Form Trade Balance Highest in Five Years
Farm exports for the fiscal
year ended June 30 were $2.0
billion larger than agricultural
imports, Secretary of Agriculture
Earl L. Butz said last week.
“This favorable agricultural
trade balance, the highest in five
years, is vitally important to the
Nation’s balance of payments,”
Butz said.
The favorable balance of trade
in farm products helped offset a
off in better
tion at lower costs,
plus savings in time and effort. This all
means more net profits for you. Stop'in today
and ask about our Special Stockman’s Knife
offer. Let us show you how Mol-Mix will fit your
dairy and- beef operation so that you can truly “cut costs”
large U.S. trade deficit in non
farm products. Imports of non
farm items ran $7.1 billion higher
than non-farm exports. The $2.0
billion favorable balance in farm
trade held the Nation’s overall
balance of trade to a $5.1 billion
deficit, the largest in history.
The favorable balance in U.S.
farm trade came mainly from
heavy export shipments of
soybeans and soybean meal,
cotton, dairy products, cattle
hides, meats, fruits, nuts and
vegetables.
The excess of farm exports
over farm imports would likely
have been greater had it not been
for the trade crippling
longshoremen’s strikes at West
and East Coats and at Gulf ports,
principally during the first half of
the year; uncertainties in the
international monetary
situation; and some slowdown in
economic growth in major
foreign markets during the year.
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The Farm Credit System
established new records m loans
to farmers and their cooperatives
during the year ended June 30,
1972, it was announced last week
by E.A. Jaenke, Governor of the
Farm Credit Administration.
The total amount of loans made
during the year was $15.4 billion,
an increase of 13.1 percent over
the previous year. Loans out
standing on June 30,1972, totaled
$17.6 billion, a 9-percent increase
over the amount outstanding a
year earlier. “Perhaps more
important than the dollar
amount outstanding,” Jaenke
said, “is the fact that it
represents loans to more than
726,000 farmers and 3,000 of their
cooperatives.”
Speaking at a meeting of the
American Institute of
Cooperation at Ames, lowa,
Jaenke reported lending by
Production Credit Associations at
$lO billion during the year, with
Farm & Dairy Store
Store Hours 7 A.M. to 9 P.M.
Closed Tue. & Sat. at 5:30 P.M.
ITH OUR LIQUID CONCEPT!
Record Amounts Borrowed
From Farm Credit System
Phone 354-0744
Mol-Mh? i'i h q e uid
liquid supplements leader
' //
r
Lancaster Farming. Saturday, August 12.1972
loans outstanding at year’s end of
$6.8 billion. These figures, he
said, were increases of 12.3
percent and 8.9 percent
respectively. PC As make short
and intermediate term
agricultural loans chiefly for
operating purposes.
The Federal Land Banks
posted increases of 38.2 percent
in the amount of loans made and
20.4 percent in the number of
loans made during the 12 months
preceding June 30, 1972, com
pared with the previous year.
Land Bank loans totaled $1.7
billion in amount and 44,470 in
number. At the end of the year,
the Land Banks had 406,548 loans
Farm Tax
Workshop
Slated
A workship designed to provide
basic instruction in income tax
preparation will be held October
17, 18, and 19, 1972 in the Farm
and Home Center, Lancaster, Pa
The program will cover the
who, how, when, and where of
farm tax reporting.
Who has to file, how to prepare
returns for farm, schedule T,
business, schedule C, how to
prepare and report depreciation
and investment tax credit, how to
report short and long term
capital gains, special treatment
of dividends, royalities, and
social security, regular and
optional method, and much more
Instructions will be given on
how to prepare a Federal 1040
form, taking full advantage of
exemptions, deductions, and
credits allowed. How to get taxes
back if you paid too much.
Special instructions will be
given on the preparation of the
Pennsylvania personal income
tax.
Supplies for the course will be
furnished. A current tax manual
and actual forms will be used.
The course will be limited to 50
people in order of registration
received. The registration fee of
$20.00 will cover lunches and
materials. The course is open to
anyone, including tax prac
titioners, interested in gaining
expertise with farm tax matters.
Send registrations to: Wayne
Kelly, Farm Management and
Tax Specialist, Penn State
University, 202 Armsby Building,
University Park, Pa 16802.
Cotton
Cotton probably was first ,
domesticated in the Indus
Valley of India about 5,000
years ago, but it remained
available only to the rich for
centuries.
JOHN Z. MARTIN
New Holland RDI
Phone 717-354-5848
outstanding for a total of $8.4
billion, a dollar volume increase
of 11.2 percent. Loans made by
the Federal Land Banks are
secured by first mortgages on
rural real estate.
The Banks for Cooperatives,
according to Jaenke, made loans
totaling $2.9 billion for the year, a
5.9 percent increase, while loans
outstanding on June 30, 1972,
were $2.0 billion, a 1.0 percent
increase over the amount out
standing a year earlier.
In addition to the direct loans
made by the various units of the
System, the Federal In
termediate Credit Banks main
source of loan funds for PCAs
discounted $7OO million in far
mers’ notes for other financing
institutions, an increase of 5
percent for the year. On June 30,
1972, they had $3OO million in such
notes outstanding, 3.1 percent
more than 12 months earlier.
Jaenke said loan increases for
Production Credit Associations
and Banks for Cooperatives were
in line with increased credit by
farmers and their cooperatives.
“They reflect the higher cost of
doing business which results in
the greater use of credit,” he
said.
The FCA Governor attributed
the marked increase in lending
activity by the Federal Land
Banks to the fact that “farmers
have concluded that interest
rates are as low as they are apt to
be for a while.” He pointed out
that only last year did farmers
again begin to borrow for pur
poses that has been deferred.
“This year’s higher rate of loan
activity is a continuation of that
trend,” he said.
The Farm Credit Ad
ministration, which Jaenke
heads, is the independent Federal
agency which supervises the
borrower-owned Farm Credit
System. The System is made up
of 12 Federal Land Banks and 593
Federal Land Bank Associations,
12 Federal Intermediate Credit
Banks and 439 Production Credit
Associations, and 13 Banks for
Cooperatives. It is owned by
more than 900,000 farmers and
4,000 farmer cooperatives.
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1070 Steinmetz Rd.
Ephrata, Penna. 17522
Ph. 733-1206
LOCAL DEALERS
Frank Snyder
Akron 859-2688
Caleb Wenger
Quarryville 548-2116
Landis Bros. Inc.
Lancaster 393-3906
Carl L. Shirk
Lebanon 867-3741
SoUenberger Farm Supply
Centerport, Pa.
Ph. 215-926-7671
19