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ARM AND
F I ANCH
B u l l e t in
December 1966

Vol. 21, No. 12

A BILLIO N PEO PLE A N D TH E R IC E B O W L
Every day more than one-third of the world’s
people awaken to face a future that is domi­
nated by a single commodity, rice. Moreover,
by the end of the 20th century, the number of
people dependent upon rice for their staple
food will be greater than the present world
population, points out the Foreign Agricultural
Service.
Will there be enough rice for them to eat?
This is the question that prompted the Food
and Agriculture Organization of the United
Nations to designate 1966 as International
Rice Year. This promotional program has
marshaled nearly every rice-growing country
of the world into an all-out effort to produce
more rice.
The FAS says that the objective of the pro­
gram is not so much to increase the world’s
rice acreage as it is to obtain a larger quantity
of grain from the present acreage. The old
methods of growing rice can no longer be
used; modern technology must be fully com­
mitted to the task of boosting yields— through
greater use of fertilizer, better seed strains,
improved water management, and disease and
pest control.
The potential of the world’s rice production
is enormous; however, a huge gap exists be­
tween the countries of Asia and Africa, where
rice yields amount to about 1,500 pounds per
acre, and the countries of Europe and North
America, where yields range from 4,000 to
4,500 pounds per acre. Since the largest part of
the world’s rice acreage is located in the under­

F E D E R A L

R E S E R V E
DALLAS,

developed countries where yields are lowest,
even a slight increase in output per acre could
mean the dfference between hunger and plenty.
Statistics reveal this situation very clearly.
Asia, with 200.8 million acres in rice in the
1966 crop year, had a yield of only 1,406
pounds per acre. South American acreage
totaled 12 million acres, and the yield was
1,489 pounds per acre. In the United States the
yield was 4,291 pounds per acre on approxi­
mately 1.8 million acres; and in Europe it was
3,989 pounds on 813,000 acres. Australia, with
only 65,000 acres in rice, reached a peak yield
of 5,766 pounds an acre.
Yields are increasing in practically all of
the world’s rice-growing countries, but in
many of them the rate of gain is very small.
This is particularly true of the underdeveloped
countries of Asia, Africa, and Latin America.
Only in Japan, the United States, Australia,
the Soviet Union, and several European coun­
tries are rice yields mounting significantly.
The great variance in yields is the factor
which has created the problem in the world
rice situation, namely, the need to keep pro­
duction rising with the rate of population
growth and consumption. At an average rate
of 2.5 percent annually, the increase in world
rice output just barely meets the requirements
of a growing population. When world rice
production experiences a sharp reversal (as it
did during the past year because of adverse
growing conditions in many of the major pro­
ducing countries), the margin between enough

B A N K
TEXAS

OF

D A L L A S

and not enough rice is too narrow, according
to the FAS.
Improved rice yields can be achieved in
many ways. In the Philippines, for example,
even a minimum fertilizer application usually
results in a 20-percent gain in output, yet
only 1 out of every 10 rice paddies is fertilized.

