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Number 622

Wednesday, November 29, 1961

P R 0 DUCT I 0 N C 0 S T S
Farm production expenses in the United States are still advancing - as
they have in most years since the early 1930's - according to the Economic Research
Service, These expenses may reach a record high in 1961, or around $500 million
above the $26.4 billion in 1960; and some further increases are expected in 1962.
Total farm production expenses are higher than in the previous year mainly because
(1) prices paid by the Nation's farmers are continuing to rise, and (2) the volume
of purchased inputs is slightly larger.
The ERS points out, however, that the percentage share of realized gross
farm income taken by production expenses in 1961 appears likely to edge downward
for the second consecutive year. This interruption of the post-World War II trend
is due to the fact that gross farm income has risen faster than production expenses
in the last 2 years.
L I V E S T 0 C K P E R MI T T E D 0 N
The u. s. Department of Agriculture recently modified the provisions of
the 1961 Feed Grain Program, in order to permit livestock on diverted acreages during the remainder of this year. Many farmers normally salvage dropped corn ears and
other crop residue by turning livestock onto harvested cropland late in the fall.
The change in the provisions of the feed grain program will permit farmers to do
this without unreasonable effort and expense for protective fencing.

P R 0 G R A M T E R MI N A T E D
The USDA has announced termination of the program for purchasing frozen
ground ~ to be used in the School Lunch Program. Since the beginning of the beef
purchasing program on August 23, a total of 38.3 million lbs. of frozen ground beef
has been purchased at a cost of $16.1 million.
W0 R L D H 0 G S L A U G H T E R
E XP E C T E D T 0
The 1961 hog slaughter in 33 countries is estimated to be 1% larger than
in 1960 and 23% above the 1951-55 average, points out the Foreign Agricultural Service. Hog slaughter in 1962 is forecast at 5% greater than in 1961. Most of the
gain is expected to occur in Europe, where hog numbers are at a record high.
According to the FAS, the increase in pork production in Europe probably
will result in reduced u. s. shipments of pork and lard to that area. Western
Europe, excluding the United Kingdom, is again expected to be a net exporter of
pork and pork products, as a record slaughter is forecast for many of the countries.

E ME R G E N C Y A S S I S T A N C E F 0 R T E X A S C 0 U N T I E S
Secretary of Agriculture Freeman recently designated ~ Texas counties
as disaster areas that are eligible to receive emergency conservation assistance
because of damage to farmlands, which was caused by Hurricane ~ and the accompanying floods in September. These counties are: Brazoria, Calhoun, Chambers, Galveston, Jackson, and Matagorda.

L I VE S T 0 CK
The Fort Worth cattle ~ during the week ended Wednesday, November 22,
totaled an estimated 4,300 head, reports the Agricultural Marketing Service. The
supply was 19% below that in the preceding week but was about the same as the yearearlier figure. Demand was broad for most slaughter classes. Slaughter steers and
heifers sold at prices which were steady to 25¢ per cwt, higher than at the previous
week's close. Good 975- to 1,020-lb, slaughter steers brought $23.75 to $24.25, and
Utility and Commercial cows were quoted at $14.50 to $17. Trading on stockers and
feeders was fairly active; closing quotes on stocker and feeder steers and heifers
weighing under 600 lbs. were steady to 50¢ higher than in the preceding week, while
those on heavier weights were steady. Good and Choice 500- to 800-lb. stocker and
feeder steers cleared at $22 to $26.20,
~ marketings are placed at l,OOO, or about the same as in the preceding
week but 100 more than a year ago. Slaughter calves sold at prices which were strong
to 50¢ higher than at the previous week's close. Good killing calves brought $23.SO
to $25, and quotations on Good and Choice 275- to 500-lb, stocker steer calves range d
from $23 to $28.90.
Hog offerings were approximately 1,100, compared with 1,400 a week ago and
1,200 during the corresponding period of 1960. Closing prices for barrows and gilts
were generally 50¢ lower than a week earlier. The bulk of the u. s. No. 1 through
No. 3 Grades of 215- to 270-lb. butchers sold at $15.50 to $16.25.
A total of 7,800 sheep~ lambs was received at Fort Worth during the
week ended November 22, reflecting gains of 86% over the previous week and 56% over
the year-earlier level. Prices for Good and Choice slaughter lambs were strong to
50¢ higher than at the previous week's close, with 77- to 125-lb. wooled and shorn
slaughter animals with No. 1 and No. 2 pelts quoted at $15.50 to $16.
P 0 UL T R Y
The south ~ commercial broiler market was steady throughout the ~
ended Friday, November ~' points out the State Department of Agriculture. (No
report was available for the east Texas market, because the Department of Agriculture was in the process of re-evaluating the sources of market news quotations.)
The trading volume in south Texas was 36% above that of a year ago; closing prices
were 13¢ per lb. During the comparable period in 1960, closing quotations were 17¢
in south Texas, and the weighted average price in east Texas was 15¢.
On Monday, November 27, the south Texas commercial broiler market was
stronger pricewise; quotations were 14¢ per lb.


Percent change from
week 2 1960


Week ended
November 18: 1961

Texas ••••••
Louisiana ••




22 states ••

30 145 000