—Lancaster Farming, Saturday, October 15,1977
32
Farm
contemplated
Continued from Page 1
Kansas City. Crop
production levels are used to
determine the size of loans
and aid.
The broadened relief and
lending agency envisioned
by Bergland would “junk all
the Mickey Mouse aid
programs we now have.”
The new plan would work
similar to the present crop
insurance program,
Bergland explained, while
adding that that federal
agency could also use some
improvements.
Bergland would like to see
a relief and lending plan
which is based on a three
tier structure. The first of
these levels would be least
expensive and provide a
farmer with coverage only
for “out-of-pocket costs”
such as seeds, fertilizer, etc.
The second level of rate
structure would cost more
and cover all of the first level
USDA Secretary Bob Bergland, left, met with 30
editors of farm publications last week, answering
their questions, and briefing them on the Carter
Administration’s agricultural policies. Among
those present for the day's sessions, which in
cluded a 30-minute meeting with President Carter,
was Lancaster Farming's editor, Dieter Krieg,
right.
insurance
plus such costs as machine
depreciation and taxes, etc.
The third stage would be
most costly to subscribe to,
but will cover all of the
above expenses as well as
rent and mortgage
payments
Other comments made by
Bergland during the news
conference centered on high
land prices. The Secretary
said he believes “land values
are out of sight,” and that he
would do everything he can
to make them be more
rational “I will not support
policies which feed land
inflation,” he said. One of his
primary reasons for this
kind of thinking is to not
make it worse yet for young
farmers to buy farms. The
Secretary noted too that this
is why a net return of four
per cent was arbitrarily built
into the recently established
target price formulas. Some
segments of the farm
populatur vvaiiifU ihe return
rate up as high as 10 per
cent. “The 10 per cent return
would invite speculators
with investments like we’ve
never seen before and spell
economic disaster for young
people,” Bergland warned.
Bergland also said he does
not presently encourage
expansion of beef herds.
“That’s the last thing we
need,” he remarked. Asked
about grazing policies on
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plans to allow it, and if so,
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He believes open grazing
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herds and wind up having a
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U.S. cattle industry.
Tobacco legislation was
another topic touched upon
by the USDA chief. He says
he does not believe that a
change in price supports on
flue-cured tobacco would
have effect on the hurley
crop. There are no plans for
changing the present price
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