—Lancaster Farming, Saturday, December 2,1978
104
Farm exports expected to increase
By JERRY WEBB
University of Delaware
NEWARK, Del. - As
important as farm exports
are to American farmers
and to the American
economy, they’re not a cure
all for agriculture’s ills. That
seems to be the consensus of
a number of leading
agricultural economists who
say that farm exports won’t
pull American farmers out
of their economic doldrums
in the near future.
It’s fairly obvious looking
at the predicted 1978 crop
supplies that the export
market won’t buy it all.
Granted, a lot is being done
to improve U.S. farm ex
ports but so far it just isn’t
enough, and looking toward
the future it isn’t sure
enough for farmers to plan
on.
As far as the U.S. is con
cerned the real problem
seems to be foreign trade
bamers-those nasty little
quotas, tariffs and levies
aimed at protecting foreign
farmers from low priced
U.S. farm commodities. The
European Economic
Community can add almost
$3 to a bushel of com worth
only $2 in the United States.
This is done through a
variable levy system
designed to support farm
prices m certain European
countries.
AH countries seem to have
trade barriers of one kind or
another so American far
mers can’t scream 100 loudly
- they don’t want Canadian
beef brought into this
country and yet they would
like to export as much of our
surplus gram as possible.
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The economists say that
given the fact that U.S.
farmers can produce gram
more cheaply than farmers
m Europe and many other
countries, trade barriers are
especially detrimental to
U.S. agricultural exports.
And, in the long run, doing
away with trade barriers
would help American far
mers. But that’s not the way
it works. Everybody likes
competition but only for the
other guy, not for himself.
U.S. steelmakers don’t like
Japanese competition. U.S.
automakers don’t like
Japanese or German
competition. So we have our
quotas and tariffs and they
have theirs.
To protect its farmers the
Japanese government
guarantees purchase of all
the rice farmers can produce
at four times the world
market price. The result is a
mountain of surplus rice.
Four million tons, in fact,
that the Japanese govern
ment must somehow deal
with. The effect of that has
also been to reduce Japanese
purchases of U.S. wheat.
Tariffs aren’t the only
problem to expanded U.S.
exports. There are some
other countries out there
trying to export also, and
some of them are willing to
sell food at lower prices.
Argentina, for example, has
increased agricultural ex
ports by about two-thirds
since 197£. And the experts
think Brazil may be ex
porting as much food as the
U.S. by the mid-1990’5.
Malaysia plans to double its
annual production of palm
oil m order to take ad-
vantage of the world oil
markets.
There’s no question that
current levels of gram ex
ports have helped American
farmers tremendously.
Certainly they would hke to
export even more if prices
and policies would allow
this. Meanwhile they have
the capacity to produce so
much more gram than can
be consumed at home that
their prices remain in a
depressed condition. And
like their own crop
production here at home,
their export opportunities
depend on the weather more
than anything else. If there’s
a short crop somewhere else
in the world because of dry
weather American farmers
may benefit. On the other
hand, if the world crop for a
particular commodity is
good everywhere at the
Why sweat out another
season with worn out
When you try to make obsolete equipment do for “one-more-season”, you’re asking for
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same time, American farm
prices can be seriously af
fected.
The expects believe 1978
exports to the western
European countries will
remain below last year’s
level because of larger crops
m those countries. Eastern
Europe had another good
crop year but they see some
opportunity for increased
imports. Also, Japan and the
near East countries may be
stronger buyers this year.
Uncertainty still
surrounds the exports
market to both the Soviet
Union and China. Both
countries have been trying to
produce their needs at home
and to limit their depen
dence on U.S. commodities.
The experts say Chmp will
buy U.S. wheat only if other
sources are unable to supply
its needs and that eastern
machinery?
COME IN, LET'S TALK IT OVER!
FOR MOKE INFORMATION. CONTACT
YOUR LOCAL COUNTY OFFICE.
Europe and Russia are
reluctant to increase the
large • deficits they’ve
already accumulated in
their recent trades with the
U.S.
So it’s a confusing picture
to the U.S. farmer who
watches his crops ripen and
struggles with his harvest,
not knowing what the final
price will be. Ironically, if
his yields are good, his
prices may be poor. It’s very
difficult to wm in that kind of
economic game.
Ninety years ago, a
volcanic explosion
equivanent to a hundred
hydrogen bombs almost
entirely destroyed the In
donesian island of
Krakatoa. W at portions of
the island that did not sink
into the sea, were covered
under a blanket of ash 200
feet thick. But in just two
years’ tune, vegetation had
reappeared: 15 species of
flowering plants, 11 of ferns
and 2 of mosses.
. at reasonable rates of interest . . . with repay-
VI
4-H club meets
FLEMINGTON, N.J.
The Beekeeping Club
awarded the 4-H hive to
Jeffrey Foster, 16, Bloom
sbury, N.J., at their
November 18 meeting, held
at the home of member Bob
Goeller, Hampton.
Club leaders, George
Foster, -and 1 Jr D. Dittson,
discussed winterizing hives
and showed the proper way
by using Bob Goeller’s hives.
The next meeting will be
held on December 16, at 2
p.m. at the home of George
Foster, Bloomsburg. They
will use bees’ wax to make
wax candles and other
novelties.
Anyone age 9 to 19 who is
interested in learning more
about beekeeping is invited
to attend this meeting. One
can call Foster at 609-479-
4455 for more information.
This program is sponsored
by the 4-H Youth
ment Program of the w
Cooperative Extension
Service, Rutgers University.