B6—Lancaster Farming, Saturday, July 5,1980 New directions NEWARK, Del. - The nation’s food and agricultural policy directly affects both food prices to the Delaware consumer and the future of the state’s agricultural industry, says Delaware extension com munity and resource development coordinator Gerald F. Vaughn. The key provisions of the Food and Agricultural Act of 1977 will expire in 1981, so it’s time for farmers and con sumers alike to start thinking about the legislation we’ll need for the 1980’s. Between now and 1981 we will have national elections, but a change in the White House or in the majority party in Congress won’t necessarily lead to changes in the food and agricultural policy. Over the years it has become harder to distinguish a Republican from a Democrat with respect to voting positions on commodity farm programs or food and nutrition programs Regardless of which ad ministration finds itself in office in 1961, the consumer’s demand for reasonable food prices will have to be balanced with the farmer’s demand for a reasonable income, he says. A useful and informative look at U.S food and agricultural policy, Vaughn observes, has been prepared by Willard W. Cochrane, an agricultural economist at the University of Minnesota According to Cochrane, it is unlikely that the Food and Agricultural Act of 1981 will attempt to deal with energy shortages in any com prehensive manner, but it might set forth some prin ciples for the Department of Energy’s guidance in making fuel allocations to the food and agricultural sector The legislation may also include tax exemptions, loan programs, and/or technical assistance to farmers who want to go into production of fuel alcohol. Whether or now Congress moves to strengthen the grain reserve program in 1981 may depend on the size of the world gram harvest in 1980 If the world harvest is poor for the second straight year and world gram prices soar, there may be political support for expansion of the existing grain reserve program If world gram yields are high, however, Congress is likely to authorize a program with greater stock capacity to bolster domestic grain prices And if this year’s world gram harvest is about average, Congress may decide to ignore the gram reserve u»uc But whatever the size of the 1980 harvest, Cochrane points out, chances are great that the world will ex perience both surplusses and shortages of gram within the next decade, and we ought to prepare for both even-y tuahties in our food and farm legislation If we want to maintain a reasonable degree of gram and food price stability at home and to remain a dependable suppber of gram to our regular foreign customers, Cochrane says, we ought to double the size of our current gram reserve program. This would give the program the capacity to stabilize world gram prices. The government should have greater control over stocks released from the reserve to insure that the released stocks will not be used for speculative purposes. Legislation should define more clearly the range over which the U.S. seeks to stabilize world gram prices, he says Such an ambitious program would involve substantially higher Delaware specialist says needed in food, farm legislation government costs, but Cochrane says it is the only way the U.S, can maintain an acceptable degree of price stability in the domestic market plus a completely open link to the world market Because of the recent dramatic jumps in the price of farm inputs such as land, supplies and equipment, farmers are likely to push for a new formula to in crease commodity loan rates and target prices more rapidly in the coming decade. To be effective, loan rates should increase with the increase in farm input prices However, loan rates should not lead input prices, or the farm commodity programs will just con tribute to the general price inflation Loan rates must stay close to the longrun world equilibrium prices for the export commodities, or the U.S. will have a hard time moving export com modities into mreign markets. MAIDENCREEK FARM SUPPLY Blandon, PA 215-925-3851 LEISER’S INC. 3608 Nazareth Pike Bethlehem. PA 215-691-3070 CLAPPER FARM EQUIP. I.G. SALES RDI, Alexandria. PA 814-669-9015 Congress and the Ad ministration face the delicate task of setting loan rates high enough to provide a reasonable level of price support in a highly unstable industry, but not so high as (Turn to Pageß7) CALL TOLL-FREE 1-800-874-3830 20 30 12 $2 J6i 40 50 14 $4934 60 72 w 59985 O 30 40 iQ $3990 40 49 17 $5436 3 100 14 £ll 479 t J - Add Tpieph' FACTORY REBATES LONG TRACTORS -®l $ 100 PER CYLINDER REBATE Silverdale, PA 215-257 5136 ANNOUNCING Now Thru July 315 t... DIRECT FROM LONG MFG. We Have A Tractor For You... From The 24 HP "210" to The 105 HP "ISIO" See Your Long Dealer Now! ROORKS FARM SUPPLYING. RD3, Hwy No 77 Elmer NJ 609 358-3100 BETTS EQUIPMENT New Hope, PA 215-598-7501 COLUMBIA EQUIPMENT CO. CANYON IMPLEMENTS, INC. Bloomsburg. PA 717-784-7456 ON WENGER’S, INC. S Race St Myerstown. PA 717-866-2138 FARMERS EQUIPMENT EXCHANGE, INC. East Petersburg, PA 717-569-8756 RDI, Rt 6 Mansfield, PA 717-724 2731
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