Economic and Marketing Information
FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana    
Feed Grain Situation
Feed grain supplies increase slightly despite smaller corn crop in 1968. Heavy utilization, use of Government loan provision, and smaller corn crop than
earlier anticipated brighten corn price prospects.
Extent of price rise hinges on prospects for 1969
corn crop.
Feed grain supplies increased 2 per cent in 1968.
Larger carryover supplies accounted for the increase. Harvested acreages of feed grains declined 4
per cent from 1967 to 1968. Larger acreages of oats
and barley were more than offset by the reduction
in corn and grain sorghum. Yields for corn were
about the same as last year, but higher yields were
registered for oats, grain sorghum and barley. The
reduction of 8 million tons in feed grain production
was more than offset by an increase of 11 million
tons in feed grain carryover supplies.
The USDA December Crop Report estimated feed
grain production at 168 million tons, down 8 million
tons from last year's final estimate. This estimate
was reduced 9 million tons from projections made in
September. Corn accounts for about 70 per cent of
all feed grain supplies. The final estimate of the 1968
corn crop was 4,375 million bushels, down about 260
million bushels from earlier expectations and 385
million bushels below last year's record crop of 4,760
million bushels.
Corn acreage in Indiana was reduced 9 per cent
from 1967 levels because of increased participation
in the feed grain program. Corn production was
down only 6 per cent because yields were up 3
bushels per acre. The final estimate of Indiana's
1968 corn crop was 416 million bushels with a yield
of 85 bushels per acre.
In September, the national average corn yield was
estimated to be 83 bushels per acre. As the harvest
season progressed, it became evident that corn yields
would be lower than anticipated earlier.
Reasons given for the lower yields are (1) delayed plantings because of wet weather that developed in mid-May and continued until early June,
(2) early establishment of a heavy weed competition in wet fields and the reduction of the early
December 31,  1968
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INDIANA  FARMERS
J. William Uhrig, Agricultural Economics
development of leaf and root systems for collecting
of vital plant nutrients, and (3) deficiency in sunshine as a result of high July and August humidities.
These crop setbacks were most pronounced on corn
with the 1968 growing season generally on the plus
side for good yields of soybeans.
Corn Carryover
The October 1, 1968 carryover is placed at 1,146
million bushels—323 million bushels more than in
1967. This represented a substantial increase after
3 years of decreasing carryover supplies.
Estimates of 1968-69 marketing year supplies and
projected utilization, compared with the previous
year, are shown below:
CORN BALANCE SHEET
1967-68 1968-69
Supply (mil. bu.)
Carryover          823 1,146
Production    4,760 4,375
Imports     1 1
Total     5,584 5,522
Utilization
Feed    3,440 3,500-3,550
Food, Industry, Seed    385 390-   395
Exports     613 600-   620
Total     4,438 4,490-4,565
Carryover     1,146 1,032-  957
Projected Utilization
Domestic and export use of corn in the 1967-68
marketing year (October 1967-September 1968) totaled 4,438 million bushels. For the year ahead, the
corn requirements are expected to be 2-4 per cent
larger. Domestic needs for feed should increase because of larger numbers of cattle, hogs, and poultry
on hand and in prospect next year. Larger supplies
of other feed grains and wheat will partially offset
the increased usage of corn.
Corn exports are expected to increase but may be
hurt slightly by the dock strike at East Coast and
Gulf ports which began in late December. At the
end of 1968, corn exports were lagging about 15 million bushels behind year earlier levels. Corn exports
were reduced during the first 3 months of the new