Title: Adjusting Livestock Farms in the North Central States to the Prospects of the 1960's
Abstract: T IS my view that the prospects for North Central livestock farms in the 1960's can be summarized in two words-severe competition. This includes competition with the farmers of other areas for markets, with other industries for resources, particularly labor and capital, and with other farmers for all production resources. While it is probable that the action of Government may tend to lessen the competition for markets, it is possible that the severity of competition for some production resources will be increased. For example, supply management or control program that places primary emphasis on part-farm land retirement might reduce the competition for markets for farm output but materially increase the competition for land. It is my view also that in the last decade it has been adequately demonstrated that the adjustment of aggregate supply to prospective demand, at prices generally believed to be fair and equitable, is largely beyond the capabilities of individual action. Hence, this type of adjustment must be facilitated largely by group action, with or without the assistance of Government. However, large area of agricultural adjustment is left for individual action. This area includes (1) adjustment of the combination of enterprises to meet shifts in relative demand-for beef versus hogs, for example, (2) changes in factor combination and technology to produce specified levels of output, and (3) changes in farm size or levels of output. It should be recognized that the nature of the industry is such that farmers are forced to adopt average cost-reducing but output-increasing techniques in an effort to maintain and improve their own financial positions, even though the aggregate effect is to increase production and add to the surplus problem. With an assignment such as adjusting livestock farms to the prospects of the 1960's, one is tempted to envision giant farms of several thousand acres with large feeding plants in which hogs and cattle are fed by the tens of thousands. But existing research information suggests that these temptations be curtailed. A study by Heady, McKee, and Haver, published by Iowa State University in 1955, concluded that a farm of 240 acres, one falling within most of the definitions of family farms, is large enough to realize the major reductions in cost.2 A later study by Beneke
Publication Year: 1961
Publication Date: 1961-12-01
Language: en
Type: article
Indexed In: ['crossref']
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