Full text of Agricultural News Letter : Vol. III, Number 12

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AGRICULTURAL N E W S LETTER

THE
VoL III

F E D E R A L R E S E R V E BANK OF D A L L A S
Dallas, Texas, December 15, 1948

Number 12

DEMAND FOR FARM COMMODITIES REMAINS HIGH, PRICES DECLINE

The demand for farm commodities, sup­
ported by a generally favorable economic
situation, remains relatively high, although
farm prices have declined somewhat in re­
sponse to large production this year, accord­
ing to the November issue of The Demand
and Trice Situation of the United States De­
partment of Agriculture.
Total industrial production, which has an
important relationship to the demand for
farm products, set a new peacetime record
in October, surpassing the previous peacetime
high reached in February of this year. Early
indications of over-all production in Novem­
ber suggested that the high October rate was
being maintained. Total employment in Oc­
tober, although declining seasonally, was sub­
stantially greater than a year earlier. Personal
incomes in September were 4 percent larger
than a year earlier. Slight increases in the in­
come of nonagricultural groups were accom­
panied by a less than usual seasonal increase
in agricultural income.
The general level of wholesale prices, which
began to decline in September, continued
downward through October and November
but remained above comparable months of
1947. The decline reflected lower prices for
farm products and foods. The general level
of prices received by farmers' continued to
decline for the fourth consecutive month and
at mid-November had fallen 2 percent below
the level of the previous month and 12 per­
cent below the January peak. Prices paid by
farmers averaged slightly lower on Novem­
ber 15 as food, clothing, and feed prices
continued to decline. The parity ratio was
down to 110, the lowest level since October
1942.

Agricultural exports in the third quarter
of 1948 were substantially above those of the
second quarter, although 9 percent below
those of the same quarter of 1947. Most of
the increase over the second quarter was due
to larger exports of grain and grain products
and unmanufactured tobacco. Exports of
cotton and of foods other than grains were
smaller.
Cash farm receipts in November and for
the first 11 months of the year continued
slightly above comparable periods last year.
Higher production expenses have tended to
offset the increase in receipts, so that net in­
come probably will be lower than in 1947,
the first drop in 10 years.
Prices received by farmers for cattle
dropped slightly, and those for lambs were
about steady from mid-October to midNovember. The prices received for hogs were
down about $3 per hundred pounds. Prices
received by farmers for hogs have declined
earlier and faster this year than usual, due
partly to heavy marketings this fall.
Prices of dairy products have firmed some­
what since the sharp decline which occurred
between September and October but are still
below the record levels of June and July.
Prices of at least some of the major dairy
items may increase from recent levels before
a significant seasonal increase in output occurs
in the next few months, according to The
Demand and Price Situation.
The farm price of eggs during September
and October was slightly lower than a year
earlier, but the mid-November farm price of
58.3 cents per dozen was 3.6 cents above Oc­
tober and 4.9 cents higher than a year earlier.
Production of eggs during the last several

AGRICULTURAL NEWS LETTER

months has exceeded that of corresponding
months of 1947, despite a decrease in total
number of laying hens. The higher prices
during the last several months resulted partly
from the support purchase program, which
absorbed an amount about equaling or ex­
ceeding the increase in production over 1947.
With marketings of chickens somewhat
smaller than a year ago, farm and retail prices
continued high through mid - November,
while turkey prices remained at record levels.
The demand for fats and oils has not kept
pace with increased production during the
last several months, and wholesale prices for
these products in November, although slight­
ly higher* than a month earlier, were 17 per­
cent below the 12-month average (October
1947-September 1948). However, since both
export and domestic demands for fats and
oils continue strong, prices in early 1949 are
likely to average at least as high as in No­
vember, says The Demand and Price Situa­
tion.
Corn prices have declined much more than
seasonally this fall, reflecting record produc­
tion. At mid-November the average price
received by farmers was $1.21 per bushel, the
lowest reached in nearly two years and 23
cents per bushel below the national average
loan rate. Because of the decline in prices of
corn and other grains, the mid-November
index of prices received for feed grains as a
group was 42 percent lower than a year
earlier and nearly 50 percent below the record
reached last January. Feed prices are expected
to continue much lower than a year earlier,
at least through this winter and spring.
Cash wheat prices in late November were
as much as 10 cents above the loan levels on
some of the larger markets, in contrast to 18
cents below the loan price in early August.
However, even at the higher price level, sell­
ing by growers has not developed on a large
scale. Domestic consumption and exports of
wheat are likely to remain at relatively high
levels next year.
The cotton demand and price situation has
remained about unchanged since early in the
season. Demand is only moderate, with buy­

ing of cotton by domestic mills and for ex­
port largely confined to immediate needs.
Prices of cotton in mid-November remained
at about three-fourths of a cent a pound
above loan levels. Since August 9, the spot
market average price of Middling 15/16-inch
has fluctuated within the narrow range of
30.69 and 31.78 cents per pound.
SOIL CONSERVATION PRACTICES
DEMONSTRATED

