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AGRICULTURAL NEWS OF THE WEEK
FEDERAL RESERVE BANK OF DALLAS
umber 520

Wednesday, December 16, 1959

F H A F A R M L 0 A N R E Q U I R E ME N T S R E V I S E D
The Farmers Home ·Admi,pistration has revised its eligibility requirements
fo r obtaining operating and farm ownership loans, according to the u. S. Departme nt of Agriculture ·. The purpose of this'-a.Ction is to better serve the changing
agricultural credit n~eds of farmers in rural'development counties. There are 61
counties in the states ff the Eleventh Federal Res-erve District to which the new
FHA loan requirement is \ applicable.
Farmers in ruAal development counties who are regularly employed off the
farm may obtain credit f[om the FHA, if they meet other eliEibility requirements.
Previously, a farmer had \ to spend most of his ~ime- farming in order to qualify for
a loan. This regulation ~revented some _tarrners from obtainiqg maximum production
f rom their farms and from taking full ~6.'Clvantage--of new opportunitie for industrial
or other employment, state the usoa(
,,-"
Loans made by th~ FHA in /rurat development counties during fiscal 1959
advanced $3 million over thbse in'thelpreceding year. Under the revised regulations, a further increase is expect~d in the current fiscal year.
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W AT E R S HE D P R 0 J E; C T S
S W I ,N G
I NT 0
0 P E RAT I 0 N
More than!!_ hundred o/. the Nation's small wate-rshed projects moved into
the construction phase during !.212_, as engj?neers completed designs for upstream floodprevention structures and local · rganizations signed project agreements with the Federal Government under the Watershe4 Protection and Flood Prevention Act administered
by the USDA.
In these projects, soil atfd water treatment of watershed lands is combined with upstream water-control structures to regulate runoff and manage water for
agricultural, municipal, fish and wildlife, and other uses. Local and state agencies,
us ually including soil conservation districts, administer the projects and receive
fin ancial and technical assistance fro the Faderal Government.
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S 0 M E

M A R K E T

P

/r

C E S

A B 0 V E

S U P P 0 R T S

The Acting Secretary of /Agriculture recently reported that current market
pr ices are above support levels ~or about one-half of the farm products fQr which
supports are provided. The follpwing are commodities for which market prices are
bove support levels: Soybeans; cottonseed; oats; barley; rye; flaxseed; dry,
ed ible beans; rice; butterfat; and tmohair.
Of the more than 250 agricultural products, only l!. receive price supports.
Ex isting farm legislation requires 1the USDA to support the price of 16 of these commo dities; support for the other five is authorized by law.

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S 0 I L C 0 N S E R V A T ~ p N D I S T R I C T G R 0 WT H
The recent addition of Tenne~see as the twentieth ~ completely c9vered
by f armer-organized and farmer-managed soil conservation districts marked another
mil e stone in nationwide soil and water conservation, according to the USDA. Puerto
Ric o and the Virgin Islands also have all of their land within soil conservation
dis tricts. Of the states in the Eleventh District, more than 90% of the land in
Lo uisiana, Oklahoma, and Texas is within soil conservation districts; GO%, in New
1exico; and 70%, in Arizona,
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L I VE S T 0 C K
Cattle and calf marketings at Fort Worth during the week ended Thursday,
December 10, showed some reduction as compared with the preceding week, states the
Agricultu-rcil Marketing Service. The cattle supply of an estimated 6,000 was 200
below a week ago but 500 above a year earlier. Trading on slaughter steers and
heifers was slow, but clearance was fairly good on most days. Prices for these
animals were fully steady to strong as compared with the latter part of the previous week. Trading on stockers and feeders was moderately active throughout most
of the period, and prices were strong to 50¢ per cwt. higher. Mainly Good 700- to
1,135-lb. slaughter steers cleared at $23 to $24; Utility and Commercial cows, $14
to $17; and the limited supply of mostly Good 600- to 650-lb. yearling stocker
steers, $23.50 to $24.
Calf receipts were approximately 2,200, compared with 2,400 a week earlier
and 2,600 during the comparable period last year. Closing prices of killing calves
were strong to $1 higher than in the latter part of the previous week. Most Good
and Choice slaughter calves were quoted at $23 to $25, and the majority of the Medium
and Good stocker steer calves ranged from $23 to $25.50.
Hog offerings of 2,800 reflected gains of 8% over the preceding week and
56% over a year ago. Thursday prices were steady to strong as compared with the
latter part of the preceding week. U. s. No. 2 and No. 3 Grades of 190- to 250-lb.
butchers brought $11.75 to $12.50, with most sales at $12 to $12.25.
A total of 7,800 sheep and lambs was received at Fort Worth during the
week ended December 10, compared with 9,800 a week earlier and 5,500 during the
corresponding period of 1958. Closing prices of slaughter lambs were mainly steady
with those in the latter part of the preceding week, while those of slaughter year1 ings were steady to 50¢ lower. Good and Choice 90- to 110-lb. wooled and shorn
slaughter lambs sold at $16.50 to $17.
P 0 UL T R Y
During the week ended Friday, December .!l, commercial broiler markets opene
about steady in~ Texas and stronger in south Texas, reports the State Department
of Agriculture. The south Texas market continued to show strength throughout the
period, and closing prices were 1¢ per lb. higher than at the opening. Conditions
in east Texas were so unsettled by midtrading that there were no confirmed sales outside the Southwest Poultry Exchange; however, the market became ·firm by Thursday and
closed steady. Friday quotations were: South Texas, 18¢, with one light load at
19¢; and east Texas, 18¢ to 18~¢, although 58% of the sales were at undetermined
levels. During the comparable period last year, there were too few sales in south
Texas to establish a market; prices in east Texas were 16¢.
The Southwest Poultry Exchange offered li-2, 500 broilers on Friday afternoon, which sold as follows; 21% off-quality, at 17.8¢ to 18.4¢; 21% off-quality,
at 18.5¢ to 18.7¢; and 58%, at 19.0¢ to 19.1¢.
On Monday, December 14, commercial broiler markets were stronger in south
Texas and steady in east Texas. Quotes were 19¢ in south Texas and 18¢ in east Texas
although one-half of the sales in the latter area were at undetermined prices.

BROILER CHICK
PLACEMENTS

Area

Week ended
December 5, 1959

Texas ••••••
Louisiana ••

1) 7 71, 000
358,000

Percentage change from
Previous
Comparable
week
week, 1958

22 states ••

J. Z. Rowe
Agricultural Economist

23

-10
-22

5

-2

8