Farming, Saturday, December 12,1970 On Restoring Hog Prices Marvin Garner made the following com ments in the November issue of National- Pork Producers Council News: ■‘We don’t seem to be able to help the retailer price pork in his counters, but we can have something to say about the ton nage of total pork we have to sell. In anti cipation of the break in the hog market that occurred the last of October we started en couraging topping out of your market hogs at 215 lbs. over two months before. Not enough listened. “On Tuesday, October 13, a 215 lb. butcher would bring $18.25 or $39.24 on the Sioux City Market. Two weeks later, Octo ber 27, the same butcher now weighing 240 lbs. would bring $16.75 for a gross of $39.20. Eating six pounds of feed per day at 5 cents per pound would be $4.20 worth of feed that went into that butcher in that two weeks period and yet the gross to the pro ducer was the same. However, the crux of it all was that 25 lbs. of additional pork was marketed into an already loaded pipeline and we netted only $35.00 instead of $39.00 from each hog. “Knowing that we were heading into a stress market, in the first nine months of 1970, the average weight of our market hogs was up 1.9 lbs. per head over the same period in 1969. This meant that there was over 115 million lbs. of pork marketed in 1970 than off the same number of hogs in 1969. This is fine as long as price structure will support it, but let's study our lesson and adjust marketing weights during this high slaughter period. It is the most econo mic self-help program available today.” Garner’s advice and his supporting figures are indisputable. Avoid Boom and Bust Farming What’s with pork prices? A year ago about this time cattlemen were asking why retail beef prices failed to reflect a drop in cattle prices over the pre vious six months. Now, the same thing’s happening with pork. Larger hog supplies have driven down prices received by farmers to about two thirds of what they were at the start of 1970. The wholesale value of pork in Febru ary - September dropped by around a dime per pound The retail price, however, de clined only 5 cents a pound. In other w ords, the wholesale-retail spread widened by a nickel. How come 7 Here's one possible ex planation each time retailers’ operating costs, such as wages, go up storeowners may absorb tne higher costs in tne short run. They don’t want to run the risk of dis couraging consumer buying, particularly in times of rising prices at the retail level But when wholesale prices subside, that’s also when meat retailers could choose to take up the slack in their margins, explains the USDA. Trends in beef and pork spreads over the past 20 years show retail margins tend to widen when wholesale prices weaken, and decrease when the reverse is true, ac cording to the USDA. Pork has generally fit the pattern. But the increase in the wholesale-retail spread LANCASTER FARMING Lancaster County’s Own Farm Weekly P. O. Box 266 - Lititz, Pa. 17543 Office: 22 E Mam St., Lititz, Pa. 17543 Phone: Lancaster 394-3047 or Lititz 626-2191 Robert G. Campbell, Advertising Director Zane Wilson, Managing Editor Subscription pi ice $2 per year in Lancaster Countj. S 3 elsewhere Established November 4,1955 Published e’. t.y Saturday by Lancaster Farming Lititz, Pa. Second Class Postage paid at Lititz Pa 17543 Member of Newspaper Farm Editors Assn Pa. Newsn.;; ei i’obli'hns /'ssouation and National Newspaper Association Farmers had ample warning of the impending hog market bust. Reports were widespread about the increased hog produc tion and probable market bust Even when market busts in particular farm products, such as swine, become in evitable because of over production, farm ers still have considerable leeway in de termining how serious the situation will be. By their actions, even after the bust starts, farmers can determine how severe the bust will be and how long it will last. Reduce The Supply When prices turn down in response to an over-supply situation, the need is obvi ously for a reduced supply. But if farmers hold their hogs longer in hopes that the market will somehow turn up, they have added more pounds of pork to the already glutted market. The heavier hogs make a bad situation much worse. It takes a brave and wise farmer to unload his animals at lighter weights when prices are low. It’s difficult to avoid the temptation to hang on just a little longer for the market upturn. But everyone hanging on can be j'ust enough to insure the market doesn’t turn up. It’s generally better to take the small losses than to keep throwing more feed into bigger animals, which can only make the market worse. Farmers have much of the say in this process. Just minor cutbacks by each farm er in the number of hogs he markets and in the weights of those marketed hogs, along with the efforts already underway to increase pork consumption, will rapidly re store a healthy hog market. in February-September of the current year has -been somejvhat greater than would" be expected' from the price relationships dur ing the'past two decades, the USD A adds. The situation, we believe, once