D6-Lancaster Farming Saturday, October 5,1985 CHAMPAIGN, 11. - The nation’s farmers are ready to wean themselves off government price support programs and agricultural subsidies, provided adequate support exists during the critical transition to a purely market driven farm economy. That’s the conclusion of a wide ranging survey of farmer attitudes toward agricultural policy spon sored by United AgriSeeds, Inc., of Champaign, 111., an advanced research-based agricultural seed company with operations throughout the U.S. and Western Europe. The telephone survey of 200 farmers nationwide was conducted earlier this spring by an independent market research firm retained by United AgriSeeds. Roderick N. Stacey, president of United AgriSeeds, said the survey reveals only 36 percent of farmers favor a key role for government in providing price supports and just 39 percent want government in volvement in set-aside programs. The poll’s results are accurate within plus or minus seven per centage points. “In view of the current farm credit crisis,” Stacey remarked upon releasing poll results, “farmers are more optimistic than you might expect about the withdrawal of government sup port. But farmers want the tran sition to a market-driven program to be done gradually.” Fifty-five percent of farmers surveyed believe American agriculture would best be served by government policies which control production, but they are split on whether government can trim its financial commitment to agriculture in any substantial way before 1990. Only 40 percent of them believe the government can reduce its financial commitment to agriculture within five years. m BUSINES Prof receives ABS award Dr. B.T. “Ben” McDaniel of North Carolina State University, Raleigh, North Carolina, was named recipient of the J.L. Lush Award at the recent American Dairy Science Association's (ADSA) annual meeting in Urbana, IL. The award, in the form of a plaque and $1,500, is sponsored by American Breeders Service (ABS) and was presented by Dr. Paul Miller, Vice President of Sire Development for that firm. It is awarded annually in recognition of the exceptional contributions made by Dr. Lush to the Science of Animal Breeding. Farmers see smaller role for federal government Surprisingly, the majority of farmers who participated in the United agriSeeds poll oppose government price support programs, or paying farmers to set aside acreage. Sixty percent of them do not want the government involved at all or in more than a “minor” way in propping up market prices. In addition, 58 percent want the government to either curtail or eliminate set aside programs. However, 80 percent of farmers surveyed want government to play a “major role” in encouraging agricultural exports, and 53 per cent want low-interest farm loans to be continued. Only 20 percent of them want the government to diminish its role in prodiving low interest loans. “I think government supported low-interest loans are perceived by farmers as an essential support device that will be needed during the next few years while deregulation of agriculture takes place,” Stacey said. In contrast with a Harris Survey released in March, 60 percent of farmers surveyed by 'United AgriSeeds are convinced the American public is against them receiving government subsidies and price supports. In the Harris Survey, 68 percent of the American people rejected the notion that farmers should operate without government assistance. “This dramatic difference in perceptions is significant,” Stacey said, “because it means American agriculture finally is beginning to communicate its problems ef fectively to the public.” Farmers split fairly evenly when asked how they feel about the Reagan Administration’s ap proach to farm policy, with 43 percent agreeing and 44 percent disagreeing with his planned reductions in price support and federal loan guarantee programs in favor of market-driven policies. Fourteen percent of them had no opinion on the Administration’s farm policy. “The confusion may be more reflective of their perceptions of the Administration’s un derstanding of the needs of American agriculture,” Stacey observed. “Fifty-six percent rated the President’s understanding as ‘poor’ and 21 percent rated it ‘not very good’”. Based on survey results, Stacey believes farmers want state government to play an in creasingly important role in the creation of farm programs and policies. Seventy-one percent of farmers participating in the poll said federal programs would be more effective if state government had more influence on farm policy. “Farmers obviously respect state government and believe it can be more responsive to their needs,” Stacey said. “I think most of them are convinced government policy would be more effective if state government played a more direct role in both the development and administration of farm policy.” Asked how they view the farm credit crunch, 76 percent of far mers queried called it a “long term problem,” and 16 percent saw it as a “short-term crisis.” Almost 100 percent of them labeled the plight of farmers as “very serious” or “somewhat” serious. By a 67 to 32 percent majority, farmers feel the news media has not exaggerated the demise of America’s family farm. And 73 percent of them are convinced their financial difficulties have had a negative “ripple effect” on other businessmen in their local com munities. Economic pressures also are breaking up the average fanner’s long-time love affair with heavy farm machinery. New farm equipment was portrayed as a “poor” (70 percent) or “not so good” (19 percent) investment by farmers participating in the survey. Similarly, farmers’ attitudes are shifting on the value of land as an investment. Asked how