ST. LOUIS - The American
Soybean Association (ASA)’s chief
executive today joined members of
Congress in calling for action to
reverse a court ruling that
threatens U.S. farm exports.
Dr. Kenneth L. Bader said a
recent court decision applying
"cargo preference” laws to a
successful export promotion
program would make it harder for
American farmers to make
overseas sales.
Besides being chief executive for
ASA, Bader is chairman of the
National Commission on
Agricultural Trade and Export
Policy, created by Congress last
year to find ways of improving
U.S. farm exports.
The Commission today sent a
letter to President Reagan and
Congressional leaders endorsing
legislation to exempt agricultural
commodities from cargo
preference. Bader appeared at a
Capitol news conference with
Senators and Congressmen who
support similar legislation.
Besides Bader, speakers at the
news conference included Senators
Rudy Boschwitz (R-MN), David
Boren (D-OK), Max Baucus (D
-MT), and Don Nickles (R-OK), and
Reps. Virginia Smith (R-NE),
Glenn English (D-OK) and Pat
Roberts (R-KS).
“A federal judge has ordered the
Agricultural Department to use
expensive U.S.-flag ships for half
the cargoes under USDA’s blended
credit program,” said ASA Chief
Executive Officer Kenneth Bader.
"And that means the blended
credit program is dead.”
Cargo preference laws require
half of government-generated
cargoes to be shipped on American
vessels. The law is intended to
subsidize the U.S. merchant fleet
by giving it business, since U.S.-
flag bulk carriers almost always
charge substantially higher rates
than foreign-flag vessels. The
main reason, most observers
agree, is higher labor costs on
American ships.
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ASA chief asks Congress to reverse cargo ruling
A February 21 court ruling
required USDA to apply cargo
preference to its blended credit
sales. Under this program,
government guarantees of com
mercial loans are “blended” with
direct, interest-free government
credit to lower the effective in
terest rate for buyers of U.S. farm
products.
The opinion in the court case said
that the government guarantees,
even more widely used than
blended credit, should themselves
be subject to cargo preference.
That finding did not have the force
of law because the court case
concerned only blended credit, but
it was an open invitation to a
second suit that would apply cargo
preference to credit guarantees,
ASA officials said.
Traditionally, the government’s
Food for Peace (P.L. 480) program
has been subject to cargo
preference, but programs like
blended credit which simply
facilitate commercial sales have
not been.
“The question is not whether this
country ought to subsidize its
merchant fleet,” Bader said.
“Maybe it should. But why should
the subsidies come at the expense
of farmers’ export sales, at a tune
when farmers are going broke in
record numbers and the govern
ment keeps saying it wants to
increase exports’ It just doesn’t
make sense.”
The added costs of shipping on
U.S.-flag vessels would make U.S.
commodities more expensive for
countries now using USDA credit
guarantees. Since the strong U.S.
dollar has already made American
farm goods overpriced, many
overseas customers would simply
go elsewhere to buy what they
need, Bader said.
"Our export credt programs
have kept U.S. farm exports
moving even though we’re not
selling as much as we did a few
years ago,” Bader said. “But this
court ruling, if it stands, will in
crease shipping costs so much that
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the credit programs won’t be at
tractive any more-and there are
plenty of foreign competitors out
there waiting to pick up the
business.”
The solution, Bader said, is
immediate legislative action to
reverse the court ruling. At the
same time, he added, Congress
STATE COLLEGE - Penn
sylvania Juniors are invited to
take advantage of a unique op
portunity to celebrate 100 years of
the Holstein Association at the 1985
Holstein Convention scheduled for
June 23-27, in Hartford, Conn.
Juniors will be boarding the bus
in State College on Sunday, June 23
at 9:00 a.m. at the PA Holstein
office or at 10:30 a.m. at Exit 38 on
Route 80. The bus will arrive at the
Sheraton Hotel at 3:30 p.m. on
Sunday evening.
