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Outlook for 1950 *
A “tight spot” for potato producers .. . . and generally lower prices for all vegetables ... is foreseen for 1950 by Dr. Harry Love, head of tlfe agricultural economes department at V.P.I.
Furthermore, the drop in prices received by farmers for vegetables likely will ' be more than the drop in the cost of production.
The inefficient, high-cost producer may have a hard time surviving, Dr. Love says.
The demand for fresh vegetables is expected to be slightly less than in recent years, as is processors’ demand for green limas, snap beans, sweet corn, pimentos. and spinach.
No “substantial” reduction is expected for prices paid to growers by processors for tomatoes, green peas, and cabbage.
Demand for potatoes is expected to remain about the same as in 1949. However, high living costs may cause consumers to eat more potatoes. In any case, this likely would be only a temporary interruption rather than a reversal of the long-time downward trend in per capita consumption. Potato production in 1950 is expected to exceed demand at prices equivalent to 60 percent of parity.
Sweet potato production in 1950 could increase a little without flooding the market. It is quite probable that some cash crop farmers who have been forced out of other enterprises by acreage allotments will turn to production of sweet potatoes. Price supports are permissible, but not mandatory. They may range from 0 to 90 percent of parity.
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