Ct. Ct. I 1 Sept. Dec. Mar. I June I Sept. I Dec. ]/ Mar. I Sept.j Dec l ~ l y At independent stores, At independent and chain stores, 1953-bO. g/ Price per pound prior to :J/ Annual average prior to Ct. - - Ct
22 Year Table llr-food AND TOBACCO: Average prices paid by farmers for vegetables, specified months, United States, !/--continued Beans, dry edible, (Navy), per lb. ~ Cabbage, per lb. Lettuce, per head Mar. I June I Sept. j Dec. Mar. June I j Sept. I Dec Mar. l June J Sept. J Dec. Ct. Ct. Ct. Ct. Ct. Ct. ct. Ct. Ct o o / At ~ndependent stores, At ~ndependent and chain stores, ~ At independent stores, At independent and chain stores, Ct. Ct. Ct
23 Year Table 12.--FOOD AND TOBACCO: Average prices paid by farmers for vegetables and fruit, specified months, United States, ~/ Tomatoes, fresh, per lb. Apples, fresh, per lb. j Bananas, per lb. Mar. I June I Se~t. j Dec. Mar. I June I Sept. I Dec. 2/ I Mar. I June I Sept. I Dec. 2/ Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. ct. ct. ct. Ct o n.o ll o J. At indepe 1dent stores, At ~ndependent and chaw stores, o. g/ Annual average prior to
24 Year Table 13' --FOOD AND TOBACCO: Average prices paid by farmers for fruit and sweets, specified months, United States, o!/ Pineapple, sliced, Peaches, halves, Oranges, per doz. g/ Hawaiian, No. 2 in heavy sirup, Sugar, per 10-lb. bag can "Per No. ~ can 1-la.r f Jnne I Sep_t.J Dec 3 I Jnne I Dec. Mar. I Se-pt. Mar. I Jnne I Sept. I Dec. 3/ Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct g g.l f gs.o lo los o o o ill lj_ At independer>t stores, At independent and cha~n stores, 1953-bO. "ffj 216' s prior to ~ Annual average prior to lo4 lo4 lo lo gs.l 96.2 lo lo6 lo lo lo4 105 los 107 lo6 lo n.o lo lo lo o lll
25 Year Table 14.--FOOD AND TOBACCO: Average prices paid by farmers for sweets and beverages, specified months, United States, Sirup, per pint gj Mar. I June Candy, non-chocolate, without nuts, per lb. f Sept., Dec. Mar. I June I Sept. I Dec. Mar. I Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct. Ct o ! : o Q.a ]d_ At independent stores, At independent and chain stores, gj Per pound ~ Annual. average prior to Coffee, ground, per lb. June I Sept.1 Dec. Ct. Ct. Ct ]/
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