Economic and Marketing Information for Indiana Farmers (Oct. 31, 1961) |
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Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana October 31, 1961 1962 Outlook for Indiana Agriculture in a nutshell Net Income Net income for Indiana farmers in the year beginning October 1 will be down slightly from the past year. Net income for U.S. farmers will average about the same as last year. Indiana farm incomes will be down primarily because of lower hog and poultry prices. Lower hog prices will have a greater impact on Indiana farmers than U.S. farmers, since hog sales make up a much higher percentage of the total Indiana farm income. General Business Activity Substantial expansion in general business activity is expected in the year ahead. The rate of business expansion should be about the same as during the periods following our last two recessions. The upturn in the general economy will affect Indiana farm people. Some of the ways in which they may be affected are: 1. Off farm employment will be easier to find. However, good jobs will not be plentiful for unskilled or older workers. 2. Hired farm help will probably be a little less plentiful and wage rates may be slightly higher. 3. Prices of farm production items will probably increase slightly. 4. The movement from farms tends to be greatest when general business activity is expanding. This will probably mean greater difficulty in finding and keeping good tenants especially for below average farms. 5. An increasing number of Indiana farm operators will become part-time farmers and more farm wives will find off-farm employment. 6. The business upturn will mean only a slightly stronger demand for farm products. However, the business upturn plus population increase should raise total demand for farm products about two percent in the year ahead. For highest profits in the year ahead one should strive for efficient operation of the farming system that is well adapted to existing conditions. This will require high production rates, adequate volume of business and strict attention to buying and selling operations. Corn Modest profit may be expected from corn storage. Corn at harvest should average $.90 to $1.00 per bushel on a No. 2 basis. By next summer corn in Indiana should rise to the $1.10 to $1.20 level in surplus areas and 10 to 20 cents higher in corn deficit areas. About half of the corn crop is eligible for government support loans. Many Hoosier farmers with surplus corn will find it profitable to take advantage of the support program. If additional corn will be needed for livestock operations, one might well consider purchasing corn at harvest time, especially in corn deficit areas. Soybeans Only modest profits are expected from soybean storage this fall. The 1961 soybean crop is very large as compared to past crops—29 percent larger than the 1900 crop and 22 percent larger than the previous record crop of 1958. However, any farmer is assured of a support price of $2.30 per bushel (national average) should he elect to avail himself of the support program. The total cost of storing soybeans from harvest to next spring should be about 15 to 17 cents per bushel. About 3 to 4 cents of this total cost is a fixed cost in bins. About 7 to 8 cents is for interest on the investment in stored grain. If one has empty bin space on the farm and a CCC loan is taken on the soybeans, then storage costs may be computed somewhat below the 15 to 17 cent level. Livestock Feeding Protein feeds, especially soybean meal, will be relatively cheap and plentiful in the year ahead. Compared with recent years, soybean meal will be relatively cheap in relation to corn. Livestock rations, therefore, should be fortified with liberal amounts of protein supplement. Hogs Hog prices are expected to average $1.00 to $3.00 lower in the year ahead than in the year just past. However, the hog-corn ratio is not likely to fall below the long-time Indiana farm price average of 13.7 to 1 before mid- 1962. It appears that increased marketings by late 1962 and early 1963 will bring about unfavorable feeding ratios for hogs. Low per unit cost will be more important than extremely large volume in the hog business during the next 12 to 24 months. With lower hog prices and higher corn prices, it will be especially important to watch feed efficiency. Average or better hog producers should generally feel justified in raising at least their usual number of pigs that will be marketed by mid-1962. Hogs to be marketed after mid-1962 might well be reduced some—especially if this would improve efficiencies.
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Oct. 31, 1961) |
Purdue Identification Number | UA14-13-econ196110 |
Date of Original | 1961 |
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-econ196110.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Oct. 31, 1961) |
Purdue Identification Number | UA14-13-econ196110 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana October 31, 1961 1962 Outlook for Indiana Agriculture in a nutshell Net Income Net income for Indiana farmers in the year beginning October 1 will be down slightly from the past year. Net income for U.S. farmers will average about the same as last year. Indiana farm incomes will be down primarily because of lower hog and poultry prices. Lower hog prices will have a greater impact on Indiana farmers than U.S. farmers, since hog sales make up a much higher percentage of the total Indiana farm income. General Business Activity Substantial expansion in general business activity is expected in the year ahead. The rate of business expansion should be about the same as during the periods following our last two recessions. The upturn in the general economy will affect Indiana farm people. Some of the ways in which they may be affected are: 1. Off farm employment will be easier to find. However, good jobs will not be plentiful for unskilled or older workers. 2. Hired farm help will probably be a little less plentiful and wage rates may be slightly higher. 3. Prices of farm production items will probably increase slightly. 4. The movement from farms tends to be greatest when general business activity is expanding. This will probably mean greater difficulty in finding and keeping good tenants especially for below average farms. 5. An increasing number of Indiana farm operators will become part-time farmers and more farm wives will find off-farm employment. 6. The business upturn will mean only a slightly stronger demand for farm products. However, the business upturn plus population increase should raise total demand for farm products about two percent in the year ahead. For highest profits in the year ahead one should strive for efficient operation of the farming system that is well adapted to existing conditions. This will require high production rates, adequate volume of business and strict attention to buying and selling operations. Corn Modest profit may be expected from corn storage. Corn at harvest should average $.90 to $1.00 per bushel on a No. 2 basis. By next summer corn in Indiana should rise to the $1.10 to $1.20 level in surplus areas and 10 to 20 cents higher in corn deficit areas. About half of the corn crop is eligible for government support loans. Many Hoosier farmers with surplus corn will find it profitable to take advantage of the support program. If additional corn will be needed for livestock operations, one might well consider purchasing corn at harvest time, especially in corn deficit areas. Soybeans Only modest profits are expected from soybean storage this fall. The 1961 soybean crop is very large as compared to past crops—29 percent larger than the 1900 crop and 22 percent larger than the previous record crop of 1958. However, any farmer is assured of a support price of $2.30 per bushel (national average) should he elect to avail himself of the support program. The total cost of storing soybeans from harvest to next spring should be about 15 to 17 cents per bushel. About 3 to 4 cents of this total cost is a fixed cost in bins. About 7 to 8 cents is for interest on the investment in stored grain. If one has empty bin space on the farm and a CCC loan is taken on the soybeans, then storage costs may be computed somewhat below the 15 to 17 cent level. Livestock Feeding Protein feeds, especially soybean meal, will be relatively cheap and plentiful in the year ahead. Compared with recent years, soybean meal will be relatively cheap in relation to corn. Livestock rations, therefore, should be fortified with liberal amounts of protein supplement. Hogs Hog prices are expected to average $1.00 to $3.00 lower in the year ahead than in the year just past. However, the hog-corn ratio is not likely to fall below the long-time Indiana farm price average of 13.7 to 1 before mid- 1962. It appears that increased marketings by late 1962 and early 1963 will bring about unfavorable feeding ratios for hogs. Low per unit cost will be more important than extremely large volume in the hog business during the next 12 to 24 months. With lower hog prices and higher corn prices, it will be especially important to watch feed efficiency. Average or better hog producers should generally feel justified in raising at least their usual number of pigs that will be marketed by mid-1962. Hogs to be marketed after mid-1962 might well be reduced some—especially if this would improve efficiencies. |
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