Outlook for Farm Family Living in 1940

Excerpts from the report: The outlook for farm family living is inextricably bound to the outlook for living of families in cities. Prosperous days and better living for industrial workers mean greater demand for products from farms and thus help increase national income from agriculture. If the marked rise in industrial activity which occurred after the outbreak of war is maintained in 1940, incomes of farm as well as city families will be higher than in 1939. Business conditions that would help to bring about a rise in receipts from the marketing of farm products in 1940 would also tend to increase farm-production expenses; but expenses would rise less, relative to the 1939 level, than would gross receipts. Net returns from farming, therefore, bid fair to be higher in 1940 than in 1939. Income from Government payments probably will be about the same in 1940 as in the year before. The value of nonmoney income from the farm, such as the family's food, fuel, and housing, may be somewhat higher in money terms than in 1939 if prices of farm products advance. Nonfarm earnings of family members will increase if industry provides greater opportunities for employment off the farm. Many factors, therefore, point toward somewhat higher total net family incomes, money and nonmoney, farm and nonfarm, in 1940 than during the current year. A material improvement in returns from agriculture will lessen the number of low-income families but will not eliminate all the disadvantaged groups. There still will be need for help from relief organizations, for distribution of surplus-food supplies to the needy, and for programs of rural rehabilitation.