STATE OF BUSINESS: Upturn on the Farm

One important gauge of farm prosperity is the farm-implement business, which Mumped badly in Igs6. Last week it was climbing back as farmers, with more cash m prospect, stepped up their orders International Harvester, which reported 14% higher sales this March than last had brought two Illinois plants back to nearly full employment after 90% layoffs last fall. Deere & Co. President William A. Hewitt told stockholders that they can expect 10%-20% more business. We estimate that farm income will be 3% to 5% higher in 1957." The brighter outlook came from a break m the drought that had dried up 14 Midwest and Southwest states, plus soil-bank payments, which will make participating farmers an average $1,000 richer in 1957 t came also from smarter marketing a curbing of production to meet demand. Hog shipments were down 13% thus pushing prices as high as $18.25 cwt v. $15.75 last year.

Against that welcome news was the prospect that good weather will help produce one of the greatest feed-grain crops ot all time—a depressing addition to the record 43 million-ton carryover from last year. Nevertheless, the soil-bank program has done better than expected in taking corn land out of cultivation. Farmers have withdrawn a total 5,200,000 acres this spring, cutting expected corn acreage by nearly 10%. While the basic problems of oversupply are still far from solved, even the most pessimistic farm economists believe that the farm cycle has ended its downturn, and stabilized.