Farm income jump can’t keep up with production cost leap WASHINGTON, D.C. - High interest rates, large supplies of n meat and grams, the strong dollar, and weak consumer demand have limited the advance of farm cash receipts this year, reports USDA’s Economic Research Service. Total cash receipts m 1981 are expected to be 4 to 6 percent above 1980. Receipts may rise 2 to 4 percent for livestock and 6 to 8 percent for crops. At the same time, farm production expenses will likely increase 8 to 10 percent in 1981, with interest and energy-based inputs rising the most. With increases m production expenses outstripping gams m cash receipts, farmer’s net cash mcome will probably fall below last year’s level. Net income before inventory adjustment is now projected at $l7 to $2l billion, compared with $21.9 billion in 1980. However, with this year’s larger crops, net farm in come after inventory adjustment is forecast at $2O to $24 billion—a slight improvement over last year’s $19.9 billion. Farm prices slowly [drifted downward through July) while prices for production items were stable. In the short run, changes in the ratio of the index of prices received by farmersto the index of prices paid (for production items, in- BIG EARLY ORDER WINTER DISCOUNT ON GRAIN BINS Our Prices Will Surprise You! m • B’to 28’ V J |PS • Aluminum or Galvanized \'' Steel ■ • Timken Roller Bearings • Electric or Gasoline Power ed Engine • 360° Rolled edge gives, strength, rigidity, safety • Chassis has rollei bearing wheels. IN STOCK: 14 Ft. Elevator ../.... 16 Ft. Elevator 20 Ft. Elevator 22 Ft. Elevator • GRAIN BINS • FEED BINS • PORTABLE ★ FULL LINE PARTS DEPARTMENT ★WE SELL. SERVICE A INSTALL . VERTICAL AUGERS LMHSR •SSSffSJf- -W Willow Street, PA • flex augers Phone; 717-464-3321 * auger feeders • GRAIN DRYER • AERATION FANS Serving The Industry for Over 20 Years terest, taxes, and farm wages) generally -parallel changes m realized net farm income. This ratio has declined or been steady each month since December 1980. In mid-July, commodity markets reacted to the favorable growing weather across the country. Farm prices of most crops slipped, as the potential for record 1981/82 output became apparent. Meanwhile, livestock prices remained fairly flat through the first three quarters of the year. At the same time, prices for inputs and debt servicing con tinued to climb with the general rate ot mlldUun, causing a squeeze on farmers’ cash flow. Tight cash flow is expected to continue m the fourth quarter and mto thd ‘first quarter of 1982, as crop prices keep falling, livestock prices remain flat, and prices paid by farmers move higher. Direct government payments constitute a small portion of gross farm receipts—less than 1 percent in 1980. Payments through the first half of 1981 totaled about $761 million. Total direct government payments for calendar 1981 are forecast between $1.4 and $1.6 billion—up from $1.3 billion m 1980. In the first quarter alone, payments to fanners and ranchers were about $557 million. More than half of this represented disaster payments to wheat, rice, cotton. r f •>» [Q ■c < 10. Cardinal Jr. Portable ELEVATORS it'A 2T'x% fe\ •597.91 *659.59 *775.18 *823.00 w »•> L uj K dJ M ■ty ] , ■>, '*-y. FLEX AUGERS, 4", 6" & 8" AUGERS and feed grain tanners hit by last year's drought Producers received about $2OO million in disaster payments in the first half of 1981. Feed gram producers, many in the South, received about $lOO million in disaster provisions; wheat producers, $2O million, and rice farmers, about $1 million Last year’s dry weather also affected livestock ranges and pastures, with the feed condition index 20 points or more below average in many areas. As a result of last fall’s poor grazing, payments t h rr>njjh tV crrc'-^ncv Sen. Huddleston to Farm Bureau annual meeting PARK RIDGE, 11. - US Sen. Walter Huddelston from Kentucky, the ranking minority member on the Senate Agriculture Committee, will address the morning general session of the American Farm Bureau Federation’s 63rd annual meeting in San Diego, California, Tuesday, January 12,1962. As floor manager of the Senate Farm Bill, Senator Huddelston has been