The Rural Voice, 1980-09, Page 30The drought
out west and
prices here
Almost daily we read in the papers
about the terrible drought in the
southern USA, and in our prairie
provinces.
Anyone who keeps an eye on the
future's market will have seen that with
rumours of rain prices go down, and
with each disappointment, prices rise
again.
But very little has been said about
how the drought can affect prices of
livestock. Charles Gracey, the manager
d the Canadian Cattlemen's Associ-
ation, told the press recently that he
doesn't expect drastic changes in the
consumer price of beef, and so far, he's
right. Regardless of the reports of
dumping of cattle on the market
because farmers in the west have no
pasture left, the beef market price has
even increased somewhat.
The heat wave in broiler country USA
has caused havoc and millions of birds
are reported to have expired. This could
mean a temporary shortage but, in view
of the previous glut on the market, this
too appears to be for a short time only.
After all, from the time an egg is placed
in the incubator till the bird appears on
the market is a mere three months.
PIG PRICES UNCERTAIN
The pig prices are uncertain. Trad-
itionally the price of pork and of corn
has been linked in what is known as the
corn/hog ratio. If the price of corn
reaches a certain level in relation to the
price of hogs, the hog price follows.
For the hog man the question of how
the drought has affected corn produc-
tion becomes very important, for the
lower the crop, the higher its price.
To a certain extent this applies also to
western barley, but on a much lower
scale. Canadian production of either
barley or corn has little effect on the
North American price.
The lack of rain was described vividly
by Jim Armstrong_ of Bluevale, who has
lust returned trom a circular trip
through the American Midwest, the
coastal area and back through our
prairies.
PARADISE HERE
"It's like coming to paradise," he
says about Ontario on his return. After
having seen the scorched earth of the
prairies on both sides of the border,
coming home to Ontario showed him
how fortunate we are to be living in this
land of plenty.
Nevertheless, the prairie drought has
only affected the southern portions of
the provinces, with Saskatchewan hit
hardest. That means that wheat produc-
tion in the west suffers most, for
Saskatchewan produces the most
wheat. Barley production in Alberta is
not nearly as bad as the pasture failure
there.
The drought seems to have had some
effect on cattle feeder prices, according
to Dr. Larry Martin of the School of
Economics at the University of Guelph.
Through more than usual marketings of
feeders, the price has decreased
somewhat. But finished beef brings a
higher return to the finisher.
NO CONNECTION
Dr. Martin can't see any connection
between the drought and the slowly
rising hog prices either. He says that
hog prices were increasing before the
drought set in. If anything, the drought
would bring heavier marketings of gilts
and there is no indication that this is
taking place. The latest USDA survey,
he says, shows the same number of
hogs on American farms.
There is enough opinion on what the
drought will do. Dr. Morton Shulman, a
Toronto physician and moneymaker,
said at the recent Couchiching Confer-
ence that food prices are rising because
of the drought in the United States, but
he gave no reason for that statement.
SCARE RUMORS
Any farmer with a memory knows
that the same scare rumors make the
rounds every year. Speculators on the
Chicago futures market who want to
unload or to buy futures' contracts will
circulate rain reports, or expected rain
reports and the grain price will drop.
The rumor that the drought will
probably last for another month
increases the price.
The farmer who sells a futures'
contract is often caught right in the
middle. He tends to forget that there
are other grain producing countries
besides Canada and the USA. Europe
reports a decent crop and is exporting
grain as usual. And there are no reports
this year of a disaster in Russian food
production.
Grain prices are still on a yo-yo
round. When the price is too low for
some time, production drops and the
price rises. Drought in a few American
states and in portions of the Canadian
prairies won't change that.
Oxford's humming
for the 1980 IPM
The International Plowing Match &
Farm Machinery Show is just over two
months away and Oxford County is
humming with activity as plans are
finalized. This year's match, scheduled
for September 30th to October 4th, will
be held just north of Woodstock, one
mile west of Highway #59 in East Zona -
Tavistock Township. The site of the
match will encompass approximately
847 acres, including 200 acres for tented
city.
Committees are meeting regularly to
organize everything to the smallest
details to ensure this year's show will
run smoothly. The traffic committee has
planned the flow of traffic in the area,
providing the most efficient routes to
and from the site. The local committee
has been assisted by road authorities,
traffic specialists, Ontario Plowmen's
Association officials as well as repre-
sentatives from the Ontario Provincial
Police and Woodstock Police Force.
Plan now to attend the International
Plowing Match and Farm Machinery
Show. Mark September 30th to October
4th on your calendar!
A new weed
hits Huron Perth
corn fields
A relatively new weed is growing in
corn fields, according to Pat Lynch,
Perth Soil and Crop rep.
"It is called Proso Millett. It has a
slow germination period but matures to
produce seeds quickly," he said. "The
weed grows 3 feet high and the stems
are hairy with swollen nodes. The heads
contain Targe numbers of seed."
Last year Huron county experienced
more problems from the weed than
Perth. The weed was reported scattered
across Ontario with concentrations in
Varna, Blyth, Seaforth and Londesboro.
In the United States the weed is spread
over more than three million acres.
The spray Atrazine does not kill the
weed. It is an aggressive weed that can
cut corn yields in half, and is impossible
to control at present.
There are two possible ways the weed
is spread. One is that combines doing
custom work spread the weed from field
to field. Once the weed seed is in the
field it quickly spreads. The second
possible source of the spreading is
birds.
Because grains germinate quickly,
however, they prevent the weed from
surviving. The weed also cannot survive
in forage crops, and bean crops are also
not infested with the weed because the
herbicides used kill the weed.
"There are plants in each of the
agriculture offices for farmers to view,"
said Mr. Lynch. "I would also like the
farmers to notify the office if the weed is
found in new areas, so a full report can
be done."
THE RURAL VOICE/SEPTEMBER 1980 PG. 29