CHIT CHAT-
By JOI COWLEY
Mtil Tribuna Firm EditM
Last week we mentioned this wheat surplus problem
which poses one big problem for the nation and particularly
for the politicians running for election or re-election. We
have described the problem and the difficulties in solving
It plus the different opinions on it.
To reach any conclusion of what government action
program would be best we must figure that the United
States is really one big food production plant, according to
Harold F. Hollands, OSC agricultural economist.
Five things should be considered In the study of this
problem: Powerful physical and economic forces affect all
parts of this food plant directly or indirectly. Farmers all
use the same resources land, labor, and capital and they
compete for these resources among themselves and with non
farmers. People can only eat so much food. If he eats more
of one type of food he eats less of another. Government
restrictions or plans to take land out of production In one
type of crop have caused a shift in production and total
output has increased. Any government program for selected
commodities helps some farmers a great deal, helps other
only slightly, and really hurts some farmers, the OSC
economist noted.
Some political observers claim that although farmers
are now a minority group they have an important influence
on voting. They claim it was mainly the farmers who brought
Harry Truman in for his last presidential term. So, any
study of the types of action-programs to solve the wheat
surplus problem seems important with an election coming
in November.
These proposed programs can be classified into six gen
eral types: commodity control with federal and state market
ing agreements and federal and state marketing orders,
product disposal, both domestic and foreign: price rigid
price supports, moving average of market prices and for
ward pricing; direct payments (no production control), wool;
resource control (to influence production), conservation re
serve, government leasing, land purchase, and land retire
ment, vocational training and employment agencies and de
centralization of industry; and a combination of programs,
flexible price supports, sugar act, wheat stabilization act
of 1959, compensatory prices.
Commodity control is familiar to the members of the
pear industry here and to the area's dairymen. The quota
system as worked out by Southern Oregon Milk Producers
could be called a marketing agreement. The Pacific coast in
dustry operates under a winter pear marketing order to
sell only specified qualities, sizes and volumes of pears
during a particular marketing period.
Other states do have marketing orders for dairymen.
These orders are similar to the marketing agreements. How
ever, after a majority' of eligible voters accept them they
become compulsory and the government enforces these
orders on all producers and market middlemen. The pear
industry has used the marketing order effectively in Oregon,
Washington and California for winter pears. In fact, on April
21 the winter pear handlers in the Medford' district will
elect representatives to the Winter Pear Control committee
In Medford. This committee administers the Winter
Pear Marketing Order covering the three states. It establishes
the minimum grade, size and quality standards under which
winter pears are marketed from these Pacific Coast states.
These marketing orders work for some commodities,
particularly perishable ones which must be destroyed after
they are held off the market for so long. However, the
nonperishable commodities form stockpiles such as the Com
modity Credit corporation now has. Federal law also speci
fies marketing orders may apply to perishable or semi
perishable commodities whose production and marketing
areas andor marketing periods can be well defined and
protected. ......
These marketing orders can be good in the short run by
smoothing out price fluctuations and by adjusting quantities
and qualities available to those buyers who will pay "reason
able" prices.
During recent years Oregon wheat farmers have been
operating a product disposal program by promoting sale
of wheat overseas, most recently in Japan. Through a series
of promotion programs this seems to have been fairly effec
tive. The Oregon wheat growers operate this program them
selves. But most such programs assume the government will
act as a large-volume distribution agency. If surpluses are
distributed to needy people it has strong public appeal. Such
a program is not only charitable, it reduces stocks without
cutting production and helps the middlemen by keeping
up a large volume operation.
- According to Agricultural Economist Hollands, the three
major methods of increasing food consumption through main
taining large incomes, lower food prices and higher nu
tritional levels were studied as possible methods to expand
demand for farm products. However, he feels this would
be ineffective as a single solution. It would mean raising
the income for half the people in the United States. School
lunches, food starrtps and food donations will not solve the
problem If current surpluses cannot be removed realistic
Income increases, lower prices or improved diets.
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Farm Prices Rise
OSC Reports Now;
Hi! 7-Year High
Corvallis Farm prices
showed plenty of spring zip
in Oregon last month, more
than making up for losses suf
fered during February, re
ports Mrs. Elvera Horrell,
OSC extension agricultural
economist.
The upturn In prices re
ceived by Oregon farmers in
March was enough to push the
farm price index in this state
to the highest point since mid-
1953, Mrs. Horrell found as
she studied reports from the
U.S. Department of Agricul
ture. All in all, Oregon farm
prices rose 2 per cent last
month.
