VOL. 31 No. 9
A new day, as well as a new year, is dawning for agriculture 1986 will bring
the first real implementation of the 1985 Farm Bill and Farm Credit package,
signed into law Monday by President Reagan Only time will tell what effect the
landmark legislation will have
President signs Farm Bill, Farm Credit aid
BY JAMES H. EVERHART
WASHINGTON - President
Ronald Reagan this week signed
the 1985 Farm Bill into law, ending
almost a year of debate and
discussion over agricultural
policy.
At the same time, he initialed the
emergency aid package for the _
Farm Credcit System, a bill that
feared through Congress in almost
record time.
Taking note of the “Herculean
effort” made by legislators in
Passing the bills, Reagan said the
legislation would “help put
America’s farmers back in a
competitive position in world
markets.”
The Farm Bill, the most
espensive food and agriculture
Program in American history,
would cost an estimated $llO
billion, $52 billion of which would
be allocated to commodity
Programs.
Defending the cost, Reagan
added, If things are not going well
down on the farm, things cannot
continue to go well m our cities and
lowns "
Three Sections
The Farm Credit legislation, the
president added, gives the system
a chance to “pool its considerable
resources” to stage a recovery
from its current financial woes.
The legislation would create a new
government body to absorb billions
of dollars of the system’s
delinquent loans.
Admitting that he did not fully
agree with all the provisions in the
Farm Bill, Reagan said it
“provides new hope for America’s
hard-working farmers and our
rural communities.”
The two pieces of legislation are,
“a step foward for American
agriculture,” Reagan said, adding,
“We must recognize, even while
signing these bills, that there are
no quick fixes.”
Echoing the President’s com
ments in a press conference after
the bill signing ceremony,
Agriculture Secretary John Block
noted, “It’s not going to be an easy
winter.”
The Farm Bill reflects much of
the Reagan Administration’s basic
approach to farm policy, although
the package differs markedly from
Lancaster Farming, Saturday, December 28,1985
the proposal it sent to Capitol Hill
last spring.
The focus of the administration’s
effort, Reagan said this week, is
“to get farming more market
oriented,” and less reliant on the
“heavy hand of government.”
’’But since it’s government
that’s been responsible for many of
the farmers’ problems, it’s also
only fair that government not now
just abandon, but make an effort to
help the farmers through the
transition.”
How the Farm Bill will work in
conjunction with another historic
law the Gramm-Rudman deficit
reduction package has not been
determined, Block said in response
to a reporter’s question. “It’s
just too early to predict” how the
commodity programs would be
affected by the deficit cutting
measure, he said, though farm
spending is not among the
programs exempted from budget
cutting
In effect, the Farm Bill will
lower milk prices 40 cents per
hundredweight when the
assessment to fund the whole-herd
Meanwhile, farmers throughout the region are taking time to reflect on the
year past, and plan for a future that can only be described as challenging To all
our readers, the staff and family of Lancaster Farming extend our warmest
wishes for a happy and prosperous New Year
buyout goes into effect,
The 18-month herd buyout plan
would be implemented early in
1986, lowering the support price to
$11.20. On Jan. 1, 1987, the price
would effectively drop 10 cents to
$ll.lO, as the listed support would
be reduced 25 cents, while the
assessment would be lowered 15
cents.
On Oct. 1, 1987, the assessment
would end, but the support price
would also be lowered to $lllO
Beginning Jan. 1,1988, the USDA
Secretary would be required to
The office of Lancaster
Farming will be closed in ob
servance of New Year's Day
holiday.
Advertisers and news sources
are asked to meet the following
deadlines for the Jan. 4 issue-
Mailbox Market and public sale
ads, Monday at 5 p m ; General
news, Classified Section B and
display ads. Tuesday noon, all
Office closed on New Year’s Day
$7.50 per Year
make 50-cent annual cuts in the
support price, if surplus purchases
exceed five billion pounds a year.
He would also be required to raise
prices 50 cents, if annual surpluses
drop below 2.5 billion pounds.
After the whole-herd program
ends, the bill gives the secretary
authority to implement either a
whole-herd buyout or a diversion
program, at his discretion.
The bill also would increase
prices in some marketing orders,
to reflect current transportation
costs.
other classified, 9 a.m Thur
sday; and late-breaking news,
noon Thursday
Materials for Lancaster
Farming’s special Farm Show
issue, to be published Jan 11,
should also be received at the
Farming office as
soon as possible News deadline
is Monday, Jan 6