a key figure on the Senate/House Conference Com mittee seeking to develop 1962 GRAIN SYSTEMS INC. FARM BINS J J* <v ' J - 7 'v •0% 1 Having Grain Drying Problems? livestock feed program amounted to nearly $250 million—the largest single payout for the first half of 1981. Other programs with large payments in the first half of the year include the agricultural con servation program, $9O million; the Wool Act, $36 million; and forestry incentives, $6 million. Storage payments for the far mer-owned grain reserve were about $3l million through the first 6 months. High feed gram prices in the first two quarters of 1981 led to calling of reserves, forcing farm program legislation that will preserve the market system and meet budget restraints of the Economic Recovery Program. Huddelston, who has represented his native state in the Senate since 1973, began his political career by election to the Kentucky state Senate in 1965. He was reelected in 1969. In 1973 he entered the U.S. Senate after becoming the first Democratic Senator elected to serve the Commonwealth of 4 v* ~v* - * •'i, v V -?svl* -*■ (* s ' - *‘ CALL US WE STOCK • CHANNEL LOCK FLOOR • BIN SWEEPS • PIPE SPOUTING • MOISTURE TESTER • MOTORS. BELTS « PULLEYS • GRAIN CLEANERS • IN BIN STIRRING SYSTEMS • GRAIN SCATTERS mcasttr Farming, Saturday, November 21,1981—C7 address Kentucky in 16 years. In addition to the Agriculture Committee, he currently serves on the Ap propriations Committee, In telligence and Small Business Committees of the Senate. After serving in the Army as a tank gunner in Europe during World War 11, he attended the University of Kentucky, earning a B.A. degree in radio arts in 1949. He then entered the broadcast field as sports and program director for WKCT radio in Bowling Green. He later was general manager of station WIEL in Elizabethtown. He is past president of the Kentucky Broadcasters Association. tobacco yield Md.’s and production up COLLEGE PARK, Md. The harvesting of tobacco in Maryland is over and curing operations are underway. It is estimated that 23,000 acres of tobacco would be harvested this year. Yield is expected to be 1,300 pounds per acre and production 29.9 million pounds. Yield and production, figures were revised upward by the Maryland- Delaware Crop Reporting Service (from 1,150 pounds and 26.5 million pounds, due to respectively very good weather and growing con* ditions). Even at last years prices, the potential value of Maryland’s 1981 tobacco crop is over |5O million, reports University of Maryland’s Pradeep Ganguly. It may be noted that three other states - North Carolina, South Carolina and Virginia - are growing “Maryland Type” tobacco. Early data from the U.S.D.A., indicate that this year these states have harvested over 11,000 acres for nearly 15 million pounds; that is more than one-half of Maryland’s estimated ' production. Part of this out-of-state ‘Maryland type’ tobacco has already been marketed, mostly untied (on sheets), at prices up to |1.75 per pound. Maryland’s cured tobacco will not be sold until next spring, and it is too early to predict the effect of this development on ' the price of Maryland tobacco. Maryland tobacco farmers received, on an average, a 30 cent per pound pnce increase for their 1980 crop. This year’s crop when sold in Spring 1982 will probably bring a smaller price increase, if any. Two factors could be cited as reasons. First, a relatively weaker demand due to faltering exports (both domestic and foreign demand have been strong in past years). Second, a larger ’potential’ market supply due largely to the production and marketing of ‘Maryland type’ tobacco in other states. producers to sell out of storage and refund unearned payments. However, a large influx of wheat from the record-large 1981 crop offset these paybacks, leaving net reserve payments up for the first half of the year. The second half of 1981 should see equally large payment ac tivity Deficiency payments to wheat producers alone are projected to total about $4OO million—the result of poor market prices due to the large 1981 crop and slower-than-expected exports.
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