Livestock prices accounted
for the biggest share of this
rise, ending up 3 per cent
above February of this year.
Prices paid for . crops also
moved up a little. As a result,
Oregon farm prices stand just
a shade above March, 1959.
Nationally, prices received
by farmers moved up even
more sharply than in Oregon,
largely due to even greater
strength in meat-animal mar-
Livestock prices moved up 5
per cent, corn prices edged up
1 per cent, and the combined
index of all national farm
prices gained 3 per cent over
a month ago.
At High Level
But while national farm
prices now stand at the high
est' level since last July, they
are still nearly 2 per cent low
er than a year ago, Mrs. Hor
rell said.
Cost of things farmers use
for both farm operation and
living expenses gained one
third of a per cent in March,
and now stand 1 per cent high
er than a year ago. But with
prices received by farmers up
3 per cent, and prices paid by
farmers up only 1 per cent,
farm product purchasing pow
er improved during the month
ending March 15, Mrs. Horrell
pointed out.
The parity ratio the gov
ernment's yardstick for meas
uring the relationship be
tween prices received and
State's Cattlemen Lagging Now
On Current Calf Vaccinations
Salem Cattlemen probably
don't realize it. but they are
letting their calf vaccinations
lag.
If they don't pick up the
gap on March 1 a hefty 57,
800 to go to reach fiscal 1959
figures they may run smack
into what they worked so
hard to shed: blood testing on
the farm.
State and federal officials
say most eastern Oregon coun
tries are behind on Bang's
vaccinations. This is running
in reverse anticipation under
the cull and dry cow testing
program to maititain modified
certified status. Contract calf
shipments for fred lots may
have reduced the number of
eligible calves this year, but
surveys are not conclusive at
this point, says Dr. L. E. Bo
den weiser, state veterinarian.
He urges ranchers to make
sure that no eligible calves
are missed.
Dry Cowi Tested
Now all cull and dry cows
are blood tested as they go to
slaughter. This screens out re-
Egg Producers Hit-
Dollar Volume High
Dollar volume of business
by the Oregon Egg Producers
rose to 12.8 million dollars in
1959, H. R. Rohe, general
manager, said today in his
year-end report to the associa
tion's membership. This rep
resented an all-time high for
the 40 year old marketing and
purchasing cooperative that is
owned and operated by 5,000
Oregon farmers.
A total of 71,000 tons of
feed were used by members
in 1959, 5 per cent more than
in the previous year. Farm
supply volume rose over 8
per cent to $425,000, the high
est in the department's his
tory. Although there was a sub
stantial cutback in production
by Oregon poultrymen in
1959, the sale of eggs under
the Nulade label in 1959, in
creased 15 per cent or 600,
000 dozen over the previous
year.
Through acquisition of the
Fresh Foods company, Port
land, on Jan. 1, 1959, the Ore
gon Egg Producers now operates-
the only U SD. A. ap
proved poultry and turkey
processing plant owned by lo
cal interests in the entire
state. Rohe reported that the
introduction of Nulade brand
prices paid by farmers stood
at 80 on March 15. This was
up 2 points over the previous
month, but still 2 points be
low a year earlier.
Also, how much a person can eat does not depend on how
much he earns. A poor man has the same capacity as the
rich man. Food promotion through advertising will not
make either one eat any more although they may eat more
of one food than they do of another. New uses of food pro
ducts have often developed into new food items. Any in
dustrial uses of commodities have resulted in product prices
so low that the farmer cannot make any profit.
Trouble with exporting surpluses to foreign countries
is that the governments of those countries do not always
react favorably. Such programs may cause- lower prices
for competing commodities in the foreign country to which
the wheat or other commodity is sent. Or the country may
become dependent on the large scale import of a commodity
and have it cut off when It cannot pay in full. Sucn a pro
gram may also compete seriously with commodities being
shipped from other countries.
The difficulty with donations of surplus commodities Is
not enough volume can be donated to cut down on the
surplus.
Actually, the big issue in the surplus control program
seems to revolve around the word price.' This covers pro
grams which attempt to set prices, but do not directly regu
late quantities produced or market. Examples of a price
program are rigid price supports and forward pricing. A plan
to support prices at the level of last year's average (or 90
per cent of it) with no production control would fall into
this classification, also. This class of program should be
examined from actual experience and by applying certain
elementary principles of economics.
