AGRICULTURE: Dollar Wheat Is Back

The U.S. farmer's favorite synonym for prosperity—$1 wheat—was a reality last week. Commodity Credit Corp. announced a new wheat loan rate of 98¢ a bushel, up 33¢ from 1940. Together with parity and conservation payments, this guarantees farmers about $1.16 a bushel—best average price since 1927. Under the new Fulmer-85%-of-parity-loan law (TIME, May 12), CCC had no choice.

The new rate was a gift to speculators, who hastened to take advantage of this Government-given opportunity. Prices shot up 3¢ in one day, over 8¢ in a week. At Chicago (where wheat has recently sold at around $1) the loan rate...

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