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ARM AND Q ANCH F I ULLETIN November 1970 Vol. 25, No. 11 TE X A S C ITR U S P R O D U C TIO N UP, PRIC ES D O W N Texas citrus growers face the prospects of ex panded output and depressed prices. Total U.S. orange production this season, excluding Cali fornia Valencias, is expected to increase 15 per cent over last year’s record crop, reaching 8.5 million tons. The grapefruit crop, excluding fruit grown in the nondesert areas of California, is expected to reach 2.6 million tons, 24 percent more than last season. The last grapefruit crop to reach 2.5 mil lion tons was in 1945-46. As a result of the increase in production, citrus prices can be ex pected to drop to the lowest levels in several years. C IT R U S P R O D U C TIO N BY S T A T E (In thousands of tons) Indicated Percent 1970-71 change Crop and state 1969-70 Oranges Arizona ..................... California1 ................. Florida ..................... .. Texas ......................... 179 795 6,197 189 203 525 7,560 230 13 -3 4 22 22 Grapefruit Arizona ..................... California2 ............... Florida ..................... . . Texas ......................... 101 103 1,590 324 102 106 2,083 352 1 3 31 9 1 Excluding Valencias. 2 Desert valleys only. SOURCE: U.S. Department of Agriculture. The Texas orange crop, which accounts for 2.5 percent of the nation’s production, will increase 22 percent to 5.1 million 90-pound boxes. The early and midseason crops are estimated at 3.5 million boxes, 25 percent more than last season. The Valencia crop is forecast at 1.6 million boxes, F E D E R A L R E S E R V E DALLAS, 14 percent more than last year. Good moisture conditions in the Rio Grande Valley have also helped in the sizing of fruit. Because of large California and Florida harvests, most of the Texas oranges are expected to be sold within the state. Prospects of increased revenues from frozen concentrated orange juice sales are weakened by Florida’s increased production of frozen concentrated orange juice and a large carryover of concentrate from last season. Texas, the second largest producer of grape fruit, accounts for 17 percent of the nation’s pro duction. Florida accounts for 70 percent. The Texas crop, forecast at 8.8 million 80-pound boxes, reflects a 9-percent increase over last year. Some of this gain is due to the large sizes of grapefruit resulting from recent heavy rains. The harvest got underway in early September, and the first oranges were shipped about mid month. Heavy showers delayed picking later in the month, but the harvest was in full swing again in October. The grapefruit harvest began early last month but remained fairly light until November. “Financing Agriculture in the Urban Age” is the theme of the 19th National Agricultural Credit Conference to be held in Atlanta, Georgia, November 15-17. Chairman of the conference — sponsored by The American Bankers Asso ciation — is Edward M. Norman, chairman of the A.B.A. Agricultural and Rural Affairs Com mittee and president, First National Bank, Clarksville, Tennessee. B A N K TEXAS OF D A L L A S 1970 Pecan Prospects The USDA has forecast the nation’s 1970 pecan crop at 156 million pounds, 31 percent less than last year’s crop and 19 percent below that in 1968. The 1969 crop sold for an average 30 cents a pound, and the 1968 crop brought the highest average price of the decade — 37 cents a pound. Of the 11 major pecan producing states, only Texas and New Mexico are expected to harvest larger crops this year than in 1969. Excessive droppage created by heavy rains in Georgia during August and the lingering effects of last year’s hur ricane in Alabama account for much of the re duced production this year. The Texas pecan set is rated fair to good in most sections of the state, and the state’s crop is forecast at 38 million pounds, 65 percent above a year ago. In contrast to the 1969 bumper crop in the Red River area, much of this year’s harvest will come from the central producing areas of the state. Production in the Gonzales-Seguin area of south-central Texas ranges from poor to fair. Growers report some insect damage has been ex perienced, and some droppage occurred during August. In spite of heavy droppage in August, the pecan crop in New Mexico is forecast at 8 million pounds, 19 percent greater than the harvest a year ago. Most of this year’s crop is located in the Mesilla Valley, and a relatively poor harvest is expected in the Pecos Valley. In other Eleventh Federal Reserve District states, the Louisiana and Oklahoma