First, lower prices often increase production, according
to experiences in some areas and some farms. Over the
long haul farmers, like other businessmen must sell for
high enough prices to cover their total cost of production
or go out of business. How long farmers will hang on depends
on several factors, the OSC experiment station economist
notes. An important consideration, is what farmers think
government programs will be in the future. However, if
prices drop low enough and remain long enough production
will naturally decrease.
The price which is established becomes the Important
one in affecting production if there is a stable, long time
government program with no direct production control.
When price and quantity are charted and supply and
demand curves set up, where the supply and demand curves
intersect is called the point of equilibrium. In other words,
water seeks its natural level, so do prices, according to
the economists. Politically, and economically, the greater
the difference between the government-set price and the
equilibrium price, the more trouble there Is. The big dif
ficulty is that nobody can construct these two curves and
determine accurately what the equilibrium price is.
As many critics of the present farm price control system
argue, including the secretary of agriculture, the price would
fluctuate around the natural level of the equilibrium price
if there is no government control. However "free market"
prices are too low for Congress. And so long as government-
set prices are above the equilibrium price, surpluses will
accumulate until prices are reduced, or production is re
duced, andor an adequate surplus removal program is
established, according to the OSC economist.
Moving average of market prices Is another type of
price program which would support prices at the last three
year average. Under this program it merely takes prices a
little longer to seek their natural level. This Is a similar
program to forward pricing. This plan involves annual de
termination of the equilibrium price. Then the support price
is announced so farmers can plan their operations. This
way prices are evened out during the marketing year and
from year to year.
Object of this program is to give advance price informs-
tion and stability to agriculture. Supposedly, government
would not do much commodity storing, perhaps only on t
small yearly, small scale basis. This would not solve the
wheat or agricultural program for those who think prices
are too low. It also poses the question of whether government-held
stocks actually would be sold at less than cost,
probably in declining market, in order to avoid large
accumulations by the Commodity Credit corporation.
poultry won immediate con
sumer acceptance. During the
first year of operating its own
processing facilities, the co-op
handled about 3Vi million
dollars worth of fryers, fowl
and turkeys for its members.
Patronage refunds are cur
rently being distributed to
members at the rate of 6 per
cent on all formula feed pur
chases and 4 per cent on all
farm supply purchases. Poul
try department patrons are
receiving refunds for the spe
cial retains of ' cent per
pound from poultry delivered
during the year.
Refunds are being distribut
ed in the form of capital cer
tificates in multiples of $20.00
with odd balances paid in
cash. Members have the op
tion of turning their certifi
cates in for cash at the full
face value or retaining their
certificates, which bear 6 per
cent annually, until they are
recalled.
More than $316,000 in cash
was distributed to 1954 cer
tificate holders. Before Christ
mas, OEP members received
over $150,000 in interest pay
ments at the rate of 5 per cent
on all outstanding certificate
issues. As of the first of this
year, all outstanding associa
tion capital certificates will
bear interest at the rate of 6
per cent paid annually in
cash. The 1959 refund distri
bution combined with the ear
lier payments, means that the
Oregon owned cooperative is
currently distributing over
one million dollars to its mem
bers, a welcome boost to lo
cal farm income
Rohe stated that In 1959
OEP continued to make sub
stantial investments in plants
and equipment as part of its
long range program to offer
the fully Integrated services
required by Oregon farmers.
Major Slap Forward
A major step forward In
egg handling procedures was
made during 1959 with the
installation of in-plant egg
cleaning equipment in Port
land, Eugene, Medford and
Salem. Adoption of in-plant
cleaning, which is available
to all co-op members at no
charge, relieves egg produ
cers of one of the most on
erous and time consuming
chores on the poultry farm,
and assures a superior product
for the consumer. Rohe point
ed out that OEP is the first
and only egg marketing or
ganization in Oregon to offer
this service to farmers.
Automated egg handling
equipment, ordered in 1959,
is scheduled for delivery dur
ing the last half of 1960. This
equipment will enable the as
sociation to clean, size, grade,
candle and package eggs auto
matically. Rohe stated this
will be the first completely
automatic egg handling opera
tion on the Pacific coast.
A number of important
steps were also taken to ex
pand and improve feed manu
facturing facilities. The Eu
gene mill, built in 1945, was
completely modernized dur
ing the year. An electronic
mixing system automatically
controls the entire milling
operation, increasing the out
put of the Eugene mill and
eliminating the possibility of
human error in preparing for
mula feeds.
