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ARM AND □ anch F I ULLETIN Vol. 16, No. 7 July 15, 1961 TEXA S R A N C H CREDIT D U R IN G THE D R O U G H T O F THE 1950'S The most severe and prolonged drought in ings, principally against land, to finance operat Texas history occurred during 1950-57. Ac ing losses. cording to a recent study by Harley Bebout, The net worth of the borrowers decreased 3 8 Associate Professor in the Department of Agri percent during the seven drought years. By cultural Economics and Sociology at Texas early 1958, the net worth position of the ranch A. & M. College, ranchmen in the State sus ers had improved 19 percent over the previous tained heavy financial losses during the period. year but was still 27 percent below the 1950 Reduced incomes resulted in a gradual deple level. The remarkable increase in assets and tion of the ranchers’ financial assets, and bor net worth in the first year of recovery was rowing for necessary production outlays and attributed to good income from high produc living expenses impaired their operating and tion, some early restocking, and higher prices investment capital. for livestock. With the relationship between Information was gathered from various lend debts and assets improving since 1957, the ers, some of whom operated state-wide. In ranchmen have been able to obtain the neces addition, financial records were secured from sary credit for expansion and financial recovery. a group of rancher-borrowers in the Edwards The financial position of nonoperating own Plateau area of Texas. The records for the latter ers of ranch lands in the area was not materially group were obtained for January 1, 1950, which impaired during the drought years. During this show the financial position of the average period, income was provided from leases for rancher-borrower in the area at the start of the ranching and mineral purposes; in addition, drought period. Records were also secured for land values advanced despite the drought. the beginning of 1957, revealing the financial Credit did not prove to be a major problem to position of the ranchmen near the end of the this group. drought. Records were again obtained for Jan uary 1, 1958, showing the improved financial Except for heavy losses from their livestock position of the group for the first year following operations, full owner-operators were in much the drought. the same position as nonoperating owners. The ranchers in the study lost 21 percent of Those with substantial equities in their land their assets from 1950 until shortly before the could finance their livestock operations with drought ended in 1957. These losses resulted real-estate credit. Part owner-operators were in mainly from a decrease in the number of live a less favorable income and credit position, stock and a decline in the value per head of depending upon the proportion of owned land livestock. During the drought period, liabilities to leased land and their equity in the owned rose 46 percent, reflecting increased borrow acreage operated. 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 On the other hand, ranchmen who leased all were able to increase their deposits, capital ac of the land they operated were severely affected counts, and reserves during the drought years. by the drought, with a substantial number going These factors, together with the experience out of the ranching business. Many of the lease gained during the drought, place the banks in operators were placed in deficit net worth posi a better position to meet the credit needs of tions because they borrowed on their livestock their rancher-borrowers during future emergen to meet lease payments, to buy feed, and to pay cies, according to Mr. Bebout. for other operating and living expenses. Many operators exhausted all usual sources of credit Daily Hog Care Pays Off and resorted to emergency credit provided by Day-to-day attention to details which insure the Government. Some lease operators — espe the health of a swine herd is much better than cially the smaller ones — secured off-farm em reliance on drugs, according to Dr. C. M. Patter ployment in order to remain in the ranching son, Veterinarian with the Texas Agricultural business. Full-lease operators experienced diffi Extension Service. Treatment alone does not culty in obtaining credit, even after the drought provide the complete solution to the problems ended. of profitable swine production. Most Texas ranch owners entered the 1950According to Dr. Patterson, an effective 57 drought period with large real-estate equi ties. These equities served as excellent reserves health program for swine must — and provided the security for much operating i t Provide a clean, healthy environment. credit during the emergency and recovery peri i t Prevent exposure of animals to diseaseods. Owner-operators shifted a large portion of producing agents. their accumulated short-term drought