—Lancaster Farming, Saturday, Jan. 11, 1975
50
Kuhfuss Addresses Farm Bureau
Imposition of price and
wage controls by the new
Congress could trigger
cutbacks in food output by
fanners and ranchers, a
national farm leader related
recently.
Addressing the opening
session of the 56th annual
meeting of the American
Farm Bureau Federation in
the Rivergate Convention
Center, William J. Kuhfuss,
president of the Federation,
expressed concern over
recommendations of
Congressional leaders for
bringing back ceilings on
food prices.
“Government price ceiling
at any level of the food
pipeline put a lid on returns
to farmers. Livestock
producers still find them
selves in a loss position due
to the effects of the 1973 price
controls,” Kuhfuss said.
“Hog and poultry
producers have begun a
cutback in production as the
result of depressed prices in
(apway) farmers
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the face of high production
costs. Cattle feeding
operations have been cut
severely and culling and
marketing of older cows for
slaughter increased in 1974.
The percentage of the calf
crop marketed for slaughter
also increased significantly
last year. Livestock is the
balance wheel for
agriculture. Roughly 80
percent of our feed grains
are marketed through
livestock.
“Government in
terference in the operation
of the market in the form of
price controls in 1973
seriously disrupted livestock
production cycles. If the
government refrains from
repeating such interference,
the market will make needed
adjustments and both far
mers and consumers will be
better off than they would be
under price controls.
“Grain producers have
lost confidence in politicians
who bowed to pressures from
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domestic users of firm program and said that the
commodities and allowed tone may soon come when
embargoes to be put on > the government will have to
soybean exports in 1973 and invoke price and wage
thus threatened future ex* controls,
port markets. This ex- « is obvious that such
perlence will cause farmers recommendations are
to hesitate to increase politically motivated,” KmV
production this year unless to BB s*ld, “ns some mem
there is definite assurance b* rs of Congress seek to
before planting time from placate consumers about
the Administration and higher costs of everything
Congress that export con- toey buy through invoking
trols will not be invoked on pri ce controls.
1975 crops," Kuhfuss said. “There is a real danger
With production costs such toat Congress will embark
as fertilizer and seed at on a wide range of in
record highs, producers flationary spending
cannot afford to be shut out programs and then use price
of the world markets. We are and wage controls as a
part of the world market and coverup and a diversion of
the world economy, the farm public attention from the
leader said. basic cause of inflation -
“Freedom from trade government deficit spen
restraints is the best in- ding. Such spending can only
centive that can be provided a dd to our double-digit in
fer the increased U.S. grain flatten,
production that is sorely “The same Congressmen
needed for both domestic who express alarm over
and foreign markets. rising food prices and call for
“A high level of government price controls
agricultural exports is fed to express concern over
needed not only to provide toe endless increases in
markets for American wages gained by organized
farmers, but also to help pay l a bor which have been a
for needed imports of oil and contributing factor to
other products. Labor and widening retail food
business likewise have a margins,
great stake in world trade. “Some of these politicans
Every $1 billion of exports are seeking a return to a
creates 40,000 to 50,000 jobs cheap f o° d policy with huge
in service industries and federal subsidies to fanners
agricultural exports to them for
amounted to $21.3 billion in lower market prices,
fiscal 1974. ‘ ‘Fa™ Bureau, the largest
In referring to the threat of general farm organization in
price controls, Kuhfuss toe nation with 2.3 million
pointed out that Senate member families, has this
Majority Leader Mike message for Congressmen
Mansfield has proposed who want to bring back the
legislation to give President discredited farm subsidy
Ford authority to impose programs: farmers and
controls on every segment of
the economy. House Speaker
Carl B. Albert, he reported,
recently proposed a New
Deal type of economic relief
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ranchers have a right to seek
a fair return in the market
place and a right not to be
dependent on the federal
treasury for handouts to
supplement family farm
income.
"Farmers and ranchers
can and will meet increasing
demand at home and abroad
for food, but only if they have
on opportunity to receive a
fair return for their labor
and investment in a free
market. We do not need
more government
regulations to interfere with
production and add to the
cost of doing business. We
need less taxes, less waste,
less politics and more
statesmanship from our
legislators and an assurance
that producers will have
freedom to buy and sell.
“It is time to quit playing
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politics with ln|latlon. In
flation has reached
avalanche proportions in the
past two decades, both here
and around the world, and
stern measures will be
necessary Just to alow it
down. Some adjustments
will be painful, but actions to
stop inflation must be taken
or the alternative is a con
tinuing erosion of our
economic strength, in
creasing unemployment,
and an ultimate deflation
that could be a national
disaster.
“One way Congress can
cut spending is to stop
creating new federal
agencies and thus halt costly
additions to payrolls. Every
new government agency
swells the already bloated
federal payrolls, puts a new
(Continued on Page 511