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AGRICULTURAL NEWS OF THE WEEK FEDERAL RESERVE BANK OF DALLAS Number 844 Wednesday, March 2, 1966 FOREIGN BANKS L E T T E RS 0 F C R E D I T FROM In an effort to increase dollar exports of U.S. farm products under the Export Credit Sales Program of the Commodity Credit Corporation, the U.S. Department of Agriculture will accept letters of credit from foreign banks, as well as from U.S. banks, according to Secretary of Agriculture Freeman. By providing exporters additional sources of credit, the revised regulations are expected not only to increase dollar exports Of U.S. farm products from CCC-owned and private stocks, but also to meet generally expanded needs for export credit whenever such credit is not available from U.S. banks. R I CE S UP P 0 RT P R I CE UNCHANGE D A national average support price of $4.50 per cwt. for 1966-crop rice was announced by the USDA on February 24. This support price is the same as that for 1965-crop rice. HIGH I N C 0 M E PER FARM AT ALL-TIME NET Realized net income per farm in the United States was an all-time high of $4,200 in 1965, according to preliminary estimates of the Economic Research Service. The total compares with the previous record of $3,727 in 1964 and the $2,956 per farm for 1960. BUSINESS REPORT ON FARMER COOPERATIVE A recent annual survey shows that the dollar business volume of farmer cooperatives increased for the tenth consecutive year, reports Joseph G. Knapp, Administrator of the Farmer Cooperative Service. The survey reveals a total gross business volume of $19.3 billion for marketing, purchasing, and related service cooperatives during the fiscal year ended June 30, 1964. After an adjustment of the total gross figure for business done between cooperatives, the total net volume amounted to $14.4 billion, an increase of nearly 4% over the previous fiscal year. Dairy, grain, and livestock products (in descending order) led in the value of products marketed, while feed, petroleum, and fertilizer led in the value of farm supplies handled. FARM DEBT CONTINUES TO RISE The U.S. farm debt (excluding Commodity Credit Corporation loans) as of January 1, 1966, totaled an estimated $39.4 billion, or nearly 10% larger than a year earlier and 67% above January 1, 1960. According to the ERS, real estate debt accounted for $21.1 billion of the current year's total (up 12% from January 1, 1965), and nonreal estate debt amounted to $18.3 billion (up 7%). The increases were in line with trends in recent years. FARMER'S SHARE OF FOOD DOLLAR UP 2i The farmer's share of the consumer's food dollar in 1965 was 39i, which is 2¢ more than a year earlier. The figure reflects the largest increase since 1951 and the first gain since 1960. The 2¢ increase also places the farmer's share of the consumer's food dollar at the 1957-59 level but below the 1954-58 range of 40¢ to 43¢, points out the ERS. I NCRE AS ED CASTOR RATE BEAN PAYMENT The USDA recently announced that the diversion payment rate will be increased from 30% to 50% for the 1966 program year where castor beans are grown as an alternate crop on---a;reage diverted for payment. The increase is allowed only on acreage diverted from wheat, feed grains, and cotton. The 50% rate is the same as that paid in 1965. Texas is the principal castor bean-producing state. The major industrial uses of castor oil are in hydraulic systems, paints, fabrics, and insulation material. CALF CROP UP SLIGHTLY The 1965 national calf crop is placed at 43.1 million head, or only 37,000 more than in the previous yea;;-:- According to the Statistical Reporting Service, this small gain marked the seventh consecutive year in which the number of calves born was larger than in the preceding year. The increase in the calf crop in 1965 was the result of more cows and heifers on farms early in the year than in the same period of 1964. The number of calves born in 1965 expressed as a percentage of the number of cows and heifers 2 years old and older on hand at the beginning of the year was 86%, the same as a year earlier. For the states of the Eleventh Federal Reserve District, the following are the calf crops for 1965 (and for 1964): Arizona, 352,000 head (362,000); Louisiana, 913,000 (917,000); New Mexico, 548,ooo (621,000); Oklahoma, 1,825,000 (1,735,000); and Texas, 4,667,000 (4,638,000). Area BROILER CHICK PLACEMENTS Week ended February 19, 1966 Percent change from Comparable Previous week week, 1965 Texas •••••• Louisiana •• 2,837,000 682,000 -2 0 15 23 states •• 49,287,000 1 11 2
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