Boom Times

The best economic news in the U.S. last week, bar none, was the boom in U.S. agriculture. From all over the country reports trickled into Washington showing that the farmer, after being the lowest man on the economic totem pole since 1955, is making an astonishing comeback. Agriculture Department experts scarcely dared believe some of their own figures. As of mid-April, the prices that farmers get are up 9.8% over the same time last year. The prices they pay are up, too--some 3%. But the net improvement is pushing their annual income to $13 billion v. $11.5 billion last year.

Moreover, the picture in individual farm commodities is even brighter. Items:

P: Thanks to a brisk competition between steak-hungry consumers and farmers trying to rebuild their drought-depleted cattle herds by holding back or buying up heifers, beef prices were running 30% above last year, spreading joy from Texas to the feed lots of Kansas City.

P: Hogs were up 20% above last year and holding long after most farm economists expected a seasonal price break; many counties in the corn belt reported the most favorable corn-hog ratio in history--up to 25-1. (Usual make-money point for hog raisers is when 1 cwt. of live hog sells for 12 bu. of corn.)

P: Even the egg--a big thing from California to Delaware--was selling for 25% above last year, so high that many poultrymen feared consumers might rebel.

P: Partly because of the Florida freeze, but also because of continued high food demand from city folks, fresh vegetables were selling 40% higher than last year.

P: And the once heavily subsidized potato was selling, unaided, more than 150% higher, carrying the new farm prosperity all the way up to Maine's Aroostook County.

Main Street Evidence. But as far as the general U.S. economy was concerned, the best evidence of farm recovery was on the main streets of farm towns. In Oskaloosa, Iowa, a typical Midwestern farm market town (pop. 11,000), where farmers long were sullen and resentful over drought and low farm prices, TIME Correspondent Jonathan Rinehart found cash registers jingle-jangling more merrily than in years. Manager Ernest Dilley of the Thriftway Supermarket reported that farm wives, in a delicate shift in buying habits, suddenly had taken to buying cake mixes, scorning the economies of blending their own. Manager John Liley of the local J. C. Penney store gloated: "We had the best April we've ever had." Predicted Mrs. Gilbert Howarth of Howarth Sales & Service: "Last year we sold 15 air conditioners. This year we expect to sell 20. And that's not bad when you consider there are eight other stores in town where you can buy them."

Chevrolet Dealer Robert Knoepfler sold 15 new cars and trucks in April, cleared out 25 used ones. At first he figured that he had simply cut into his competitors' business. Then Clay Carriker, manager of Greene's Ford, said that his new-car sales for the past 60 days were 20% ahead of 1957, used cars 30%; high-priced new trucks were slow, but lower-priced used trucks were hot. Another major beneficiary of the farmer's new-found prosperity was the farm-machinery business. Owner Don Berkemeir of the Lytle Implement Co. reported that he sold 25 new tractors so far this year, drew groups of up to 25 farmers at a time to his showroom to view the latest in mechanical hay balers. "Business," said Berkemeir, "is within a few dollars of double last year." Used tractors taken back as trade-ins scarcely stay in the shop long enough to be oiled and repainted. Fresh from selling off 160 head of feeder cattle, Farmer Bill Hynick, 45, dropped by recently, plunked down $1,950 for a two-year-old model. "I've been thinking of buying for a couple of years," said Hynick. "Until now, I couldn't do it."

Not only has returning farm prosperity benefited virtually every Oskaloosa business (Lumber Dealer Jim Mathew figures his sales are up 50%, due largely to farmers fixing up the old home place or repairing the barn), but it has brought a flock of new civic improvements in progress, e.g., three new schools, a $200,000 bowling alley and amusement center. Two years ago Oskaloosa, hungry for an industry payroll to offset the setbacks to farming, almost landed an American Chain & Cable Co. plant, but at the last minute lost out. Putting its finger on the reason, the Iowa Development Commission said: "Poor community attitude." Last week a commission pulse-feeler passed through, asked a workman in overalls what he now thought of Oskaloosa. "Best damned town in Iowa," the workman roared.

"Back on His Feet." Oskaloosa's good fortune was not unique. The Central Iowa Farm Business Association completed its annual report on 153 representative farms, reported net income in 1957 averaged $11,200, or 32% over 1956's $8,467 and more than 2 1/2 "times 1955's low of $4,235. For a national view, the Farm Journal polled its regional correspondents, found business noticeably better in every section except the Southeast, where row-crop farmers have been hit by weather and acreage cuts, but livestock and poultry farmers are prospering.

Having recently been through the mill, most farmers were being prudent with their new prosperity. In Fresno, Calif., heart of the San Joaquin Valley machine-farming area, Julius Neilsen, Bank of America farm-loan representative, said: "I never saw so many farmers come in ahead of time and pay off their loans." The Iowa Life Insurance Co. reported its sales to farmers through April were up 78% over last year. And, said Red Oak Agent Stanley Fagerland: "When the farmer gets around to buying life insurance, you know he is getting back on his feet."

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