Coleman County Chronicle (Coleman, Tex.), Vol. 46, No. 33, Ed. 1 Thursday, July 10, 1980 Page: 3 of 16
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I
,'Coleman, Texas, July 10, 1980
Cost-Price Squeeze
Hurts Farmers, Ranchers
COLEMAN COUNTY CHRONICLE
COLLEGE STATION-Farm-
ers and ranchers are suffering
from an old and. persistent
ailment-the cost-price squeeze.
Net agricultural income in
Texas is expected to decline to
about $1 billion this year de-
spite, higher cash receipts,
points out Dr. Carl Anderson,
economist in marketing with
l^e Texas Agricultural Exten-
jn Service, Texas A&M Uni-
Ersity System. That would put
it at the 1978-level.
Cotton growers, cow-calf op-
erators, sheepmen and dairy
farmers will likely fair some-
what better than wheat, milo,
corn and soybean farmers,
swine producers and poultry-
men, speculates the economist.
Anderson foresees produc-
tion costs this year jumping up
around 12 percent, with fuel,
fertilizer and interest expenses
leaping much higher. Although
this rise trails last year's big
jump, cash receipts may in-
crease only 4 to 6 percent. With
the cost of pumping water
skyrocketing, Texas farmers
will be especially hard hit since
production from irrigated
farms represents about 60 per-
cent of the state’s crop sales.
While money is generally
available for farmers to borrow,
the greatest concern is the cost
of that money and the income
that it might generate^, says
Anderson. With the current
cost-price squeeze, farmers and
ranchers will be hard-pressed
to repay high-cost loans.
All this is putting a growing
number of agricultural op-
erators in financial stress, par-
ticularly young farmers and
those depending heavily on
credit capital to run their
farming business.
It’s also changing the finan
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Rodeo
Week
Specials
BEER
Regular Coors,
Bud or Schlitz
Case SIB 5®
12-oz. Cans . .
(Full Cases Only)
(Tax Included in Sale Prices)
Jonita's Liquor
H
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ftlO* ^01 N. Neches - Ph. 625-5409^"sjjft
. cial potential of operators us-
ing a lot of credit compared
with more conservative farm-
ers that depend less on credit
and more on debt-free capital.
When the rate of inflation
exceeds the cost of money, it
generally pays to borrow mon-
ey to expand your operation.
Inflation boosts the net
worth of assets which support
weak cash flow statements. But
interest rates higher than in-
flation shifts the financial sit-
uation in favor of the operator
with a larger proportion of
equity in his business and little
debt.
The cost-price squeeze places
a premium on financial manage-
ment skills of farmers, contends
the economist. Some operators
will reduce their dependence
upon credit capital to minimize
financial risk by reducing re-
placement livestock and ma-
chinery purchases. Farm ex-
pansion will also slow down and
marginal cropland may revert
to grassland for grazing live-
stock.
High cost of money tends to
cut down on cash leasing agree-
ments and increases crop-share
renting arrangements, adds
Anderson. However, prolonged
inflation strongly favors land-
owners relative to tenant'
operators. Farming systems us-
ing the least amount of inputs
for maximum returns and min-
imum tillage practices gain
more rapid acceptance.
Pressures from the price-cost
squeeze also encourage forward,
pricing. More producers decide
to contract for an agreed price
upon delivery. Hedging in the
futures market is an alternative
for some individuals who under-
stand this forward pricing
strategy. It is easier to finance
an operation when assured a
reasonable price for at least a
part of the expected crop or
livestock production. High
money costs also encourage
farmers to sell at harvest time
to avoid storage and interest
costs.
A possible “plus" from tight
and expensive credit is that
producers take a stronger in-
terest in marketing, notes the
economist. Year-round mar-
keting strategies become es-
sential, and there is an in-
THE TOBACCO-SPITTING contest was a during the event. Beechnut was
first for the July 4th FunFest at the city probably not Jimmy's brand though . .
park and participation in the competi- he failed to place in the finals although
tion was better than expected. Above, his style would have won points
Jimmy Folkner displays his technique anywhere, (staff photo)
creased tendency to shift some
of the financing burden to the
marketing agency. Emphasis is
on a total production-marketing
system that is cost-effective.
With the overall supply-de-
mand relationship for farm
commodities affecting farm
prices regardless of production
costs, producers will need to
look at different enterprises in
the years ahead, suggests
Anderson. With reasonable
efficiency, diversification of
enterprises may substantially
reduce the possibility of finan-
cial disaster resulting from long
periods of low prices and in-
come for a given enterprise.
The old saying, “Don’t put all
your eggs in one basket," is still
worthy of consideration.
Sad Reply
A housewife left home for the
day. She locked up the house tightly,
leaving a note on the door for the
grocer: “Nobody home. Don't leave
anything. I’ll call tomorrow.” When
she returned home, the ouse had been
burglarized and all her valuables stolen.
