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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS

Number 327

Wednesday, April

L,

1956

SOCIAL
SECURITY TAX
DEADLINE t
April 16 is the deadline for self-employed farmers and ranchers to report
their net ea:rnings and pay social security taxes this year, according to the u. s.
Department of Healt~Education, and Welfare:--T°he reporting date was moved forward
1 day because April 15 falls on Sundayo Every person self-employed in any kind of
agricultural enterprise whose net earnings amounted to at least $400 in 1955 is required to report his earnings,liP to a total of $L,200,--and pay a 3% socrar-security
tax on them.
- - - -- -

A GR I CUL T URAL

P RI CES

The index of prices received by U. So farmers increased 2% during the
month ended March 1~1956, reports the-Xgricultural Marketing Service. The index
at mid-March is placed--ar--230% of the 1910-14 average, compared with 226 a month
earlier and 243 on the corresponding date last year. Prices of most crops increased
from mid-February to mid-March, with higher prices for tomatoes, potatoes, and cotton
making the most important contributions to the 3!% increase in the crop index. The
livestock and livestock products index increased only } of 1%, as higher prices for
beef cattl8';-hogs, and chickens were-Dearly offset by lower prices for milk, eggs,
and calves,
The parity index (which reflects prices paid for commodities plus interest,
taxes, and wage rates")"C;"ilMarch 15 was 282, which was about 2/3 of 1% higher than a
month earlier but was 1% lower than at the same time in 1955. Upturns in food and
feeder livestock prices were primarily responsible for the increase from mid-February;
however, small increases were also recorded for farm supplies, machinery, and tractors.
Farm product prices increased somewhat more than the parity index, thereby
raising the parity ratio 1% to 82 on March 15. At the same time last year, the parity
index was 86,
-FARM
INCOME
Cash receipts from farm marketings in the states of the Eleventh Federal
Reserve District (Arizona, Louisiana, New Mexico, Oklahoma,-and Texas) totaled
$29L,389,000 during January this year, reflecting a decline of 8% from a year
earlier. Receipts from crops were 11% below those in January 1955, and livestock
receipts were 3% leSS:- - -

L I VES T 0 CK
An estimated 2,900 cattle were received at Fort Worth on Monday, April 2,
according to the AlvJS. This supply compares ·with 3-;Go'Oaweek earlier and L, 200 at
the same time last year. Trading on slaughter steers and heifers was moderately
active, and prices were fully steady as compared with those in the latter part of
the past week. Stockers sold at prices which were about in line with those a week
earlier; prices for cows were barely steady. Choice beef steers brought $18 to
~ 18.50; Commercial and Good heifers, $1L to $17.50; beef cows, mostly $12 to ~p l2.50;
and Good stocker steers, $15.50 to $17.50 per cwt.
Monday's calf supplies totaled only LOO, or 150 fewer than a week earlier
and less than half the receipts 52E the corresponding date in 1955. The demand for
both slaughter and stocker calves was strong enough to make an early clearance of

these animals at firm prices. Choice slaughter offerings were quoted at $18.50 to
$19.50, and Good stocker steer calves sold at $16 to $18.
Hog receipts are placed at l,LOO, or the largest since September 1955.
These supplies compare with 1,200 on the preceding Monday ariCfb)O at the same time
in 1955. No. 2 and No. 3 Grade butchers with average weights of more than 235 lbs.
comprised a large part of the offerings. Only a small percentage of the marketings
was suitable for top prices. Butchers and sows brought prices which were mostly
steady with those in the latter part of the past week. U.S. No. 1 through No. 3
Grades of mixed 190- to 2L5-lb. slaughter hogs sold mainly at $15 per cwt.
Monday's sheep and lamb marketings are estimated at 5,500, reflecting
declines of L% from---a-w8ek earlier and 13% from a year ago. Old-crop lambs accounted
for 60% of the offerings; spring lambs comprised 25%; and old ewes made up most of
the remainder. Trading was a little slow, but prices for all classes were mostly
steadyo Good and Choice slaughter spring lambs cleared at $18.50 to $20.
POULTRY
During the week ended Friday, March 30, the major Texas broiler markets
were steady to weak, reports the State Department of Agriculture. Trading was normal
to heavy. Closing prices - which were unchanged to 2¢ per lb. lower than in the preceding week - were: South Texas, 22¢; east Texas, 21¢ to 22¢, mostly 21¢; Waco, 2lt,
to 22¢; and the Corsicana F.O.B. plant, 23¢ to 23.5¢ per lb. During the corresponding week in 1955, closing prices were 32¢ in all the areas.
·
On Monday, April 2, broiler markets were steady to weak in the Waco-Corsicana
area and steady in south and east Texas. Trading was extra heavy in east Texas and
normal in south Texas and the Waco-Corsicana area, with the following prices quoted:
South Texas, 21¢ to 22¢, mostly 22¢; east Texas and Waco, 21¢; and the Corsicana F,O. B,
plant, 22,5¢ to 23¢ per lb.

BROILER CHICK
PLACEMENTS

Percentage change from
Previous
Comparable
week
week, 1955

Area

Week ended
March 24, 1956

Texas ••••••
Louisiana ••

1,944,000
337,000

15

17
17

22 states ••

25,681,000

3

24

0

MAN-MADE FIBERS
In terms of 11 cotton equivalent, 11 U. S. production of all man-made fibers
in 1955 was a record high of 4,0 million bales~ reports the AMS~.~Rayon and acetate
outr;u-r-totaled 1,261 million lbs., which is the largest annual productioi1Since 1951
and compares with 1,086 million lbs. in 1954. The outturn of nylon and other noncellulose base fibers increased for the eighth successive year and in 19~ounted
to L58 million lbs., or 33% larger than a year earlier.
J, z. Rowe
Agricultural Economist