UEP supports target price formula
WASHINGTON, D.C. -In the House Committee on Chairman of the United Egg
iony on March 2 before Agirculture, Mike Hirth, producers Feed Grain
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RAYMOND CANTI
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Committee, called for
commodity target prices in
the new Farm Bill to be
pegged at about 80 per cent
of the cost of production and
requested that finished or
processed agricultural
products be encouraged
under P.L. 480 programs.
Hirth was among 12 wit
nesses who appeared before
the Committee concerning
wheat and feed grain issues.
His testimony was along
similar lines as that
presented by UEP to the
Senate Agriculture Com
mittee during 1975 hearings
on target prices.
Hirth noted that the key to
the target price concept was
what constitutes the far
mers’ cost of production. For
this purpose, he suggested
the House Committee adopt
the methods ana formula of
the Senate Committee on
Agriculture, Nutrition and
Forestry which was an
nounced January Ift when
Sen. Herman Talmadge
introduced his proposed
Agriculture and Consumer
Protection Act of 1977
(5.275). In that formula,
Hirth noted that the Com
mittee based land values on
a 35-year'average of land
acquisition costs. He said the
Congressional Budget (Mice
figures which used current
land value figures were not
as realistic as the Senate
committee’s.
“Our recommendation of
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Kauffman’s Agri-Trailer Sales
Box 655 ROI
Elizabethtown Pennsylvania
717-367-3550
Lancaster Farming, Saturday, March 12,1977—111
80 per cent of total cost of
production will not assure
grain farmers of a break
even position should supplies
be grossly in excess of
demand, but neither will it
encourage producers to
grossly over-produce since
they will know government
will not bail them out.” Hirth
said. “These levels should
remove the likelihood of
outright bankruptcy, en
courage greater efficiency in
production, represent suf
ficient encouragement for
grain farmers to produce
sufficient supplies for
projected market demand,
and lessen the need for
government intervention.”
Hirth told the Committee
UEP favors the 35-year
average of acquisition cost of
land because it will have less
influence on the escalation of
land values. To use a for
mula for the cost of
production which reflects the
immediate land sale values
would only add to the in
flationary pressures to
escalate those values, he
said.
“We believe the below
production cost target price
levels we recommend will
also reduce the need for
federally held commodity
reserves which later will be
used to depress grain prices
and encourage over
production in the livestock
and poultry industries,” the
U.E.P. spokesman con-
tinued. He told the Com
mittee that UEP would
support an extension of time
for commodity loans beyond
the current one-year period
in order to give producers an
opportunity to move his
product into the market in
another marketing year. He
said this, too, would
minimize government in
volvement in federally held
grain reserves while
assuring producers of a
cushion against a severe
market drop in any crop
year.
In concluding his
testimony before the House
Agriculture Committee,
Hirth asked that language be
included under both Title I
and Title II of the Food For
Peace Programs (P.L. 480)
“which would encourage
utilization of processed
agricultural products” in the
export programs.
“The egg industry believes
it can help meet the world’s
need for high protein foods
with such products as dried
egg mix and canned fowl
meat,” Hirth stated. “We
believe both of these
products would be excellent
relief commodities for the
hungry around the world.
Our members feel that PL
480 and other export
programs should also em
phasize products that
represent agriculture and
labor via the finished or
processed state.”
Hirth pointed to the out
standing history that egg
mix and canned fowl has
within the U.S. as part of the
USDA commodity
programs. They can be
packaged in small or large
units and all a person needs
for preparing a meal is
water, fire and some type of
utensil for cooking, he ad
ded.
From UEP’s United Voices
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