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ARM A N D F I ANCH F I ULLETIN Vol. 23, No. 12 December 1968 FARM EXPORTS ARE IMPORTANT TO SOUTHWESTERN AGRICULTURE U.S. agricultural exports amounted to $6.3 billion during the fiscal year ended June 30, 1968, or nearly 15 percent of total cash re ceipts from farm marketings. According to the U.S. Department of Agriculture’s Economic Research Service, this volume of production required 71 million acres of U.S. cropland and makes the United States the world’s leading exporter of agricultural products. The USDA estimates that the Nation’s farmers provided nearly one-fifth of the world’s agricultural ex ports in 1967-68. by giving technical assistance in the develop ment of new uses for U.S. agricultural commod ities in foreign markets. The fact that agricultural exports under Gov ernment programs did not decline last year can be attributed to increased efforts. The USDA, in cooperation with agricultural and trade groups, has led an aggressive promotional program in most of the principal foreign mar kets. These groups have promoted agricultural exports by using trade fairs and centers and Texas was the leading export state in the District, accounting for over one-half of the five-state total, followed by Louisiana, Okla homa, Arizona, and New Mexico. Texas, with a total of $551 million, ranked second to Illi nois as the Nation’s chief agricultural export state. Since 1953-54, the largest increase in farm shipments by state has occurred in Texas. A breakdown of agricultural shipments demonstrates how important these selling pro grams have been in adding to cash flows of southwestern farmers. Export shares for each of the states in the Eleventh Federal Reserve District are estimated according to the state’s contribution to the Nation’s output. The five southwestern states of Arizona, Louisiana, New Mexico, Oklahoma, and Texas Fiscal year 1968 marked, however, the first accounted for nearly 15 percent of all exports decline in U.S. exports over a 5-year period. A of agricultural commodities in fiscal 1968. considerable part of the overall decline in the The importance of the Southwest in total U.S. value of agricultural exports last year was due agricultural shipments lies in the fact that the to lower prices. Although the total value of four major crops in the District states — rice, exports declined 7 percent, physical volume fell cotton, wheat, and feed grains — are also the only 2 percent, which accounted for less than a leading U.S. agricultural export commodities. third of the decline in value. The decline in In fiscal 1968, the District states accounted for value of exports last year occurred in commer over one-half of U.S. exports of both cotton cial sales for dollars. These sales declined from and rice, 14 percent of feed grain shipments, $5.2 billion in fiscal 1967 to $4.7 billion last 11 percent of exports of hides and skins, 10 year. Exports under Government programs and barter exports were about the same as in the percent of wheat shipments, and about 8 per cent of red meat exports. previous year. F E D E R A L R E S E R V E DALLAS, B A N K TEXAS OF D A L L A S Value of Export Shares of Agricultural Commodities Five Southwestern States (Dollar amounts in millions) ____________Area___________________ Rice A rizona...................................... $ 0.0 Louisiana .................................. 83.5 New M exico.............................. .0 Oklahom a.................................. .0 Texas ........................................ 98.0 Southw est.............................. $181.5 Southwest as a percent of United States ................. 53.5 Cotton $ 29.0 26.6 10.0 12.3 176.2 $254.1 53.5 Hides and Wheat_____ skins $ 2.4 $ 0.7 2.4 1.1 2.4 .8 71.6 1.6 42.9 8.3 $121.7 $12.5 10.2 11.2 Feed grains $ 8.1 0.3 5.5 6.2 118.6 $138.7 13.9 Meat All and commodproducts_______ities $0.5 $ 61.1 0.5 155.2 0.5 23.5 1.3 114.9 5.6 551.2 $8.4 $905.9 8.0 14.3 SOURCE: U.S. Department of Agriculture. These export figures point out the depen dence of southwestern farmers upon foreign demand for their products. The ability of this country to continue selling in foreign markets National Agricultural C redit Conference The recent proceedings of the 17th National Agricultural Credit Conference, sponsored by The American Bankers Association and held in Oklahoma City, centered around the theme “Banking Focuses on the New Agriculture." Several trends in modern agriculture were dis cussed, but all such topics emphasized the fact that the relationship between the farmer and his banker is rapidly becoming more business like. The modern farmer, with his increasing use of credit as “just another productive input,” is becoming a better bank customer. On the other side, local bankers are realiz ing that productive skills require sound financ ing. The new relationship between the farmer and his banker is based upon sound records, which speak for the farmer and serve as the basis for the banker’s decision of whether credit is justified. The new relationship is essential for the sound development of agricultural credit. The farmer takes a completely new view of his banker, and at the same time, the farmer real izes that the new relationship is beneficial to both parties. With a modern approach to farm credit, there is every reason to believe that suf ficient agricultural credit will be forthcoming. in the future will depend importantly upon the success in reducing barriers to imports of agri cultural commodities. Thus, farmers in the region have a real stake in trade negotiations. 