Beginning at 7:00 p.m. Sunday
evening will be a get-acquainted
mixer and birthday party to be
followed by a dance. This should
get the Convention off to a fast
start for all juniors.
Monday, June 24, juniors will be
able to take part in any of the Host
Day Activities. Tour #1 is a trip to
Brattleboro to visit the National
Office with a stop at the Basketball
Hall of Fame. Tour #2 is a trip to
Boston to see sights such as the Old
North Church, Paul Revere’s
House, and the USS Constitution.
Also visit the famous Qunincy
Market. Tour #3 is a tour of Mystic
Seaport featuring the recon
structed colonial seaport and
fishing village with demon
strations depicting life in the early
days of New England.
Following a New England style
clambake, the Convention Sale will
begin with some of the finest cattle
• YANMAR MODEL 146 TURFtf/48” Mower,
14 H.P., Water-Cooled Diesel w/Auto Shift
• 60” HEAVY DUTY TILLER Reg. Price $1,900 SALE $1,350
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SALE $795
• 50” TILLER, One Only Reg. Price $1,540
• 40” TILLER, One Only Reg. Price $1,430
TOP QUALITY MOWERS AND THIERS AT BOTTOM PRICES
Juniors can plan now to attend
Holstein Convention
1985
and
Buy A YANMAR First Because It Will List Ami Last!
should increase the effectivenesas
of the P.L. 480 program by
exempting it from cargo
preference requirements. If, m
fact, we need a strong merchant
marine for defense, then put it in
the Defense Department budeet.
not on the backs of American
Agriculture.
in the country available for pur
chase.
Tuesday, June 25, begins with
the Dairy Bowl preliminaries.
Workshops will be available for
those not involved in the Dairy
Bowl. These will be conducted by
former National Distinguished
Junior Member winners. Tuesday
afternoon activities include a
River Boat and Steam Train ride in
Deep River, Conn. A pizza party
and mock auction highlight
Tuesday night activities.
Wednesday morning begins with
the Dairy Bowl finals to be held
before the general convention. The
Awards Luncheon begins at 11:30
a.m. This is the highlight of the
Junior Convention. National
Distinguished Junior finalists will
be introduced and awards will be
presented. Wednesday evening
will conclude with a farewell
4-H club seeks members
LANCASTER The Lancaster
County 4-H Holstein Club has
announced that it welcomes new
members into the club. Young
people, between the ages of 8 and
18 (as of January 1), who are in
terested in dairy are eligible.
Members are required to have a
calf of their own, and to assume the
responsibility of caring for it as
their 4-H project.
EXAMPLES
Lancaster Fanning, Saturday, April 13,1M5-A3l
“We’re always told that national
security requires a strong mer
chant fleet,” Bader said. “And that
may well be true. But if it is, why
should it be the business of the
Agriculture Department to bear
the cost? It’s time for some truth in
budgeting-let’s be honest about
where the money’s going.”
dance.
All junior reservations will be
handled by PHA. Please fill out the
registration form and return it by
May 6 with a deposit of $50.00. The
remainder of your cost will be due
by June 7.
For registratino forms, contact
Pa. Holstein Assoc., 839 Benner
Pike, State College, Pa. 16801 or
telephone 814-234-0364.
Juniors who sold raffle tickets
will be given a rebate on their trip
costs. The rebates are as follows:
for 10-50 raffle tickets sold, a $25
rebate; 50-100, a $5O rebate; 101-
150, a $75 rebate; 150-250, a $lOO
rebate; 251-350, a $125 rebate; 350
and over, a $l5O rebate.
Past events and trips have been
very educational and enjoyable for
those who have attended. All junior
members should take advantage of
this excellent opportunity.
Project calves must be pur
chased before May 1 to be eligible
to compete in 4-H dairy shows, and
they must be registered in the
member’s name.
The next meeting of the 4-H
Holstein Club will be 7:30 p.m.,
Thursday, April 18, at the Lan
caster Farm and Home Center.
The regular meeting night of the
club is the first Thursday of the
month.
ONLY $4,195