The Courier News from Blytheville, Arkansas on September 2, 1955 · Page 11
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The Courier News from Blytheville, Arkansas · Page 11

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Blytheville, Arkansas
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Friday, September 2, 1955
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Page 11
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FWDAY, 1MB oouwra PAGE ELEVEN REVIEW -FORECAST Surplus Still Major U.S. Farm Problem By WARREN ROGERS JR. WASHINGTON (AP) — The world will beat a path to the door of the man who invents a solution to America's problem of farm surpluses. It is a five-billion-dollar, puzzle which has defied solution for nearly 30 years in its modern form. What is the American farm problem? Its most distressing symptom today is the S5.370.029.000 surplus taken off the farmer's hands by the government. But what's the cause? "Too much production," says one school. "Not enough consumption," says another. If overproduction is the cause, the cure would seem to be in holding down production. The Department of Agriculture tries lo do this by controlling planting and marketing under laws dating back to and beyond 19S3 when the government paid farmers to kill their pigs »nd plow under their cotton. Dairy Increase Increased consumption is a goal too. The most notable success has been with the dairy surplus. The school lunch program pours tons of millc into schoolchildren who, in many cases, would otherwise have none. Melted-down butter sent India as a gift is accepted as a delicacy. America's farm laws are aimed at guaranteeing the farmer that, barring some freak of weather or bugs, he can count on a certain minimum return for his crop. That takes much of the guess out of a "by guess and by God" calling. The laws do not discriminate among termers. The lop two million who produce half the country's farm goods by value get the same treatment as the seven million who turn out 39 per cent, or the 12 million who live on the fringes of starvation. Purchasing Power The Agriculture Department reckons its support of the farmer in terms of purchasing power. It does this with a standard called parity, which one farmer once described this way: "If you can sell a truckload of wheat and buy with the money as much food, clothing, building materials, farm machinery, fertilizer and the like as you could in the five yetrs, 1910-14, your wheat is selling at the parity price." The 1910-1* base period has been brought up to date, but he had the general idea. Defenders of parity say it does no more for the farmer than a wage contract does for his city cousins. Detractors decry it as an outmoded link with the past, a bar to incentive and efficiency and a spreader of government controls. More advance Pms Sept .2 Charles Brannan thought he had a better solution than parity- pegged price supports. As secretary of agriculture in the Truman administration in 1949 he put his plan to Congress this way: Brannan Flan "Let prices go down if they will. Then let the government pay farmers a guaranteed annual cash income for producing our food. Thus consumers would get cheaper food, 'and farmers would get their income anyhow and everybody would be happy." Congress was far from happy with the Brannan subsidy plan, especially his inability to say precisely how much it would cost. Il was tilled, but » left > lively ghost. Secretary of Agriculture Benson announced Aug. 13 a kind of subsidy plan for cotton starting after next Jan. 1. Last April he put subsidy payments in effect for wool and mohair, trying to build up the industry. Still the subsidy vs. supports battle roars on. Every now and then a man like Sen. Eastland (D- Miss), himself a farmer, steps into the middle of the fray with an idea to deal with a particular product. "Bold New Plan" Eastland came up this year with what he called a "bold new plan" for cotton. In essence it was to lower cotton supports from 90 to 80 per cent of parity, increase allotted acreage from 18 million to 23 million acres and sell surplus cotton on the world market at going prices. Eastland also is pressing for legislation which would raise the standard of cotton eligible for sup- pom. If accepted, that would discourage production of low-grade cotton whjch makes up the bulk of the U.S. surplus. Cotton Farmers Told: Be Efficient FAYETTEVILLE — Because of the strong competition facing the cotton industry, all of those involved in producing and marketing cotton should be working hard to improve their operating efficiency. So states a new publication of the University of Arkansas' Agricultural Experiment Station. It reports on a study of how cotton planting seed is sold at wholesale and retail in Arkansas. Its author, C. Curtis Cable, Jr., suggests that individual dealers who handle cotton seed may find