Economic and Marketing Information
FOR INDIANA   FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana
Ju|y  31.   1962
Competitive Position of Indiana Farmers
by   A.   S.   Hadley,1   Agricultural   Economics
Indiana farmers retain a strong competitive position
in the production of corn and the livestock enterprises
closely associated with corn. During the next 10 years
aggressive farmers who use progressive practices in the
operation of commercial farms are likely to have earnings comparable to those in most other businesses.
The factors affecting the competitive position of Indiana farmers are many and varied. They include the
geographic changes in population growth, the changing
eating habits of consumers, changing technology in agricultural production and government programs.
Prior to World War II, the major areas of population
concentrations were along the eastern seaboard and
the Great Lakes. During the past decade population has
grown very rapidly in the "Sunshine States" of Florida,
California, Arizona, New Mexico and Nevada. In the
U. S. as a whole, population is expected to increase about
20 percent during the 1960's, but in Florida and the
Southwest, growth may be as much as 80 percent. These
areas now offer important and growing markets for the
products of the midwest.
Changes  in Food  Habits
In addition to important geographic shifts and expanding population, the demand for all food products
has been affected by changes in peoples' food habits.
However, changes in production costs as well as changes
in demand have caused more use of some commodities
while others declined. As a result of improved production methods and lower prices, the per capita consumption of poultry meat has increased about 65 percent since
the end of World War II (Table 1). On the other hand,
per capita use of lamb and mutton declined about 25
percent, beef consumption per person rose 26 percent
and the use of pork on a per capita basis showed little
change.
Table 1. Meat consumption per person
Kind of meat
1945-1949
1961
Change
pou
nds
percent
Beef and  veal
73
92
+ 26
Pork
69
67
- 3
Lamb and mutton
6
4.5
-25
Poultry
23
38
+65
Assisted by R. H. Bauman, P. R. Robbins, E. E. Carson, C.
A- Sargent and  H.  A.  Wadsworth.
Regional   Production   Shifts
The Corn Belt now produces a slightly smaller share
of the nation's feed supply and also a smaller share of
the nation's livestock. But this decline was more than
offset by increases in production of wheat and soybeans.
Southern states reduced cotton production and shifted
land into grass and pulp wood production. With more
grass in this region, cattle production has expanded
rapidly.
Improved crop varieties, increased irrigation and government allotment programs have resulted in shifting a
larger share of the nation's feed grain production into
the Great Plains States at the expense of the Corn Belt.
Between 1953 and 1959, the seven major wheat states
of North Dakota, Kansas, Oklahoma. Texas. Montana,
Colorado and Washington, shifted nearly 11 million acres
out of wheat and into feed grain crops (primarily grain
sorghum and barley). In these seven states alone, the
increase in grain sorghum production would more than
account for the total accumulation of surplus feed grains
in the nation during the 1953-59 period.
Shifts in Dairying
Changing consumer food habits, changing technology
in agricultural production and marketing and changing
patterns of feed production have caused some shifts in
livestock production. Dairy production has tended to
decline in Indiana and increase in the Lake States and
the Northeast. Much of the decline has been in the production of sour cream and milk for manufacture. Even
so, medium to large sized dairy enterprises producing
for the wholemilk market are still able to compete successfully in Indiana. Poultry production has tended to
move to the South where housing and labor costs are
lower.
Contrary to some reports, the Corn Belt has expanded
hog production more rapidly than the Southern or Plains
States. Indiana farmers are close to the feed and close
to the market. Their feed costs are lower and hog prices
higher (Table 2). They retain an excellent competitive
position in hog production.
Table   2.   Percentage  of  hog  crop   produced   by
geographic areas,  1947,  1952  and   1958.
Area
U.  S.  Production
1947 1952 1958
percent
Corn Belt and North Atlantic 72
South Atlantic and South Central   22
Other regions 6
75
76
20
19
5
5