—Lancaster Farming, Saturday, January 5, 1974 44 Good Year Predicted For Farmers Farmer* will continue to be squeezed in the cost-price spiral as they ponder 1974 farm income prospects, but they can look forward to another good year of earnings, and credit availability should be no problem. That is the year-end assessment of E. A. Jaenke, Governor of the Farm Credit Administration, the agency which supervises the $2l billion borrower-owned Farm Credit System. Citing the good 1972 and 1973 farm income levels, Jaenke predicted that farm income will be better than average in 1974, but will not reach record 1973 levels because of rising production expenses, moderating farm prices and slower ex pansion of exports. “We are genuinely optimistic that adequate credit will be available through the Farm Credit System,” Jaenke said, “but because of the higher cost of money and inflationary pressures, the price may be higher.” Borrowers in the. Farm Credit System - The Federal Land Banks and Associations, Federal Intermediate Credit Banks and Production Credit Associations, and Banks for Cooperatives - were doubly rewarded during 1973 by the record farm income levels and improvement in overall loan quality, Jaenke noted in his year-end report. Because of the strengthening of fanners’ financial positions, the My Nti “Must you go at last?” A MILKMOVER SYSTEM gets you out of the bam sooner-with more money in your pocket! It saves your lugging heavy pails of milk from barn to cooler • HAS MORE MILK CAPACITY • PERMITS FASTER MILKING • ELIMINATES EXTRA HELP • PROTECTS MILF QUALITY • IS 100% SELF CLEANING • HAS ELECTRIC CONTROLS • FITS INTO ALL BARNS • EASILY INSTALLED Available thru your 'oral dairy equipment dealer or '.in the factory collect to arrange fo- .• free demon stration on your farm Manufactured bv O/OUG m INDUSTRIES. INC WDHIMSON H O «Oir |(] KLKTON. MO XI.XI Phone 301-398-3451 number of loan foreclosures, delinquencies and problem loans declined. The Farm Credit Ad ministration Governor said that as farmers and their cooperatives remain optimistic about future farm income and continue to incur rising levels of debt to expand their operations, the Farm Credit System has reached new milestones of ser vice to the people of American agriculture. “During calendar year 1973, we served more than 433,000 fanners and ranchers, and about 2,900 farmer cooperatives. Taken in the aggregate, these are record levels for the Farm Credit System,” Jaenke reported. Since reporting record lending levels at mid-year, Jaenke noted an upsurge in Federal Land Bank and Production Credit Association borrowing activity in the past six months with loans outstanding exceeding figures for last year by approximately one third. Since June 30, Banks for Cooperatives loans made have exceeded year ago levels by nearly 81 percent. During the 12 months ending November 30, Jaenke reported gibers 01 r Solair Cow Bay Featuring Solar the exclusive Z' / y " // Soliir E Viporzfor SPACES 332-335 that the Farm Credit System had 731,033 loans outstanding. Loans made during this period totaled 320.9 billion, up 42 per cent over last year. Net loans outstanding on November 30 amounted to 121.1 billion, up 19 per cent over the comparable 1972 figures. Jaenke took note of the unavoidable disruption in the farm economy caused by the energy shortage. “The immediate impact is in price - costs of fuel and energy in all forms are rising and will go higher,” he said. ‘The banks and associations in the Farm Credit System will need to carefully review with their borrowers the effect of increased production expenses and the resulting squeeze on farm profits.” New money estimates for calendar year 1974 are projected at $3.3 billion, about the same as for 1973, Jaenke revealed. In terest rates charged farmers by the Farm Credit banks and associations will rise a little further in the first half of 1974, even if the cost of marketing debt declines. This will occur because low cost debt will be returned and replaced by securities of higher yields. U.S. Patent No. 3556055 and 3777241. Other Patents Pending. FRANCHISES AVAILABLE wrr-uj} -ii _ ____ i b / —>' i wr* DISTRIBUTORS FOR: VAN DALE, INC. MADISON SILOS ASK US ABOUT OUR AGRI-LEASING PROGRAM! USDA Review Of Fluid Milk Prices The U.S, Department of Agriculture (USDA) has decided to make no changes in the method of determining minimum fluid milk prices that dealers must pay dairy fanners under Federal milk marketing orders. The decision, announced recently, is based on a public hearing held Aug. 28-30 and Sept. 18-19 in Clayton, Mo., to review levels of fluid milk prices paid to farmers, and to determine whether emergency price action would be needed for the next few months. The Department decided, except for a temporary action in September (a 60-cent per hundredweight increase Sept. 9-30), that the basic formula price now in the orders will give assurance to dairy farmers of price levels during coming months needed to maintain adequate supplies of milk. Since September the milk order price formulas -- without being changed - have resulted in ad- ditional price increases to dairy farmers, December, and another 15-cent increase in January, officials of USDA’s Agricultural Marketing Service explained. Also, feed Thermo Circulation and "Sun Sensor" roof VAUGHAN FAIRFIELD PAMLINE through $l.ll SO LAIR COW BAY with the "Sun Sensor" features the following: 1. Storm- and fire-resistant con- struction. 2. Rapid evaporation and de humidification through "solar thermo" circulation. 3. Engineered for expansion. •4. Designed for either beef or dairy cattle. 5. Straight line scrape areas. 6. "Quick dry" floor areas, 7. North side ventilation—summer only. 8. Three sided wall structure— open South. 9. "Jalousie type" Southern roof provides direct sun rays on 80% of floor. 1 The SOLAIR System incorporates a unique "sun sensor" Which automatically opens the lou vered root during periods of sunshine and closes it during periods of precipitation. 11. Complete herd grouping ac commodations. 12. Automated feed control. prices, « principal cost in milk production, have declined to some extent. Thus, officials said, the milk order basic formula price (average pay price in Minnesota and Wisconsin for manufacturing grade milk) is responding to current supply and demand conditions. USDA’s decision denies proposals made at the hearing to increase* for a temporary period, Class I prices more than would result from the formula, or to provide a minimum or “floor” for the basic formula price used in determining Class I prices. In addition, the decision takes no action on suspending Class I base plans in any orders, another issue considered at the hearing. The decision formally ends the proceeding. It will appear in the Federal Register Jan. 3,1974, or may be obtained from the Dairy Division, Agricultural Marketing Service, USDA, Washington, D.C. 20250. TRY A CLASSIFIED / *
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