credit to longer-term, lower-cost real-estate credit. i t Prepare for early detection and identifi cation of diseases and parasites. During long periods of drought, the credit requirements of many ranchers for operating i t Provide for early treatment which is purposes may be expected to exceed the value selected and applied on the basis of of the available livestock collateral. Declining diagnosis. livestock prices that coincided with the drought i t Include accurate and complete records. period hastened the unfavorable relationship between the amount of loans and collateral Diseases and parasites result in a $15.50 re during 1950-57. This situation quickly added duction from every $100 of potential net profit to the risk of both the rancher-borrower and from hog production. Diseases of very young the lender. pigs cost producers $438 million annually, and Commercial banks provided most of the op hog cholera and erysipelas result in a $75 mil erating credit to Texas ranchmen during the lion loss each year. Dr. Patterson says that these drought and postdrought years of the 1950’s, figures could be reduced substantially by fol reports Mr. Bebout. The dollar volume of credit lowing proper herd health measures. to the operators rose about one-third, and the Reduce Root Rot in 1962 banks cooperated fully with emergency loan programs when the loans reached the maximum Cotton root rot can be reduced if dry weather size for a particular bank. Banks generally were follows deep plowing, states Harlan E. Smith, able to meet the needs of their regular borrowers Plant Pathologist with the Texas Agricultural through the drought years, as well as provide Extension Service. The soil should be plowed funds for restocking purposes following the at a depth of 6 to 18 inches with a disk or molddrought. Loans were based more on the sound board. The soil drying that follows helps to kill ness of the rancher’s operation under normal the root rot fungus. In addition, deep plowing conditions than on a strict security basis. and soil drying help to kill old cotton roots and Because of unusually high nonranch business roots of susceptible weeds which harbor this activity, most banks serving the drought areas fungus. Deep plowing — together with the turning under of a large quantity of old-crop straw, stalks, or leaves — provides insurance against root rot, according to the plant pathologist. Deep plowing and turning under of organic matter often can be performed in one operation. Grain sorghums, small grains, clovers, and winter peas frequently are turned under to supply organic matter. Cotton burs also have been used. The organic matter must be turned under deep, in order to be most effective against root rot the following season. If rain occurs before the deep-plowed soil dries, the operation should be repeated or a resistant crop should be planted. Although crop rotation alone will not reduce root rot, a rota tion using deep plowing and burying of organic matter will reduce the disease. Because of the varying amounts of rainfall each year, no single practice is likely to reduce root rot every time. A combination of practices carried out over a number of years is necessary for best results, according to Mr. Smith. C RD Can Reduce Egg Output Chronic respiratory disease (CRD) has de veloped into the Number 1 problem of the Nation’s broiler industry, says W. O. Cawley, Assistant Poultry Husbandman with the Texas Agricultural Extension Service. In 1959, CRD was responsible for 70 percent of the $22 mil lion lost through broiler condemnations at proc essing plants. The first is to breed PPLO-free stock. How ever, until PPLO-free stock is available, efficient management is the best method for preventing CRD losses. Good housing is essen tial, as well as proper sanitation and air move ment. A satisfactory vaccination program for the prevention of Newcastle disease, infectious bronchitis, and fowl pox is also one of the more important management practices, according to Mr. Cawley. Range Management of Pullets R ange management of pullets differs very little from confinement management, points out Joe Wakefield of the Poultry Science Depart ment of Texas A. & M. Col lege. Pullets that have been well managed in the brooder house should make equally good progress when turned onto the range. Before transferring birds from the brooder house to the range, the flock should be culled for unhealthy or diseased pullets. After the flock is culled, weather is the deciding factor on when to move the pullets. Six-week-old birds can be placed on the range successfully when the weather moderates and grasses begin to make good growth. Because it has had such a strong effect on the broiler industry, CRD is often disregarded as a disease of laying flocks. However, a recent study conducted by one of the Nation’s leading poul try breeders reveals that poor total egg produc tion was more closely associated with CRD