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ARM AND Q ANCH B u l l e t in Vol. 22, No. 3 March 1967 JA P A N — A BILLIO N D O LLA R C U ST O M ER Japanese agricultural imports from the promote exports. While the United States, with United States in 1966 are estimated to have 34 percent of the market, remained the largest reached the $1 billion mark, making Japan the single supplier of cotton, Mexico, which is our first country to attain that position and our stiffest competitor for sales, captured about 25 leading farm market abroad, reports the Eco percent. nomic Research Service. Although Japan recognizes the advantages A study was made of Japan’s farm imports of U.S. cotton on the basis of quality, uniform in 1964 in order to learn more about this grow ity, and availability, price is a large determin ing market. Results of this study, which were ing factor, according to the ERS. Japan buys published recently, show that Japan’s agricul heavily when U.S. prices are competitive. Mex tural imports in 1964 totaled nearly $2.7 bil ican cotton is similar to ours in type, variety, lion, of which the United States supplied $820 uniformity, and staple length; but in past years, million, or almost one-third. The ERS says Mexican cotton has tended to sell in world that competition in the rapidly expanding and markets at prices which are below those for highly prized Japanese market is keen and that comparable U.S. qualities. increased effort will be required for the United U.S. cotton is also facing increasingly stiff States to maintain and expand its position in competition from man-made fibers in the Jap this market. anese market. Raw cotton represents Japan’s Every product that the United States sells to Japan is at least partially available from another source. Japan is faced with a growing import bill and periodic balance-of-payments problems and, therefore, buys where the terms of trade are most favorable or where purchas ing will develop the market for Japanese ex ports (largely manufactured goods). heaviest outlay for farm imports; consequently, the Japanese have been quick to adopt man made fibers which they can produce them selves, often with raw materials that are available domestically. Wheat — Although the Japanese Govern ment still encourages domestic wheat produc tion by paying price supports that are above The following are the principal farm com world price levels, it is increasingly turning to modities produced in the Southwest for which the import market to meet its growing needs. Japan is a major U.S. market, together with The United States and Canada compete vigor brief descriptions of the competition faced by ously for the Japanese market. In 1960-64, we supplied about 40 percent of the market, the sellers: and Canada furnished 45.7 percent. Cotton — In 1964, Japan purchased raw A growing preference for hard wheat in cotton from more than 23 countries in line with its policy of scatter-buying in order to Japan has made it more difficult for the United 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 States to retain its share of the wheat market. Hard winter wheat grown in the United States has to be transported from our central states to west coast ports. Since Japan prefers to buy wheat on the west coast, the United States has stockpiled hard wheat at that location, and the grain has been offered to Japan at prices which are competitive with those for Canadian wheat. As a result, the United States accounted for 47 percent of the import market in 1964; Canada’s share was 39 percent. More Boll W eevils Find a Home More boll weevils went into hibernation this winter than a year earlier in most of the areas ^ surveyed by entomologists in six southern states, reports the U.S. Department of Agricul ture. Boll weevil counts were made last fall in Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Texas. In order to determine the number of Feed grains — With a rapidly expanding weevils in hibernation, counts are made from livestock industry and only a limited increase samples of wood trash adjacent to cotton fields. in domestic feed grain production, Japan is The number of weevils surviving the winter, the world’s fastest growing feed grain market. as well as weather conditions during the early The United States is the top supplier of Japan’s part of the cotton fruiting period, determines rapidly growing imports of grain sorghums. the potential boll weevil damage to the fol Competition from other countries is minor lowing year’s cotton crop. since exportable supplies are not large. This situation may change, however, as grain sor Average counts of live weevils per acre in ghums from Argentina and Thailand are enter the fall of 1966 were greater than a year earlier ing the picture. in south-central South Carolina, north-central North Carolina, the Piedmont area of North Livestock products — Japan is our largest Carolina and South Carolina, the southern tier market for tallow, and