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ARM AND Q anch Q u lle t in September 1963 Vol. 18, No. 9 UTILIZATION RESEARCH IN AGRICULTURE farm products. However, most industries do not feel obligated to risk their own resources in the search for ways to use more farm products as raw materials in their operations, according to Mr. Maclay. Examples cited are the textile, shoe, and detergent industries. If the consum er’s criteria for preference are better met by products made from petroleum than from agri cultural materials (such as cotton, wool, leather, starch, vegetable oils, or naval stores), industries will move away from farm products as their raw materials or lose their business to companies that do. USDA utilization research is a function of The specialist points out that utilization re the Agricultural Research Service. The work is search is an effective instrument in helping to carried out in 4 regional research laboratories, balance output with economic use of agricul which are located in Albany, California; New tural commodities. Moreover, it contributes to Orleans, Louisiana; Peoria, Illinois; and Phila better, more stable farm income and more effi delphia, Pennsylvania; and in 10 smaller field stations. The total professional staff consists of cient use of our agricultural resources. about 1,000 persons. In addition, approxi Mr. Maclay says that the ceaseless competi mately $2 million a year in foreign currencies, tion for the consumer’s dollar motivates re generated under the Public Law 480 program, search to develop new or better products, is used to support more than 100 research proj whether they are derived from petroleum; coal, ects in foreign countries to supplement the air, and water; or forest and farm commodities. utilization research program in this country. Agricultural utilization research in textiles, as The whole spectrum of agricultural com well as in other uses generally called “indus modities is included in the program — cereals trial” (fuels, fibers, plastics, lubricants, adhe and forages; cotton, wool, and other fibers; sives, and the like), is in direct competition fruits and vegetables; oilseeds; new and special with the tremendous research operations of the plants; and poultry, dairy, and animal prod major corporations that create consumer goods ucts. Currently, research effort is divided about from nonfarm commodities. equally between food and feed uses and indus Agriculture does have allies, of course, in the trial purposes. Approximately one-third of the research laboratories of companies that process research is basic in nature, and the goal of the In agriculture the search for new and ex panded uses for farm raw materials is known as utilization research. According to W. D. Maclay, Assistant Administrator of the Agri cultural Research Service of the U. S. Depart ment of Agriculture, utilization research is to the farmer what industrial research is to indus try. Utilization research is aimed at expanding markets for farm commodities through the de velopment of new and improved products for food and industrial uses — that is, providing consumers with products of better quality and greater variety, in more convenient forms, and at lower cost. FEDERAL RESERVE BANK DALLAS, TEXAS OF DALLAS USDA is to increase this proportion to at least 50 percent within the next few years. In some 20 years of operation, USDA utili zation research and development have added over $2.5 billion in new sales and additional value to farm commodities at a research cost of less than $175 million, which is a benefit-tocost ratio of nearly 15 to 1. Each succeeding year has yielded greater annual returns for the total research expenditure; during the past 5 years, the benefit-to-cost ratio has increased to a level of 25 to 1. The ARS specialist says that ideal industrial outlets for farm commodities should (1) be new, (2) be noncompetitive with other agri cultural products, (3) have an elastic demand, and (4) provide a profitable market for surplus agricultural products. Although not many de velopments can satisfy all of these demands, epoxidized oils (45 million pounds now used as plasticizers) come close to meeting the requirements. Agricultural products as raw materials for industrial use are essentially carbohydrates, fats and oils, and proteins. According to Mr. Maclay, researchers must take advantage of the complex nature of agricultural products. It is difficult for these products to compete with fossil-based raw materials to produce many organics. For any particular use, three ap proaches are available: (1) Utilize the refined product as it is or in slightly modified form, (2) tailor-make a chemical derivative with de sired properties, or (3) find the desired prod uct as a constituent of a new plant or through plant breeding. USDA scientists believe that some of the best opportunities for increased industrial use of agricultural products are found in paper and paper products, industrial chemicals, textiles, and