In October, OEP purchased
the Imperial Feed and Grain
company, Hillsboro. Acquisi
tion of the Imperial facilities
provided much needed stor
age capacity and will enable
OEP to expand its local grain
purchasing program, which
each year adds many thous
ands of dollars to the income
of Oregon grain growers. The
enlarged operation at Hills
boro will also provide for
more efficient service to mem
bers located in northwestern
Oregon.
Rohe pointed out that total
assets of OEP increased over
1 13 million dollars during
1959 for a year end total of
over $5,300,000.
actors and only affected herds
are blood tested. But the new
program also depends upon
stepped up calf vaccination to
Include at least 80 percent of
replacement heifers.
Some areas have finished
vaccination for this year;
that's v.'hat makes the pro
gram leaders apprehensive.
The new program for beef
animals already has one west
ern winner Benton county,
Washington. The federal and
state veterinarians at Salem
are advised the Washington
state county achieved rccerti
fication under the cull-and-dry
program on March 15.
Vaccintion in dairy counties
where the milk ring test
came in earlier than the shirt
cut program for beef areas is
on the increase. This is in line
with the state plan to hold the
modified status and stretch it
into eventual eradication.
A modified-certified status
reactors is in not more than
1 per cent of the cattle or 5
per cent of the herds in any
count y is good for three
years. In beef cattle, the cull
and dry cow tests must cover
5 per cent of the eligible cows
annually,' or 15 per cent over
the three-year period.
Beef counties which had
less than half the total of their
fiscal 1959 vaccinations on
March 1 were: Baker, Crook,
Deschutes, Gilliam, Harney,
Jackson, Jefferson, Klamath
and Malheur.
Wasco and Sherman coun
ties have a plus mark. Vacci
nations in those counties are
a combined 232 calves ahead
of their last year totals.
Nearer the 1959 level, but
still short from 60 to 5700 calf
vaccinations, are Grant, Lake,
Morrow, Umatilla, Union,
Wallowa and Wheeler counties.
Tn another angle of the bru
cellosis program, officials re
port that Wasco and Wheeler
counties have now joined oth
ers without quarantined
herds.
Alfalfa Seed
Tested Differently
CVrvallis-A new use for an
old machine may bring high
er ireturns to Oregon alfalfa
seed, growers in years ahead,
predUcts Harold Finnell, Ore
gon State college extension
certification specialist.
Although Oregon already is
recognized as an outstanding
seed yiroducing area, research
ers aU OSC are continuing to
seek inew methods of improv
ing tbie state's seed crops.
Edvrard Hardin, seed tech
nologist at the OSC seed lab
oratory, has developed a way
to usa a dodder mill (seed
separator) to check one pound
sampUts of alfalfa seed for
cleanliness.'
In the past, a carload of al
falfa seed could be certified
on the basis of a 50 gram sam
ple. OStC extension certifica
tion specialists questioned the
accuracy of this small a sam
ple even though it met re
quirements set by the Associa
tion of Official Seed Analysts.
The owe pound sample that
can be tested in the dodder
mill is about nine times larger
than the 50 gram sample.
All alfalfa seed certified
this year by the OSC labora
tory is "being checked with
the dodder mill test. This
means buyers of Oregon al
falfa seed can be sure they're
getting tine best seed avail
able, Fintiell emphasized.
The dodder mill Hardin
uses for testing is a small
laboratory model built by
USDA agricultural engineers
and the CtSC agricultural ex
periment station seed process-
Groin Btirges Hit High
In Monthly Records
Salem - .March barge move
ment of g-ain Into Portland
hit an afl-time monthly
record, with 2.2 million
bushels of wheat and barley
unloaded at Portland terminals.
T. Ralph Harry, grain di
vision chief for the state de
partment of agriculture, says
export grain loadings topped
February s. 7 million vs. 5.7
million bushels. The March
export approximated 21
cargoes, about 65 percent of
which carriud wheat.
Grain movement was down
at Astoria, Pendleton and
Some Shifts Seen
In Spring Crops
Planted in State
Corvallis - Oregon farmers
plan to plant about the same
acreage to spring crops this
year, but they'll be shifting
their crops around a little, re
ported Mrs. Elvera Horrell,
OSC extension agricultural
economist.
Studying a survey carried
out by the USDA Crop Re
porting Board, Mrs. Horrell
found that Oregon farmers
plan to plant 3 per cent more
corn, 7 per cent more sugar
beets, and harvest 5 per cent
more hay this spring than
last.