pecan crops are forecast at 17 million and 8 million pounds, respectively. These estimates are 43 percent and 45 percent below 1969 production levels. Pecan prospects in Louisiana are very spotty but gen erally poor, with droppage continuing in most areas. The Oklahoma crop is spotty because of dry weather this summer, which limited the sizing of nuts. Peanuts — An Important Crop In the United States To peanut growers, shellers, brokers, whole salers, salters, and manufacturers of peanut butter, candy, and similar products, peanuts are an im portant U.S. crop. Per capita consumption in the nation is close to 6 pounds a year and is rising, the USDA reports. Peanut harvesting starts in Texas in July and lasts into November in the Virginia-North Caro lina-South Carolina area. In the southeastern and southwestern production areas, most of the har vesting is done in August and September. PEANUT PRODUCTION (In thousands of pounds) Area 1969 1968 1967 New Mexico . . . . O k lah o m a............ Texas ................... 16,340 204,000 408,375 17,696 227,480 426,300 15,920 209,100 333,450 628.715 2,552,875 671,476 2,542,841 558,470 2,473,385 Total ................. United States . . SOURCE: U.S. Department of Agriculture. D istrict pecans in a n u tsh ell MILLION POUNDS Spanish peanuts, which are used in making candy and peanut butter and are sold for salting, are grown mainly in the Southwest. The larger kerneled runner-type peanut, used mainly for pea nut butter, is the principal type grown in the Southeast, although the area produces Virginiaand Spanish-type peanuts as well. Growers in Virginia and North Carolina begin harvest of Virginia-type peanuts in mid-Septem ber. These are generally sold for salting or for roasting in the shell as the so-called “ball park” peanut. 1970 projected. S O U R C E : U S. Department of Agriculture. Harvest starts in October for New Mexico’s Valencias, the only peanut with three or more kernels. Valencias are also roasted in the shell. 1969 Farm Income Advances In District States crease in total net farm income with a gain of 12.5 percent, followed by New Mexico with a 9.6percent rise. Realized gross farm income in the Eleventh Federal Reserve District totaled nearly $6.6 bil lion in 1969, 9.4 percent higher than a year earlier. Cash receipts from farm marketings amounted to 83 percent of total farm income, and Govern ment payments made up 12 percent of the total. Gross rental value of farm dwellings and the value of home consumption of farm products accounted for the remainder. Last year, total production expenses on District farms grew 11 percent, to $4.8 billion. The dis tribution of production costs was little changed from 1968, with operating expenses and deprecia tion accounting for 75 percent and 15 percent of total expenses, respectively. Total net farm income, which includes adjust ments for net changes in farm inventory valua tions, was almost $2 billion, or 2 percent more than in 1968. In the District states, net farm in come in Louisiana declined 12 percent last year, and farm income decreased slightly in Arizona and Texas. Oklahoma registered the largest in The distribution of cash receipts in the District last year was heavily weighted to increased market ings of livestock. As a percentage of total farm marketings, cash receipts from livestock advanced 8 percentage points in Louisiana, New Mexico, and Texas; 7 percentage points in Arizona; and 4 percentage points in Oklahoma. Greater live stock marketings in the District were the result of increased livestock production, higher livestock prices, and reduced crop production. Farm Income, 1969 Five Southwestern States (In millions of dollars) Realized gross farm income Area Cash Gross rental receipts Value of value of from farm Government home farm _______ marketings______payments______ consumption______dwellings A rizo n a.................................. Louisiana .............................. New M exico......................... O k lahom a.............................. Texas .................................... T o t a l .................................. 