Excerpts from the report: Farmers may reasonably expect somewhat lower production costs, a possible tendency toward improvement in market demand, and a greater degree of stability in general commodity prices during 1931. The situation at present, however, is clouded by an unusual combination of circumstances, chief among these being the general business depression, the large supplies of wheat, cotton, and certain livestock products, the disturbed conditions in various producing areas resulting from the drought, unusually severe import restrictions imposed by foreign countries against agricultural products, and the maladjustment of price relationships accompanying the recent world-wide decline in all commodity prices. The drought in 1930 was the most severe and widespread in 29 years. It reduced the production of principal crops about 5.5 per cent below the average of the preceding 10 years. For many of the States affected, the reduction was much more severe than indicated by the reduction in the percentage of the total output. Not only was the gross income from crops reduced greatly in many of the central States but the cost of maintenance of livestock was materially increased and the effects of this drought upon livestock production will continue for some time.