The state's farmers also
plan to plant 15 per cent more
spring wheat. And with no
change reported in winter
wheat planted last fall, this
means an increase of about 2
per cent in total wheat acre-
ge in Oregon this year, Mrs.
Horrell said.
Compared to last spring.
Oregon farmers indicated that
they will reduce the total
acreage planted to potatoes by
per cent, and cut back bar
ley and oat acreages nearly
10 per cent.
Acreage Same
Nationally, farmers also ex
pect to hold the line on total
acreage planted this spring by
lmost balancing increased
acreages of some crops with
fewer acres planted to other
crops. For instance, the na
tion's farmers say they will
whittle barley, oat and spring
wheat acreage by around 5
per cent, and increase soy
bean plantings by 6 per cent.
Total potato acreage is
planned to be up about 2 per
cent.
The nation's farmers also
Indicated they are planning
to plant about the same acre
ages In corn, hay, sorghums,
and flaxseed as last spring. '
These planting .intentions
were revealed as the Crop Re
porting Board interviewed
some 80,000 farmers over the
nation, Mrs. Horrell ex
plained. But things could
change, she emphasized. After
learning what others plan to
do, each farmer may change
his mind. And price changes.
available labor supplies, avail-
able loan money, and the
weather could also change the
picture, she pointed out,
Tutidiy, April If, 10
Report Summarizes I
Weed Control Work
MAIL TRIBUNE, Medford, Or. 7
i y
Ray Hubbell, Jackson coun
ty weed control supervisor,
met with the county weed
control committee last night
to survey results of the past
year, lay out future plans and
prepare a budget for submit
ting to the county budget com
mittee.
In Hubbcll's annual report
covering the budget year oi
uly 1958 through June, 1959
he noted that the weed con
trol crews spent 934 hours
controlling blackberries and
brush on roadsides. Taking
the second highest amount of
time was ragweed control
with 403 hours spent.
The department also spray
ed about 124 acres or its
equivalent for control of
white top, the equivalent
of 118 acres for control
of puncture vine, 35 acres of
White cockle, 242 acres oi
poison hemlock, yellow star
thistle, six acres of Russian
knppweed; 16 acres of Canada
thistle, one acre of leafy
spurge, H'i acres of Marla-
han mustard, 95 Va acres of
ragweed, two acres of the
secondary n o xi o u s weeds,
Johnson grass and nine acres
of Bermuda grass.
The crews sprayed 1,200
miles of roadside area for the
county, 136 acres of state
highway right of way, and 57
acres of ragweed control for
the state department of agri
culture. Plots Summarised
Summarizing demonstration
plot experience in 1958, Hub
bell noted that Amino Tria-
zole when applied to new re
growth of poison oak showed
poor results, according to
1959 checks made. That ap
plied to poison oak that had
not been previously cut or
prayed, however, resulted in
pproximately 99 per cent
kill.
Checks in 1958 showed lit
tle it any control from appli
cation of simazine and diuron
applied to shoulders and
ditches during the fall of
1957. Howeve rsome results
were found in the spring of
1959. More test work is need
ed, however,
Checks in 1959 also showed
both Amino Triazole and dal-
apon used on cattails in the
spring and summer of 1958
resulted in good control.
A mixture of 10 pounds
dalapon, 2 pounds of 2,4-D,
and 8 ounces of spreader
sticker per 100 gallons of wa
ter was applied to regrowth
of grasses in roadside ditches.
eral applications would be-1
needed, Hubbell pointed out."
This application did give good .
control, he added.
Simazine at 10 pounds and-,
Amino Triazole at 4 pounds'
was applied to shoulder
grasses and weeds in Decem
ber, 1958. A spring survey
showed good control of an-.'
ual grass and weeds. Work'
done in other areas indicate
Simazine rate may be lowered
nd 2,4-D added for better
broad leafed weed control. "
Cattail control from appli
cation of Dalapon looked
good.
America's increased popu
lation is expected to require-
per cent more milk by.
1975.
Merrill shipping centers, ac
cording to the department
records. Cars inspected
Merrill dropped from 195
February to 72; at Pendleton
track inspections were off 64
earn? at Astoria, rprelnts were I Because the ditches were full I 1
' I ... 0 a w 'uii . taiiiKux , f mf ...a
of water most of the year sey- wimmiiu, m. rr
off 33,000 bushels.
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This summarizes some of the main proposals in attempt
ing to solve the wheat surplus problem. Direct payments
(no production control), resource control (to influence pro
duction), combination and additional aspects of the problem
will be ditcuwed later.
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