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Number 117"

Wednesday,_M arch 26, 19.62

Federal Reserve Bank of Dallas
F A R M E R S 1 __ P_JL A N T T ILG , I N T E N T I O N S
Early each year the*1173, Department "of Agriculture makes a "survey among a
large number of farmers to obtain information concerning their plans for the forth­
coming crop season. The results of the survey made th is month show that U•S farm­
ers ■ plans f or' the 19.62 crop season are not greatly ’d ifferen t from those of Tast
year. However, the 2?2 m illion acres indicated as a to ta l of the i6 .major c ops
included in the survey is about a m illion acres l e s s :than. in 1961. For individual
crops the tendency is to s h ift from crops of high-labor requirements to those of a
less intensive nature. Of course, weather and other factors during the spring
planting season may cause changes in these plans.
Of the major crops included in the survey in 'Texas (cotton excluded),
farmers have indicated increases in acreages of corn, flaxseed, sweet sorghums,
sweet potatoes, soybeans, and hay. On the other hand, there are substantial reduc­
tions in intended acreages of wheat, r ic e , barley,' grain sorghums, Irish potatoes,
and peanuts. No change is reported for oats. The to ta l acreage of a l l of these
crops is s lig h tly below that planted in 1951»
Although there is much uncertainty regarding acreages that w ill fin a lly
be planted in Texas, says the USDA, present indications are for acreages of most
crops somewhat below those requested by the Secretary of Agriculture in the announced
goals. Flax acreage probably w ill exceed the goal. Rice and hay acreages are
expected to approximate the goal. For most other crops other than cotton, pros­
pective acreages are below the goals. Legislation prohibits the gathering of
information on intentions to plant cotton. The f i r s t estimates of cotton acreage
w ill be announced on Ju ly 8.
For the fiv e stares of the Eleventh Federal Reserve D is tr ic t - A r iz ., L a .,
N. M.,, Ok].a., and Tex. - reports on flrlners^plantijng intentions show that th is
area probably w ill have larger acreages of hay, soybeans, flaxseed, and sweet
potatoes; but farmers are planning a curtailment in acreages of corn, r ic e ,
sorghums, and Irish potatoes. They also have smaller acreages of oats and barley.
Spot cor ton, markets advanced la s t week. Middling 1.6/l6-inch cotton on
the Dallas market' reached'TjTTl^' cents per pound - the highest since February 6*
The marmet th is week was o ff a few points.
Texas cotton ginned during the 1961-62 season averaged lower in grade and
shorter in staple length" than th a t■ ginned during the 1960-61 season, according to
the USDA.
^ •
Upland cotton ginned in Texas for the 1962-62 season amounted to
it,016,707 bales? American -Egyptian cotton totaled 21,607 bales; the to ta l was
14,037,2lh b ales, according to the Bureau of the Census. Last season’ s ginnings
amounted to 2,867,623 bales.
Total ginnings for the U .S. amounted to 15,050,262 bales (including
American-Egyptian), compared with 9,899,111? bales la s t year.
Grain prices are a l i t t l e lower th is week. No. 1 hard wheat on the Fort
Worth market closed Tuesday, March 25, at $2,75-1/2 per bushel, or 2 cents under a
week e a r lie r . No. 2 white oats at $ 1 . 114- 1 /2 were o ff l-l/ U cents. Sorghum grain
brought a top price of $3 . lB"~per cwt. - o ff 1 cent. Corn prices showed l i t t l e

AGRICULTURAL NEV'iS OF THE WEEK_________________________ ________ _ Wednesday, March
Number 117 '
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Rough rice markets in Texas and Louisiana advanced 10 to 20 cents per
100 pounds la s t week. Rough rice trade was confined largely to lower grades, as
bids on better grades generally were below the Government loan value.
The TJSDA has announced that price support for peanuts in 195*2 w ill be
available to producers at a national average'.le v e l of not less than $ 2.3 9 . hO per
ton. This average minimum support p ric e , which is 90 percent of the February 15
parity p rice , w ill be increased proportionately i f the parity price rises before
the sta rt of the marketing season on August 1.
The minimum support le v e l for the 193*2 crop, represents an increase of
about $9 per ton over the average. support price of la s t year's crop. However,
in the 19.52 program the producers of peanuts, either in d ivid u ally or through co­
operative associations, w ill assume resp o n sib ility for. storage and certain storage
co sts, as is done by producers of other basic commodities.
Price support on 1952-crop peanuts w ill be available through CCC loans
and purchase agreements instead of through the program of direct purchases used in
recent years. Loans made d ire c tly to individual producers w ill be available
through PM county committees on either approved farm- or warehouse-stored peanuts.
During and since World War I I , the production of peanuts has been fa r in
excess of requirements for use as nuts, and CCC purchase programs were needed, says
the USDA, to assure price support to a l l producers of peanuts. In 19.52, fo r the
f ir s t time since the war, the national acreage allotment is in lin e with anticipated
requirements for peanuts for use as nuts. Under these conditions, i t is to the
producer’ s advantage to protect his prices through CCC loans or purchase agreements
rather than through" direct sales to CCC, since by either of the f i r s t two method's
he is able to share in any price increases that may come after the heavy harvest
and marketing period is over.
Prices of ca ttle on the Fort Worth market fluctuate from day to day but
have shown l i t t l e over-all tendency to rise or f a l l in the past several weeks.
Prices of hogs and l ambs are up s lig h tly .
Choice l80-2S0-lb. hogs sold Tuesday, March 25, at $17.25 and $17.50,
compared with a top price of $17.00 a week e a r lie r . In cid en tally, th is top price
of $17.00 on Tuesday of la s t week was the lowest since A pril 1950.
Good and Choice shorn slaughter Iambs sold Tuesday at $25.00 to $25.50,
or $1.00 above a week e a r lie r . Choice spring lambs cashed at prices ranging up to
Commerc ia l hatchery production in Texas during February was estimated by
the BAE at 12*9 m illion chicks - the largest February output on record and 58%
above a year ago.
Placement of commercial b ro iler chicks on Texas farms totaled a record
1,650,000 in "the weeF"ended March 7?T. PTacemeries thus far th is year are more
than 16.5 m illion chicks vs. 1 1 .7 m illion a year e a rlie r and 7 .7 m illion 2 years
W. M. P r itc h e t t
A g r ic u ltu r a l Economist