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ARM AND 171ANCH F I ULLETIN Vol. 22, No. 2 February 1967 THE U.S. M EA T IM PO RT L A W In order to clarify some of the questions that have been raised about the importation of meat into the United States, the Foreign Agri cultural Service has released an interpretation of the provisions of the Meat Import Law. This legislation (Public Law 88-482) was enacted in August 1964 and became effective at the beginning of 1965. Its objective is to provide a basis for limiting imports of beef and certain other meats into the United States if these imports threaten to exceed a specified quantity. by this law are fresh, chilled, or frozen meat of cattle, goats, and sheep (except lambs). During 1963-65, 87 percent of the U.S. im ports of these meats were fresh, chilled, or frozen; the remainder was mainly canned meat, together with small amounts of sausage. In 1965, 92 percent of the chilled and frozen meat imported was beef, and the remaining 8 per cent was mutton, veal, and goat meat (in de scending order of importance). The Secretary of Agriculture is required, under the Meat Import Law, to estimate at the beginning of each calendar year what the total volume of U.S. imports of certain meats will be during that year. This estimate is re viewed (and revised, if necessary) and pub lished quarterly during the year. The law sets forth a formula for establishing what the level of import quotas should be, if they are neces sary, and provides a method of determining when quotas should be imposed. Quotas are to be imposed when the import level estimated by the Secretary of Agriculture for any calen dar year equals or exceeds 110 percent of what the quotas would be. The act states that it is the policy of Con gress that the aggregate quantity of these meats imported into the United States during any calendar year, beginning with 1965, should not exceed 725.4 million pounds — except as this amount is increased or decreased in accordance with the change in domestic commercial pro duction of these meats. This base quantity (725.4 million pounds) represents the average annual volume of imports of these meats during the five calendar years 1959 through 1963. The average U.S. commercial production of beef, veal, mutton, and goat meat during these years was 15.7 billion pounds annually; there fore, this base quantity was 4.6 percent of commercial production. The law states that the President may sus pend or increase the quota levels if he deter mines (1) that such action is required by underlying economic or national interests of the United States, or (2) that the supply of these meats will be inadequate to meet domes tic demand at reasonable prices, or (3) that trade agreements with supplying countries will insure the adherence to quota limits. Covered The act provides that if domestic commercial production should increase or decrease, the quotas established should also increase or de crease in proportion. It also specifies the method of calculating the increase or decrease in commercial production for the year in ques tion, i.e., the average of the estimated com mercial production for that year and the two preceding years as compared with average 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 commercial production for the years 1959 through 1963. The following procedure shows how the quota is calculated: U.S. commercial produc tion of beef, veal, mutton and goat for 196466 averaged 19.3 billion pounds, or 22.7 per cent greater than the 1959-63 average. In order to calculate the quota quantity for 1966, the base quantity of 725.4 million pounds is multiplied by 1.227; the resultant quota quan tity is 890.1 million pounds. To calculate the volume necessary to bring quotas into effect for 1966, the quota quantity of 890.1 million pounds is multiplied by 110 to arrive at a trigger amount of 979.1 million pounds. Im ports of meat subject to the act are estimated at 800 million pounds in 1966. Although U.S. imports of beef and other meats subject to quotas under the U.S. Meat Import Law in 1966 were about 30 percent higher than in 1965, they were not large enough to trigger the quotas. Meat import quotas will be imposed in 1967 if imports reach 995.0 million pounds, or 110 percent of the base period (1959-63). tions, authorized by Section 709 of the N a tional Wool Act, would be used by the Council to finance advertising and promotion programs for mohair and mohair products. The proposed agreement is similar to agreements under which advertising and sales promotion pro grams for wool and lamb have been conducted since 1955. Record-Keeping Under the New Farm Labor Law The U.S. Department of Labor recently is sued proposed record-keeping requirements for farm operators whose employees come under the minimum wage law on February 1, 1967. Employers must observe the terms of the pro posals as of February 1 in order to be in com pliance with the requirements, pending final regulations. However, persons have until Feb ruary 6, 1967, to submit written views on the proposals. Such statements should