Page 4/The Battalion/Monday, October 17,1983
High beef prices foreseen
because of Texas drought
By Debbie E. Warren
Battalion Reporter
Beef that costs $ 1.50 a pound
this week will cost about $ 1.80 a
pound this spring, says an eco
nomist with the Texas Agricul
tural Extension Service.
Economist Richard A. Ed
wards says the drought in west
Texas is forcing cattle ranchers
to sell or slaughter their cattle
because they can’t afford to feed
them.
“Right now we’re seeing rela
tively low beef prices,” Edwards
says. “The projections say we’re
going to see beef prices not only
go back to what they were, but to
a higher level. These cattle that
would normally be going
through the cycle on a consistent
basis aren’t going to be there.
Edwards says consumers will
be faced with a 20 percent in
crease by spring. That figure is
based on government projec
tions of the number of cattle in
the system.
The only crops effected by
the drought are corn, soybean
and cotton, Edwards says.
“In essence, we’re going to
have a shortage of cattle and
therefore, the prices will be bid
up on the lower amount coming
There has been no govern
ment aid for the cattle industry,
Edwards says. Government aid
has gone primarily to farmers
producing crops.
“Of course corn and soybean
are used so much in feed grains
in our animal industries that
they will have an effect on ran
chers,” Edwards says.
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“The drought has been signi
ficant enough that it has dried
up a lot of the normal grazing,”
Edwards says.
The drought has injured the
grain crop so much that the
price to feed the cattle has gone
up significantly. The farmer is
faced with a double-edged
sword, Edwards says.
Cotton has been effected as
well, but when you consider how
much cotton goes into a $25
shirt, the effects of the drought
are rather insignificant. It will
make a big difference to the cot
ton farmer, but at the consumer
level, a 10 cent increase per
pound of cotton is not going to
effect the price of retail gar
ments too much, Edwards says.
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“He can’t maintain the cattle
on his own ranch and to feed
them would cost so much that he
almost has no alternative other
than to get rid of them, or get rid
of a number of them anyway,”
Edwards says.
He says the drought will
effect poultry prices also be
cause the industry is dependent
on feed grains. When feed
prices go up, poultry farmers
will be in the same position as
cattle farmers, but on a smaller
scale.
He says the cattle ranchers
who must sell their cattle will
have limited options as to wh^t
they can do with their land.
Edwards says the best way the
consumer can prepare for the
price increases is to buy beef and
poultry products now at the re
duced prices and store them.
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“The land they are ranching
on doesn’t have many alterna
tives,” he says. “It’s basically
ranch land in terms of Texas
people. The type of soil and the
neat is not conducive to raising
anything but cattle.”
“If you see a really good buy
at the meat market or supermar
ket, buy substantial quantities
and put them in your freezer,”
he says. “That would be just ab
out the only thing you can do
now. Those prices are going to
be going up.”
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TRUE REDD speaks
TONIGHT
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Beef, swine industries
fear dairy legislation
United Press International
TOPEKA, Kansas — If dairy
men are paid to reduce milk pro
duction, an estimated 1.5 mil
lion additional cows will be
slaughtered in the first half of
1984, creating an economic “dis
aster” for beef and swine pro
ducers, the executive vice presi
dent of the Kansas Livestock
Association savs.
notnic impact and that makes it
everybody’s business. This
proposal is indefensible."
John Meetz said the dairy
legislation passed Oct. 7 by the
Senate is a “rip-off of consum
ers, taxpayers and livestock pro
ducers.”
He is especially displeased
with the paid diversion provi
sion of the legislation, he says.
The dairy legislation is
attached to a tobacco subsidy bill
already approved by the House.
The bill now goes back to the
House, but a House Agriculture
Committee spokesman says
Rep. Kika de la Garza, D-Texas
and chairman of the Agriculture
Committee, plans to move this
week to bypass House debate
and go straight to a House-
Senate conference on the final
version of the bill.
“It makes absolutely®
nomic sense for the eoven j/vertisinc
to continue subsiaiziiifK nnsrin ^,,.1
prices at above market
creating huge surpl
costing taxpayersbilliod
lars and, at the sametimt,
di/e dairymen to reducelk j] ie y e .
Worksl
Texas A
groups will
their audie
sponsored
The wor
designed tc
^messages.
From “The
ions on wri
he local m
Pardcip;
rutstandinj.
organi/.atio
plus," Meetz said.
.... , r j L Registra
Furthermore, 'f air Tues( f ((
r#»niirp minf nr( u .. .
“It’s simply not fair to expect
livestock producers to bail out
the dairy industry,” Meetz said.
“While the beef and swine in
dustries have historically stayed
on the sidelines relative to dairy
subsidies, the paid diversion
program will have a serious eco-
The legislation would attempt
to reduce overproduction that
cost the government $2.7 billion
during the last fiscal year by
paying dairy producers to re
duce their milk output. It would
also assess them 50 cents for ev
ery 100 pounds produced and
slightly reduce the price support
level.
,uc paid to reduce m,lk P r indiv ^ u;
tion, livestock economist! E ; n m,
mate that 1 to 1.5 millicm F' p”
tional cows will be slaiijk 1
during the first halfofl® I
said To submit i
“That will be a disasic in 21
beef and swine product:
cost them millions < ’
red need market prices fo
animals," Meetz said. “B
swine market prices areil
Jacl
depressed and even with I
creased dairy cow slaiij ijr-x
meat supplies are approit IVy X A
ly 3 percent higher main f
ago.’
Reagan authorizes committee
sets ’84 campaign in motion
United Press International
WASH INGTON — President
Reagan legally becomes a candi
date for re-election today with a
multimillion-dollar political
machine already running and
advisers “100 percent con
vinced” he will run.
In a late morning Oval office
meeting with Sen. Paul Laxalt,
R-Nev., Reagan plans to sign a
letter authorizing a “Reagan-
Bush ’84” campaign committee
to open for business.
Although Reagan could still
back out, and has insisted he is
not ready to say yes, all his key
advisers believe he is in the race
United Pi
DALLAS -
son has pron
cratic suppoi
by the enc
whether he
dent in 1984
Jackson i
about 200 I
to stay.
“I’m 100 percent convinced
the president is going to run,”
Edward Rollins, Reagan’s chief
political adviser, Said Sunday.
Asked what the effect on the
Republican Party would be if
Reagan chose not to run, White
House chief of staff James Bak
er said flatly, “That’s not going
to happen.” Bblitical acti
Laxalt, national 51115,000 neede
chairman of the Republ: lot in the 19
ty, told reporters last»« ! He told sup
Reagan’s intention to I Immunity 1<
the document establish the “final staj
committee, a formalityttf F
by the Federal Elections 1 L
mission.
We ai
When Reagan puts his!
the letter to the FECj
said, “He will legallyk>
date.”
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