NEW MEXICO: There were 6.4 days suitable for fieldwork. Topsoil moisture was 4% very short, 29% short, 62% adequate, and 5% surplus. Wind damage was 19% light and 15% moderate. Hail was reported in the southeast. Farmers were busy irrigating, cleaning ditches, fighting alfalfa weevils , and planting and harvesting crops. Alfalfa was in mostly fair to excellent condition, with the first cutting almost complete and 33% of the second cutting complete. Corn and cotton were in mostly good to excellent condition and both were nearly all planted. Sorghum was 25% planted. Winter wheat was in mostly fair to good condition and was 99% headed. Peanuts were in good condition with 45% planted, mostly in the south eastern part of the state. Both chile and onion conditions improved over the week, and onions reached 25% harvested. Pecans were good to excellent and nut set was 2% light, 65% average, and 33% heavy. Ranchers were busy moving cattle and tending to animals. Supplemental feeding continues to decrease. Cattle were reported as 2% poor, 47% fair, 39% good, and 12% excellent. Sheep were 4% very poor, 6% poor, 41% fair, 36% good and 13% excellent. Range and pasture was reported as 4% very poor, 12% poor, 39% fair, 42% good, and 3% excellent. Compared to the five year average of 27% very poor, 32% poor, 30% fair, 11% good, and 1% excellent, our range and pasture is looking much better.
 

CROP PROGRESS PERCENTAGES WITH COMPARISONS
CROP PROGRESS		This Week	Last Week	Last Year	5-Year Average
CORN	Emerged	73	68	72	84
COTTON	Planted	99	91	94	94
ONIONS	Harvested	25	N/A	24	18
PEANUTS	Planted	45	35	62	56
SORGHUM (ALL)	Planted	25	12	17	22
WHEAT (ALL)	Headed	99	97	92	97

NEW MEXICO-ARIZONA: There were 18,000 hired workers on farms and ranches in New Mexico and Arizona during the week of April 10-16, 2005, up 6 percent from last April. Average hours worked by all hired workers dropped to 44.8 hours a week compared to 45.7 hours last year. Wage rates for field workers were up from last April to $7.95 an hour, an increase of 40 cents. Livestock worker wages also increased to $9.40, compared to $8.20 an hour in April 2004. Overall, average wage rates for all hired agricultural workers improved to $9.18 an hour, up 10 percent from this time last year.

UNITED STATES: There were 978,000 hired workers on the Nation's farms and ranches during the week of April 10-16, 2005, down 10 percent from a year ago. Of these hired workers, 746,000 workers were hired directly by farm operators. Agricultural service employees on farms and ranches made up the remaining 232,000 workers. Farm operators paid their hired workers an average wage of $9.34 per hour during the April 2005 reference week, up 11 cents from a year earlier. Field workers received an average of $8.55 per hour, up 8 cents from last April, while livestock workers earned $9.23 per hour compared with $8.95 a year earlier. The field and livestock worker combined wage rate, at $8.73 per hour, was up 14 cents from last year.

2006 Milk Production Expansion To Outstrip Demand Growth: Milk and dairy product prices are expected to fall again in 2006. Expansion in milk production is projected to accelerate after more than 2 years of relatively strong returns. Production growth is expected to surpass demand gains (particularly for skim solids), leading to the lower prices. Even so, farm milk prices are projected to stay considerably above the low prices of 2002-03.

The strong returns of late 2003 through early 2005 and the expected good returns for the rest of 2005 have generated strength in milk cow numbers. Relatively few farmers have exited dairying because recent returns have bolstered their staying power, a pattern that is likely to continue through 2006. Meanwhile, the number of producers wishing to add substantial new facilities probably has risen considerably, following a 2-year rest after the last expansionary surge. However, continued tight replacement heifer markets, likely tight alfalfa supplies in the Northwest, the generally lackluster prospects for dairy quality forage, and the lengthening time needed for governmental approvals probably will inhibit expansions during the rest of 2005. By 2006, the effects of these problems should lessen.

Milk cow numbers are expected to stay near early 2005 levels during the rest of this year, before drifting higher as 2006 progresses. If so, 2006 milk cow numbers would average about unchanged, following a very small fractional decrease in 2005.

Milk per cow should continue to recover in 2006. Incentives for heavy concentrate feeding will remain quite favorable. Milk per cow is projected to grow more than 2 percent in 2006, slightly faster than 2005's expansion. However, such increases may hinge on the availability of good 2005 forage in light of the apparently very tight stocks of high quality hay at the start of the current forage year.

Gains in demand for dairy products are expected to be fairly substantial. Growth in the economy and consumer income is forecast to stay good. Consumer debt may be the most vulnerable point. Demand could soften if interest rates rise more than currently expected, forcing reductions in expenditures for consumption.

Export demand for nonfat dry milk is projected to stay good through at least most of 2006. New Zealand milk production may rebound in its 2005/06 season, and European export supplies could creep larger if milk production returns to quota levels. However, Australian output probably will be stagnant even if the current dry conditions do not worsen. Continued strong demand for milk powders is likely to readily absorb the small increase in other exporters' supplies, and substantial amounts of U.S. powder probably will be needed to meet import needs.

Farm milk prices are projected to fall more than $1 per cwt in 2006, following a slightly smaller decrease this year. Although 2006 prices are expected to be much lower than the 2004 record, they are projected to be near the 2000-04 average. Healthy demand likely will remain the key to absorbing record output at such relatively favorable prices.

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