we, in turn, are her of counties in Tennessee, and central Texas. biggest supplier. In 1964, 85 percent of all (In central Texas, more boll weevils entered tallow imports came from the United States, hibernation in the fall of 1966 than in any year with Australia, New Zealand, and Canada sup since 1959.) Counts were lower than in the plying most of the remainder. The Japanese fall of 1965 in the Coastal Plain of North prefer high-quality U.S. tallow because it is Carolina and South Carolina, all areas sur best suited to and most economical for soap veyed in Mississippi, and in northeastern making. Detergents, however, have made seri Louisiana. ous inroads into the Japanese soap industry, and the future of this market for tallow is First 1967 Case of Screwworms questionable. The first case of screwworms in the United Another area of large potential is the use of fats in formula feeds for Japan’s growing live States this year occurred in Willacy County, stock and poultry industries. Surveys in Japan Texas, and was reported on January 30 by of indicate that the potential demand for tallow ficials of the Southwestern Screwworm Eradi in feeds could double or triple present imports cation Program. Steps were taken immediately for all purposes if the tallow were used at the to wipe out the infestation. U.S. rates of consumption. Officials say that the unseasonably warm Japan is also our top world market for hides weather has been ideal for development of and skins, and demand for leather continues to the dreaded livestock pest. They urge all stockrise. Competition, however, is increasing from men to keep a sharp lookout for possible rein three directions: rising domestic production in festations and to continue collecting worm Japan from its own growing livestock industry; samples for positive identification at the labora greater use of leather-like substitutes which are tory at Mission, Texas. Assistance on mailing lower in price; and increasing imports from the collected specimens may be obtained from such countries as Australia. local county agricultural agents. to 1964 for the Eleventh District states: Ari zona, 3.8 percent; Louisiana, 1.9 percent; New State and local farm real estate tax rates are Mexico, 4.7 percent; Oklahoma, 0.5 percent; not as high as they were many years ago, re and Texas, 3.7 percent. ports the Economic Research Service. The tax rate per $ 100 of full value of farm real estate is Ground Temperature Is Important lower, although total payments are higher be cause of the rising value of farmland. Root temperature is more important than air The U.S. tax rate per $100 market value of temperature in the survival of young cotton farmland increased from an average of $1.12 plants, according to the Oklahoma Agricul in 1926 to $1.52 in 1932 and then declined tural Experiment Station. Scientists studying to $1.12 in 1941. During that period the rates the cold tolerance of cotton plants obtained averaged around 15 cents above present levels. information which indicates that records of Today the rate is about $1.02 and has held soil temperature at about 6 inches below the relatively stable at that figure since 1961. Be surface should be a useful guide in determining tween 1950 and 1959, the rate averaged nearly when to plant the crop. Root temperatures be 93 cents, with only a slight upward trend. low 68° Fahrenheit may cause sugars to accu Then, a sharp upswing between 1959 and 1961 mulate and slow the growth of cotton seedlings. pushed the rate to its current level. Deferred Grazing Boosts Cattle Profits The stability of the average tax rate during the past few years indicates that taxes and A deferred rotation grazing system devised market values of farm real estate have been by Texas A&M University at its Experimental rising at about the same pace. This situation Ranch in Throckmorton is boosting cattle enables tax-levying bodies to better match profits about $ 11 a cow per year. Outstanding available funds with the increasing costs of results have been obtained from both methods additional governmental services. of deferred rotation being used, according to Tax revenues have exceeded each previous Dr. Wm. (Dub) Waldrip, who is in charge of year’s total for nearly a quarter of a century. the experimental ranch. State and local taxes levied on U.S. farms were Dr. Waldrip says that the system of grazing greater than ever in 1965 — $1.6 billion, or used continues to have the most important dol6 percent above a year earlier. lars-and-cents influence upon livestock produc Farm Real Esfa+e Taxes The ERS says that an acre of farmland may not appear to be much different from one part of the country to another except to a local governing body. In New Jersey, however, the average tax per acre for 1965 was $12.61. On the other end of the scale, the tax rate for New Mexico was only 17 cents per acre. The national average for 1965 was $1.61 per acre, compared with $1.51 in the preceding year. These