Methods of installing approved soil conser­
vation practices were illustrated at a recent
Save-A-Farm demonstration in McLennan
County. More than 20,000 farmers, business­
men, and others interested in agriculture at­
tended the event, which was sponsored by
the McLennan County Soil Conservation Dis­
trict and other agricultural groups and busi­
nessmen in Waco. The farm used was selected
because it needed every type of soil conserva­
tion improvement and the owner-operator
was willing and able to maintain the improve­
ments that were planned. During the day
almost every type of operation was demon­
strated, frequently with several different
kinds of equipment.
This demonstration, somewhat spectacular
in nature, illustrated practices that can be­
come a part of the operations of most cen­
tral Texas farmers. While it would be im­
possible for an individual farmer to make so
many changes and improvements in one day,
by careful planning he could include them
in a longer range program of farm operations
and make use of farm labor and machinery
during slack seasons over a period of four or
five years. In this way, he could increase the
earning capacity of his farm without the
necessity of large cash outlays. Some custom
work might be needed, and in some instances
water conservation practices, such as the
building of terraces and waterways, could
best be accomplished by simultaneous instal­
lation on the entire farm and perhaps even
on adjacent farms. Most of the work, how­
ever, could be accomplished by the farmer
in cooperation with his neighbors.
The increased return to farmers and to the
community from the installation of improve­

AGRICULTURAL NEWS LETTER

ments and improved practices has been dem­
onstrated on many Texas farms. In some in­
stances, cotton yields have been doubled by
the simple practice of placing a legume, such
as Hubam clover, in the crop rotation. Sodded
waterways have provided pasture and, thus,
more income from livestock. Use of cover
crops has improved soil fertility and increased
crop yields.
FARM MANAGEMENT

Methods for Control of Cattle Grubs
Suggested
Cattle with grubs are discounted from
one-half to one and one-half cents per pound
on the market, resulting in a loss of almost
$4 per animal, according to C. A. King, as­
sociate extension entomologist of Texas
A. & M. College. There is an additional loss
due to the fact that these grubby cattle re­
quire about 15 percent more feed.
Cattle grubs can be controlled by using
the proper dust, spray, or dip. If the first
method is used, the backs of the animals
should be dusted thoroughly with a mixture
of one part 5 percent rotenone and two parts
tripoli earth or talc. The dust should be
rubbed into the hair with the finger tips.
For a spray, it is recommended that seven
and one-half pounds of 5 percent rotenone
be mixed in 100 gallons of water and the
mixture sprayed on the backs of the animals,
using a pressure of at least 2 50 pounds. A
dip made by mixing one pound of 5 percent
rotenone and 10 pounds of wettable sulphur
in 100 gallons of water effectively controls
both grubs and lice. Two dips from 17 to
21 days apart are required to destroy grubs.
The early winter is a good time to treat cattle
for grubs, because this is the time of year the
grubs mature and fall off the animal.
Milk Cooling System Needed Also in Winter
Prompt cooling of milk and cream is recog­
nized as being essential to successful dairying,
but the necessity of using the cooling tank
in the winter months is frequently over­
looked. H. C. Olson, Oklahoma A. & M.
College dairy specialist, points out that cool
weather will not substitute for the cooling
tank. Milk cools faster when the cans are

8

placed in water than when held in air at the
same temperature. Use of the cooling tank
also helps prevent freezing. Mr. Olson re­
minds dairymen that there are frequent in­
termittent periods of warm weather during
the winter, and it is particularly important
that the cooling system be used at such
times.
FARM PRICES

Farm-Stored Dry Beans Eligible for Full
Support Price
Farm-stored, as well as warehouse-stored,
1948-crop dry edible beans will be eligible
for Commodity Credit Corporation loans at
the full support price, the Department of
Agriculture recently announced. Under
amended requirements, beans packed in suit­
able 100-pound bags and grading U. S. No.
2 or better will be eligible for CCC loans at
the full support level if properly stored.
TECHNOLOGICAL DEVELOP­
MENTS

