The sheep industry is an industry which is especially dependent upon an adequate supply of specialized labor. Farm management studies show that the hired labor bill on sheep ranches in the northern plains area increased from about $924 in 1942, to nearly $2,800 in 1956. With the decline of the frontier and the pressure of civilization on the sheep industry, production costs have been increased by competition from other industries for land, labor, and other production factors (Exhibit D.) Severe to extreme drought and very poor pasture feed condition prevailed for a prolonged period in a large part of the West and Southwest where the sheep and wool production of our country is largely concentrated. However, since early last year, range conditions in most areas of the West have been the best in several years. (Exhibit E.) 23102 MIL. LBS. EXHIBIT G CCC HOLDINGS OF WOOL ACCUMULATED FROM 1952-54 PRICE SUPPORT LOAN PROGRAM 29 00 D SD M J S 1957 1952 Source: Fiscal Division, CSS, through October 1955; Boston CSS Commodity Office reports beginning November 30, 1955. Over 180 million pounds of wool were accumulated by CCC from the 1952, 1953, and 1954 price-support loan programs. At the beginning of the 1955 marketing year, the first year under the incentive program, these carryover stocks totaled 150 million pounds. The CCC holdings were progressively liquidated mostly by competitive bid sales and were completely out of the picture as a depressing influence on the market by the end of 1957. (Exhibits F and G.) EXHIBIT H AVERAGE PRICE RECEIVED IN THE OPEN MARKET BY GROWERS MONTHLY AVERAGE PRICE RECEIVED SEASON AVERAGE INCENTIVE PAYMENTS SEASON AVERAGE PRICE RECEIVED IN THE FREE MARKET1 1 Season average prices for 1952-1954 includes an allowance for unredeemed loan wool. Under the National Wool Act, woolgrowers are receiving approximately 15 percent more income from their wool including the incentive payments than they received under the previous price-support loan programs. (Exhibit H.) |