Federal budget cut will leave USDA bleeding WASHINGTON, D.C. - Reduced federal govern ment spending Is part of the President’s inflation control strategy. The President’s goal is to reduce the current 1979' budget deficit of $38.8 billion to $3O billion in fiscal year 1980 and to balance the federal budget in fiscal year 1981, which begins on Oct. 1, 1980. If this timetable for fiscal - austerity is to be achieved, there will be .blood on the carpet at USDA. when the new budget message is sent to Congress on Jan. 22. The current (1979) USDA budget is $18.3 billion. If in flation persists at a 7% average rate, it would presumably cost $19.5 billion for the same programs in the 1980 budget. Agriculture’s proportionate share of the net 18.8-billion decrease in • one-man-in-charge so you don’t get the runaround, you get answers on the progress of work being done for you. • Case-approved shop facilities with space to do the job right, an efficient work flow and proven job-processing procedures. • expertly qualified shop personnel special ists and technicians who are kept current on product developments and industry ad vances through attendance at Case sponsored training and education courses. FACTORY REBATE WHEN YOU BUY A NEW CASE 43 TO 80 PTO TRACTOR Ending December29,l97B [*% SEASONS GREETINGS • PARTS • SERVICE • RECONDITIONED TRACTORS • CONVENIENT FINANCING • LEASING • RENTALS DEPENDABLE MOTOR CO. East Main Street Honey Brook, PA (215)273-3131 NFVINN MYFR STOUFFER BROS. INC. PAUL SHOVEH’S INC. ,l£ rrsf ■gsrs' 1 (717)263-8424 (717)243-2686 (215)827-7414 C.H. WALTZ SONS, INC. C. H. RMEHIMER & SOWS I*l SUPPLY, INC. RDI, Cogan Station, PA RDI. Berwick. PA (717) 435-2921 (717) 752-7131 2 me S. off Rtefw federal spending, sought by the President, would be about $4OO million, so the budget experts in the Office of Management and Budget will have to find potential economies of about $1.6 billion in USDA programs for 1980. Secretary of Agriculture Bob Bergland, speaking at New Orleans on Nov. 30, said there would have to be some “stringent belt-tightening” at USDA to meet the Presi dent’s goal of cutting the 1980 budget deficit to $3O billion.- Bergland, however, declared that “high priority programs affecting farm in come, farm exports, human nutntion and some others will not be materially chang ed.” “It would be folly and self defeating to tinker with pro SPECIAL doing something about it. for a true and tried, well-supplied, bonafide CERTIFIED TRACTOR SERVICE SPECIALIST CLAIR I. MYERS Lake Road R 1 Thomasville. PA (717)259-0453 grams that might endanger food production and con sumption,” Bergland said. “This could only lead to more inflation. It would be senseless not to continue our export programs in view of our large surpluses of wheat and feed gams and the vital importance of our farm ex ports m reducing our balance of payments to strengthen the dollar.” Where to find places to cut the USDA budget will be a puzzle: • The farm price and in come stabilization pro grams, budgeted to cost $5.5 billion in 1979, will obviously cost more in fiscal 1980. • The food stamp and child nutrition programs, which are costing near to $7 billion in 1979, are bound to increase in fiscal 1980 under • basic tooling in place hydraulic, electrical and mechanical plus a broad complement of specialized'equipment for rebuild and repair. • working arrangements with local outside sources for special service capabilities and support. • field service capabilities including trans port vehicles and portable tooling. • Case approved pre-delivery and post delivery services. PEOPLES SALES & SERVICE Oakland Mills, PA (717)463-2735 the current formulas. (Legislation would have to be approved to '■'V'”' e benefits and costs./ The Administration budget-cutters will probably recommend some of the same cuts which congress, in its wisdom, has repeatedly rejected in recent years - namely, to terminate the special milk program ($142 million in 1979) and the ACP program ($l9O million in 1979.) Other likely targets for some reduction are the Soil Conservation Service ($496 ■ million in 1979, down from 1978 by $27 million), the Food for Peace" program ($BO5 million in 1979), the Agricultural Research Ser vice ($3BO million in 1979) and the Federal Extension Ip APPROVED .. but don’t take our word for it' He's ready to earn your stamp of approval! Stop m soon and see what you have going for you with Case Certified Service SMART BUYERS SALE New Case 90 Series tractor intro means big price savings on current 70 Series inventory clean-out. PLUS WAIVER TILL MARCH 1 r 1979 See Your Local Dealer. Ending December 29 t 1978 BINKLEY & HURST BROS. 133 Rothsville Station Rd Lititz, PA (717) 626-4705 ZIMMERMAN’S FARM SERViCE Bethel, PA (717)933-4114 A. I HERR & BRO. 312 Park Ave Quarryville, PA (717) 786-3521 Lancaster Farming, Saturday, December 23,1978 Service ($275 million in 1979). It appears unlikely that anything near $1.6 billion in reductions can be found without serious damage - without blood on the carpet. The Administration may simply have to end up under estimating what the pro grams will cost. This tactic makes the executive branch look good at budget-making time and the Congress look bad when needed funds must be voted. Overlooked in this whole process is the fact that it is almost impossible to balance the federal budget in times of low farm prices and high unemployment. One authori ty has estimated that in a full-employment, full-parity, - and full-productioii economy, the current IB E. W. BILEWICZ EQUIP., INC. Elmer Rd , Richwood, NJ (609)881-2692 C. & P. FULTZ EQUIP. RD 1, Spring Mills, PA (814)422-8805 EDWARDS FARM EQUIP. 291 West Moorestcwn Road (Rt. 512 Clearfield) Nazareth, PA (215)759-0240 federal budget would have a surplus of about $lOO billion instead of a deficit of $38.8 billion. Also still being overlooked by high policymakers is the fact that approval of an in ternational wheat agree ment with a price floor of $4.00 a bushel would sharply reduce the cost of the domestic wheat stabilization program and improve the U.S. balance of payments. (The above was re-printed from the Dec. 8, 1978 edition of the National Farmers Union’s Washington Newsletter.) Belden named to FCA office WASHINGTON, D.C. - Sanford A. Belden, 36, of Auburn, Maine, has been named deputy governor. Office of Administration, Farm Credit Ad ministration, FCA Governor Donald E. Wilkinson has announced. Belden’s appointment is effective January 1,1979. He replaces Jon F. Greeneisen, who now is vice president, Central Bank for Cooperatives, Denver. FCA is an independent Federal agency which supervises the Farm Credit System, made up of agricultural lending in stitutions organized as cooperatives and owned by their member-borrowers. The System, with loan volume of more than $4O billion a year and $46 billion in loans outstanding, provides about one-third of the credit used by U.S. fanners and ranchers and two-thirds of that used by cooperatives. FCA’s Office of Ad ministration included the agency’s Administrative, Congressional Affairs, Economic Analysis, Per sonnel, and Public Affairs Divisions. Belden, a native of Hat - field, Massachusetts, has a Ph.D. in agricultural economics from Purdue University. From 1972 to 1975, he was director of a new business development, assistant vice president, and vice president of the Farm Credit Banks of Springfield, Mass. Since 1975, he had been general manager of the Farmers Production Credit Association of Southern Maine and Federal Land Bank Association of Southern Maine in Auburn. Before joining the Springfield Farm Credit Banks, Belden was a staff member of Purdue and Cornell Universities, and was a market research analyst for a farm machinery manufacturer and co-manager of a family farm. 119
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