A34-Lancasttr Farming, Saturday, February 16,1985
Naylor urges farm program update at Com and Soybean Conference
BY JOHN STOKES SCHMIDT
Staff Correspondent
SALISBURY, Md. - Under
Secretary Frank W. Naylor Jr.,
featured speaker at the 1985
Deimarva Corn and Soybean
Technology Conference held Feb. 7
in Salisbury, Md., provided an
encouraging message for U.S.
agriculture.
Returning directly from a U.S.
congressional hearing on
agriculture, Naylor assessed the
present state of agriculture.
“Most current established farm
programs originated 50 years
ago," he said, adding that there
are enormous growth op
portunities in Third World coun
tries if American farmers are
competitive.
National markets throughout the
United States, he said, are
basically mature and show little
room for growth. “As farmers we
need not to store our grain while
waiting for other countries to sell,"
Naylor continued.
Instead of keeping the
supply, 50 percent of U.S
Hearthstone
America s Quality
Soapstone Stoves
LANCASTER COUNTY'S
AUTHORIZED DEALER
CHECK OUR
SPECIAL PRICES
THIS MONTH!
■
■
2533 Old Phila Pike, Rt 340
Smoketown, PA
T.T4F 10*8 WAS 10-5 MAppt
(717) 397-7539
4f ;
STRIKE
IT
RICH!
SOL
IT
WITH
A
LANCASTER
FARMING
CLASSIFIED
must go through international
channels. The change must be
made from a supply-oriented
policy to a market-oriented farm
policy. “We must be a driving
force rather than holding
residuals,” he said.
At present, U.S. farmers
determine loan rates for world
markets. Foreign governments
mark subsidies accordingly to
establish cheaper markets for
themselves. “U.S. markets can no
longer telegraph’ rates for foreign
market advantages,” Naylor said.
Many of these ideas will be in
cluded in farm legislation slated to
go before Congress on Feb. 17. The
under secretary said this is “the
most hotly debated and significant
farm bill ever submitted.” It will
give farmers a basis for future
consideration of whether to ex
pand, restrict or maintain within
their individual operations.
Naylor listed the following
priorities for American
agriculture;
• Increase international trade (a
strong U.S. dollar has the greatest
world
grain
THE R-26 PACESETTER OFFERS:
• HEAVY DUTY CONSTRUCTION
• FEWER TRIPS UP THE SILO
• LEVEL SILAGE TOP TO BOTTOM
impact along with controlling the
national deficit.)
• Eliminate trade impediments to
break down trade barriers.
• Pass sound legislation for sound
business decisions into the year
2000.
“Full time farmers are under
the greatest stress for obtaining
finances,” Naylor said. All far
mers are under some stress that
will require dollar adjustments
and operation decisions in the next
two to five years.
“Agriculture is a way of life. It
provides a home and superior
family life that will make these
decisions especially tough,”
Naylor commented.
Naylor linked farm stress to the
drop in land prices, noting that
lender strain is severe in the
midwest. In the mid-1970’5, he
explained, midwestern farmers
borrowed large sums of money to
expand their operations.
“Farmers were encouraged to
acquire loans too great for their
operations to support,” Naylor
noted. The land value was also too
• SIMPLIFIED DESIGN
high. In lowa, for example, the
price of farm property is down 50
percent from 1981 assessments and
may increase to 55 percent to
establish true values.
“Forty percent debt to asset
ratios represents severe stress,”
Naylor emphasized, adding that he
believes the debt service for far
mers needs to be restructured to
manageable levels.
“Eight thousand reamontized
loans have been accomplished
already this year,” Naylor said.
For commercial loans, a means
will be provided to lenders to use
interest concession options. In
farm credit relief measures an
nounced Feb. 6, the USDA will
guarantee loans from production
credit associatons and similar
organizations.
“This will be a viable means to
improve farmers’ short term
problems and offer credit in the
next three years for operating
costs,” he said.
When considering long-term
financial solutions, Naylor said,
“profit can’t be made on loans if
Construction
W/ DESIGNERS & BUILDERS OF
'/ TYPES OF FARM & COMMERCIAL \1
/ BUILDINGS \
★★★★★★★★★★★★★★★★★★★★★★★★★
£ Horse Power J
★ Galore!!! ★
★ *
* The Big *
★ One’s ★
* Coming!!! *
* FARM SHOW COMPLEX ★
* ARENA I
* Harrisburg, PA *
★ Friday, February 22, 1985 8 P.M. ★
★ Saturday, February 23, 1985 —8 P.M. ★
* Sunday, February 24, 1985 2 P.M.
+ WHEELIE POPPIN' *
i*2 WHEEL DRIVE TRUCKS
?_ • 4x4 OPEN TRUCKS +
■* • hot rod tractors .
'A' Alcohol Burning-Supercharged 7^
ir Unlimited Horsepower 9HH| X
jl. PLUS ★
+. AMAZING FUNNY CAR JL ★
J SURER FLASH hee haw star *
7. The 1939 in Person *
★ i hifiiT 111 SER’ ADVANCE $8 ★
★ °h" e?t E Day of Pull s9*
*■ MONSTER TRUCK Children under 12 ss* +
* ‘GOLIATH' ‘Friday & Sunday Only
★ TICKETS ON SALE *
★ The Farm Show Complex, The RV 4 Wheel Drive Center,
if Mechamcburg, Music Merchants, Rainbow Entertainment and X
.a, Mailman Locations. X
-2, TICKET INFO CALL (717) 783-6513 *
m l
★ Mail Orders $1 50 per order plus self addressed, stamped
if envelope to: HOT ROD PULLS, P.O Box 158, Mechanicsburg, PA X
* 17055 ★★★★★ ★
you are paying them. Help is
needed in debt management with
growers owing $215 billion.
"Even with the loss of land
value, American farmland is still
worth $1 trillion,” he continued,
noting that farmers need to clear
existing debt and start fresh.
However, he said, this is difficult
for farmers who borrowed heavily
in the 70’s.
"It will take the cooperation of
farmers and credit organizations
to achieve positive results,” he
said. Washington must have input
in the upcoming three or four
months so legislators know what
the fanners want. All major farm
organizations will continue to work
in Washington as they did Feb. 7 at
the congressional hearing on
agriculture.
In a brief question and answer
session following the program,
Naylor discussed the current
problems confronting dairy far
mers.
:jfcl>L3£
(717) 354-4740