be sent to the Administrator, Wage and Hour and Public Contracts Divisions, U.S. Department of L a bor, Washington, D. C. 20210. The FAS says that, in future years, the quota The administrator of the Labor Depart and trigger quantities will continue to increase ment’s Wage and Hour and Public Contracts or decrease in proportion to the change in aver Divisions states that the proposals were neces age domestic commercial production of these sary because of the 1966 Amendments to the meats. Furthermore, imports can be expected Fair Labor Standards Act, which became effec to increase or decrease as the U.S. market be tive February 1. The legislation sets a minimum comes relatively more or less attractive than wage of $1 per hour for certain farm workers other foreign markets. Any increase, of course, effective on that date; $1.15 per hour effective depends upon whether sufficient supplies are February 1, 1968; and $1.30 per hour effec available in the meat-exporting countries for tive on February 1, 1969. shipment abroad. The Labor Department emphasizes that the Referendum on Mohair Production wage law and record-keeping proposals apply A mail referendum among mohair producers to only about 390,000 farm laborers of em will be held February 6-17 in order to deter ployers who used more than 500 man-days of mine whether or not they approve a proposed hired farm labor in any calendar quarter of agreement between the Secretary of Agricul the preceding calendar year. Family labor is ture and the Mohair Council of America, Inc. exempt from the requirements; consequently, The U.S. Department of Agriculture has an only about 1 percent of the Nation’s farm oper nounced that the referendum will be conducted ators are involved in the new legislation. through the county offices of the Agricultural Copies of “Hired Farm Workers Under The Stabilization and Conservation Service. Fair Labor Standards Act as Amended in The agreement provides that the Secretary 1966” (Publication 1161) may be obtained of Agriculture withhold up to 1.5 cents a pound from any office of the U.S. Department of from producers’ payments on mohair m ar Labor’s Wage and Hour and Public Contracts keted during 1966-69. The payment deduc Divisions. Signups Announced for 1967 Crops The U.S. Department of Agriculture has announced a 4-week signup period, beginning February 6 and ending March 3, 1967, for farmers who want to participate in this year’s programs for wheat, feed grains, and upland cotton. Signups for the 1967 Cropland Adjust ment Program (CAP), which began between November 14 and December 1, 1966, will also conclude on March 3, 1967. The USDA says that weekly national com pilations of returns are planned. Reports on the first week of the signups are expected to be available about mid-February. "M orlam " Ewes Agricultural Research Service scientists at Beltsville, Mary land, are producing a crop of lambs every 8 months with a new strain of sheep called “Morlam” (more lambs) and a new system of sheep breeding. Top Morlam ewes have produced 2 lambs per pregnancy, or 6 lambs in 2 years — the goal of the breed ing project. By selective breeding of the ani mals, the scientists hope to develop in the Morlam strain such economically important characteristics as year-round multiple births, long wool, hornlessness, and white, open faces. Since 1961, individual ewes have been se lected which could breed in the spring as well as in the fall. These Morlam ewes are bred in April, August, and December, and lambs are born in September, January, and May. Two months after breeding, the ewes are checked for pregnancy with an ultrasonic ana lyzer developed for pregnancy diagnosis. If a ewe is not pregnant, it can be rebred with the next group without breaking the rhythm of 8-month lambings. In conventional sheep breeding, failure to conceive during the breed ing season delays lambing for a period of 12 months. Even with just one lambing a year, the Morlam strain would supply lambs at the sea son when prices are highest and when extra labor for lambing is available. Since first-gen eration ewes of the Morlam strain are still pro ducing in the flock, they have not yet accumu lated lifetime records. Consequently, the ARS scientists say that it is too early to evaluate the overall progress of the program. Rate on Certificates of Interest Lowered In farm flocks, sheep usually lamb once each year. However, a ewe carries her lamb to term in about 5 months and does not need to nurse it for more than 2 months. In theory, she could complete three terms every 2 years. A produc tion cycle of 8 months, instead of the usual 12 months, could result in a 50-percent in crease in the lamb crop. The rate of interest payable on certificates of interest issued by the Commodity Credit Corporation to banks and other lending insti tutions for financing 1966-crop price-support loans was lowered to 5.5 percent per annum, effective January 22, 1967. The rate for certifi cates had been 5.7 percent per annum since October 22, 1966, at which time it had been increased from 5.2 percent per annum. The