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Show Millard County Progress Annual Farm Supplement, Friday, April 17, 1981 Page 10 Interest Rates Increased in 1981 Crop, Storage Facility, and Dryer Bins Previously, CCC had charged Increases in loan rates to 14 Vi 11 Vi percent on crop loans and 1980-cro- p and loans for percent farm storage facility and dryer 12 Vi percent on facility and dryer loans, and other changes in the loans. The new interest rate and the were loan program facility variable U.S. a adjustment procedure announced today by will not apply to 1980 crop loans offiof Agricultural Department and facility and dryer loans cial. Edward Hews, acting executive already in effect, Hews said. Interest rates announced today vice president of the Commodity based on the cost to CCC of are Credit Corporation, said the increase affects all facility and borrowing money from the U.S. dryer loans approved beginning Treasury, Hews said. The change April 1 and 1981-cro- p commodity to a variable interest rate on loans. Further, he said, begin- outstanding loans will enable in line with ning next October, the interest CCC to adjust rates rate on 1981 crop and facility treasury borrowing costs, he said. Hews also announced the loans made after today will carry following changes in the farm a "floating" interest rate, subject to adjustment each Oct. 1 and storage facility and dryer loan program: April 1. Hews said the higher interest rate and the actions for making facility and dryer loans announced today are expected to result in a savings to the U.S. government of two years. of about $29 million for the All existing storage space will balance of fiscal year 1981 and be considered in determining $145 million for fiscal year 1982. storage capacity. In the past, space already in use to store grain under the farmer-owne- d grain' reserve was not counted in. figuring storage needs. The maximum term of new Foreign countries have differloans will be five years; existing ent Ideas about mans best loans are for eight years. In the friend. banned Although The maximum amount a farmer may borrow or have United States, dog skin jackets made in Hong Kong are popular outstanding under the program is In Europe. The most popular Is a to from reduced $100,000 brand called "China Wolf. $50,000. An increase In the loan down payments from 15 percent to 25 percent. Storage needs will be based on one year's production instead Fido Fur? Supplies Decline Prices to Rise the second quarter, meat production will decline seasonally and is expected to total 3 to 4 percent below a year earlier. In the face of financial losses, hog producers are cutting production; the March 1 hog inventory was down 8 percent from last year and the breeding inventory was down 11 percent. This suggests subdeclines in stantial pork output for the rest of this year. In addition, because of reduced placements of cattle on feed last fall, fed cattle slaughter will drop sharply this spring. Nonfed slaughter is also expected to decline in the spring as grazing begins. ' Broiler production Is likely to levcontinue above els, but smaller supplies of red meats will raise farm prices for poultry as well as for pork and beef. Retail meat prices are also forecast to rise this spring, substantially exceeding year-ag- o levels. In the first quarter, retail prices for red meats were around 5 percent higher than last year, while those for poultry were about 10 percent higher. During the first 3 months of 1981, total meat production was record large about 3 percent last than greater year. Mild winter weather was conducive to above-averarates of gain for cattle and hogs, causing feeding periods and, in many cases, average weights. Drought-reduce- d forage supplies and high production costs resulted In large nonfed slaughter, further boosting meat supplies. These large meat supplies helped hold down livestock and poultry prices in the first quarter. Primarily because of farm prices in the first quarter, net farm income through the winter probably did not improve from last fall's low levels. Even so, net income for all of 1981 will still substantially surpass the 1980 estimate of about $22 billion. Cash receipts for crops may be up 6 to 10 percent from 1980, and livestock receipts could rise 9 to 13 percent. However, total production expenses are expected to climb 9 to 13 percent this year, with fuel, feed, fertilizer, and agrichemicals leading the rise. Farmer's planting intentions reveal that the total acreage seeded to 1981 crops may surpass 1980 by about 2 percent. With average yields, 1981 crop production will be substantially larger than last years drought-reduce- d levels. Supplies of seed, fertilizer, pesticides, and fuel are readily available, but at higher prices than last year. Retail food prices In 1981 are still forecast to Increase 10 to 15 percent from last year; current indicators suggest that a rise of nearly 12 percent. The farm value of foods will account for nearly a third of the Increase, while marketing costs will account for about half. Higher red meat and poultry prices will have the most significant impact, because these Items account for nearly 35 percent of consumer food In year-to-ye- ar year-earli- er - ge shorter-than-norm- heavier-than-usu- al al ed ruin your estate? Now is the time to act. Of all the planning you do for your farm or ranch, and your family, the most important of all is your estate planning. Why risk losing a third or half of all youve put together for lack of a plan. At First Security Bank we have a staff of highly skilled experts who spend all their time on estate planning, probate service and the other things needed to protect your interests. And your familys. Act today. 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