The Agricultural Outlook for the Southern States, 1931-32

Excerpts from the report: The domestic and foreign demand for farm products during 1931 has been further curtailed. The moderate recovery in industrial activity during the first five months of 1931 in the United States and in some foreign countries gave way to a further recession. Consequently the demand for farm products by October, 1931, reached the lowest level during the current depression. The extent of the recession in domestic demand that American farmers have faced during the last 12 months is indicated by the falling off in industrial output of more than 40 per cent from 122 (the Federal Reserve Board Index as percentage of 1923-1925 average) in September, 1929, to 91 in September, 1930, and to 76 in September, 1931; by a decline in factory pay rolls during the same 2-year period from 110 in September, 1929, to 60 in September, 1931; and by a decline in building activity (value of contracts awarded) from 110 in September, 1929, to 59 in August, 1931. The effect of this depression on agriculture is reflected in the reduction in gross farm income from a total of nearly $11,900,000,000 in 1929 to $9,300,000,000 in 1930, and to less than $7,000,000,000 in 1931. The industrial depression has had its greatest effects on agriculture through a drastic lowering of the level of farm prices. The level of prices received by farmers fell from 140 per cent of pre-war prices in October, 1929, to 106 in October, 1930, and 68 in October, 1931