good a return they get on land, fully 66 percent of farmers called it “poor” with an additional 23 percent terming it “not very good.” However, when asked how good a return farmers can expect from improved seed varieties and hybrids, 63 percent of farmers called them “excellent” to “good” investments. Fertilizer ranked second as a sound investment with 59 percent rating them highly and agricultural chemicals (herbicides and insecticides) came in third at 58 percent. “Not surprising, high cost capital items are giving farmers the poorest return on investment,” Stacey said. “In times of financial stress it is the basic farming in puts-such as good quality seed that farmers consider the best investment.” Finally, when asked whether farmers-are taking more or fewer risks today thpn in previous years, 51 percent say “more” and 43 percent say “fewer.” “How this is interpreted depends upon how they defined risk,” Stacey notes. “Some farmers feel they are taking more risks because the value of their land has eroded and production costs have skyrocketed. Other farmers who depend less on government programs feel they are taking fewer risks because they are stronger financially.” 1 The Farm Credit System Baltimore banks still solid BALTIMORE The Farm Credit Banks o* Baltimore reported net earnings ot $20.2 million for the first seven months of 1985, an increase of 88% ovei a comparable period tor 1984 ac cordmg to a statement by Gene L Swackhamer, President of the Baltimore Banks. Swackhamer also reported delinquency rates foi Federal l,and Bank farm loans at 4.4% by number over the first seven months ot 1985, the same as a yeai earlier Delinquency rates foi I reduction Credit Association farm loans at mid-year 1985 stood at 3.2% by numbei This contrasts ith a delinquency i ate of 3 7% at mid-year 1984 The favorable opeiating repoit ot the Baltimore Banks came in sharp contrast to statements issued last week by the Farm Credit Administration (FCA i who called foi Federal financial assistance for the Farm Credit System. The FCA is the regulatory agency responsible tor monitoring the Farm Credit System's national lending activities. FCA's remarks of last week i oncerning their perceived need for Federal assistance foi the Farm Credit System are not justified at this time according to Swackhamer The financial problems of even our most troubled Farm Credit Districts are being addressed and managed FCA's recent call tor Federal financial assistance represents a worse case con tingency scenario.’ Swackhamei said. Howevei. Swackhamei asserted, the leadership of the Farm Credit System believes, at this time, that existing financial assistance plans and other mariagement measures will ad dress the System's currrent problems and the financial con dition of the System today is not critical.' But, Swackhamei noted that various alternatives are being reviewed, including some form ol Federal aid, if the stress in agriculture and within the Farm Credit System increases significantly over the next 12 to 24 months. James Cisney, Chairman ot the Baltimore Banks Board ot Directors, said the $340 million financial assistance plan for the Omaha Banks approved last Firm unveils tube installer • { *n**' P Atf Lake Company of Bakersfield, CA announces the availability of its one row lay out machine to aid in the in stallation of drip tubing in existing narrow rows. The three point-hitch-mounted unit is only 70-inch wide and available with or without brakes. One operator can install tubing from large 80-inch reels holding up to 22,000 feet of 16 mm tubing. A drip line retrieval machine is also available. Farm Credit News month demonstrates the abihtv and willingness of financial!} strong Farm Credit Banks to help the System manage its problems without calling foi immediate Federal aid I think it is premature tor us to i onsider Federal assistance at this time However, we are pleased to know that Congressional leaders have indicated thev would consider some form of financ lal assistance it and when needed." Cisney said He added. The statements made last week reflect the opinions of the FCA and not the opinions of the leadership of the Farm Credit System who are in operating positions which involve the making and collecting of loans “ When asked what impact the Omaha District Financial Assistance Flan and the earhei approved Spokane District aid would have on the Baltimoie Banks, Cisne> said projections indicated an impact of 18 to 20 basis points oi about one-fifth of 1% increased interest rate spread tor the Baltimoi e Banks In the case of the Federal Land Bank, our earnings have been strong enough to absorb this spread without me reusing interest lates In fact, we lowered oui Federal Land Bank farm loan interest rate 50 basis points oi one half of 1% on August 1, ' he said Cisney expressed concern that the recent statements by FCA might cause unjustified sensitivitv among investors, causing bond rates to use which could ultimatelv increase rates to the Banks' borrowers The Farm Credit Banks ot Baltimore are pait ot the nationwide harm ( redit System, the countrv s laigest private cooperative lending institution With more than $.l billion in out standing loan volume, the Baltimore Banks extend long term credit through the Federal Land Bank of Baltimore and affiliated FBLAs; short term credit through the Federal Intermediate Credit Bank of Baltimore and affiliated PCAs; and credit to agricultural cooperatives through the Baltimore Bank for Cooperatives. The Baltimore Banks serve far mers and agricultural cooperatives in the states of Delaware, Maryland, Penn sylvania, "Virginia, West Virginia and in the Commonwealth of Puerto Rico.
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