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Target prices and
deficiency payments will be 1
much debated issues in the
year ahead. Some farmers
will surely urge Congress to
raise the level of target
prices and increase the size
of deficiency payments to
help them meet their rising
costs. But this policy can
have unintended results,
according to Cochrane.
Deficiency payments are
made to farmers on the basis
of volume of production.
That means that the bulk of
the deficiency payments go
to the largest, most efficient
farmers, leaving the smaller
farmers even further
behind. The fanners with the
largest acreages use their
deficiency payments to bid
up land prices and buy out
their smaller, less-efficient
neighbors.
Based on these arguments
and because the total
government payments to
1-2-3-4-6
CYLINDERS
FROM
2010
300 HP
farmers runs close to three
billion dollars annually,
Cochrane believes the
concept of target prices and
deficiency payments should
be eliminated from the Food
and Agricultural Act of 1981
Instead, Cochrane would
like to see new legislation
designed to help the small
and medium-sized farmers.
For instance, Congress
could eliminate many
provisions in the federal tax
code that provide incentives
for the big to become bigger.
Congress could also provide
for deficiency payments to
only those fanners whose
gross receipts total less than
$40,000 per year.
It could expand loan and
technical assistance
programs to established
farmers whose gross
receipts total less than
$40,000 per year.
And Congress could
initiate a program to provide
capable young people with
the resources they need to
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get started in farming. A
thousand likely candidates
could be selected each year
to receive government loans
or loan guarantees and
technical assistance for five
to 10 years.
Programs such as these
would not be inexpensive,
but they wouldn’t cost any
more than the current
deficiency payment system
that benefits mostly the
largest farmers at the ex
pense of the smallest.
As farm input costs soar,
farmers need to be able to
depend on steadily in
creasing yields to lower their
unit costs of production.
Unfortunately, there has
been a slowdown in the rate
of increase in crop yields in
recent years.
One possible cause is a
relative decline in the
federal funds allocated for
agricultural research and
development. If Congress
and the Administration are
truly interested m stepping
up the rate of technological
advance in farming, the 1961
legislation must authorize
increased financial support
WISCONSIN
ENGINES
Sales &
Service
Lancaster Farming, Saturday, July 5,1980—87
for agricultural research
and development.
Given the necessary
resources, the Agricultural
Experiment Stations can
turn out a steady stream of
new and improved
technologies, which the state
extension services can in
troduce to the nation’s
farmers.
Transportation, too, needs
attention in the new
legislation. To move farm
supplies and food into and
out of agricultural areas
efficiently, we need to
rebuild our neglected
Maryland expecting
bumper peach harvest
ANNAPOLIS, Md. - If
you like peaches this may be
your year. Maryland’s peach
growers say they have the
largest crop in twenty years
coming on and estimate the
harvest in 1980 will be 25
million pounds of the
summer super fruit!
FARMING IS A
COMPLEX BUSINESS
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FARMERS AgCREDIT
HAS RESOURCES AND LOCAL KNOW HOW
Whatever your financial needs, CALL ON US
George M. Lewis, President
FARMERS AgCREDIT
CORP I
9 East Main Street, Lititz, PA ILJI
717-626-4721 ■BSHi
railroad system and in
tegrate it with our water
ways. This should prove
more cost effective than
further subsidization of
truck transportation, which
is increasingly expensive
and inefficient for moving
heavy, bulky freight long
distances.
Finally, the food and
agricultural legislation
should include increased
funding for nutrition, and
even scientists have a lot
more to learn about the
subject, he concludes.
According to the Maryland
Department of Agriculture’s
Marketing Division and the
Crop Reporting Service, the
reason for this bounty is the
ideal weather at blossom,
pollination and fruit set time
this Spring.
Helen Huber, MDA
marketing specialist, offer
this handy harvest time
guide to Maryland peaches
as a tool for planning your
purchases.
She says the earliest
Maryland variety,
Sunhaven, comes in
beginning July 3-25; followed
by Redhavens, July 24-
August 7; Triogems, August
3-15; Sunhighs, August 8-19;
Lorings, August 13-20;
Blakes, August 17-25;
Elbertas, August 21-27;
Redskins, August 24-
September 2; Rio-Oso-
Gems, August 31-September
10; and Mar-Highs which
ripen in early September.
A wise idea for the home
canner and freezer is to
check ahead with their
planned source of supply for
exact harvest tune in
formation as the weather
can speed up or slow down
normal ripening schedules
with peaches, says Huber.