"With the signing of the armistice and the cessation of active fighting, new factors were introduced which affect the food situation. One of these was the step taken to release shipping as rapidly as possible, with the probable result that the agricultural products of the more distant producing countries will again largely appear on the markets of Europe. The channels of trade are being reëstablished and food supplies will be sought wherever they can be secured most cheaply. "A provision of the armistice required the immediate evacuation by the Germans of a large area in Belgium, France, Alsace-Lorraine, Luxemburg, and other territory. As a result many millions of people have been added to those that must be aided and fed by the Allies, and a material increase in the amount of foodstuffs to be imported has been made necessary. It may be found, too, that Turkey, Austria, and even Germany will have to draw on outside supplies to meet their needs. "The demobilization of the European armies will permit men to return to the farms, and it may be expected that under the stimulus of an urgent demand for food an attempt will be made this year to increase food production in all the affected European countries. The devastated regions will be slow in recovering. Much time and labor will be required to construct necessary homes and farm buildings, level the ground, remove obstructions, and in other ways prepare for a resumption of regular agricultural activities. But it must be remembered that as compared with the whole of the countries concerned these areas are small and should not affect the results in any large way. "In many sections of Europe there is a shortage of horses and other work stock, farm machinery, seeds, and fertilizers. In these localities a normal production should not be expected, but it is evident that under favorable conditions a material increase over the past year will be secured. CEREAL REQUIREMENTS FOR 1919 "The following table presents estimates of the cereal requirements for 1919 and shows the world balance as deficit or surplus. Figures for the cereals, except rice, represent millions of bushels.