again proves that farmers are the big losers in a widely fluctuating market, or boom and bust cycles. At the peak of the boom, which occurs during a market shortage, the farm er gets bad press and draws consumer ire for “making a killing” and forcing retail prices up. ' But during the bust, the market o\er supply, the farmer gets clobbered. During these busts, which can run for many months, the farmer either loses money or works for practically nothing something which no one else seems willing to do these days. While the farmer is suffering in the bust. howe\er. it's business as usual for the consumer, because the price the consumer pays is about the same or only slightly low er. So the farmer gets a bad image with the consumer during the boom, and he doesn’t get any sympathy during the bust. It’s a “heads I win and tails you lose” situation, with the farmer the sure loser. The secret would seem to be for farm ers to accept a modest but stable profit margin by keeping supply closely aligned with demand. But in farming, this obvious solution has almost never worked. When there’s a profit, operations have always expanded until the profits dried up, forcing the expansion to stop or reverse. Maybe it will always be that way. Understanding it, however, may help farmers to keep from getting o\erly confi dent when the market is good, and overly depressed when it’s not good. Understanding it also may help the in dividual farmer to keep his cool and main tain a sound and stable operation over a long period of time While some farmers, can successfully anticipate the market, many w ho try to mo\ e in and out find them sel\es 01 er stocked when pr.ces are low and under stocked when prices are high Fanners who ha\e been around a long time know' that things a\ eragc out. Success js a matter oi running an efficient opera tion an the time To Inspect Tobacco Barn Chimneys The tobacco stripping season is at hand and many stoves will be burning in tobacco cellars in the months ahead. A close in spection of the stove pipes and the entire chimney is very much in order each fall Tight connections are necessary to keep sparks from getting out into the building Mortar may need to be replaced between bricks or blocks. A few hours spent on this inspection and re pairs now may save a serious fire and big losses. > scouring. To prevent drafts the -To Enforce Farm Pond Safety farrowing pen should have solid Farm ponds are just as popu- sides at least a foot high. The lar when ice covered as for hog market is not too encourag swimming during hot weather; ing at this time, but producers also, they may be just as dan- should still try to save every gerous if skaters are not care- pig. Exhaust fans may be need ful and if proper rescue equip- ed to remove the extra moisture ment is not at hand Thickness in the house and help keep it oi the ice is not an accurate dry. GUARANTEED! Lesion lor December 13,1970 3aelqrcu'id stripin’** Molthevf 19 16- h to!** 0.57-&2, John 1512-20, 1 Pei»r3 pvohen»l t»#hrtws 12 1-6. Many people ha.’O the idea that C/.riatia-iil'i is supposed to be a J.in.l 01 ifuararkc against most forms of suffering and opposition. 7ha> is tirucily the idea that one gets iron, tne New Testament. Arroimn? to )nhn, for example, ;sus u arns his .sciples; “If the orid hates jou. io\v that it has ited me. before m ... If they ■rsecuted me, tey will perse i.te you” (John 18 20a). Nor did the Re\. Althousc passage of time change this alarming prediction, for Peter, years later, was to write “Beloved, do not be sur prised at the fiery ordeal which comes upon you to prove you, as though something stiange were happening to you” (1 Peter 4: 12). Righteous living, rather than a guarantee of popularity, actu ally increases the risk of oppo sition.” ... keep your conscience clear, so that, when you are abused, those who revile your good behavior in Christ may be put to shame. For it is better to suffer for doing right . . . than for doing wrong” (1 Peter 3:16, 17). What kind of “suffering”? For most of us, these predic tions may be hard to understand. Few of us, as far as can see have ever had to sufurr anything for our faith. Few of us know of anyone in our acquaintance who have had to suffer because of their discipleship. Nor can most of us forsee any reason m the future why we should need to anticipate sufiennc ’ faith. For Full Market Reports Read Lancaster Farming IS NOW TIME... THE By Max Smith Lancaster County Agent measure of its strength. Slush ice is only, about half as strong as clear, blue ice; new ice is stronger than old ice. 'Pond owners are urged to keep a wooden ladder, boards, and a coil of rope handy for rescue purposes. Urge safety from all skaters. To Protect Baby Pigs For best results new-born pigs should be kept warm, dry, and in draft-free quarters.'The first few days are very impor tant and the pigs should not get chilled because of the danger of Perhaps the rub here it the word “suffering.” As soon as y righted fc/ the Division of Christian Educci v on # National Council of *he Churches nf Christ USA. Released by Community Service} Attend The Church of Your Choice Sunday i