014—Lancaster Farming, Saturday, February 23,1980
Farm Credit hearing
financing. It would permit
the Banks for Cooperatives
to finance the export ac
tivities of cooperatives.
In commenting on the
proposal, Wilkinson said that
“agricultural exports are
one of the few bright spots in
the current U.S. balance of
trade picture.”
He said the export
proposal is based on the
premise that more can be
done by U.S. farmers to
export their own products
and that the means for this
participation is through
farmer-owned cooperatives.
According to Wilkinson,
the Banks for Cooperatives
provide some two-thirds of
all financing used by
American cooperatives.
Those cooperatives have
more than $3OO million in
vested in the capital stock of
the banks. Yet, when
marketing endeavors carry
coop products overseas, the
coops have to seek other
avenues of financing -
avenues frequently un
familiar with cooperatives.
The co-ops tell us,
Wilkinson continued, that
they want their own credit
institutions to provide these
services. The export
financing amendment would
make that possible, he said.
The fifth proposal, ac
cording to Governor
Wilkinson, involves ex
panding the Farm Credit
System’s capacity for ser
ving the needs of com
mercial fishermen.
The Farm Credit Act of
1971 first gave Production
Credit Associations the
authority to make loans to
the “farmers of the sea.”
The Alien-Weaver bill
enacted in early 1979
authorized these loans to be
lengthened from 7 to 15
years. The new proposals
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(Continued from Page Dl3)
would help fishermen in
three ways.
One would authorize the
Federal Land Banks to make
long-term loans on dockside
and other facilities
necessary for efficient
aquatic operations. The
second would authorize the
Federal Intermediate Credit
Banks to discount the notes
of fishermen given to other
financing institutions just as
farmers’ notes are
discounted. And the third
would clarify that
cooperatives organized to
provide business services to
fishermen were eligible to
borrow from a Bank for
Cooperatives.
The sixth amendment
considered significant by the
FCA chief involves the Farm
Credit Administration itself.
Within certain limits, it
would allow the Federal
Farm Credit Board to set the
salaries of the governor and
deputy governors. And, it
would allow FCA to manage
salaries below those levels,
as well as to manage such
things as travel allowances,
procurement, and property.
“This authority,” the
governor said, “would make
it far easier to recruit, hire,
and retain qualified people
to supervise and regulate
this ever-growing credit
organization.”
During the hearings held
thus far, Wilkinson and
others pointed out that
enactment of the proposed
legislation would result in no
expenditure of tax dollars.
The money the System
lends is obtained through the
sale of securities m the
national and international
money markets. Its
securities are no guaranteed
by the Government. Even
the expenses of the Farm
Credit Administration are
AGWAY
%
NPPC wins labeling victory
DES MOINES, la. - The
National Pork Producers
Council has won its fight to
overturn a USDA labeling
regulation as Federal Judge
William C. Stuart ruled in
NPPC’s favor in the “un
cured” meat labeling case.
Judge Stewart, who had
earlier granted NPPC, a
temporary injunction, said
m a recent ruling that the
labeling order is “arbitrary,
capricious, an abuse of
discretion and otherwise not
in accordance with law” and
granted the plantiff’s
request for permanent in
junction in the action.
The ruling also said it is
the court’s belief that fears
for human health dangers
because of the labeling “are
genuine and that it is the
opinion of the court that the
USDA failed “to give
adequate attention to the
dangers of botulism, the
manner in which the public
cares for nitrite-preserved
products and the ef
fectiveness of labeling.”
Referring to the con
sumer’s demand for uncured
products as a reason for the
labeling, Judge Stuart noted
that with almost 170 uncured
products on the market
under their own names,
paid through assessments to
the banks.
Wilkinson emphasized the
proposed amendments
constitute no redirection of
the histone mission of the
Farm Credit System.
“Rather he said, “we
believe these modification.'
are needed to enable thi
System to more effective!]
fulfill its historic mission.
permitting use of traditional
names and requiring
similarity between cured
and uncured products is not
necessary to make the
products available to those
who want them.
The NPPC had taken issue
with the regulation and filed
suit in U.S. District Court in
Des Moines September 20,
1979, against USDA’s
regulation that would allow
fresh meats to be marketed
with an uncured label and
would allow such products to
have the same general
appearance and taste as a
cured product. Three
Congressmen joined in the
suite along with the National
Independent Meat Packers
Association, an mtervenor in
the action.
“Our concern,” says
NPPC President BUI Buller,
Brookings, SD. “was that
consumers would treat these
uncured look-alike products
as they had the traditional
cured product and that such
inadvertent mishandling
would be hazardous to
consumber health and
secondly, to protect the
traditional image or
reliability of cured meat
products.
“We have no objection to,
and in fact encourage the
marketing and consumption
of fresh meat but we insist
that its appearance and
labeling not leave any doubt
in the consumer’s mind that
it should be handled with the
traditional care required of
fresh meat.”
Duller said today’s ruling
is once more an indication
that the government must
learn accountability is
essential before im
plementing regulations for
the sake of regulations.
“The Council and hvestock
industry representatives are
no longer willing to just
stand by and watch them
selves regulated by
capricious agency actions,”
Buller said. “Government
and the USDA, must realize
regulations imposed will be
tested if producers and the
industry believe such
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regulations unreasonable
and unnecessary.”
The February 12 ruling
indicated that Judge Stuart
was delaying action on a
government appeal of the
earlier preliminary in
junction and was filing hi S
ruling on merits of the
present case “in order to
provide defendents an op
portunity to present the
entire matter at one time. ’ ’
■*K
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