U.S. Department of Agriculture says that the decrease in the interest rate is in line with recent changes in the money market. The 8-month cycle presents problems, how ever. Sheep generally do not come into heat between February and July, and they reach peak fertility in September and October. Thus, lambs generally are born in the early spring when there is ample pasture to supplement milk from their mothers. Breeds of sheep and individuals within breeds vary in their ability to propagate beyond the usual season. Rambouillets, Merinos, and Dorsets probably come closer to year-round fertility than other breeds. The decrease in the interest rate is not retro active. Consequently, lending institutions which have invested funds in 1966-crop price-support loans will earn interest on their investments at the rate of 4.9 percent per annum from the date of investment through July 31, 1966; at 5.2 percent per annum from August 1, 1966, through October 21, 1966; at 5.7 percent per annum from October 22, 1966, through January 21, 1967; and at 5.5 percent per annum thereafter. Turkey Marketing Guide The U.S. Department of Agriculture recom mends that turkey producers limit 1967 output to no more than a 5-percent gain over last year’s production and that the number of breeder hens be increased by not more than 4 percent. The favorable price-supply relation ship in both 1965 and 1966 is stimulating turkey production in 1967, which could be come excessive if turkey growers do not take adequate precautions, according to the USDA’s Consumer and Marketing Service. or the fresh market because it can be harvested in the green, vine-ripe, or ripe stages. It is not quite as large as the La Pinta variety but is redder in color. El Monte yields have ranged from 16.6 tons per acre in spring plantings to 20.2 tons per acre in the fall. Chico Grande is related to the Chico tomato variety, which was also developed by Mr. Leeper and released in 1961. The new tomato is a blocky pear shape and is about twice as large as Chico, a characteristic that has low ered costs of peeling. Since the Chico Grande tomato matures in a relatively short time, the fruit is well adapted to machine harvest ing. Although the demand for turkeys is expected to rise in 1967, the gain may be more moder ate than in the preceding 2 years. Factors which contribute to the increased consumption Rural Recreational of turkey meat are (1) rapidly rising consumer Enterprises Increase incomes, (2) a high level of employment, (3) Rural landowners in the United States con less competition from red meats, and (4) the growth in popularity of further-processed foods tinued to establish new outdoor recreational facilities at an accelerated pace in 1966, ac containing turkey. cording to Secretary of Agriculture Freeman. With technical assistance from the U.S. De New Tomato Varieties for Texas partment of Agriculture, farmers and ranchers Three new commercial-type tomatoes — La converted 310,169 acres of land to recreational Pinta, El Monte, and Chico Grande — are and wildlife use in 1966, representing a 10scheduled for production in Texas this spring, percent increase over 1965. A total of 4,266 according to Texas A&M University. The new landowners established new income-producing tomatoes are firm, pleasant tasting, attractive recreational enterprises, and 524 of them now in color, and have good keeping qualities. They consider recreation to be a primary source of are resistant to disease and cracking and, under income on 147,412 acres of land. test conditions, have produced double the Secretary Freeman says that income-produc yields of present varieties. ing facilities have a two-fold purpose — a town The new tomatoes were developed at the and a country purpose. These facilities offer Lower Rio Grande Valley Research and Exten the rural resident a new alternative use for sion Center by Paul Leeper, Horticulturist with his land, and they serve the city resident oppor the Texas Agricultural Experiment Station. tunities for fun and relaxation that the urban Seed of the new varieties are available to environment generally cannot provide. growers for this spring’s crop. The Food and Agriculture Act of 1962 ex La Pinta and El Monte tomatoes are adapted panded existing USDA programs that provide mainly to the Lower Rio Grande Valley of technical assistance and loans to farmers and Texas, but Chico Grande is expected to pro ranchers in establishing income-producing ru duce well throughout the State. La Pinta can ral recreational enterprises. Since then, more not be harvested successfully until it is ripe, a than 34,000 farmers and ranchers have estab factor which should boost the Valley’s fresh lished one or more recreational enterprises on tomato market. In field trials, the variety has their land. Of these, more than 3,200 — oper produced from 10 to 18 tons per acre. ating 1.2 million acres of land — consider Texas A&M University says that the El recreational facilities to be a primary source Monte tomato lends itself to either processing of income.
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