the information helpful in improving the efficiency of their operations. Cable is assistant agricultural economist on the Station staff. Most of the certified and registered cotton planting seed sold to Arkansas farmers is distributed by seed dealers and ginners, some of whom also handle non-cenified seed. Information for the study was obtained from 41 stores and 46 ginners located in the major cotton-producing counties in the state. More than three-fourths of the seed sold by these firms was obtained from commercial sources. Most of it was from Arkansas firms,, although nearly a fifth came from Mississippi. Four-fifths of the seed \vas certified, and 13 per cent was registered. The prices these dealers paid for seed and the prices they charged their customers varied by type of* dealer, quality of seed, and variety. Wholesale firms received the largest gross margin on their sales, but they also performed the most services such as assembling, storing and redistributing seed. Most of the dealers felt that the use of certified seed is increasing in the state. They stated that farmers obtain better stands and yields from certified than from non-certified seed. However, it was found in this study that certified seed costs about $25 a ton more than non-certified. Cable points out that the better results achieved with certified seed must increase a cotton farmer's income by at least $25 a ton to make use of such seed profitable. The cotton farmer needs more information than is now available on the stand, yield, grade and staple of cotton resulting from the various qualities of planting seed before he can intelligently decide what seed to plant, according to Cable. Cotton ginners and seed dealers who are interested in additional information on this subject may obtain a copv of the publication without cost "from county Extension agents or from the Bulletin Office, University of Arkansas College of Agriculture and Home Economics, Fayetteville. It is Bulletin 554, "Retailing and Wholesaling Cotton Planting Seed m Arkansas." To remove iron rust stains from material, wash the garment with soap and water, rinse well, then bleach in the sun. time-saving power to keep your farming on the move This Business of Farming By H. H. CARTER Anocitte Cwuity Agent CoiuMenttow on B<«n Storage | <3i Extra labor for moving the At harvest approaches, questions j grain In and out of farm storage. »nd considerations again arise on j John Stevens Jr. ol Dell estimates soybean storage mainly. "How much, that this labor costs htm no more on-farm storage should I provide"? than two cents per bushel An auger A farmer can make a wiser de- type elevator is usc-d. eislon on this question il he obtains i John, in his long experience ol; »n analyze* information on two j storing soybeans, has had no extra : handling to prevent spoilage. Without drying facilities, only good quality beans, irfe o! excess foreign mailer, and with a moisture content of H percent or less, should go into larm storsge. ,._ may store soybeans un- it) Loss of weight under certain der CCC loan either In approved ; conditions of storage and selling, if on-larm structures or in commer- i the loan is redeemed. If the buyer eta! storage facilities, j doesn't pay a premium for low Commercial storage space Is lira- moisture beans, the grower might i<ed. Where available, rates can be lose as much as 3 or 4 cents per compared with on-farm storage, bushel if beans are put in storage Studies have shown that commer-! at a moisture content of 13 or H cial storage is generally RS cheap percent and sold later at a lower IK farm storage and at possibly less ; moisture content. risk and Inconvenience. i This cost would occur only if the Storage costs are of two kinds—' loan is redeemed, since the CCC fll- overhead or fled costs and opcrat- j lows a premium for low moisture They «n IM his possible costs oi storage, and <3) the possible Increase in soybein price over the siorage period. Cotta ing or variable cc*!s. Overhead cost* of on-farm storage include* depreciation, repair, interest, and insurance on the storage structure itself. The CCC assumes Iocs of any beans resulting from fire, wind or other causes beyond the control ot the farmer. This amounts to insur- Unpublished data, compiled by the ance without cost to the farmer lor University of Arkansas Economics i beans under loan In tarm storage. Department, show the annual over- I The CCC docs not guarantee against head costs of owning a ,000-bushel I loss in grade, however, as does corn- metal bin using 1963 prices was 33 mericat storage. dollars, or 3.3 cents per bushel. This assumes full use of the storage Total costs (overhead plus op- craing cost) ot farm storage u nder space. Actually the farmers In tins loan might be expected to vary gen- survey made 41 percent use of this | orally from 10 to 18 cents per bushel storage space, which