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*