Mechanized Harvesting of Peanuts
Accomplished
Mechanized harvesting and curing of pea­
nuts were accomplished this year by the agri­
cultural engineers of the Georgia Coastal
Plains Experiment Station. The engineers
used special combines to pick and sack
freshly-dug peanuts in one operation. The
nuts were then cured by placing them in a
converted tobacco barn and multi-purpose
curing house and forcing warm air through
the storage area. These accomplishments indi­
cate that all major obstacles blocking com­
plete mechanization have been eliminated in
principle and that practical machines de­
signed to handle eight to ten acres per day
may soon be available. This method of har­
vesting, in addition to insuring a better qual­
ity of peanuts, should mean a saving to the
peanut farmer of at least three-fourths of
present harvesting labor costs, according to
reports from the Experiment Station.
Turkey Egg Production Stimulated by Use
of Artificial Illumination
Artificial illumination has been used for
many years to stimulate egg production in
flocks of chickens, and experimental work

4

AGRICULTURAL NEWS LETTER

now indicates that satisfactory results can be
obtained in use of the same methods to stim­
ulate turkey egg production. Results of
studies at the Oklahoma A. & M. Experiment
Station show that two 15 -watt bulbs in a
16- by 20-foot room stimulate egg produc­
tion satisfactorily when located near the cen­
ter of the room and used all night. Two 71/2watt lights give equal results when placed
above the perches. Although hatchability and
fertility are reduced when egg production is
stimulated in this way, the use of lights ap­
parently has no influence on toms in regard
to fertility. Lighting of less intensity, such
as produced by kerosene lanterns and small
light bulbs, did not produce favorable results.
Pecan Harvest, New Style
A system of harvesting pecans which has
been developed recently includes the mechan­
ical pecan tree shaker, some camouflage nets,
a scoop, and a cleaning machine, according to
J. F. Rosborough, extension horticulturist of
Texas A. & M. College. By the hand-picking
method, a man, his wife, and a couple of
children could gather only about 250 pounds
of nuts a day, but by the new method they
can harvest over a ton a day. In harvesting
by this method, the farmer spreads the
camouflage nets around the tree trunk. The
mechanical shaker shakes the nuts to the
ground. With a person working at each cor­
ner of the net, the pecans are easily piled
up, ready for scooping into a pick-up bed or
other large container. They are hauled off to
the cleaner for removal of weeds and small
twigs, after which they are ready to be
sacked.
The camouflage nets can be bought at
army surplus stores. They come in three sizes,
but the 24- by 48-foot net with quarter-inch
mesh works the best, says Mr. Rosborough.

States Commission for the eradication of
foot-and-mouth disease in Mexico to increase
the output of the protective vaccine used in
the campaign to more than a million doses
a month. The present general plan, designed
to compress the disease into a smaller and
smaller area, is to vaccinate susceptible ani­
mals, beginning in areas adjacent to the
northern and southern quarantine lines and
working toward the center of the infected
zone. Vaccination makes animals resistant to
attacks of the disease for a period of at least
six months. The progress now being made in
eradication of this disease is heartening to
cattlemen north of the border who have been
fearful of the spread of the disease to their
livestock.
PUBLICATIONS

Oklahoma Agricultural Experiment Station,
Stillwater, Oklahoma:
Oklahoma Farmers’ Experiences 'With Cot­
ton Strippers, Bulletin No. B-324, by John
D. Campbell.
Oat Variety and Cultural Tests in Okla­
homa, 1925-1947, Technical Bulletin No.
T-33, by A. M. Schlehuber and others.
Texas Agricultural Experiment Station, Col­
lege Station, Texas:
Control of Cotton Root Rot by Siveetclover
in Rotation, Bulletin 699, by E. W. Lyle and
others.
The Control of Transit and Storage De­
cays in Texas Lemons, Bulletin 701, by G. H.
Godfrey and A. L. Ryall.
Economics of Cotton Harvesting, Texas
High Plains, 1947 Season, Progress Report
1134, by M. N. Williamson and Ralph H.
Rogers.
Trend of Taxes on Farm and Ranch Real
Estate in Texas, 1890-1946, Bulletin No. 702,
by L. P. Gabbard and Robert C. Cherry.
Mechanized Production of Cotton in
Foot-and-Mouth Disease Vaccine Output Texas,
Bulletin No. 704, by H. P. Smith and
Increased
D.
L.
Jones.
The United States Department of Agricul­
ture recently announced that increases in fa­ Copies of these publications may be secured
cilities have enabled the Mexican - United by request to their respective publishers.