The work has a direct and immediate effect in increasing cash income. Farmers' cash income is now at the lowest point in years. This situation has restricted commercial interchange between farmers as a class and other industrial groups. In some cases resort has been had to barter, i. e., direct interchange of commodities. Low cash income has also stimulated the "live at home" movement, i. e., the production by the farmer for his own use of as many food products (and other commodities) as possible, even though inefficient to do so. Increase in farm cash income represents one of the most effective means of combating the present industrial depression. Such an increase not only benefits farmers themselves but helps to stimulate trade, assists manufacturing industries and distributors who sell to farmers, and in general helps to break down the economic barriers that have been erected between agriculture and other industrial groups as a result of the depression.

The small farmer needs especially to be considered. With an oversupply of staple crops such as wheat, and restriction of foreign markets, prices have dropped to unusually low levels, and strenuous efforts are being made to reduce cost of production. A crop like wheat, for instance, which lends itself well to large-scale production methods and economies can, under these conditions, best be produced on large or comparatively large farms in certain favorable areas.

The present trend is such as to cause the small farmer to diversify to a greater extent not only for the purpose embodied in the "live at home" idea but also for the purpose of utilizing acreage which it becomes advisable for him to withdraw from production of staple crops such as wheat. For this reason, much of the burden of readjustment in agriculture will fall on the small farm.

Much of the work in this program directly assists diversification on small farms by providing greater facilities for diversification, for instance, through discovery of new uses for minor crops, thereby making possible a material degree of expansion. It also increases the profitableness of certain crops which are particularly suitable for production on small farms, for instance, by better adaptation to market preferences and by profitable utilization of surplus and wastes. Also, as a result of new methods of utilization of farm wastes and surplus, new industries are created. This not only benefits agriculture by providing a market for otherwise unutilized products, but also provides employment for labor and profitable use for capital, thus benefiting the community as a whole. Furthermore, most of such products will be used for industrial purposes. They are not so perishable as most of the staple farm food products and hence could be marketed over a longer period. This, together with the resulting increased diversification of farm products, would increase the stability of farm income.

The nature of this program of work is indicated more specifically by the following topics:

1. Improvement in quality and better adaptation of farm products to market requirements and preferences.

2. Utilizing surplus and wastes, the expense for producing which has already been incurred and the sale of which represents net gain.

3. Finding uses for hitherto unutilized plants and new uses for minor crops in order to substitute these for overproduced crops to the greatest extent possible. 4. Substituting domestic for imported products.

5. Development of more extensive uses, and hence better markets for staple farm products.

6. Reducing unit cost of production by more discriminating selection of soils for specific crops and more suitable application of fertilizers.

7. Reducing capital losses from farm fires and soil erosion.

No. 1 refers particularly to certain crops (for instance, sugarcane and sorghum cane) which are converted by the farmer into derived products and sold in this form. In many cases such products have, to a considerable extent, been degraded to the level of raw materials used only by middlemen because of inferior quality and nonadaptation to market requirements. The production of commodities which are suitable for direct consumption results in a considerable "step-up in value, with consequent increased financial return to the producer. Profitable methods of utilizing farm wastes and surplus, as indicated under (2), represent a clear net gain, inasmuch as all expense of production has already been incurred.

The importance of (3) is also obvious. If the acreage of some overproduced crops must be reduced, means should be considered for substituting non-competitive crops to the greatest extent possible. This is particularly important for the small farmer, who is in many cases only paying himself a daily wage, for he can ill afford idle acreage. A considerable number of commodities derived from farm products are being imported into the United States, and some of these could well be produced from domestic farm products, with resulting benefit to domestic agriculture. Work on this subject is being done, as indicated under (4).

The work under (5) seeks to develop new uses for some of the direct products of the farm. With the generally low-price level now prevailing, there is urgent need for decrease in cost of production. Ünit cost of production now varies greatly on different farms. There is great opportunity for reducing average unit cost of production through more discriminating selection of soils with respect to specific crops and more suitable application of fertilizers, as indicated under (6).

Work under (7) is designed to restrict the serious and continuous loss of farm capital caused by farm fires and soil erosion.

The success of any work is to be judged by the results produced. There are given below a number of examples of (1) recent work accomplished and (2) work under way.

