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deficiency payment purposes is less than 3 bushels. Although the 

 actual average yield, in recent years, is 15 to 20% higher. When 

 you subtract the 15% wheat program flex acres from the planted 

 acres coupled with the disparity between actual and payment yields 

 the current deficiency payment will only cover 60 to 65% of actual 

 production. Including the projected deficiency payment, the 

 average net price will equal approximately 3.74 per bushel. In 

 spite of the good crop this year, they will only net a little over 

 $10.00 per acre. 



Feeder cattle are currently bringing .80 to .85 cents per lb. 

 Using $1.70 corn, which is what low test weight corn is currently 

 selling for in our area, my brothers tell me .that their cost per 

 lb. of gain for feeder cattle runs .35 to .40 cents. With fat 

 cattle prices at .76 to .78 cents per lb., they will show a good 

 profit on backgrounded or finished cattle. However, unfortunately, 

 it is primarily at the expense of the feed grain production. Our 

 national NFO vice president, John Garland, who is a diversified 

 farmer in Indiana, says his production cost for corn is 

 approximately $2.52 per bushel. 



Hog prices are just about break-even, but again, this is only 

 because of cheap feed grain. Production cost runs about .40 to .41 

 cents per lb. , which is about what they sell for. Using somewhat 

 higher corn. prices than todays market, Iowa State University and 



