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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERVE BANK OF DALLAS Wednesday, li ay 23, 1956 Number 33h WH E A T M A R K E T I N G Q U 0 T A S P R 0 C L A I M~ D On May lS the Secretary of Agriculture proclaimed a national marketing quota for the 1957 wheat crop, subject to approval of growers voting in a referendum on July 20, l~ The national acreage allotment was set at 55 million acre8 :-the same as that for the 1956 crop. If quotas are approved~producers in commercial wheat states who stay within the acreages allotted for their farms will be eligible for the full level of price support. In noncommercial states, the wheat price support will be 75% of the commercial rate. In making the proclamation, the Secretary stated that ~t This is the third successive year it has been necessary to set the national wheat acreage allotment at 55 million acres - the minimum specified by law. -jt At the beginning of the marketing year beginning July 1, 1956, there will be enough wheat on hand to take care of all U. S. domestic and export needs for more than two full years. -j~ As of April 18, the Commodity Credit Corporation had an inventory of about 917 million bushels of wheat, costing $2.5 billion. F A R M S T 0 R A G E 1 0 A N P R 0 G R A i'I E X T E N D E D On May 15 the u. s. Department of Agriculture announced that farm storage facility and equipment loan programs will be extended another year. Under these~ programs, farmers and others can borrow a large part of the cost of additional storage space and drying equipment to provide additional farm storage and conditioning equipment for grains and seeds. In most states, farmers can borrow up to 80% of the cost of new bins or other approved storage structures which meet the requirements for storage under the price support program. The loans can be paid off in a h-year period at an interest rate ~~ 4% per annum. REA MAKES L 0 AN The Rural Electrification Administration recently made a $7.5 million loan to the Brazos Electric Power Cooperative of Waco, Texas. The funds will be used for the construction of a 33,000-kilowatt-capacity generating plant near Bridgeport, Texas, and for the construction of 108 miles of transmission line. The Brazos Cooperative supplies power for 19 REA-financed distribution cooperatives in east-central Texas and supplies energy for nine municipalities. POULTRY Texas broiler markets were stea~y during the week ended Friday, May 18, according to the State Department of Agriculture. Closing prices were unchanged in east Texas and Waco, and unchanged to mostly 1¢ per lb. higher than the preceding week in south Texas. Trading was active in all areas, but the heaviest movement occurred in east Texas, where a good to a very good demand kept supplies well-cleared from the market. Closing prices on major markets were: South Texas, 22¢ to 23¢, mostly 23¢; east Texas, 21¢ to 22¢, mostly 22¢; Waco, 22¢; and the Corsicana F.O.B. plant, 22¢ to 22t¢ per lb. During the corresponding period in 1955, closing prices were: South Texas and Waco, 30¢, and east Texas, 29!¢ to 30¢, mostly JO¢ per lb, On Monday, May 21, broiler markets were fully steady in south Texas and east Texas-and steady in the Waco-Corsicana area. The following prices were quoted: South Texas, 23¢; east Texas and Waco, 22¢; and the Corsicana F.O.H. plant, 22!¢ to 23¢ per lb. Week ended May 12, 1956 Area Percentage increase from Previous Comparable week week, 1955 BROILER CHICK PLACEMENTS Texas •••••• Louisiana •• 2,251,000 425,000 2 27 27 67 22 states •• 26,801,000 1 19 1 I VE S T 0 CK Cattle receipts at Fort Worth on Monday, May 21, totaled 5,200 head, the largest since-October--or-last year, according to the Agricultural Marketing Service. Quality in all classes was the lowest of this year, with yearlings and heavy calves comprising the bulk of the receipts. Prices for fed steers and heifers were about steady with last week's close, while those for grass cattle were lower. Most Good grade slaughter steers and heifers brought ~pl 7 to $19; Utility cows, :h>ll to ~12; and Good yearling stocker steers, $15.SO to $17.50. Monday's calf receipts were 800, or more than double those a week ago but 11 percent smaller than those on the corresponding date last year. Trading was slow, but selling prices for the better grades were about even with those received during the previous week. Choice slaughter calves brought ~20.50 to ~21, and most Good stocker steer calves sold at $1).)0 to $17.)0. Hog receipts were estimated at 1,200, or about the same as last week but 50% larger than the corresponding day a year ago. Trading was fairly active, with butchers and sows selling mostly 50¢ higher than in the latter part of the preceding week. Most U. S. No. 1 through No. 3 grades of mixed hogs brought $17. Approximately 70% of the estimated 12,200 sheep and lambs on the Fort Worth market were old-crop shorn lambs and about 20~wer8 spring lambs. Prices were generally steady on all classes, with Good and a few Choice slaughter lambs bringing ~p20 to $22. DR 0 UGHT DI S AS TE R AREAS DE S I GNAT E D On May 14 the USDA designated three counties and part of another in New Mexico and four counties in Texas as drought disaster areas. Eligible farmers and ranchers in these areas can obtain feed at reduced prices. In addition, 74 of the 121 Texas counties in which the emergency program was scheduled for termination on May 15 will be reinstated, due to continuing drought. As of May 14, 125 counties in Texas, 12 in New Mexico, and 4 in Oklahoma have been designated as drought disaster areas. J. z. Rowe Agricultural Economist
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