W eather Damage to Trees Is
Tax Deductible

The value of an ornamental or shade tree
that is damaged by high winds, tornadoes, or
other acts of nature is deductible from income
taxes, points out Bill Smith, Texas A&M Uni­
versity Extension Forester. The value of the
The use of better seed is another method for tree can be determined by the decrease in the
improving rice yields. The huge, complicated assessed value of the real estate or by a formula
task of bringing better seed into wider use is based on tree size. The formula applies to
the major goal of the International Rice Re­ many trees grown in Texas, including redbud,
search Institute, an $8-million research com­ black walnut, American and Chinese elms,
plex which is located in the Philippines near cottonwood, red and white oaks, and maples.
Manila. Over the years, the Institute has de­
Mr. Smith says that $5
veloped greatly improved rice varieties, tailor­
per square inch of
ing them carefully to the substantially different
trunk at breast height
local conditions.
is the value determined
by the National Shade
During the past summer, for example, the
Tree Conference Com­
Institute announced that a new and extremely
mittee on shade tree
promising rice variety would be given its first
evaluation. Based on
test under actual farm conditions in the Philip­
pines. Yields are reported to amount to be­ the diameter of the trunk at breast height, or
tween 5,260 and 5,880 pounds per acre, in measurement at 4U> feet from the ground, the
sharp contrast to the Philippines’ average of basic value of a 4-inch diameter tree would be
1,070 to 1,150 pounds per acre. About 45 about $62. A 20-inch diameter tree at breast
tons of the new rice have been donated to the height is valued at more than $1,500. Small
country’s Rice and Corn Administration for trees (under 4 inches in diameter) are valued
distribution to farmers, and a much larger at replacement cost, plus the expense of plant­
quantity of seed is expected to be available ing with the same size trees. Property owners
should measure the trunks of damaged trees
next year, says the FAS.
before removal and keep the measurements
Total U.S. production of rice in 1966 is for tax records, according to the Texas A&M
placed at 84.9 million bags. Output in Louisi­ University specialist.
ana and Texas — the major rice-producing
states of the Eleventh Federal Reserve District
Protecting Our Food
— is estimated at 42.7 million bags, or onehalf of the national output. The per acre yield
The 1966 Yearbook of Agriculture, Protect­
in the District is placed at 4,010 pounds.
ing Our Food, describes the enormous job of
guarding our food against pests, disease, and
damage. The Yearbook authors say that the
Nonfood items account for almost 25 cents people in this country have to fight 10,000
of every dollar spent in food stores today, kinds of insects for our food. We have to com­
according to Texas A&M University. During
bat 1,500 plant diseases and 250 animal dis­
the past 10 years, supermarket food sales have
eases, as well as fight spoilage and decay.
risen 51 percent, while nonfood sales have
increased 140 percent. Texas A&M University
The 1966 Yearbook of Agriculture, recently
specialists say that the trend seems to be for released by the U.S. Department of Agricul­
the convenience of one-stop shopping instead ture, contains 416 pages and 105 photographs.
of many stops at the drugstore, dimestore, and The publication follows the progress of our
hardware store.
food supply from the farmer’s field to the

saucepan on the stove. The Yearbook de­
Explained in the booklet are three tax bill
scribes every stage of safeguarding food from changes which apply to senior citizens and
insects, rodents, bacterial contamination, and became effective in 1964. These changes in­
loss of body-building values.
volve (1) the minimum standard deduction and
how it may reduce tax liability, (2) all allow­
Copies of Protecting Our Food may be ob­ able medical expenses as fully deductible for
tained for $2.50 each from the Superintendent taxpayers who are 65 years of age or older,
of Documents, Government Printing Office, and (3) a revision of the income tax require­
Washington, D. C. 20402. The U.S. Depart­ ment on the sale of a personal residence.
ment of Agriculture has no copies of the
Following the procedures outlined in the
Yearbook for public distribution or sale.
booklet may result in substantial savings for
some people on 1966 income taxes, states Miss
Food Imports
Lane. Single copies of Tax Benefits for Older
Slightly over 11 percent of the food con­ Americans may be obtained, without charge,
sumed by American civilians in 1965 was from the nearest Internal Revenue Service
either imported from foreign countries or office.
shipped in from U.S. territories. The U.S. De­
Record Breadgrain Output
partment of Agriculture says that the figure
is below the average for the past decade, dur­
World production of breadgrains in 1966 is
ing which imports have comprised 12.5 per­
expected to reach an all-time high of 289
cent of the total U.S. food supply. Coffee, tea,
million metric tons, reports the Foreign Agri­
and cocoa account for over one-half of the
cultural Service. The figure is up 4 percent
crop products imported. These commodities,
from the 1965 total and is 1 percent above
together with other products that do not com­
the previous peak of 287 million tons in 1964.
pete with U.S. farm production, make up 45
percent of the total import value; competitive
The 1966 world wheat crop is forecast at
goods comprise the remaining 55 percent.
259 million tons, compared with 245 million
tons in 1965 and the previous record of 255
million
tons in 1964. Rye output, however, at
Special Tax Benefits for Senior Citizens
an estimated 30.2 million tons, is down 10 per­
A guide that outlines special tax benefits for cent from the 1965 outturn.
people who are 65 years of age or over is avail­
able from Internal Revenue Service offices,
Narrow-Row Cotton Shows Promise
reports Texas A&M University. The 18-page
Yields of cotton have been increased and
booklet, entitled Tax Benefits for Older Amer­
production
costs have been lowered by plant­
icans, was prepared by the IRS in cooperation
ing
cottonseed
in narrow, 7-inch rows. The
with the President’s Council on Aging. The
narrow-row
experiments
are being conducted
publication is especially important to retired
at
Texas
A&M
University’s
South Plains Re­
persons who are living on fixed incomes, says
search
and
Extension
Center
near Lubbock.
Miss Leota C. Lane, Extension Family Life
Education Specialist at Texas A&M University.
Cotton production in narrow, 7-inch rows
has
been investigated for several years on the
Included in the guide is a simplified explana­
Southern High Plains of Texas. Compared
tion of how the provisions of the Federal in­
with output from standard 40-inch rows, cot­
come tax laws apply to older Americans. Tax­
ton yields have been slightly higher in nar­
saving information discussed in the booklet
row
rows and production costs have been
includes an explanation of benefits for a sur­
reduced as much as 27 percent.
viving spouse or head of a household, added
exemptions for age and blindness, and the
With high populations of 200,000 plants or
amount of tax credit which is allowable for more per acre, leaf area increases rapidly and
the rate of fruit set is very high, according to
retirement income.

