Hallo well expresses concern HARRISBURG - State Agriculture Secretary Soviet Union. Hallowell said that initial reactions are possible negative effects of President Carter’s decision to curtail sales of grain to the Soviet Union. Hallowell said that initial reactions are poor and market prices are down, not only in local markets, but in the foreign marketplace as well. Hallowell urged Penn sylvania farmers to stay calm and not panic at gram prices which have been depressed since Carter’s announcement last Friday. “Pennsylvania buyers and sellers should take a wait and-see attitude on sales, with all markets full of speculation as to the total effect of the President’s decision,” he said. “Grain markets have reacted poorly to the President’s announcement,” Hallowell said, “but Penn sylvania farmers have in creased com production in recent years, from a deficit siwskm “ENERGY-PAK” ★ *WHAT IS AN "ENERGY-PAK" OXYGEN CONTROLLED FEED STORAGE SYSTEM? 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Carter’s decision an nounced Friday night will curtail grain sales to the USSR from 22 million metric tons to a maximum of eight million metric tons in 1980. “That poses the threat of 14 million metric tons of grain being dumped back on the open market,” Hallowell said. “And until we have some hard figures of market possibilities, it would be unwise to try to fix the effect of any prospective federal moves. “The farm community is concerned, and it well should be,” he said. “While it ap- IS OXYGEN CONTROLLED of PA. FEED EASY Silo unloaders Conveyors Feed-mixer wagon Feed transit wagon Feeders Phone pears that the Carter ad ministration is attempting to help the situation by providing support for prices, farmers are reluctant to see an artificial support such as a grain reserve since far ming has traditionallv been a iastionof freeenterpinx. In his Friday night ad dress the President suggested the purchase of tive million metric tons of com to produce 500 million gallons of gasohol. Hallowell said that while the idea sounded good to farmers, the nation does not now have sufficient facilities to produce the enthanol. The USDA press office in Washington confirmed that fact Monday morning. Hallowell said he un derstood that the world grain markets were “in sheer confusion.” European markets which should have responded positively to Carter’s an nouncement have beend depressed, he said. The London soybean market j i 9 I I I I I over Carter grain embargo closed down $ll on Monday, a five percent drop m pnces in just one day. He noted his concern went beyond immediate market prices. “The United States ex ports more than $32 billion in agricultural commodities every year,” he said, “with a net agricultural trade surplus of $lB billion. The Soviet Union accounted for 15 million metric tons in 1978, more than 11.3 percent of our total grain exports.” Hallowell said Conrad Leslie, perhaps the nation’s leading gram marketing expert, has projected the effect of Carter’s an nouncement to be a decline in agricultural exports of about $2.5 billion this year. “Coming on the heels of a fifth consecutive year of record grain harvests, this curtailment will have a ripple effect,” Hallowell said, “affecting jobs in export trade, market prices and farm income. With decreased farm incomes, - Little. Dav BOTTOM UNLOADING SYSTEM MODEL 350 K/rr.-. . .•: Silage Bridge - 'S' & ff*e=s. - nt I Mnwcac 1 RF 7 ! Engineered for Convenience And Dependability Lancaster Farming, Saturday, January 12,1980—C31 less money will be spent by farmers and this effect will carry into the local economy. “We have been given assurances from Washington that other world gram marketing nations have been contacted about their participation in this move,” he said, “but we have not yet seen any assurances from Canada, Farmers interested wonder who profits CHICAGO, m. A recent national survey of farmers indicates an increased in terest in the farm futures market, but farmers still indicate skepticism about who benefits from the market. The futures market allows farmers to contract for the v^: '- . c •UCCtD »Vt’ ' ■»** V* .' L**OA£*No V aucii . ** /., lUCI MCMNCJ Australia or Argentina to confirm their support or outline their intentions.” Hallowell said initial reactions point to the possibility that the negative domestic effects could be greater than any impact on the USSR and that other nations may come to regard the United States as an unreliable source as a result of this action. in futures, but sale of anticipated production at an agreed upon price. Eighty percent of the farmers responding to a survey by International Harvester, said they un derstood how the futures market operated, but 48 percent said they do not use the futures market. The most common reason given for not using the market was a belief that speculators and big grain companies control the markets (30 percent). The majority of farmers responding to the survey said the markets do not serve the interests of the farmer (52 percent) while 42 percent believed the op posite was true. Despite this skepticism, 55 percent of those surveyed indicated they would use the market more in the future and 63 percent said they pay more attention to the market now than they did several years ago. Of those who regularly participated in the future market, most said they did so to reduce the risk of price moves. The average fanner today is in his late 50’s and for every four farmers who die or retire, only one new person is entering fanning.