r K \ Livestock prices, production costs increase LITITZ Livestock prices, particularly hog > prices, rose sharply in July and early August, raising gross returns to producers. However, feed costs also increased rapidly, offsetting much of the higher returns. Hog prices at Omaha increased from $43 per cwt. in early July to almost $5O in mid-August. Prices in creased as hog slaughter declined from spring and year-earlier levels. Slaughter under Federal Inspection averaged 1.6 million head per week during the first half of the summer quarter, down from the recora 2 million this spring, and 4 percent below a year earlier. ” However, hog slaughter is expected to begin increasing substantially in September, with a further seasonal in crease in October. During this period, hog prices could drop to the mid-to-upper s3o’s before rising later in the quarter as hog ana broiler production declines. Production costs for hogs have increased because of a sharp nse in com and oilseed meal prices. Com at Chicago increased from $2.65 per bushel in early June to $3.30 in mid-August. Soybean meal prices at Decatur rose from $l6O per ton to $2OO. These increases boosted total cash costs to nearly $45, a gain of nearly $5 for every cwt. of hogs sold. So although hog prices ex ceeded production costs in early August, they may fall below production costs later this fall. These increased production costs may result in less pork being produced in 1981 than earlier expected. Since many hogs are produced on livestock-grain farms, some farmers may elect to sell their com directly rather than market it through hogs. This may cause June- November farrowmgs to be even smaller than producers indicated on June 1,1980. Feedlot placements will increase above year-earlier levels in the second half of 1960, but sharply higher feed pnees will moderate the rate of increase, despite higher Choice steer prices and a likely return to profitable margins this fall Firm to defend use of Captan SAN FRANCISCO, CA - Chevron Chemical Company Thursday announced that it will defend the continued use of the fungicide Captan, used to fight plant diseases such as blight, mold, rot and mildew in a wide range of fruits and vegetables. The announcement was made in response to the issuance of a “Notice of Rebuttable Presumption Against Registration” for Captan by the U.S. En vironmental Protection Agency. The RPAR document addressed two major criteria; mutagenic potential and oncogenic or tumor forming potential. “In our opinion, when all the evidence available is However, nonfed steer and heifer slaughter will in crease because of the large feeder cattle supplies and drought-reduced grazing capability throughout many of the over-wintering area. Nonfed slaughter is ex pected to remain large at least through the first quarter of 1981. Con sequently, third and fourth quarter 1980 beef production will be near to slightly above year-earher levels. Fed beef pnees will be bolstered late in the fourth quarter as fed cattle marketings and supplies of competing meats decline. Increased nonfed slaughter evaluated, there is no hazard to the public from exposure to Captan,” said E. L. Stripling, Jr., Vice President and General Manager of Chevron’s Ortho Agricultural Chemicals Division. “Captan’s long record of performance as a fungicide has been outstanding. We will make every effort to provide ERA with all the in depth scientific data they need and we are confident that after examining the information, EPA will rule in favor of the contained use of Captan as a fungicide,” Stripling said. The compound, which is presently registered for use on more than 40 different crops has been a standard Faming, Saturday, August 30,1900—A2> will help moderate price increases for fed beef as well as for hamburger and processing meats. Fed cattle prices may average in the low s7o’s n the third quarter and increase ot near $75 late in the fourth quarter. Yearling feeder cattle pnees will be held down by increased feeding costs and reduced demand. Yearlings likely will average only in the mid-s7o’s for the rest of the year. Continued drought and bunched feeder cattle marketings could force pnees even lower. agricultural fungicide since it was first introduced to farmers in 1951. Major use of Captan are in the fruit and vegetable markets and as a seed treatment for field crops. Experience with field use during the past three decades and extensive laboratory studies have shown the chemical to be extremely low in toxicity. “We’re certain that a rigorous examination of all available data will prove that Captan does not pose any significant, hazard when used according to label directions,” Stripling said. RPAR is a process by which EPA reviews data on an already-registered pesticide. As part of its regulatory function, EPA has the option of selecting certain pesticides for an RPAR if they were approved under earlier regulations that may have been changed in recent years. However, RPAR does not mean that The midyear cattle in ventory indicated a rapid early rebuilding of cattle inventories in the Plains and Western States where the cattle enterprise is a major source of farm income. U.S. cattle numbers on July 1, 1960, were estimated at 123 million head, a four percent increase over the 118 million a year earlier. The beef cow inventory ex panded by six percent, or 2.3 million head. Record high cattle prices in the spring of 1979, favorable grazing conditions until this sum mer, and a very mild winter were all conducive to herd expansion. the product is banned. Fanners can continue to use Captan during all phases of the investigation. During the process, registrants must submit evidence to show that the EPA presumption is not valid, or that methods of use and exposure are such that any potential for adverse effects is so low as to be acceptable. Neither EPA nor Chevron spokespersons were able to give a precise date when an RPAR decision would be reached on Captan. However, the complete investigatory process frequently takes as long as two years. There is a 45-day period following the notice for the submission of public and industry comments. Chevron spokespersons said that under EPA procedural rules, there are provisions to have the deadline extended by an additional 60 days.
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