EXAMPLES OF RECENT WORK ACCOMPLISHED

[Reference is made in most cases to specific crops]

Apples: The apple is one of the foremost commercial fruits. The United States produces more apples than any other country in the world and is the source of the largest proportion of apples entering world trade. Without the use of insecticides to control insect pests it would be impossible to produce apples on a commercial scale, and without the use of chemical washing solutions to remove arsenical spray residues it would not be possible to market apples in the United States and foreign countries, where stringent regulations concerning permissible quantities of arsenical residues on apples are enforced.

The combination of salt and hydrochloric acid originated by the bureau has attained widespread use for the removal of lead arsenate residues from apples and pears. The use of new fluorine compounds

has been recommended to replace lead arsenate and other arsenical sprays in order to eliminate or decrease lead arsenate residues on harvested fruits.

New insecticides, such as rotenone, neonicotine, and new fluorine compounds, have been developed. Tests indicate that it may not be necessary to remove residues of sprayed rotenone from apples, in which case the cost of washing apples, amounting to not less than $300,000 annually in the Wenatchee district of Washington alone, would be eliminated.

Two chemical substances have been separated from the wax-like coating of apple skins. About 500,000 pounds of each of these two substances can be recovered annually from apple pomace and peels which are now wasted in the production of cider and vinegar and in dehydration of apples. Commercial uses for these substances in lacquers, varnish removers, and dry-type stencils have been found, and commercial production is being undertaken.

Citrus products: The development of maturity standards which have stabilized materially the fresh-fruit market have resulted in an estimated increased value for citrus fruit of at least 35 cents per box during the first five years the standards have been in force. Much sound, mature citrus fruit is unsalable because the color does not meet consumers' preferences. Development of the ethylene gas treatment for hastening the development of color has, according to estimates. of leaders of the Florida citrus industry, added approximately 50 cents to the market value of each box so treated during the 1930-31 season. This amounts to an increase in value of the Florida orange crop of at least $4,000,000 in this one year.

The ethylene treatment for hastening coloration and reducing astringency has been extended to other fruits, such as pears, apricots, and persimmons, thus increasing their value for canning or direct consumption. The citrus by-products industry of California, the most highly developed of its kind in the world, is based solely on research work by the bureau. It has to date yielded growers a total of some $7,000,000 as a result of salvaging thousands of carloads of cull and surplus lemons and oranges.

Methods of extracting lemon and orange oils and of producing an odorless pectin have been developed. Until the establishment of the citrus by-products industry in California, Italy was the chief production center for citric acid and citrates for the drug and beverage markets of the world. Our domestic industry has not only displaced most of these products from Italy, but shipments of both citric acid and citrates are being exported. Our citrates have now displaced Italy from the leading position in the British import trade.

Fruits and vegetables for canning: Canning and preserving of fruits and vegetables is the largest food industry of the United States and is represented in every State of the Union. An important problem of farmers who grow fruits and vegetables for commercial canning is the increasing competition of fresh fruits and vegetables. Extension of truck growing in the Gulf coast region, together with improved transportation and refrigeration facilities, has made certain of the most common vegetables such as peas, string beans, and tomatoes available in fresh condition throughout the year.

The increased availability of fresh vegetables during the off season has the effect competitively of raising the standard of quality which

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the consumer applies to canned products. Northern canners and growers of vegetables for canning are definitely confronted with the problem of retaining more completely the original color and flavor of these products when canned. Research by the bureau has yielded an improved method of canning, which, when applied to some commodities, produces goods of superior flavor. The flavor of products such as peas and sweet corn, when packed by this method, resembles closely those of the fresh products after cooking.

Naval stores: The United States is the principal world source of naval stores (turpentine, rosin, pine oil, and related products derived from the pine tree) and produces about 65 per cent of the world supply. The average domestic production for the past three years has been about 35,000,000 gallons of turpentine spirits and 2,350,000 barrels of rosin. The total value (1929 Census Report) was about $42,000,000.

An improved method of collecting pine gum to replace the wasteful and harmful practice of cutting a hole or "box" in the base of the tree has been devised. Improvements have been made in methods of distillation, still equipment, and accessories used, and in the construction or "setting" of turpentine stills. Methods of testing naval stores have been outlined so as to provide suitable specifications for purchase.

