Economic and Marketing Information for Indiana Farmers (Sep. 30, 1960) |
Previous | 1 of 16 | Next |
|
|
Loading content ...
Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana AGklC. ECONOMICS LIBRARY. September 30, 1960 Your 1961 Outlook for Indiana Agriculture In a Nutshell* Net income for Indiana farmers in the coming 12 months shoidd be up about 10% over last year. Net income for all U. S. farmers will average about the same as last year. Indiana farm incomes will be up more than that of U. S. farmers for two reasons: (1) Generally excellent crops in I960 compared to the nation as a whole. (2) Improvement in the hog business which makes up a higher percentage of Indiana's farm income. Some weakness in the nonfarm business sector from current levels is expected to develop in late 1960 or early 1961. The business adjustment is expected to be fairly mild, probably no more severe than the downturn of 1957-58 and will probably be of short duration. This downturn in the general economy will likely affect Indiana farm people in several ways, among them: 1. Off farm employment will be more difficult to find. This will be especially true for unskilled or older workers. 2. Hired farm help should be a little more plentiful but probably at no lower wage rates. 3. There should be less pressure than in recent years for prices of farm production items to increase. 4. The moderate business downturn should have little effect on the demand for farm products. Demand should continue strong and increase about in line with population growth in the year ahead. Modest profits may be expected from corn storage operations. Corn at harvest should average between 85 and 95 cents per bushel on a No. 2 basis and gradually rise to about $1.10 next sum- roer. However, some "high moisture" concerning the annual Outlook re- the period October 1 to September 30. rases such as "last year," "the coming year," ore in relation to October 1, 1960. corn appears likely this fall. Large quantities of "high moisture" corn would tend to depress prices at harvest time and make storage of good quality corn more profitable than indicated above. Storage operations will be considerably more profitable in corn deficit than in corn surplus areas. Storage of soybeans would appear to be profitable if bean prices drop below $1.90 per bushel at harvest time. A farmer with empty bins on his farm may well consider storage even if harvest time prices are as high as $1.95 per bushel. Hog prices are expected to average $1 to $3 higher in the year ahead than in the year just past. Looking beyond the next 12 months, no big hog price decline is seen for late 1961 or early 1962. Average or better hog producers should generally feel justified in maintaining or increasing hog numbers in the year ahead. Numbers, however, should not be greatly increased unless efficiencies can also be maintained or increased. It would seem advisable to push winter pigs for an early market next summer. Feeder pig prices should be relatively high in the year ahead. Cattle prices are expected to average $2 to $3 lower in the year ahead as compared with the past 12 months because of 5-10 percent larger marketings. Declines will be greater than this for the lower grades and a little less for the better grades. Even with lower fat cattle prices in prospect, substantially lower feeder cattle prices as compared to last fall and slightly lower feed prices should enable good feeders to show a modest profit. Careful buying and selling, however, will be of extreme importance since both market margins and feed lot margins will be narrow. This is probably not the year to pay for extreme quality in feeder cattle. Cattle for a short feed or plain cattle marketed by early spring appear to offer modest profit opportunities. Profits from fat cattle marketed next summer and fall could be considerably reduced by unfavorable weather conditions and any liquidation that might result. Profits from beef cow herds will decline in the year ahead. The amount of decline also will depend upon weather conditions. However, a closer than usual culling of old or poor producing cows would appear justified. Profits from the dairy business will be about the same to slightly higher next year. This assumes support prices will be maintained at or slightly above current levels. However, in order to meet the competition in the years immediately ahead, dairy farmers will need to have medium to large size herds of high producing cows. They will also need buildings and equipment which will minimize labor requirements as well as meet market standards. With lower beef prices in prospect over the next two to three years, rigid culling of low producers should be followed. Egg prices until early spring should average substantially higher than during the past fall and winter. Culling of laying flocks should probably be less rigorous than usual during the next few months. By spring and early summer production should be up, resulting in prices lower than during the same period in I960. There appears to be no price incentive to encourage farmers to buy more than their usual number of chicks for 1961 laying flocks. Continued biological, mechanical and organizational improvements in both the laying flock and broiler enterprises will tend to keep production high and profit margins narrow. Any very favorable price situation in either eggs or broilers is quickly erased by a rapid increase in production. Both laying flocks and broilers appear to be rapidly moving to units large enough to justify automatic
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Sep. 30, 1960) |
Purdue Identification Number | UA14-13-econ196009 |