fibers. Seasonal Changes in Cattle Prices A knowledge of seasonal variation in cattle prices is one of the best tools the farmer or rancher can use in planning a profitable cattle operation, points out the Texas Agricultural Extension Service. The major reason for this seasonal price fluctuation is the change in the number of cattle marketed during different periods of the year. Variations occur in the number of cattle marketed at different seasons because of weather conditions, breeding dates, range conditions, and production costs. In Texas, as in most of the Nation, calves generally are dropped in the spring and are weaned and sold in the fall. Consequently, the lowest prices are received in the fall when mar ketings are greatest, and the highest prices occur in the spring when marketings are at their lowest levels. Prices for the higher grades of feeder cattle do not vary as much from sea son to season as do quotations for the lower grades. The demand for feeder animals re mains strong throughout the year, while that for stockers to be placed on pastures and ranges is greater in the spring. The slaughter calf trade — which is unique to Texas and a few other areas— has increased in importance. Today, more and more calves are being fed for slaughter; several years ago, such animals would have been sold mainly as grass-fat or well-finished weaned calves. The market for slaughter calves varies more than that for any other class of cattle. New Cotton Boll Separator An experimental cotton boll separator at tachment for cotton stripper-harvesters may lead to earlier harvesting and an improved cot ton crop on the High Plains of Texas and Oklahoma, says Ivan W. Kirk, Engineer with the U. S. Department of Agriculture. The at tachment effectively separates immature cotton bolls from mature bolls — a problem that complicates early harvesting. Cotton harvesting on the High Plains is a nonselective process in which all bolls, regard less of maturity, are stripped from the plant at the same time. The crop usually is gathered after the first killing frost, but with the in creased use of chemical defoliants, the trend is toward earlier harvesting, according to Mr. Kirk. Cotton harvested before a killing frost is exposed to less weathering and, therefore, has a higher lint quality than that gathered after frost. Cotton harvested before frost, however, contains many immature bolls that must be separated from the mature cotton before ginning. During harvesting, the separator blows the light, fluffy mature cotton through a conveyor into a tractor-draw n wagon or a basket mounted on top of a tractor. The heavier im mature bolls drop into a box and are later piled in the field to dry. Although it is of low quality, the lint from immature bolls can be sold after it has dried. Treated Pine Posts Best Buy Properly treated pine posts are the landown er’s best fencing buy, states Bill Smith, For ester with the Texas Agricultural Extension Service. These posts can su b sta n tia lly reduce fencing costs and offer the lowest cost per year of service life of any wooden posts available. Treated fence posts are extremely resistant to decay and are more resistant to grass fires than are other types of posts. According to Mr. Smith, posts that are commercially pres sure-treated with pentachlorophenol creosote are the best buy. Untreated posts of certain woods are also decay resistant. Cedar, mulberry, bois d’arc, and locust are naturally durable woods, but posts of these woods should contain at least two-thirds heartwood. The lighter-colored sapwood is not decay resistant and will not last as long as will the heartwood. Home-treated pine posts can be expected to last 25 years or longer if procedures developed by the Texas Forest Service are followed. Report on Dual Grading Dual grading of beef carcasses has been in effect since July 1, 1962, points out Ed Uvacek, Livestock Marketing Specialist with the Texas Agricultural Extension Service. The system is available to the packing industry on a trial basis. It provides separate grades for two of the major factors that determine the value of a beef carcass — the quality or p a y ability of the meat and the amount of trimmed retail cuts obtained from the carcass. Approximately one-half of the beef which was commercially produced from July 1, 1962, to February 28, 1963, was federally graded, and 3 percent of this amount was graded under dual specifications. About 1 percent of the 10 billion pounds of beef produced in the United States during the period was dual-graded. Approximately 96 percent of all the dualgraded beef was classified into U. S. Choice or Good grades, and nearly twice as much fell into the first grade as into the second. Accord ing to the specialist, the lower-quality grading carcasses tended to have higher yield grades. Since dual grading has been used very little, an accurate appraisal of the system cannot be made at this time. Farmers Use More Credit The use of credit by the Nation’s farmers