Sugar cane: The domestic sugar-cane industry would profit from greater diversification of marketable products which would tend to stabilize the market and enable the industry to take fuller advantage of its contiguity to domestic consumers. A new product, "cane cream," and an improved type of "la cuite" (exceptionally thick cane sirup) have been developed. Suitable methods have been indicated for producing on the plantation special grades of molasses and brown sugars which are in demand for specific purposes by certain industries, and the sale of which would yield an increased net return per ton of cane.

Recent work of the bureau has shown the possibility of utilizing the residual fiber (bagasse) of sugar cane as a raw material for rayon through the production of a satisfactory grade of cellulose. Rayon at present is almost entirely made from cotton linters and wood pulp, but the supply of cotton linters soon will not be large enough to meet the demand. Cellulose made from sugar cane bagasse is superior to wood pulp cellulose as a base for rayon.

Wheat: Recent work has demonstrated that the addition of small amounts of flour from partially germinated wheat, rye or barley to wheat flour enhances the value of the latter for bread-making purposes. The bread made from such a mixture has a better grain and texture of "crumb" and a better "bloom" of crust. This discovery has possibilities of considerable value in stimulating bread (and wheat) consumption, which, according to recent statistics, has undergone a considerable per capita decline during recent years.

The protein content of wheat is a factor which is now considered in fixing its price, and a graduated premium is paid for increase in protein content under certain conditions. Practically every State requires that commercial feed be labeled to show its protein content, which must not fall below a given percentage.

However, the protein value of a feed can not be judged merely by the quantity of protein it contains; the feeding value is also dependent

upon the quality or nature of the protein. Investigation of the proteins of wheat bran has resulted in the isolation, for the first time, of these proteins and a determination of their nutritive value. This work shows that wheat bran is one of the cheapest sources of high quality protein available. Dissemination of this information and knowledge of the very high nutritive value of wheat bran on the part of livestock feeders is expected to result in a stimulation of its use for feeding purposes.

Corn: A chemical product, calcium gluconate, can now be produced at a low price by the action of a mold on corn sugar. It is of great value in the treatment of various diseases resulting from a calcium deficiency. Its use is continually increasing and its future production will be one of various possible means of protfiably utilizing surplus corn.

Cotton: The production of the chemical compound, phthalicanhydride, by the bureau is a discover upon which is founded the vat-dye industry in this country. With a few exceptions vat dyes are the only dyes applicable to cotton which are very fast to light and washing. Since these dyes are applicable to cotton, the latter is being used in an ever-increasing number of applications which formerly were not developed because the cotton could not be permanently dyed, and hence did not find uses in which fastness of color was essential. This discovery has also increased the number of dies and variety of colors. which can be applied to cotton goods, thus adding to their attractiveness. Examples of the use of these dies in stimulating use of cotton goods are women's dresses and cotton drapes.

A problem of primary importance to the cottonseed industry (both to the farmer and the oil miller) has been the need for a reliable method of evaluating and grading cottonseed. It had formerly been assumed that all cottonseed, provided it has not deteriorated, is of equal value. A satisfactory method of determining the quality of cottonseed from the standpoint of its industrial use has been developed and is now in use. This grading method, by discriminating between seed of good quality and seed of poor quality, has raised the standard of cottonseed and is contributing materially to its average value.

The well-established fact that raw cottonseed contains a substance injurious to certain livestock has led to misinterpretation of feeding experiments and unfounded prejudice against the use of cottonseed meal for feeding purposes and this has restricted its market. Investigation has shown that by suitable control of time and temperature of heating the seed in pressing, a cottonseed meal uniformly free from the toxic substance which is responsible for injury to livestock can be obtained. It has also been demonstrated that by using a proper combination of feeds the effect of residual quantities of this toxic substance in cottonseed meal can be eliminated.

Through the work in Texas, where the greatest loss has occurred from cotton root rot, methods of cultivation and fertilization of cotton have been developed which very materially reduce the loss from this disease. Cotton yield per acre has been increased and unit cost of production has been decreased by the use of suitable fertilizer formulas and proper application of fertilizers. The work has shown how the cheaper fertilizers can be utilized to best advantage, with a consequent reduction in cost of production per acre. Even with low cotton prices it is profitable to use commercial fertilizers in the grow