USDA Farmline
News Service
WASHINGTON, D.C. - The
United States is still the world’s top
wheat exporter, but competition is
getting fierce and U.S. farmers
seem to be taking a beating.
How much of the blame belongs
to the strong dollar is not clear.
Analysts also cite foreign farm
subsidies, world debt problems,
U.S. support programs that seem
to provide a price umbrella to
foreign producers, and the 1980
U.S. gram embargo.
Whatever the causes, the results
are clear according to a recent
issue of the Agriculture Depart
ment’s Famline magazine:
• Foreign wheat production set
records in 4 of the last 5 years,
while U.S. wheat production
dropped from its 1981 peak.
• Total wheat exports of other
nations reached record highs in 8
of the last 10 years, while the
United States watched its exports
fall below previous records in 7 of
the last 10 years.
• The U.S. share of world wheat
trade recently dropped below 40
percent for the first time since
1971. From 1975 to 1980, the U.S.
share averaged 44 percent, and
reached as high as 48 percent m the
record export year of 1981.
Given the dependence of U.S.
farmers on exports, these
developments have left their
mark. Domestic wheat demand is
fairly stable, but it usually takes
well under half the U.S. crop. The
rest must go into exports-or into
SO
the
on
wo
Pressure-Treated Lumber
Wolmanized pressure-treated wood and Outdoor
wood have built-in chemical protection that provides
resistance to decay and termites. This material has
been pressure-impregnated with Koppers Wolman r!J
CCA wood preservative which meets or exceeds
federal, state and industry specifications for this type
of wood preservative. The chemicals are fixed in the
wood and, although toxic to termites and fungi, they
are not present in sufficient quantity to be toxic to
animals.
call ; 898-2241
or 3947277
■ / 150 Main St.-Phone 898-2241
V/ Iand 'SVILLE, penna.
F/ 351 W. James St.-Phone 394-7277
& Sons, Inc. Jj LANCASTER, PENNA.
U.S. faces stiff
storage. About 55 to 60 percent of
production entered world markets
in the last few years, but that still
left the United States with large
stockpiles-and U.S. farmers with
low prices. Wheat prices have
fallen from an average $3.91 per
bushel in 1980/81 to this season’s
expected average of about $3.35.
“If anything, the competition
among exporting countries could
intensify through the rest of the
1980’s, particularly if global wheat
trade grows as slowly as ex
pected,” says economist Allen
Schienbem of USDA’s Economic
Research Service. World wheat
consumption and trade will set new
records, Schienbein explains, but
the big U.S. export gams of the
past will be tougher to achieve
unless a major competitor suffers
an unforeseen crop disaster.
Will the slight rise m world trade
that’s anticipated mostly benefit
America’s four major export
competitors—the European
Community (EC), Canada,
Australia, and Argentina? Many
analysts are reluctant to
speculate, although they do agree
that the competition isn’t likely to
relax.
Argentina: Number
Five and Growing
Argentina is expected to export
about 272 million bushels of wheat
in 1984/85, or around 60 percent of
its 467 million bushel crop. That’s
up from just 85 million bushels in
1970, although it is below 1983’s
record of 363 million bushels. The
major reason for the decline in
imaniz
wheat export competition
wheat exports is lower production.
Many farmers have switched from
double cropping wheat with
soybeans to growing only early
planted soybeans in response to
government policies and improved
financial returns.
The economic problems in
Argentina represent a threat to its
agriculture, explains USDA
economist Jorge Hazera, a
specialist on Argentina’s
agriculture. “Wheat farmers may
help dig the country out of its
economic crisis, but only if the
crisis does not first overwhelm
them,” he adds. Some of Argen
tina’s problems: 700 percent an
nual inflation in 1984, an unwieldly
$45 billion foreign debt, low prices
for agricultural products, and a
lack of farm credit.
Wheat producers are also sub
ject to the risk of changing
government policies. To reduce
this risk, farmers usually plant
several crops and use as few inputs
as possible in order to keep costs
down. This agricultural philosophy
has protected them from changing
export taxes and exchange rates,
but they could improve their yield
above the current 33 bushels per
acre with more fertilizer, Hazera
points out. Only 15 percent of
Argentina wheat farmers use
fertilizer-compared with 75 per
cent of U.S. wheat farmers.
However, the news is not all bad
for Argentine wheat farmers.
Although they apply few inputs,
their yield is still third highest
among the largest exporters.
7 S
• Real fuel misers” B®^^s T c^ aserS V
• Low maintenance cost *2. «c.o' lo ° s rt
• Easytoworkon * a '°
• Excellent parts/service support second •— T o'^ 5
tonone
• Exclusive 4-WD on 57,70,85,165 hp S'* 17
models
Belarus Warranty Included In Price
BUY FROM YOUR FACTORY DIRECT DEALER
Belarus
ROVENDALE SUPPLY
Exit 31, Rt. 1-80 to 180 (Old Rt. 147) M-F
to Watsontown Exit (You Are There!) 8-8
BuHtr, Jtmtwty, Btrg, Ftnmmif, FibtrJome, Big A Ptrts Sat 8-5
Ph. 717-538-5521 or 742-7521
Toll Free PA 1-800-232-DALE r
POLE BUILDINGS
CUSTOM BUILT AGRICULTURAL, RESIDENTIAL AND
COMMERCIAL BUILDINGS FOR A VARIETY OF NEEDS:
• Painted Galvanized Roof & Siding in a wide range of sizes,
designs and colors.
• Weather Resistant Pressure Treated Poles and 2x6's
T&G Skirting
BEN STOLTZFUS
(215) 273-3456
Honeybrook, PA
Hazera explains that this is
because Argentina is blessed with
generally good farmland and
weather.
The government has attempted
V.S. growers: losing the export race
Exports in billions of bushels
2.0
1.5
1.0
1970
Includes the European Community, Canada, Australia and
Argentina
fPrelimmary
to bolster wneat production by
trying to balance the need for tax
dollars with the farmer’s need for
higher prices. The new govern-
75
Marketing years
320* 70
611 GO
W 05
020* ' OS
022 4WD w/Csb OS
1500 c 165
Ed(in Ideal for 2S Skid loader
Mawi Slemr Sonader. 450 0«
by Stoltzfus Builders
SAM STOLTZFUS
(215) 273-3495
(Turn to Page El 7)
BO 84f
THE BEST
jaS^L^j
KFOffi NET
UtMTE C4SH
$12,000.00 5103/5
$14,011,00 $11,281
89195
$12,95000 $14,950
$15.72790 $12,305
SIG,63SJn $12,995
$19,596.00 $15,200
$21.99500 $17,490
$42.91500 $30905
$259500 $2,395
$7,200.90 $6.500
I
.....J