Date of Original | 1960 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 03/12/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ196009.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Sep. 30, 1960) |
Purdue Identification Number | UA14-13-econ196009 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana AGklC. ECONOMICS LIBRARY. September 30, 1960 Your 1961 Outlook for Indiana Agriculture In a Nutshell* Net income for Indiana farmers in the coming 12 months shoidd be up about 10% over last year. Net income for all U. S. farmers will average about the same as last year. Indiana farm incomes will be up more than that of U. S. farmers for two reasons: (1) Generally excellent crops in I960 compared to the nation as a whole. (2) Improvement in the hog business which makes up a higher percentage of Indiana's farm income. Some weakness in the nonfarm business sector from current levels is expected to develop in late 1960 or early 1961. The business adjustment is expected to be fairly mild, probably no more severe than the downturn of 1957-58 and will probably be of short duration. This downturn in the general economy will likely affect Indiana farm people in several ways, among them: 1. Off farm employment will be more difficult to find. This will be especially true for unskilled or older workers. 2. Hired farm help should be a little more plentiful but probably at no lower wage rates. 3. There should be less pressure than in recent years for prices of farm production items to increase. 4. The moderate business downturn should have little effect on the demand for farm products. Demand should continue strong and increase about in line with population growth in the year ahead. Modest profits may be expected from corn storage operations. Corn at harvest should average between 85 and 95 cents per bushel on a No. 2 basis and gradually rise to about $1.10 next sum- roer. However, some "high moisture" concerning the annual Outlook re- the period October 1 to September 30. rases such as "last year," "the coming year," ore in relation to October 1, 1960. corn appears likely this fall. Large quantities of "high moisture" corn would tend to depress prices at harvest time and make storage of good quality corn more profitable than indicated above. Storage operations will be considerably more profitable in corn deficit than in corn surplus areas. Storage of soybeans would appear to be profitable if bean prices drop below $1.90 per bushel at harvest time. A farmer with empty bins on his farm may well consider storage even if harvest time prices are as high as $1.95 per bushel. Hog prices are expected to average $1 to $3 higher in the year ahead than in the year just past. Looking beyond the next 12 months, no big hog price decline is seen for late 1961 or early 1962. Average or better hog producers should generally feel justified in maintaining or increasing hog numbers in the year ahead. Numbers, however, should not be greatly increased unless efficiencies can also be maintained or increased. It would seem advisable to push winter pigs for an early market next summer. Feeder pig prices should be relatively high in the year ahead. Cattle prices are expected to average $2 to $3 lower in the year ahead as compared with the past 12 months because of 5-10 percent larger marketings. Declines will be greater than this for the lower grades and a little less for the better grades. Even with lower fat cattle prices in prospect, substantially lower feeder cattle prices as compared to last fall and slightly lower feed prices should enable good feeders to show a modest profit. Careful buying and selling, however, will be of extreme importance since both market margins and feed lot margins will be narrow. This is probably not the year to pay for extreme quality in feeder cattle. Cattle for a short feed or plain cattle marketed by early spring appear to offer modest profit opportunities. Profits from fat cattle marketed next summer and fall could be considerably reduced by unfavorable weather conditions and any liquidation that might result. Profits from beef cow herds will decline in the year ahead. The amount of decline also will depend upon weather conditions. However, a closer than usual culling of old or poor producing cows would appear justified. Profits from the dairy business will be about the same to slightly higher next year. This assumes support prices will be maintained at or slightly above current levels. However, in order to meet the competition in the years immediately ahead, dairy farmers will need to have medium to large size herds of high producing cows. They will also need buildings and equipment which will minimize labor requirements as well as meet market standards. With lower beef prices in prospect over the next two to three years, rigid culling of low producers should be followed. Egg prices until early spring should average substantially higher than during the past fall and winter. Culling of laying flocks should probably be less rigorous than usual during the next few months. By spring and early summer production should be up, resulting in prices lower than during the same period in I960. There appears to be no price incentive to encourage farmers to buy more than their usual number of chicks for 1961 laying flocks. Continued biological, mechanical and organizational improvements in both the laying flock and broiler enterprises will tend to keep production high and profit margins narrow. Any very favorable price situation in either eggs or broilers is quickly erased by a rapid increase in production. Both laying flocks and broilers appear to be rapidly moving to units large enough to justify automatic |
Tags
Add tags for Economic and Marketing Information for Indiana Farmers (Sep. 30, 1960)
Comments
Post a Comment for Economic and Marketing Information for Indiana Farmers (Sep. 30, 1960)