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Price Asked

production, market, usually, change, shipped, farming and crops

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PRICE ASKED Types of Farming.- The chief factors that determine the type of farming in any region are: climate, soil, topography, transportation, distance to market or shipping point, market de mand and supply, capital, labor, and insects, fungi or other pests. These factors do not often change suddenly. A new railroad may be built, and change the type of farming, or an insect pest may force a temporary change. Types of farming are in general stable, yet are nearly always gradually changing and some times are subject to sudden and radical change. The farmer must be conservative yet always ready to change when a change is necessary.

Crops are closely limited by climate, soil and topography. Animal production is also closely limited by these factors, for animal production depends on crops. Cattle and sheep are usually raised in regions where there is land that is good for pasture but not good for crops. If land is good for crops it is usually too valuable to be used for pasture. The length of the grazing season is also of great importance. This is not determined by the length of the warm period, but by the character and amount of grass.

The most important centres of production of products that are easily and cheaply shipped are in regions where the cost of production is least. Sheep can be raised in New York, in Montana, and in Australia. The most important centres of production are where the feed is cheapest, not where the product is used. Wool and mutton can be shipped long distances. Nor is the feed of a portion of the year the domi nating factor; the feed cost for the entire year is the important matter. Butter is readily shipped and the centres of production are largely in the regions of cheapest production. But fresh small fruits, fresh vegetables and fresh milk are shipped with difficulty and at great expense, hence are usually produced near market. Hay is very bulky for shipment and is therefore usually produced nearer to market than the grains. It costs less to ship hogs than to ship the corn that a hog would eat. For this reason hogs are most abundant in the portion of the corn belt farthest from Chicago. A larger

proportion of the corn near Chicago is shipped for manufacturing purposes.

Periods Over and Under Production.- No problem in farm management is more difficult than the problem of forecasting future needs. The farmer who foresees future shortages and raises products to meet them, is a public bene factor and at the same time makes a good profit for himself. The majority of mankind live in the present. If sheep or horses or apples are high, the majority are inclined to rush to these enterprises. But entering at the period of high prices does not mean selling on the high market; for the product comes years later when one must compete with all the others who rushed into the business at the time of high prices. The profit on a colt is not dependent on the prices of horses now, but on the prices of horses four to six years from now when the colt is sold. For every product there is a more or less definite cycle of over- and under-production. When a shortage of hogs occurs it takes two years to bring a surplus. In the meantime too many are likely to be raised so as to cause a surplus when they go on the market. When a shortage of horses is discovered there is usually a shortage of colts as well. Hence, it takes five to eight years to cause a surplus.

Violent changes in world affairs, such as the Great War, make violent fluctuations in de mand for different products. These call for sudden modifications of agricultural practice and sometimes call for complete changes. At such times the changes that take place are likely to be much too great and are likely to result in serious underproduction of the articles that at first appear to be relatively abundant. As com pared with peace, the war demands call for greatly increased amounts of clothing and for relatively large amounts of grain. Cotton, wool and grain rise in price more than food animals. The production of animals is at first relatively unprofitable. Later on, owing to the great de crease in animal production, the animals become highly profitable. Usually it pays a farmer to maintain his general type of farming, but make minor shifts to meet market demands.

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