brought the overhead costs up to 8 cents per when the loan is redeemed, tmd from 5 to 10 cents when not re- bushel stored. deemed. Operating or variable costs tori Total costs (overhead plus oper- on-farm storage under CCC loan| crating cost) of farm storage under might be expected to range from 6! loan might be expected to van' gen- to 10 cents per bushel where loans I erally from 10 to 18 cents per bushel are redeemed, and as little as 3 when the loan is redeemed, and cents where not redeemed. Operating costs for soybeans stor- from 5 to 10 cents when not redeemed. »d under loan in on-farm storage | Total costs should always be con- include the following items: { sidered by a producer who does not U) A CCC inspection fee of one | have a storage facility, but is con- cent per bushel. (2) Interest on the loan value ot the beans at 3' 5 percent, but only sidering investing in one. If a producer already has storage on hand, then overhead costs should if the loan ij redeemed—(3j cents | not be considered. If the increase per bushel on $2.02 beans for 6 in price would more than cover months storage). operating costs, then it tfould be SOoooRERSOIinBlE! "WeN the birber rot to diking a b o • t how 'Reasonable' he bought • Caloric. G>s Rulfe from BLYTHEVIU.C PROPANE CO. for hit w«e . . . «nd the flr*t thing we knew . . .!" ... y0t/u BE "YfAR* AHEAD' profitable to store. This would probably amount to 7 to 10 cents per bushel, or as little as two or three cent* if the loan is not redeemed. Possibft Price Ri« It would have been profitable to store soybeans during 7 of the last 10 years. The increase In price in Arkansas from October of one year | to April of the following year averaged about 49 cents per bushel dur-i ing the last 10 years. ! This last- crop year has been thej only year since 1934 in which the April price has dropped below the preceding October price. Arkansas farmers have been slow to take advantage of the profitableness of soybean storage in the paM. They have been inclmed to wait until the price dropped below support price before they stored soybeans, even though they had storage . facilities available. Since the price of beans at harvest time has been nearly equal to the government support level most years, storage has been small. Soybeans stored on Arkansas farms on January has averaged only about 10 percent of total production over a period of years. The government, though local A. S. C. offices makes liberal Loans to farmers for the purchase of on- farm storage factilities, including aerating equipment. Defoliate Cotton SPECIAL GRADE Defoliation ol cotton with AERO Cyanamid is simple, practical and economical. * Mature! crop earlier— • Picking ii easier, fatter— ,* Cotton grade is better lor higher profits at the gin— » Stops boll rot— Also Available in Limited Quantities ., . 2 NEW SPRAY DEFOLIANTS AMINO TRIAZOLE and AMINO TRIAZOLE-S.E.X.® Ask lot U*fl«U ot writ* to '[ijanamid AMERICAN Lyananua COMPANY AGRICULTURAL CHEMICALS DIVISION Oonoghty Bldg., little R«k, Ark. W« art th« Oldest Distributors of AERO CYNAMID in Northeast Arkansas and Southeast Missouri. We have the know how through 10 years of experience. We will provide you with the advice and technical assistance u necessary to defoliate cotton correctly. THE PAUL D. FOSTER CO. H. Highway 81 Mrthcvtlle Wtrchom Ph.3-3418 FEEDER CATTLE SALE SEPTEMBER 13, 1955 J100 Caftie — 900 yearlings and older cattle Cattle in any flesh for any kind of feedinE progTam. Sonie heavy older steers. Cattle fresh from farm on Sale Day All Cattle Dehorner Sale starts at 1:30 P.M. Oregon County Livestock Producers Association Alton, Missouri For Information: Phone PR 8-2311 Alton or write R. D. Shaw, Sale Mgr., Thomasville, Mo. or F. 0. Young, Sec., Alton, Mo. The Allis-Chalmers WD-45 Tractor with POWER-CRATER engine speaks a language every power-wise farmer can understand Try it... work it hard. You'll find the new fieW capacity you want — to get your crops in quickly, to beat weeds and Weather during the growing season, to harvest all the crops you've grown. In addition, you'll find the Big Four Power Conveniences to speed your work along: Two-Clutch Power Control, Power-Shift Wheels, SNAP- COUPLER Hitch, and Automatic TractionBoostet, Call us for a demonstration today. POWER-CRATER onrf SNAP-COUHEC ar« Allli-Oclm BYRUM IMPLEMENT CO. Blythevilie, Ark. Ph. 3-4404 attention COTTON PICKER OWNERS Cotton Picking Time Is Almost Here Though Somewhat Delayed by a Late Crop. The Tall Stalk Will Undoubtedly Make Mechanical Picking More Difficult. MISSCO WETTING AGENT Can Help Reduce Those Problems Use of Missco Wetting Agent Means: 1. Less Clean Up Time 2. Use of Less Water 3. Can Pick Stalks Cleaner (Less cotton left in fields) AND A NEW LOW PRICE One Gallon For Only MISSCO IMPLEMENT CO. I. Highway 61 Phone 1-4434

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