818—Lancaster Farming, Saturday, May 2,1981
Hallowell optomistic over end to grain embargo
HARRISBURG - State
Agriculture Secretary Penrose
Hallowell stated he is optimistic
over farm market prospects with
the announced end to the embargo
on sales of grain to the Soviet
Union.
Hallowell said, “We fully sup
port President Reagan’s decision
to end the embargo. This action
fulfills one of the President’s
campaign pledges and should
serve as a signal to farmers that
they have a real friend in
Washington with secretary of
Agriculture John Block.”
He noted the timing of the an
nouncement was favorable to
Pennsylvania farmers who are
currently making final decisions
for planting of fall field crops.
“The action was taken in such a
manner as to give fanners, grain
traders and dealers the tune
needed to adjust. Because of this
consideration, the grain market
should not show any sudden ad
justments in prices,” he said.
The Agriculture Secretary
pointed out Pennsylvania farmers
were hurt by the embargo.
“Entering 1980, Pennsylvania
farmers had surpluses of com and
grain on hand. Wien markets were
lost and prices dropped with the
announcement of the embargo,
farmers were forced to sell their
gram at a lower price,” said
Hallowell. “Lifting the embargo
now should not force an immediate
increase in grain prices, but it
should be a welcome change from
what happened last year.”
The 1980 Pennsylvania com crop
totaled 95 million bushels, 20
million bushels less than in 1979,
largely due to the summer
drought. Hallowell noted Penn
sylvania field crops such as com
and wheat are valued at more than
$550 million annually.
“Lifting the embargo at this
time should give farmers reason
for optimism,” he said. “They
should be able to plant more gram
crops this year, and should
likewise be in a position to sell
more.
“Dairy and livestock farmers
should be helped as well, because
grain sales to export markets
replace surpluses of milk and meat
products which were boosted when
these grains were used for feed.
“There should not be a
significant effect on farmers' gram
prices at this tune. All indications
from the grain markets show very
little if any effect on prices since
the President’s announcement.”
Hallowell said lifting the em
bargo should have a negligible
effect on consumers, and noted if
anything, consumers could be
helped.
“At $4.20 per bushel for wheat,
the farmer gets less than five cents
for the wheat in a loaf of bread.
Even if wheat prices were to
double, the effect on the consumer
would be minimal,” he said.
“On the other hand, lifting the
embargo could provide a benefit to
the nation by boosting export sales
of feed grains,” Hallowell added.
“It is important that the United
States be seen as a reliable source
of the world’s feed grains for our
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farmers and consumers as well.” agriculture, some $23 billion last com and feed grains were not a “Enabling our farmers to
“Our agricultural exports in 1980 year, helps offset hikes in the major portion of the state’s farm produce for international -needs,
totaled $40.5 billion, and provided a prices of imports such as export market, sales prospects for and to expand sales in the domestic
tenth straight year of record mideastem oil, thereby working to domestic grains should be im- markets should be a positive force
agricultural trade surpluses. The curb the rate of inflation at home.” proved by the demand on the m- hi Pennsylvania’s 1981 farm pic
favorable balance of trade ,m Hallowell said while exports of temational market. ture,” concluded Hallowell.
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