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Grain executive sees farm
LANCASTER A grain com
pany executive assessed current
farm legislation and said changes
are needed when the next bill
comes under consideration later
or^
Here's all you need:
Product of
this year.
Bernard Stemweg, semor vice
president, Continental Grain
Company, told a purchasing
seminar of the American Feed
Manufacturers Association here
that three of the key elements of
the 1977 Food and Agricultural Act
- non-recourse loans, target prices
and farmer-owned reserve - should
be retained.
"Details should be modified,
however,” he continued
Stemweg advocated a moderate
increase in the corn loan.
it it loi ii loan presently is a
lesser percentage of the wheat loan
than four years ago,” he noted
Citing forecast projections of
.continued increased corn demand,
he pointed out that current acreage
- even with improved yields - will
not meet these requirementis.
"While some of this demand is
price-sensitive, the supply is
weather-sensitive. The risk of
building excessive stocks in the
years ahead appears small
compared to the alternative,” he
said.
According to Steinweg, there
should be a closer relationship
between the loan and the market
"Government use of controls
precludes total reliance on this
factor, but consideration should be
given to setting loans at perhaps a
minimum of 70 or 75 percent of
average market prices for the
previous tw'' three years,” he
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RICHARD ALBRIGHT
FEEDS
RD2, Box 511
Mill Hall, PA 17751
(4 Miles North of 1-80, Exit 26 on Rt. 64)
717-726-3361
Lancaster Fanning, Saturday, March 14 r 1981—C33
bill changes
In his view, target prices based
on average production’costs in
cluding land should be
reexamined.
“The mechanics of the program
should not be the vehicle to induce
production of the less-needed
commodities at the expense of
those in tighter supply Conditions
could well warrant a limit on
payments-either as a percentage
of loan or production costs - or be
eliminated entirely. ’ ’
Stemweg said the rules of the
reserve program should not be
changed in “midstream.” He
suggested a suitable storage in
centive should be set and not
supplemented by iriterest-free
loans.
“Gram should be allowed to go
directly into the reserve, as a
device to manage gram prices
during a single crop year,” he went
on
He reviewed the U.S gram
embargo against the Soviet Union,
noting that the Russians have
received close to 50 million tons of
non-U S grain or products in the
two crop years affected by' the
embargo .* ample evidence that
trading patterns can be quickly
altered ”
"The cost to our taxpayers and
the agricultural sector has been
significant, and we have still not
found our way out ”
and
and
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said.