Mwcy K Bettendorf, Librarian iw AGRICULTURAL LIBRARY Agricultural Library THE PENNSYLVANIA STATE COLLEGE ™e Penna. State Chirsrsity Vol. 111. No. 27. Inept Farmer Stands to Gain From Integration The pillar of the farming in dustry, the highly efficient middle sized farmer, is likely to suffer most as integration spreads The less efficient farmer stands to become better off. This gloomy prediction was made Monday in Washington by Orlin J. Scoville, head of the Farming Efficiency Section of ithe Agricultural Research Serv ice, at a meeting of the News paper Farm Editors Assn Scoville did feel that the effi cient producer may be able to maintain part of his favorable position by his current favorable bargaining power potential GOING INTO THE history of vertical integration briefly, Sco ville said that increased demand from consumers for quality prod ucts the year round has caused -changes in the buying policies by the chain stores As a result, we hear much about specification buying by mass retailers. ‘Processors reflect the chang ing demands of distributors and consumers They seek greater control over the quality of farm products and try to reduce seas onal and cyclical fluctuations in supply. “THEY ARE SOMETIMES able to reduce capital costs by ex tending the seasonal use of equip ment, and they can reduce labor costs by levelling out day-to-day ’ fluctuations in the quantity of products processed,” he said Farmers, he said, are interested in integration for several reas ons By contracting with dealers or processors, they may reduce risk and get more capital As a result, they can expand their scale of operation, make better use of underemployed labor and other resources. Looking into the future, the economist saw little to cause joy for the family farm operator who wants to keep three or four en terprises going. “FARMS- WILL become more specialized, and the number of highly diversified general farms will decline. Small subsistence enterprises will tend to disap pear, particularly in livestock production. “There will be fewer full time commercial farms,” Sco ville said. Backing up this statement, he pointed out that only 28,000 broiler farms produce more than 90 per cent of all broilers in this country. If the same formula were applied, these changes would be made: '• Hog requirements could be met by only 60,000 farms having 100 sows each. There are now 2% million farmers raising hogs • Only 200,000 dairy farms of 100 cows each could take care of the nation’s milk requirements There are now half a million dairy farms and 3 million farms keeping at least one milk cow. However it is not likely that hog and dairy production will be come as concentrated as have broilers, due to the difference in equipment and land use poten tials But substantial adjustments Continued on page R AGRICULTURAL INTEGRATION was here with us long before it received its big boost in the poultry industry. Agricultural experts now believe that integration is go ing to be generally the rule rather than Cool Wet Weather Further Slows Field Work; Tobacco Plants Slow "Cool wet weather retarded field activity for the second week in a row. Keystone State famers are now anxiously awaiting fields to dry up so they can continue plant ing oats and prepare seed beds for other crops -In Lancaster County, field work resumed on Monday, although conditions for working the soil were far from ideal. However the time is running short for tomato growers and corn planting. Tobacco plants m seed beds made slow growth because of the cool weather For the week ending Monday morning, Safe Harbor reported a total of 2.23 inches of rain. The total during the 1958 growing season now stands at 7 27 inches. The average maximum temper ature for the week at Safe Har bor was 59 degrees and the av erage minimum was 45 degrees. The high for the week was 72 on Monday and the low was 40 on May 8 Hays are progressing nicely, lit tle damage from insects so far, however, spraying has been held up by the wet weather. Rye and barley are shooting heads. This week the federal crop re porting service released nation Quarryville (Lancaster County) Pa., Friday, May 16, 1958 al crop production highlights. It is estimated that winter wheat production in the US. will total 1,010 million bushels, 43 per cent more than last year and 19 per cent more than average. Egg production at 5.5 billion eggs m April was three per cent less than April 1957 production and six per cent below the April average. Milk production in April was about the same as last year. April Milk Production 5% Higher Than in 1957; Cow Numbers Drop Milk production in Pennsyl vania set a record in April despite a decline m the number of cows The 601 million pounds pro duced exceeded April last year by five per cent, and April 1956 by three per cent The estimated 936,000 cows m Pennsylvania herds durng April represents a drop of 2,000 head from the month previous and 6,000 fewer than a year earlier, Reports indicate no let-up in the tiend toward fewer but larger herds as mechanization continues REPORTING HERDS fed an av- erage of 9 2 pounds per cow in the herd on May 1, an increase of .3 the exception on American farms. Through the influence of integration, some 28,0U0 farms such as this one produce some 90 per cent of the broilers in the United States. May 1 Rate of Lay Exceeds Record For Date; April Production Down Reports from poultrymen on May 1 indicate layers have fully recovered from the effects of stormy weather m February and March, according to the State Crop Reporting Service. Production, averaging 62 8 per cent, set a new record for the date and exceeded the previous high a year earlier by almost one per cent. The average for the month at pounds from a year earlier. The decline from 9.6 pounds on April 1 lepresents a seasonal change as grazing increases Dairymen averaged $4 60 a hun dredweight for milk during the month, 35 cents less than in March However this was a nickel a hundred more than was re ceived in the same month of 1957. THIS PRICE was also consid erably greater than the national average price for milk. The na tional average was $3 91 a hun dredweight This represented a drop not only from the month be fore, but also from the 1957 av erage of $3 98 cents a hundred Benson Finds Farm Economy Now ‘Refreshing’ by 808 BEST Editor, Lancaster Farming WASHINGTON Looking like a cat that has just polished oft a particularly tasty canary, Sec. Ezra Taft Benson Monday made some predictions on Gap fall elec <ion and the state and form of farm legislation and reviewed the increase in farm income Speaking at a press conference for the conventionmg Newspa per Farm Editors Assn , Benson said that it is “refieshing” to have agriculture as the bright spot in the Ameucan economy. “Realized net income of farm ers will be $l3 billion this year. April prices are up 10 per cent from 1957 and 10 per cent great er than when high rigid price supports, were in effect ” BENSON SAID that agricul ture will not bo a major cam paign issue this fall But when asked 'his opinion on the fate of politicians who were after his scalp a few weeks ago, he said. “Farmers aren’t dumb They can see through it and it will be hard on some people ” In speaking of the legislation before the Congress, Benson again reaffirmed his stand against rigid price supports, escalator clauses and general govern mental interference with agri culture “MORE CHANGES are needed in basjc legislation,” he said. “Moie changes are outlined m the president’s message to Con gress The changes are needed to give greater freedom to plant, market and compete ” He predicted passage for an extension of Public Law 480 which allows American farm products to be sold overseas for local currencies. Legislation for cotton and rice supports must be passed this (Continued on page six) 61 2 per cent reflects a relatively low rate on April 1. THE AVERAGE number of lay. eis during April at 16,746,000 shewed less seasonal decline from March than in most years and was only one per cent below April 1357. The low rate of lay early in the month was sufficient to drop egg production two per cent below April last year. The total for April was 307 million compared with 303 million in March and 315 million for Ap ril 1957. Production of eggs for Janu ary through April of this year totals 1,203 million or six per cent below the 1,271 total for the same four month period of 1957. The chicken-feed ratio stands at 4 9, a point above the national average The egg-feed ratio is 11 points above the national average which stands at 10 8. Pennsylvania broiler growers also showed themselves to be in a better position than the average for the nation. The broiler-feed, ratio in this state was 4 3 while nationally it was down to 3 9. Both showed a drop from the month previous, but were a point above last year. S 2 Per Year
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