The Rural Voice, 1983-05, Page 29FARM MARKET PERSPECTIVE
billion mark, USDA says yields will have
to average 120 to 124 bu. per acre. Given
normal weather conditions, these figures
would mean carryover is reduced from
about 3.5 billion bu. this year, to about
1.9 billion at the end of the 1983-84
marketing year. It means the government
is making sure that North America is
moving out of a period of oversupply,
into a phase during which supplies are
roughly in line with demand.
MOST U.S. SERVICES HAVE BEEN
PROMOTING DOING A LITTLE FOR-
WARD CONTRACTING OF CORN. Des-
pite the fact that long-term trends point
higher, most U.S. farm market advisory
analysts wanted to have at least 20 per
cent of expected new crop corn produc-
tion either forward contracted or hedged
as of April 12. Some of the services were
less anxious to forward sell soybeans
until the $7 area on November futures is
hit.
WESTERN FARMERS GET LOWER INI-
TIAL PRICES. After setting initial prices
for barley way too high last year, the
Canadian Wheat Board is playing it safer
on the 1983 crop. It'll pay westerners $95
a metric ton when they make their barley
deliveries to the elevator this fall; down
from $110 last year. It's expected that
this disincentive to plant barley will
reduce production by about nine per
cent. That's good news for Ontario barley
producers who want to see some
reductions in burdensome supplies. The
Canadian Wheat Board also announced
initial wheat payments in early April:
$170 per tonne for spring wheat... down
only slightly from $174.50 last year.
HERE IN ONTARIO, THE WHEAT MAR-
KETING BOARD IS PREDICTING THE
SECOND dIGGEST CROP EVER. In a
recent release the board said about
800,000 tonnes could be harvested,
second only to the record 854,000 tonne
crop of 1977. Let's just hope they can get
the vomitoxin issue straightened around
so that the crop can be sold.
THE U.S. IS STILL TRYING CREATIVE
METHODS TO GET RID OF DAIRY
STOCKS. Washington's latest move was
to give 39 million pounds of non-fat dry
milk to help feed poor people in Peru. It's
the eighth donation of surplus products
under a recent giveaway law. The surplus
is still too big, though. USDA officials
says the government still holds about
one billion pounds of non-fat dry milk,
800 million pounds of cheese and 400
million pounds of butter. The Agriculture
Secretary has ordered a production fee
system into effect beginning this week,
which calls for farmers to pay 50 cents
every 100 pounds of milk they sell, but
critics say even this won't cut produc-
tion. _
ARE LOWER. Farm Credit Corp.'s rates
are 12 3/4, as of April 1. This is down
from the previous 131/4 per cent. Mean-
while, Chairman of the U.S. Federal
Reserve Bank, Paul Volcher, just stated
that U.S. rates could decline further in
the future. He oughta know.
IN GENERAL, THE RECOVERY FOR
AGRICULTURE CONTINUES. Input costs
are steady to lower and commodities
generally higher. This leaves more profit
margin in the farmer's pocket. You have
gas wars, roughly steady fertilizer prices,
lower interest rates than a year ago, and
more reasonable machinery prices than
two years ago. That's deflation on the
input side. On the corn and soybean side
however, you have a general inflationary
up trend beginning. Certainly markets are
suffering significant setbacks at time of
writing, but the increases since harvest
have been sharp. And beef is in a bull
market. (Hogs are in trouble but then the
hog market had its big play last year.)
PRIVATE ECONOMIC FIRM FORECASTS
AN INCREASE OF AT LEAST 25 PER
CENT IN NET FARM INCOME THIS
YEAR. A study by Chase Econometrics
says the increase (in the U.S.) is likely
because farmers participating in this
year's acreage reduction programs
should save seven billion dollars in
production expenses. ❑
WE HANDLE
EVERYTHING (almost)
BUTLER
Ring Drive Silo Unloaders Barn Cleaners
Big Jim Silo Unloaders Volume Belt Feeders
Single Chain Conveyors Oswalt Ensilmixers
Convey -n -Feed Cattle Feeders
FARMATIC
Blender Hammer or Blender Roller Mills
Blender Mills for Ground Hi -Moisture Corn
Augers Leg Elevators
ACORN
Cable Barn Cleaners
WESTEEL-ROSCO
Grain Bins - 1350 to 250,000 bu
Bulk Feed Tanks
ACME
Fan -Jet Ventilation Systems
HOULE
Liquid Manure Pumps, Cleaners, Steel Trusses
B&L Complete Hog Confinement Systems
SLURRY -SLINGER
Liquid Manure Spreaders
Parts & Service for CLAY equipment
ALSO
Electric Feed Carts Fibre Funnels
Straw Choppers Ritchie Heated Bowls
Hurst Equipment
SVdfetd ,ltd.
At Amb.rl.y
�R R 41, KIncardlr,.l Phom3w-5288
S. M. F. LIQUID DISPOSAL
RR.1, Gowanstown, Ont.
291-2134 or 291-4126
Serving Perth County and surrounding areas
Septic tanks
Liquid Manure tanks and pits
Custom hauling and spreading
Industrial and Commercial
Licence No. 10-1-622-81
24-hour service * 7 days a week
Owner: Garry Schinbein
THE RURAL VOICE, MAY 1983 PG. 27