than with any other disease. Some poultrymen have experienced as much as a 30-percent reduction in egg output when their flocks were seriously infected. After being placed on the range, the pullets must be supervised closely until they become accustomed to their new environment. Their feeding habits should not be upset by a change in feed or the addition of new ingredients to their feed. An adequate supply of feeders and waterers should be available. The pullets will be taking more exercise on the range and, hence, will consume more feed. Mr. Wakefield recommends providing at least 12 feet of feeder space and 6 feet of watering space per 100 birds. CRD outbreaks are caused by a chain reac tion between pleuropneumonialike organisms (PPLO), E. Coli, and a stress factor. If any one of the three is eliminated, birds will not develop CRD. However, E. Coli organisms are so widely distributed that it is impossible to elimi nate them. This fact leaves two alternatives. Range birds need weather protection — either natural or artificial. During hot weather, pullets range away from their food and water in the early morning and late afternoon but require shade during the heat of the day. Their water should be kept in the shade so that it will be cool and drinkable. New Flax Variety 0 Caldwell — a new cold-hardy, winter-type flax variety — has been released cooperatively by the United States Department of Agriculture and the Texas Agricultural Experiment Station. Use artificial breeding; do not use your own bull until he has passed several con secutive laboratory examinations. 0 Have periodic pregnancy checks made on the herd; ask your veterinarian to ex amine cows that do not show heat within 30 days after calving. 0 Contact your veterinarian for repeat breeders. He may suggest blood samples and tampon tests for his diagnosis. 0 If abortions occur, consult your veterina rian about submitting aborted calves, blood samples, and fetal membranes to the School of Veterinary Medicine, Texas A. & M. College, for diagnosis. 0 Follow your county agent’s advice for soil tests and fertilizer recommendations for forage. 0 Lend your support to research on repro ductive problems. 0 Secure, and utilize, a copy of D-317, “Breeding and Calving Record,” from your county agricultural agent. The new variety is the highest yielding winter-type flax adapted for Texas production. In 10 years of plot testing, Caldwell averaged 15.5 bushels of flaxseed per acre. Deoro and B5128 — spring types of flax grown in the State — averaged 13.6 bushels and 15.6 bush els per acre, respectively, in parallel tests. Cald well appears to be more tolerant of curly top, a virus disease, than are other flax varieties tested. A limited quantity of certified Caldwell flax seed will be available for farm planting this fall. Names of seed suppliers will be furnished by the Texas Crop Improvement Association, College Station, Texas. Breeding Problems Can Cost Dairymen The average dairyman’s herd can provide enough additional income to pay his property taxes if each cow freshens every year and, thus, produces more milk, according to A. M. Meekma, Dairy Specialist with the Texas Agri cultural Extension Service. However, this goal is reached in only a few herds, and it is estimated that the unrealized income amounts to millions of dollars annually. In order to freshen annually and then start a new lactation, a cow must conceive within 90 days after her last calving, says Mr. Meekma. Studies show that the best time to breed cows is from 50 to 90 days after calving. Animals bred earlier often do not settle and may not finally conceive until well after 90 days. Loss of potential milk production may cost the owner over a dollar a day for each cow that goes more than 3 months without conceiving. An average of one and one-half services per conception is normal, points out Mr. Meekma. Any condition that interrupts the cow’s nor mal breeding cycle is costly. The dairy special ist offers the following suggestions for solving breeding problems. Veterinarians Need More Information From Poultrymen Texas has several poultry diagnostic labora tories and a number of private veterinarians offering their services to poultry producers, according to Dr. C. F. Meinecke of the School of Veterinary Medicine at Texas A. & M. Col lege. The common complaint is that poultrymen frequently submit cases without providing adequate information. If a diagnostician is to do his best work, he must have all of the facts about the case. He should be furnished the poultryman’s name and address, together with the vaccination date of the birds and information about their feeding and medication. The veterinarian should also be told the symptoms of the disease from its beginning. According to Dr. Meinecke, the poultryman should submit at least three birds for diagnosis. These birds should reflect, as nearly as possible, the earliest to the latest stages of the disease.