1969 Cotton Program Cotton growers will be operating under some new provisions in the cotton program next year. The 1969 cotton program eliminates all land diversion requirements and offers a higher price-support payment rate. In the 1968 cotton program, participating farmers were required to divert 5 percent of their cotton allotments and had the option of diverting an additional 30 percent of their allotments. Farmers re ceived a price-support payment of 12.24 cents a pound for the projected yield on the remain ing 65 percent of their allotments. Under the 1969 program, the price-support payment will be 14.73 cents a pound. The U.S. Department of Agriculture estimates that the program will enable growers to produce be tween 12.5 million and 13.0 million bales next year, or about 17 percent greater than the esti mated 10.9 million bales for 1968. In adopting the new provisions, the USDA followed the recommendations of the Cotton Advisory Council, which felt that a larger cot ton supply is needed to make the commodity more competitive with man-made fibers and foreign cotton. The changes in the program are expected to cost the Government about $25 million more than the present program. C attle on Feed The number of cattle on feed in Texas con tinues to increase. According to the Texas Crop and Livestock Reporting Service, there were 1,007,000 head of cattle and calves on feed on November 1, or 11 percent more than a month ago and 34 percent above the number on feed a year earlier. Feedlots with a capacity of 1,000 or more head held 96 percent of the total number of cattle on feed. In Arizona, there were 389,000 head of cattle and calves on feed as of November 1, or 16 percent more than a month earlier and 10 percent above a year ago. Cotton and Peanut Referendums During December 2-6, 1968, the Nation’s cotton and peanut producers will have an op portunity to vote, by mail, on marketing quotas for their crops. According to Texas A&M Uni versity, cotton growers will vote in order to determine whether or not marketing quotas will be effective in 1969, and peanut producers will vote on a 3-year continuation program. Details on the referendums are available from local offices of the Agricultural Stabilization and Conservation Service (ASCS). suggestions on fall and winter fertilization which should concern both producers and buy One of the present causes of the excess ca ers of fertilizers. According to Dr. Welch, pacity in the fertilizer industry is the inability phosphorus and potassium can be applied well of producers to sell farmers on the idea of fall ahead of planting time, with little loss of fer or winter fertilization. Currently, approxi tilizer substance. Phosphorus in fertilizers is mately three-fourths of all fertilizer materials soon converted to new forms in the soil and are applied in a 2-month period in the spring. remains stationary unless the soil is disturbed Since the amount of fertilizer applied is de by plowing or disking. Potassium is also held pendent, to a large extent, upon weather con by soil particles and stays in place except in ditions, fall or winter fertilization could con sandy soils, which are low in clay and organic tribute to a more orderly marketing situation matter. by reducing the time period between the pro Dr. Welch said that the big question about duction and final consumption of fertilizer fall and winter fertilization still concerns the materials and, thereby, lowering the storage use of nitrogen. Losses and reduced availability costs. of nitrogen will vary with soil properties, tem perature, and moisture conditions. Ammonium The principle of winter fertilization has nitrogen is held by clay particles and generally many built-in advantages for farmers in addi remains near where it is placed in the soil. If tion to giving producers a better opportunity nitrogen in the ammonium form is used, it to utilize plant capacity more efficiently. By should not be applied until the soil temperature applying fertilizers in the fall or winter, farm is below 50-55 degrees F. When the soil tem ers can usually purchase these materials at perature is above the range of 50-55 degrees F., lower prices or receive cash discounts and can soil bacteria convert ammonium to nitrates