662.0 572.2 390.3 939.3 2,905.3 5,469.1 47.8 52.3 41.6 115.2 505.2 762.1 5.6 13.7 4.1 15.6 30.3 69.3 18.1 60.7 11.6 44.5 143.7 278.6 Total Total net farm income 733.5 698.9 447.6 1,114.6 3,584.5 6,579.1 184.2 249.8 135.2 297.8 1,118.8 1,985.8 NOTE. — Details may not add to totals because of rounding. SOURCE: U.S. Department of Agriculture. Farm Production Expenses, 1969 Five Southwestern States (In millions of dollars) Area A rizo n a.................................. Louisiana .............................. New M exico.......................... O klahom a.............................. Texas .................................... T o t a l .................................. Total current farm operating expenses____ 486.3 312.9 260.2 606.6 1,880.8 3,546.8 Depreciation Interest Net rent and other Taxes on farm to Total consumption of on farm mortgage nonfarm production farm capital_____ property______ debt______ landlords_____ expenses 29.2 97.0 34.2 162.7 376.0 699.1 NOTE. — Details may not add to totals because of rounding. SOURCE: U.S. Department of Agriculture. 17.3 9.9 7.0 37.5 115.7 187.4 16.6 29.9 16.7 36.4 117.7 217.3 24.0 7.3 3.7 13.4 38.3 86.7 573.4 457.1 321.8 856.5 2,528,5 4,737.3 Distribution of Cash Receipts From Farm Marketings, by Commodities, 1969 Five Southwestern States (Percent of state total) Commodity Arizona Louisiana New Mexico Oklahoma Texas All commodities ..................... 100.0 100.0 100.0 100.0 100.0 Livestock and products . . . Cattle and calv es............. Sheep and la m b s ............. H o g s .................................. Dairy products ............... Poultry and e g g s ............. Other livesto ck ............... 55.8 47.1 .6 .8 5.7 1.1 .1 44.5 21.3 C1) 1.4 12.2 9.4 .1 76.6 65.7 1.5 1.1 5.4 1.8 .2 72.1 57.3 .2 3.1 7.6 3.4 .9 61.3 41.6 1.3 2.4 6.7 7.8 .5 Crops .................................... W h e a t................................ Rice .................................. Hay .................................. Sorghum g r a in ................. B arley ................................ Oats .................................. C o r n .................................... Cotton ............................... Oil crops ......................... Vegetables ....................... . Fruits and n u t s ................ Other c r o p s ....................... 44.2 1.0 — 3.4 2.5 1.4 55.5 .1 16.7 .3 .1 23.4 1.7 — C1) .3 7.4 13.2 3.8 1.7 11.8 27.9 13.2 — 1.7 2.0 .7 .1 .2 3.0 3.8 .6 .7 1.7 38.7 2.9 3.2 .8 10.9 .1 .2 .6 10.4 2.4 4.4 .1 11.0 — 15.7 5.3 3.7 — — 4.2 4.0 .1 — .1 4.5 .8 4.8 1.2 1.9 1 .0 1.7 1 Less than 0.05 percent. Percentages may not be accurate to 0.1 because of method of machine computation. SOURCE: U.S. Department of Agriculture. Insecticide Restrictions A number of steps have been taken during the past year on both the Federal and state levels to selectively restrict the use of “persistent” insecti cides by farmers. And more such moves can be expected in the near future, according to the USDA. On the list of persistent insecticides are many chemicals farmers have long depended on for effective insect control. Most of the concern is related to the use of aldrin, DDT, and dieldrin, but there is also some worry about the use of benzene hexachloride, heptachlor, lindane, Strobane, TDE, toxaphene, and other organochlorines. Organochlorines — the persistent insecticides — have been the most widely used insecticides in the United States as well as throughout the world. They are effective against a large number of pests, are relatively safe to handle, are fairly cheap, and have a long residual life which reduces the num ber of applications needed for effective control. But one of the major good points of organo chlorines, their long residual life, is also one of their major bad points in the eyes of those con cerned with environmental quality. Their residue sometimes remains active in soil and water long after application. As a result, the insecticides can be hazardous to certain species of fish and wildlife. The residue also tends to accumulate in the fatty tissues of human beings and other warm-blooded animals. However, no harmful effect on humans has yet been detected. The best alternatives to organochlorine insecti cides are organophosphorous and carbamate in secticides. These are already used where it is necessary to avoid residue in marketed food and feed products and where the organochlorines do not provide adequate control. But these substitutes are often higher priced than the organochlorines, and they usually must be applied more frequently for effective insect control. Although they degrade more quickly in our environment and pose no serious long-term residue problem, some, when first applied, are toxic to man and other warm blooded animals, as well as to predatory insects. The major carbamate, carbaryl, is relatively harm less to humans, but it is deadly to bees and to insect parasites and predators. Prepared by C a r l G. A n d e r s o n , J r .
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