and ranchers probably will continue to increase for several years, says John McHaney, Econ omist with the Texas Agricultural Extension Service. This outlook is based on trends toward the continued consolidation and enlargement of farms, further increases in capital investments, and higher prices for farm real estate and many production items. Farm mortgages recorded in 48 states dur ing 1962 amounted to $3.5 billion, reflecting a 16-percent gain over the preceding year. The number of farm mortgages recorded advanced 2 percent, and the average amount per loan was 13 percent larger than in 1961. Additional information on treatment of pine posts is included in Texas Forest Service Cir cular No. 34, The Preservative Treatment of Pine Fence Posts with Pentachlorophenol by the Cold-Soaking Method. Copies of the cir New technology and the price-cost squeeze cular may be obtained from local county agri are major factors that have increased the need cultural agents or from the district headquar for more credit, according to the economist. ters of the Texas Forest Service. Funds generally are wanted for additional land, livestock, or equipment; shifts from crop to livestock production; increased use of fertilizer and control of insects and weeds; and the mod ernization of facilities for efficient agricultural production. Mr. McHaney says that another reason for increased borrowing may be the re duced farm income and depleted financial re serves resulting from inefficient farm operation. The price-cost squeeze, the trend toward larger farms, and the need for greater invest ment per farm likely will continue to create heavy demands for credit during the next few years, says the specialist. In addition, more and more small operators probably will seek offfarm employment to supplement their incomes. A bright spot for borrowers is that land values have risen along with the farm debt, re sulting in increased aggregate equities for farm operators. The value of farm real estate — which accounts for approximately two-thirds of the total assets of farmers and ranchers — was at a record level in mid-19 62 in most states and is expected to continue to advance through 1963, according to Mr. McHaney. Where Do Texans Get Their Vegetables? Approximately one-half of the vegetables consumed by Texans in 1959 came from out of the State, according to the Texas Agricultural Extension Service. M ore over, 71 percent of the wholesale purchases of veg etables in that year were from outside Texas. Vege tables grown in other states furnish part of Texas requirements, since the production of most vegetables in the State is seasonal. A recent publication of the Texas Agricul tural Experiment Station, Sources of Vege tables Consumed in Texas, contains charts and tables which show the 13 principal areas of vegetable production in Texas, together with the length of the production seasons for the major crops. From this information, vegetable growers can tell which crops are in limited supply and when additional quantities are needed. Copies of the publication, MP-617, may be obtained from the Agricultural Infor mation Office, College Station, Texas. Overhauling Tractor Governor Pays Overhauling the governor on a tractor may save a farmer as much as $48 a year, points out Henry O’Neal, Agricultural Engineer with the Texas Agricultural Extension Service. A Kansas State University study of 50 farm tractors showed that 40 of the tractors had faulty governors and did not maintain proper engine speeds. Only one-fourth of these gov ernors could be corrected by adjustment, while the remainder required complete overhauling. When the tractor governors were in proper adjustment, the overall maximum horsepower of the tractors showed a 9.1-percent increase and fuel consumption decreased 4.8 percent. Thus, according to Mr. O’Neal, farmers who spend $1,000 annually for tractor fuel can re duce their fuel expense $48 a year on this one service item alone. Proper engine speeds are essential for maxi mum tractor efficiency. Speeds higher than those recommended by the manufacturer can lead to overheating and tractor breakdown, while speeds less than those recommended cause loss of horsepower and result in poor performance. The tractor engine should be checked when it is under a full load, as well as without a load. Mr. O’Neal recommends hav ing a qualified mechanic check the tractor with a dynamometer. Texas cotton growers used 6,777 spindletype pickers and 37,540 stripper-type machines to harvest about three-fourths of the planted acreage in 1962. The increase in cotton acre age harvested by machines was substantial, ac cording to Fred C. Elliott, Cotton Specialist with the Texas Agricultural Extension Service. Lateral oiling for grass and weed control was used on three times as many acres in 1962 as a year earlier. More than 44,000 growers were assisted in fitting cotton into a balanced farming program under the 7-Step Cotton Program.
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