Dr. L. L. Ray, Texas A&M University Agron­ Results of the survey will (1) help guide farm
omist at the Lubbock Center. The seasonal and food policies, (2) serve as a basis for n u ­
requirement for crop production has been re­ trition education programs, and (3) benefit
duced by about 30 days, and the exposure of economic and marketing research on the de­
open bolls to weather has been lowered as mand for agricultural products.
much as 50 days.
Approximately 7,500 families of all sizes
in
cities, rural nonfarm areas, and farm sec­
Dr. Ray noted a significant relationship be­
tions
in the N ortheastern, N orthw estern,
tween the variety of cotton used and row
Southern,
and Western regions of the United
spacing. Early varieties with small leaves grow­
States
were
surveyed, thus providing a nation­
ing more upright appear to be best adapted to
wide
picture.
Comparisons between groups
narrow rows. New cotton strains developed for
surveyed
show
that in 1965 urban and farm
narrow-row production are currently being
tested, and an efficient finger-type stripper households consumed food worth $36 p er
harvester has been designed for harvesting week, while rural nonfarm households used
$33 worth. Regional variations ranged from
cotton grown in narrow rows.
$39 per week in the Northeast to $31 in the
South.
How Much Do Families Spend
Average-size families with incomes near the
for Food?
top of the ladder had food bills which were
An A gricultural R e­ more than twice as high as those at the bot­
search Service survey tom. Families with annual incomes above
of household food con­ $10,000 consumed food that was worth $54
sumption reveals that per week; those earning less than $3,000 a
the average American year used $20 worth of food per week.
family of 3.3 persons
used $35 worth of food
Soil Micronutrient Tests
per week during the
Texas A&M University’s soil testing service
spring of 1965. The
for
farmers, gardeners, and homeowners is
figure represents a 17-percent increase over
being
expanded to include micronutrient tests,
1955, when the last national food survey was
according
to John E. Hutchison, Director of
made. The increase in the family food bill
the
Agricultural
Extension Service. The a n ­
amounted to $5 per week. Included in the
nouncement
of
the
expanded service followed
increase is a 13-percent rise in food prices
the
installation
of
an
atomic absorption spec­
since 1955. It also includes an increase in
trophotometer
which
was
provided through a
food purchases by farm families, together with
grant
from
the
Texas
Plant
Food Educational
a decrease in the amount of their homeSociety.
produced food. In 1955, farm families pro­
duced 41 percent of their food at home; in 1965,
The new instrum ent can measure th e
however, they produced only 31 percent.
amounts of magnesium, zinc, iron, manganese,
Of the $35 worth of food consumed, $29 and copper in plant and soil extracts and
was for food used at home, including $2 for thereby provide a scientific basis for the use
the market value of home-produced food, of these elements. Previously, Texas A&M
Federally-donated food, and food received as University soil tests measured only the amounts
gifts or for pay. Meals and snacks away from of phosphorous, potassium, organic matter,
and soil acidity and detected salinity hazards.
home averaged $6 per family per week.
Procedures for utilizing the capabilities of th e
The survey was conducted by Faith Clark, new equipment are being developed, and in ­
Director of ARS Consumer and Food Eco­ structions for collecting soil samples for the
nomics Research; S. F. Adelson, Food Econo­ micronutrient tests will be available soon from
mist; and Evelyn Grossman, Statistician. county Extension offices.