at obtain more rapid service since distributors are an accelerated rate and losses could occur. not in the usual spring rush. Since nitrates are mobile and shift with the soil, In the past, some agronomists have had ob they could be lost in areas with heavy winter jections to winter applications of fertilizers, rainfall. especially of nitrogenous fertilizers. Recent The most acceptable dates for fall and winter studies have shown, however, that the applica applications of nitrogen vary with the differ tion of fertilizers — including ammonia — in ent regions, says Dr. Welch. Each set of soil the fall or winter is, in many areas, superior to and management conditions should be evalu spring fertilization for most major crops. ated. One practical approach would be to apply Dr. C. D. Welch, Extension Soil Chemist at phosphorus and potassium early in the year Texas A&M University, recently made some and to apply nitrogen closer to planting time. Fall and W inter Fertilization Careful Site Selection Cuts Building Costs makes the fibers tougher without making them harsh to the touch. In limited tests for rot resistance in specially Proper selection of the construction site can prepared soil beds — probably the harshest reduce the cost of a new farm building, says test to which cotton can be subjected —• the W. S. Allen, Extension Agricultural Engineer treated fabrics lasted more than 12 weeks, or at Texas A&M University. If a level, wellabout three times as long as fabrics receiv drained site is available, it will be a big help ing conventional rot-resistance treatments. Un in keeping costs at a minimum. There will be treated samples were destroyed in less than 1 little or no need for such equipment as bull week. dozers, earth movers, and backhoes. In addi tion, savings on foundation materials will be The USDA says that the finish can be ap possible. plied with standard textile-finishing equipment. If practicable, grading should be done before The fabric is wetted in the chemicals, dried, construction of the building is started, thus per and finally cured by heating the impregnated mitting the equipment to proceed without hin fabric to about 320° F. for about 1 minute. drance. Moreover, grading prior to construc Chemical deposition in the fibers of the fabric tion of the building reduces costly hand labor is efficient, and the fabric retains virtually all of that might be required in order to reach areas its original breaking strength. This highthat would not be accessible to the equipment strength cotton fabric is desirable for outdoor fabrics, a market that consumes an estimated if construction were under way. equivalent of at least 250,000 bales of cotton When fills are necessary, adequate and prop annually. High strength is also especially de erly reinforced foundations must be provided. sirable in fabrics that are to be given an addi Mr. Allen advises the thorough packing of fills tional chemical treatment for durable press within buildings or lots where concrete floors garments. or pavement will be used. If such precautions are not taken, settling may cause the concrete Upside-Down Peanuts to crack and be uneven. Earth that is spread and packed in shallow layers will settle less Peanuts dry faster and more uniformly when than that which is dumped in greater depths they are turned upside down in windrows than and packed only from the top. Moist earth when they are dug and windrowed in random packs better than dry soil. Mr. Allen advises fashion, reports the Agricultural Research the use of sheep-foot or wheel-type rollers to Service. The inverted windrows offer the ad pack the earth as it is spread. vantages of better exposure for drying, less chance of molding, and reduced harvesting losses. Doubleheader A chemical treatment for cotton that may prove to be doubly beneficial is currently being developed by utilization research scientists with the U.S. Department of Agriculture. The treat ment appears to be effective both as a rot- and weather-resistant finish for outdoor cottons and as a prefinish to improve the wear performance of durable press cottons. Based on commercially available chemicals (methylolmelamine and a catalyst made from a mixture of two zinc salts), the finish is resis tant to micro-organisms that usually attack and destroy cotton very quickly. The finish also G. B. Duke, an agricultural engineer with the ARS, is developing equipment that will dig up peanuts and place them upside down in the windrows in the same operation. Most diggers now used place peanuts only in random windrows. These conclusions were derived from tests conducted at the Tidewater Field Station at Holland, Virginia, but conditions are similar in other peanut-producing states. Peanuts are now combine-harvested in Virginia, North Caro lina, Georgia, Florida, Alabama, Texas, and Oklahoma, the major peanut-growing states.
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