On the note to the grocer were the
words: "Thanks, we haven't left
much.”
A&M University System.
The only way for officials of
the screwworm program to
successfully attack the flesh-
eating pest is to first identify
worm samples as positive and
to know locations of all possible
cases through ranchers’ re-
ports. Then some recently
developed insecticide pellets
can be air-dropped to kill adult
ed in the United States this
year so far, that one being in
Coleman County, Texas,- in
April. However, unless every-
one keeps their guard up and
submits worm samples as soon
as possible, it could be a costly
summer.
Worm samples can be sent to
the Mission Lab in postage-
free mailing kits available from
veterinarians and the county
Extension office, adds Black-
mon. „
Add color and flavor to salads
by including one or more of
these ingredients with the basic
green salad: chives, pineapple
tidbits, avocado, olives, Parme-
san or blue cheese, mushrooms,
croutons, curry powder, se-
same seeds, celery seeds.
These additions will enhance
any “beat-the-heat” salad, says
Dr. Rose Tindall Postal, foods
and nutrition specialist with the
Texas Agricultural Extension
Service," The Texas A&M Uni-
versity System.
SHOP IN COLEMAN
Page 3-A
Biofeedback
used to cure
common headache
COLLEGE STATION - A
Texas A&M University
graduate student is refining a
treatment for the common
headache that’s more effective
than aspirin and costs nothing.
Doctoral candidate Fred
Drummond says he can teach
people who have recurring
headaches to control them by
using biofeedback, a technique
which helps people recognize
how the body is reacting to
stress situations and control its
responses.
Tension headaches are
caused by holding forehead
muscles taut over a long period
of time, he said. The idea is to’
learn t< recognize when a
headache is coming and learn
to stop It by relaxing tensed
muscbw- .
S-’.....“
NOT THAT FAST
Temptation may be strong,
but it has never been known to
overtake the fellow running
away from it.
Call Goes Out
For "Worm"
Samples
The “S.O.S.” call is going out
to all stockmen over the state-
that’s “Send, Oh Send” any
worm samples found in live-
stock wounds.
The reason for the appeal is
that worm samples are coming
in slowly to .the USDA Screw-
worm Eradication Laboratory
at Mission and prime screw-
worm season is at hand, points
out Roger Blackmon, county
agent with the Texas Agricul- / closely on a regular basis and to
tural Extension Service, Texas submit any worms that may be
found in wounds, empha-
sizes Blackmon. With most of
the Screwworm eradication
fight now being conducted 100
miles or more south of the
border in Mexico, individual
stockmen are now the first line
of defense against this destruc-
tive pest.
Only one positive case of
screwworms has been cOnfirm-
flies followed by an air-drop of
sterile screwworm flies, ex-
plains Blackmon.
The insecticide pellets,
known as the Screwworm
Adult Suppression System
(SWASS), quickly reduce popu-
lations of wild screwworm flies
in an area. This enables sterile
flies which are then dropped to
“do their thing”. Female screw-,
worm flies that mate with
sterile males produce eggs that
will not hatch -and the females
usually mate only once.
Since - sterile flies are no
longer air-dropped routinely in
Texas, it’s especially impera-
tive for stockmen and pet
owners to check their animals
Welcome to Coleman's
43rd Annual
and while you're here . . .
Come Eat With Us!!!
at
3 K's Bar-B-Q
1216 N. Neches — Ph. 625-2020
Wayne’s
A Special Welcome to
Coleman's 43rd Annual Rodeo!
Last Week’s Sidewalk Sale Prices
Still in Effect!
IF YOU WANT TO SAVE MONEY ON YOUR
R0DECL4IEEDS--SH0P AT WAYNE'S
WESTERN CORNER.
Western Accessories
•Belts
•Buckles
•Hat Bands
All at
Discount Prices! IkS
I Wayne's Knit
I Wranglers
M *Reg. $22.95 ,
•Size 27 to 42 -T •
•Wayne’s Price-
| ?16M
I Special ■ Men's
I Western
I Shirts
•Reg. to $14.99
•Short or Long Sleeve
•Wayne’s Price -
| $788
First Quality Merchandise at Discount Prices!!
Boots - Boots
Wayne Has Them. . .
Men's and Children's Boots. .
Famous Brands . . .
All at Discount Prices
Western Hats
For the Entire Family-
%
Famous Brands at
■ Discount Prices!
WAYNE’S
Western Corner
Jim I ns) of ili< ( uiiiiIhmisc
Plume I 73
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Coleman County Chronicle (Coleman, Tex.), Vol. 46, No. 33, Ed. 1 Thursday, July 10, 1980, newspaper, July 10, 1980; Coleman, Texas. (https://texashistory.unt.edu/ark:/67531/metapth731721/m1/3/: accessed July 12, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Coleman Public Library.