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~(Il l.: ,_A_G_R_Ic_u_L_T_u_R_A_L_N_E_w_s_o_F_T_H_E_w_E_E_K_ _ -- - 1 FEDERAL RESERVE BANK OF Number 439 DALLAS Wednesday, May 28, 1958 FARM P R 0 DUCT I 0 N C 0 S T S According to 11The Farm Cost Situation 11 recently released by the Agricultural Research Service, the cost-price squeeze in U. S. agriculture has eased somewhat since the spring of 1957. Although the index of prices paid by farmers for goods and services used in production reached-;p;aiz-in mid-April this year, prices of farm products rose sufficiently to more than offset this increase. The ARS states that during the next several months prices received by the Nation's farmers are likely to decline somewhat from spring levels, as supplies increase seasonally, while prices paid for items used in production probably will remain high. The percentage changes in cost rates and prices paid by farmers for major groups of production items during the spring of 1958 as compared with a year earlier are as follows: ~~~~~--~~~~~~~~~~~~~ Item Percentage change Cost rates Farm mortgage interest payments per acre ...... . Farm real estate taxes per acre ...........•.... Wage rates (April 15) .........•................ Prices paid Feeder livestock (April 15) ................... . Farm machinery (March 15) ..•.............•....• Motor vehicles (March 15) ....•............•.... Farm supplies (April 15) ............•.......•.. Building and fencing materials (March 15) .••... Fertilizer (Apr i1 15) ..••...........•..••••••.. Motor supplies (March 15) ...........•.....••••. Seed (April 15) .....•.•.•.••••.•.••••••.•.••..• -2 Feed (Apr i 1 15) ......... , ..................... . -2 7 5 1 25 6 4 4 2 1 -2 C C C T 0 P UR C HA S E U N R E D E E ME D C 0 T T 0 N At the close of business on July 31, 1958, the Commodity Credit Corporation will purchase all 1957-crop loan ~o~(upland and extra-long staple) which is unredeemed at that time, according to the U. S. Department of Agriculture. A total of 3,655,650 bales of 1957-crop cotton was pledged for loans through May 9, 1958, of which 505,963 bales had been redeemed, leaving loans outstanding on 3,149,687 bales. Until the close of business on July 31 this year, growers may either sell their "equity" in the loan cotton or redeem the cotton from the loan and s ell it in the open market. " EXCESS" W HE AT P E NAL T Y On May 19 the USDA announced a marketing quota penalty rate of $1.09 ~ bu. for 1958-crop "ex~" wheat. As directed by legislation, the rate of the marketing quota penalty is 45% of the parity price of wheat as of May 1 of the calendar year in which the crop is harvested. The current parity price for wheat is $2.42 per bu. When wheat marketing quotas are in effect, a farmer who does not comply with the wheat acreage allotment established for his farm is subject to a penalty on his farm marketing excess, unless he harvests 15 acres or less or has signed an agreement permitting him to produce up to 30 acres of whear-for feed use on the ~· P 0 UL T R Y According to the Texas Department of Agriculture, commercial broil~! markets in the State gained some strength during the week ended Friday, May 23. Closing prices in east Texas and Waco were mostly 1¢ per lb. higher than a week earlier, while those in south Texas were unchanged. The following closing prices were quoted: East Texas, 19¢ to 20¢, with a few lower; Waco, 19~¢; and south Texas, 19¢. DLring the corresponding period in 1957, closing prices were 20¢ in all these areas. The Texas commercial broiler markets were steady on Monday, May 26, with the following prices quoted: South Texas, 20¢ to 21¢, mostly 21¢; east Texas, mainl)' 20¢, with a very few higher; and Waco, 20¢. Area BROILER CHICK PLACEMENTS Week ended May 17, 1958 Percentage change from Previous Comparable week week 2 1957 Texas .....• Louisiana .. 2,860,000 530,000 0 5 37 41 22 states .. 35,126,000 2 24 L I VE S T 0 C K The cattle supply at Fort Worth on Monday, May 26, was the largest since last fall, points out the Agricultural Marketing Service. Receipts totaled an estimatedT,300, reflecting increases of 13% over both a week earlier and a year ago. Prices were generally steady with the past week's close. Good 600- to 800-lb. slaugP ter steers cleared at $25 to $27 per cwt.; Cutter cows, $16.50 to $17.50; and Good 550- to 750-lb. stocker and feeder steers, $25 to $27. Calf marketings were about 500, or 200 fewer than on the previous Monday and 300 fe~than a year earlier. Prices were steady. Good grades of slaughter calves brought $25.50 to $27.50, and stocker and feeder steer calves soid at $27 to $30. Monday's hog receipts, at an estimated 1,200, were more than double the level a week ago and were a third larger than on the comparable date in 1957. After a slow start, butchers and sows sold at prices which were fully steady with those in the latter part of the preceding week. U. S. No. 1 through No. 3 Grades of 190to 240-lb. barrows and gilts were quoted at $22.50 to $23. Another large ~ of sheep and lambs was offered at Fort Worth on Monday of this week. The supply is placed at 14,800, compared with 11,200 a week earlier and 15,100 a year ago. Trading was very slow, and prices ranged from steady to $1 lower than in the latter part of the previous week. Good and Choice 83- to 110-lb. shorn slaughter lambs with No. 1 through No. 3 pelts brought $17.50 to $18.50. J. Z. Rowe Agricultural Economist
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