Farming, Saturday, February 1, 1992 I a R *• V* MANAGEMENT WHERE’S THE FREE TRADE? Roland P. Freund Penn Slate Farm Management Agent President Bush’s trip across the Pacific has raised the issue of trade practices. There seems to be a lot of confusion and far more frustra tion oh these highly political matters. Who allows “fair” trade and who trades “unfairly”? “Fairness,” like beauty, is in the eye of the beholder. So it is impor tant to look at these issues from the perspective of the people from the other side of the ocean as well as through our own TV network cam era lenses. Aussies From my Australian farming friends, I hear of their frustration at losing their wheat markets. They blame their woes on the the U.S. price supports, and the U.S. Export Enhancement Program. Their plight is very serious, since they have been suffering severe drought, plus the depressed wool and sheep markets. Many have been forced to shoot more FANTASTIC MID-WINTER BUILDING VALUES Contact your nearest Lester builder for a quote today DELAWARE VALLEY STRUCTURES, INC. West Chester (800) 472-1503 COUNTRY CONSTRUCTION Montoursville (717) 36811718 LEBANON BUILDING SYSTEMS, INC. Lebanon (717) 272-4449 FOUR COUNTIES CONST. Coal port (814) 672-5751 than 20 percent of their sheep, and take a big loss on what little grain and wool they produced. It sounds like a repeat of the Great Depress ion for them. However, when it comes to farm exports, the Aussies appear to overlook the fact that the value of their agricultural exports to the United States is more than five times their ag imports from the U.S. We did not hear much from the Detroit auto executives while they were “down under!” Australia has high tariff barriers on car imports to protect its auto industry and their labor unions. General Motors and Ford are big players there, and those corporations have benefited from the trade barriers, so protec tionism suited Detroit just fine in Canberra. Many Japanese and, for that matter, British and Europeans went hungry during the great wars. Those who can remember those things insisted on the security of some level of self-sufficiency in food production. We cannot blame them for maintaining this policy. But there is more at stake than a food supply. Where profitable agriculture is PENNSYLVANIA GEESAMAN-ROCK CONST., INC. Zullinger (717) 762-1116 G.R.I.D. BUILDERS, INC. Zehenople (412) 452-0707 NAZARETH BUILDING SYSTEMS Nazareth (215) 837-7700 MOSTOLLER CONSTRUCTION COMPANY Somerset (814) 445-3388 Japan C.R. ROME BUILDERS Gouldsboro (717) 842-0939 GEORGE HOY & SON Lockhaven (717) 769-6654 UMBAUGH BUILDINGS, INC. New Oxford 1-800-222-9047 WEAVER BLDG. SYST., H.R. Annville (717) 838-3753 maintained, the environment is protected by careful land-use plan ning and pollution controls.. Con trast this with the industrial degra dation which resulted in the former Soviet republics. If the Japanese rice Helds and farms were to lose their markets to cheaper imports, the social and environmental costs could well be greater than the economic gains. How much more can we ask for? Last year, Japan purchased $7,720 million of our agricultural pro ducts. Now that’s a pretty big pile of beans! As Earl Butz once said. “I don’t mind if my son drives a Toyota—they buy our soybeans.” GATT There arc 108 member nations involved in the General Agree ment on Tariffs and Trade (GATT). They are now trying to hammer out an agreement on reducing farm subsidies, which is acceptable to all countries. Perhaps this is an impossible task when everyone is trying to blame someone else for their eco nomic woes. Will our farmers rejoice in the prospect of lower support prices for grains and milk? ThA Hungry Nations We seem to focus much atten tion these days on the former Soviet republics. Their situation is very serious and USAID is provid ing agricultural credits to supply them with wheat, feedgrains, veg etable oils, and hops. We hope that the needs can con tinue to be met There are also the third world countries like Haiti, Bangladesh, Etheopia, and other sub-Sahara African countries. They don’t have the creditwor thiness to purchase the food that We’re ready with your best buy on every style of Lester wood frame buildings. On farm or in town, we can tailor your project to meet your needs. Our new Uni-Frame design allows us to create an attractive, functional building just for you, at a price you can afford. Now is the perfect time to buy the building you’ve been thinking about for the past year. Give us a call or stop in and take advantage of our fantastic mid-winter building values. GOMPF CONSTRUCTION Street (410) 692-5350 MYERS BLDG. SYSTEMS, INC. Clear Spring (301) 582-4200 For dodar Intonation contact Lotto Bolding Syatora Karl Woolever - 1-800-826-4439 they need to maintain even a basic existence. While we might like to blame their political systems for their plight, it seems that it should be possible for relatively wealthy and resourceful nations to develop distribution systems to help. International Solution? One economic study has sug gested that all wealthy nations could contribute all of the money which they now spend to “support” prices and export markets, and contribute it to an international “food stamp” program. If needy countries were able to CAMP HILL (Cumberland Co.) The Farm Management Services of the Pennsylvania Far mers’ Association (PFA) is alert ing farmers about erroneous state income tax notices being sent out by the Pennsylvania Department of Revenue. Some farmers are mistakenly receiving notices of underpay ment of estimated taxes from the state agency. “We’ve learned that the Revenue Department is having a hard time identifying some tax payers as farmers because of a tax law change which went into effect starting with 1990,” explained Don Hummel, assistant manager of the PFA business service. ‘"Hie tax change, which PFA helped secure, plus the state in line with the federal tax definition of a far mer as someone who receives two-thirds of gross income - rather than net taxable income ~ IRYLAND RASCHE BROTHERS CONTR. Taneytown (410) 756-4457 REYNOLD'S & YELLOTT Reistertown (410) 833-1840 Tax Notices May Be Wrong THE BRAND THAT MAKES THE DIFFERENCE LESTER LESTER BUILDING SYSTEMS A Division of Butler Manufacturing Company r LESTER BUILDING SYSTEMS ~j I P.O. Box 37, LMter Pralrl*, MN 55394 I I For information and liiaratura I I □ Horse Barns □ General Purpose | | □ Agricultural Bldgs. □ Light Commercial j | j | Addn I city 7lp Cod* I I County, J Ph (Include area coda) I : J UF draw on these “food stamps” to purchase their food needs, then all agricultural commodity surpluses would disappear and agricultural commodity prices worldwide would rise an average of IS percent Sounds like Utopia, doesn’t it? Well, it seems that the concept needs to be investigated further. If as much energy and resources could be expended on getting food resources to needy people as is now spent by opulent farmers and politicians in America. Australia, Europe, and Japan in trying to get ahead at the other’s expense, then this planet earth would be a much nicer place for us all to live. from farming. Evidently the Revenue Department’s computer system is not able to identify the Gross Farming Income informa tion from some returns.” Hummel advised farmers receiving notification to write “Exempt Farmer - 66% of Gross Income From Farming” on the Farm Exemption Worksheet included With the Revenue Department notice and return it to the department’s Bureau of Indivi dual Taxes in Harrisburg. “If your gross income from farming is two-thirds of your total income, you’re exempt,” Hummel said, “We’ve contacted the depart ment about the problem.” PFA is a voluntary farm organi zation representing 23,049 fami lies in 54 local associations. It pro vides members with information, a voice in public affairs and busi ness services such as the Farm Management Services.
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