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The Decline of Purchasing Power

1943 ALLIS CHALMERS C TRACTOR

$535.00

Commodity USA USA *Acres to Bushels

Ave. Price Ave. Yield Purchase to Purchase

Corn $1.08/bu 32.6 bu./A 15 495

Wheat $1.35 16.4 bu./A 24 396

Oats $0.71 29.3 bu./A 24 694

Soybeans $1.81 18.3 bu./A 16 295

2000 JOHN DEERE 7610 TRACTOR

$63,500

Corn $1.90 133.8 bu./A 249 33,421

Wheat $2.55 42.7 bu./A 583 24,902

Oats $1.10 59.6 bu./A 969 57,727

Soybeans $4.75 36.5 bu./A 366 13,368

* The acres of production needed to purchase a new tractor represents gross income per acre. It does not reflect acres of net profit per acre needed to purchase additional machinery. The current farm gate prices of most grains are at or near all time record inflation adjusted low prices, and are well below the actual cost of production.

Compiled by John K. Hansen from National Agriculture Statistics Service (NASS) data, June 2000.