Economic and Marketing Information for Indiana Farmers (Sep. 30, 1970) |
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Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana September 30, 1970 1971 Outlook Net income to Indiana agriculture is likely to be down 2 to 5 per cent for the year beginning October 1, 1970, compared to the past 12 months. However, it should be recognized that the past year has been a favorable one for most Indiana farmers. Thus, net earnings in the year ahead are expected to be below only the most favorable years of 1965, 1969 and 1970. With a likely continued decrease in in Indiana farm numbers of about 3 per cent per year, average net earnings per farm in the year ahead are expected to closely approximate the net earnings of the past 12 months. However, purchasing power per farm may be down 4 to 5 per cent because of continued inflation. For individual farmers, net earnings will be greatly influenced by their type of farming and their corn losses caused by leaf blight. Earnings will be sharply lower for most hog producers, laying flock operators, and farmers badly hit by the blight. On the other hand, earnings on dairy farms will likely be about the same to down slightly, and on beef cattle farms up slightly. Crop farmers who experienced little or no damage from the blight will likely have substantially improved incomes. General Business The relatively slack pace of the economy shows few signs of changing over the next few months. Some strengthening is probable by the mid- F die of 1971. The rate of inflation may gradually subside as the months go by but is expected to average 4 to 5 per cent for the year. This compares with slightly over 5 per cent for the past year. Real output is expected to be up 1 to 2 per cent; whereas real output changed very little during the past year. A continued sluggish general economy and persistent inflationary pressures will reflect themselves to farmers in their dual roles as producers and as consumers in the following ways: 1. The demand for farm products will likely continue to rise in response to increasing income per person and population growth. Also, foreign demand is expected to continue strong, and exports of U.S. farm products in the year ahead may be near the favorable levels of 1969-70. 2. The composite cost of production items used in farming will likely edge higher. However, feeder pig prices will be sharply lower and interest rates are expected to ease a bit. On the other hand, feed grain prices and the price of most desired hybrid seed corn will likely be sharply higher. Real estate and personal property taxes and farm wage rates are expected to increase substantially. Most other items are expected to increase slightly. 3. With little growth expected in the general economy, unemployment will be a nagging problem and may increase somewhat during the next few months. Opportunities for agricultural people to find jobs off the farm are expected to vary considerably among areas of the State and among workers with different skills and qualifications. Even with some unemployment in the general economy, good hired farm labor will continue scarce. 4. Inflation will continue to erode the purchasing power of farmers and all consumers in the months ahead. Looking into the future, continued inflation seems much more likely than stable or declining prices. Whether or not we are able to reduce the rate of inflation to more acceptable levels (1 to 3 per cent per year) will depend upon: (a) the world situation and whether we are able to reduce and then keep defense expenditures at considerably lower levels (measured as a per cent of gross national product) than has been true the past several years; (b) our willingness, over a fairly prolonged period, to undergo the disciplines of a tight money supply, high interest rates, high taxes, a near balanced budget, and some unemployment (and in the short run some slowdown in the growth of our economy). This is indeed a bitter pill to Americans generally, and to those in the political arena in particular. On the other hand, a continued rate of inflation comparable to that of the past 3 years poses serious problems for our economy and for many people individually. 5. With continued tight money supply and relatively high interest rates; it will be extremely important for farmers to make good use of credit. First and foremost this means developing and maintaining a good credit rating. It means planning for credit needs well in advance. It will likely mean more and better records and more budgeting so that worthy farmers can convince themselves as well as
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Sep. 30, 1970) |
Purdue Identification Number | UA14-13-econ197009 |
Date of Original | 1970 |
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 | 05/01/2015 |
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-econ197009.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Sep. 30, 1970) |
Purdue Identification Number | UA14-13-econ197009 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana September 30, 1970 1971 Outlook Net income to Indiana agriculture is likely to be down 2 to 5 per cent for the year beginning October 1, 1970, compared to the past 12 months. However, it should be recognized that the past year has been a favorable one for most Indiana farmers. Thus, net earnings in the year ahead are expected to be below only the most favorable years of 1965, 1969 and 1970. With a likely continued decrease in in Indiana farm numbers of about 3 per cent per year, average net earnings per farm in the year ahead are expected to closely approximate the net earnings of the past 12 months. However, purchasing power per farm may be down 4 to 5 per cent because of continued inflation. For individual farmers, net earnings will be greatly influenced by their type of farming and their corn losses caused by leaf blight. Earnings will be sharply lower for most hog producers, laying flock operators, and farmers badly hit by the blight. On the other hand, earnings on dairy farms will likely be about the same to down slightly, and on beef cattle farms up slightly. Crop farmers who experienced little or no damage from the blight will likely have substantially improved incomes. General Business The relatively slack pace of the economy shows few signs of changing over the next few months. Some strengthening is probable by the mid- F die of 1971. The rate of inflation may gradually subside as the months go by but is expected to average 4 to 5 per cent for the year. This compares with slightly over 5 per cent for the past year. Real output is expected to be up 1 to 2 per cent; whereas real output changed very little during the past year. A continued sluggish general economy and persistent inflationary pressures will reflect themselves to farmers in their dual roles as producers and as consumers in the following ways: 1. The demand for farm products will likely continue to rise in response to increasing income per person and population growth. Also, foreign demand is expected to continue strong, and exports of U.S. farm products in the year ahead may be near the favorable levels of 1969-70. 2. The composite cost of production items used in farming will likely edge higher. However, feeder pig prices will be sharply lower and interest rates are expected to ease a bit. On the other hand, feed grain prices and the price of most desired hybrid seed corn will likely be sharply higher. Real estate and personal property taxes and farm wage rates are expected to increase substantially. Most other items are expected to increase slightly. 3. With little growth expected in the general economy, unemployment will be a nagging problem and may increase somewhat during the next few months. Opportunities for agricultural people to find jobs off the farm are expected to vary considerably among areas of the State and among workers with different skills and qualifications. Even with some unemployment in the general economy, good hired farm labor will continue scarce. 4. Inflation will continue to erode the purchasing power of farmers and all consumers in the months ahead. Looking into the future, continued inflation seems much more likely than stable or declining prices. Whether or not we are able to reduce the rate of inflation to more acceptable levels (1 to 3 per cent per year) will depend upon: (a) the world situation and whether we are able to reduce and then keep defense expenditures at considerably lower levels (measured as a per cent of gross national product) than has been true the past several years; (b) our willingness, over a fairly prolonged period, to undergo the disciplines of a tight money supply, high interest rates, high taxes, a near balanced budget, and some unemployment (and in the short run some slowdown in the growth of our economy). This is indeed a bitter pill to Americans generally, and to those in the political arena in particular. On the other hand, a continued rate of inflation comparable to that of the past 3 years poses serious problems for our economy and for many people individually. 5. With continued tight money supply and relatively high interest rates; it will be extremely important for farmers to make good use of credit. First and foremost this means developing and maintaining a good credit rating. It means planning for credit needs well in advance. It will likely mean more and better records and more budgeting so that worthy farmers can convince themselves as well as |
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