taxes were about four times greater than 25 years ago. The ERS says that taxes vary among states for several reasons, includ ing (1) differences in farmland value and im provements and (2) the importance of the property tax in both state and local revenueproducing systems. The following are the percentage increases in taxes levied on farm real estate from 1963 tion. Both the two-pasture and the four-pasture systems of deferred-rotation grazing have pro duced more and heavier calves than has con tinuous grazing at the same stocking rate. Thus far, the four-pasture system has resulted in the best weight gains of animals. Weaning weights of calves during the past 6 years have averaged 518 pounds on the four-pasture system, 499 pounds with the two-pasture system, and 487 pounds on continuous grazing. Calf production per cow averaged 482 pounds under the four-pasture rotation system, 454 pounds under the two-pasture program, and 438 pounds under the continuous grazing system. Dr. Waldrip states that the increased production of the four-pasture system as com pared with continuous grazing amounts to about $11 per cow. The calving percentage with the four-pasture system was an outstand ing 93 percent. Under the four-pasture system, each pasture is grazed 12 months and then rested 4 months. The system was developed by Dr. Leo Merrill, Range Scientist with Texas A&M University’s Ranch Experiment Station in Sonora. Deferred grazing results in not only a larger amount of beef per acre and per cow but also in sub stantially improved ranges, according to Dr. Waldrip. "N o M ow " Grass Agricultural researchers at Texas A&M University have developed a dark-green turf grass that actually grows better in moderate shade than in the sunlight. The turf grass, called “No Mow,” is a variety of Bermuda grass. Dr. George McBee, Turf Specialist at Texas A&M University, says that most lawn grasses do not grow well in shady areas, such as under trees or along the sides of buildings. In the Texas A&M University tests, No Mow grew better under low light levels than did ordinary St. Augustine, Bermuda, Tifway, and Bahia grasses. The new grass grows better under shady conditions primarily because of its short inter nodes. (An internode is the distance between nodes or the joints in grass.) Ordinary grasses, with longer internodes, usually become spindly and weak when grown under shade. In con trast, No Mow grows to just the right height and density under low light levels. The specialist cautions that No Mow will not grow without some light. The grass needs about 35 percent of the sunlight in order to attain its best development. Therefore, No Mow grass grows well under trees, since some of the light filters through the branches. It also grows well along the sides of buildings where the sun may shine for only a short time each day. No Mow grass offers possibilities for use in shopping centers where grass along malls or other indoor areas is desirable. It could also be grown in parks or recreational areas where there is too much shade for ordinary grasses. The A&M specialist says that many nurseries now have, or can obtain, the No Mow grass. Farm Land Prices Farm real estate prices in the United States moved higher during the year ended Novem ber 1, 1966, according to a recent report of the U.S. Department of Agriculture. The na tional index of value per acre reached 157 percent of the 1957-59 average, or 8 percent above a year earlier and 5 percent higher than March 1966. On a regional basis, annual in creases ranged from 5 percent in the Pacific area to 12 percent in the Corn Belt. Both the Southeast region and the Delta states showed gains of 9 percent. Tight credit markets and high interest rates during the past several months, however, par tially offset the strong demand for land which resulted from favorable income and a desire for farm enlargement, says the USDA. Conse quently, the March-November 1966 gain re mained below 6 percent in each region. Among the 48 states, Iowa, Missouri, and Indiana led the annual farm-price rise, with gains of 13 percent. Illinois, Alabama, Geor gia, and Maryland were next, with 12-percent increases. Prices for irrigated land in southern California appeared sluggish and offset stronger gains in prices for dryland and pasture. The following table shows the indexes of land prices (1957-59 = 100) in the states of the Eleventh Federal Reserve District for N o vember 1, 1966, and comparisons with a year earlier and March 1, 1966. S ta te A r iz o n a N o v . 1, 1966 M a r. 1, 1966 N ov. 1 1965 . . . . . . 167 155 155 L o u is ia n a . . . . . 1 8 7 176 154 170 153 169 167 158 N e w M e x ic o . . . 161 O k la h o m a . . . . 1 7 9 T exas .............. . . 1 6 8 165 Lettuce and tomatoes were intercropped with pecans last year on 140 acres of irrigated land at the Stahmann Farms near Las Cruces, New Mexico, reports New Mexico State Uni versity.
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