A2Hjnc«ttf Fanning, Saturday, February 24, 199 C
Agri-Educational Seminar Examines Globalization Effects
LANCASTER (Lancaster Co.)
After decades of broadcasting
farm news, Orion Samuelson, said
the biggest change he has seen in
agriculture can be summed up in
one word: globalization.
This worldwide concept applied
to agriculture was touched on by
numerous speakers at the annual
agri-education seminar held by
CorcS tales Bank on Thursday.
Globalization is held up as the
answer for expanding agricultural
markets.
With explosive world popula
tions in countries that cannot feed
its own, the U.S. is considered a
reliable supplier.
“If we drcide to stop exporting,
half of the farmers will be out of
business,” Samuelson said in
response to those hesitant of ship
ping resources outside of the
United States. “We have more
resources than we can use and
those resources are replenishable.”
Echoing the message of global
trade were speakers Dr. Barry
Flinchbaugh. H. Louis Moore, and
John Blanchfield.
Farmers cannot remain isolated
from what is going on in the world.
Flinchbaugh, economist from
Kansas State University, said that
the general economy affects far
mers’ bottom line and what is hap
pening internationally and in
world trade.
“Export demand looks extreme
ly good,” he said. He referred to
the population explosions in coun
tries such as China, Indonesia, and
India. While these countries need
food, trade remains a political
market that may be cut off in situa
tions such as China’s perchance to
fire missiles at Taiwan.
Economic indicators measure
what is happening to the economy
and according to Flinchbaugh indi
cate that interest rates will decline
because it is an election year. This
will unfortunately sow the seeds
for another round of inflation,
which has been held flat in the
19905.
Flinchbaugh sees the federal
deficit as the number one problem
for the United States, with the big
gest expenditures in Medicare and
Medicaid and little chance for
reducing it “By the year 2002, the
deficit will make up 22 percent of
the budget and the economy can
not sustain that,” he said.
While there is no finalization of
the Farm Bill. Flinchbaugh said
that farm programs continue to
create controversy. Some analyists
predict that exports can replace
government programs 100 per
cent, but others believe trade will
have zero effect in replacing the
programs.
While land prices continue to
rise in the East, percentage wise
land values are going up faster in
Kansas and the Midwest.
Moore, an economist from Penn
State, reported that record exports
in 1995 will continue to rise 1.5
percent this year.
The economists confer that
there is not too much good ahead in
the dairy and livestock outlooks
for this year, but exports should
help these industries eventually.
Blanchfield, director for the
agricultural division of American
Bankers Association, said that
changing dynamics are affecting
the Farm Bill debate in Washing
ton. “In the past they came
together with the thought of doing
something good for agriculture.”
Now a harsh review of the effec
tiveness of programs is resulting in
others defining agriculture.
He referred to Dan Rather’s
recent CBS broadcast that falsely
Miss Pennsylvania Linette
Mertz
Orion Samuelson
■ouis Moore
accused dairy farmers for conspir
ing to develop legislation that
would cost American consumers
$2.5 billion dollars and put addi
tives in milk.
Blanchfield warned, “We must
not let others define who we are.”
David Kohl, ag professor from
Virginia Tech Polytechnic Insti
tute, challenged the audience to
balance business and family life.
According to Kohl, those who
spend 3,000 hours in farming and
500 hours in other commitments
will lose either their family or farm
within five years.
While involving family mem
bers in the farm operation. Kohl
said that it is important to allow
family members to work for some
one else for 3 to 5 yean. Studies
show that when the member
returns to the family farm, the
transition is twice as likely to be
successful and the business will be
four times more profitable.
Another important rule is to
allow that member to move into
management within six yean.
Speakers at the Core States Bank Agri-Education Seminar include, seated from left,
Kirsten Kauffman, Miss Pennsylvania Linette Mertz, and Joy Young. Standing from
left, Gary Heim, John Blanchfield, Darvin Boyd, Orion Samuelson, David Kohl, Barry
Flinchbaugh, Joseph Del Tito, and H. Louis Moore.
Bumpy roads are caused too often
by parents trying to maintain con
trol and an unwillingness to hand
over the business.
Attorney Gary Heim explained
farm transfer planning and tax
laws. Significant tax savings are
possible if the transfer is began
while the farm owner is still living.
While there is a $lO,OOO annual
gift exclusion, more than that
amount may be given tax free
annually but the amount must be
subtracted from the one-time
$600,000 gift allowable in inheri
tance.
The timing of farm transfers
show that the transation of cattle,
equipment, and crops should be
transferred by the time a child is 30
years old and the real estate should
be transferred by the time the child
is 40 years old.
It is important for parents to
realize that the child taking over
the farm cannot be treated equally
with other children. Otherwise the
child will not be able to raise the
taxes necessary and keep the farm.
It is more sensible to have a clause
state that if the farm is sold within
10 years, a percentage of the
money must be distributed among
the other siblings.
Heim stressed the importance of
selecting a professional you trust
Miss Pennsylvania Linette
Mertz, who grew up on a dairy
farm in Kutztown, talked about her
reign and her passion to promote
literacy. She ended her presenta
tion with a solo, “Proud to be an
American.”
Students Joy Young, county
WA president, and Kirsten Kauff
man, 4-H superior achievement
Gary Heim
winner, spoke on farmland preser
vation and how it affects others.
This was the 15th year that the
Fun
Auction To Support
Maryland 4-H
Judging Team
FREDERICK, Md.—Plans are
underway to secure unique and
exciting items for a fun auction
that will be conducted as part of
the Maryland Holstein Annual
Meeting in late February. Funds
from the auction will help to sup
port the Maryland 4-H Dairy
Cattle Judging Team that will be
representing the United States in
international competition in Edin
burgh, Scotland during late June
and early July.
To date, some of the items
donated are:
• a beautiful afghan and quilt
• two prints from Jim Baird,
artist who designed Hoard’s
Dairyman’s covers
• a beautiful Barry Richards
print
• old milk bottles and other
dairy artifacts
• semen for many outstanding
proven sires
• a dressed and packaged lamb
AMERICAN DAIRY ASSOCIATION*
Dr. Barry Flinchbaugh
bank sponsored the educational
seminar held free for agricultural
clients and FFA members.
• two Maryland/Virginia
basketball tickets
• 5 gallons of delicious Univer
sity of Maryland ice cream
• a beautiful walnut McCune
“Cow With Calf’ woodcarving.
The items will be on display on
Thursday, February 29th at the
Frederick County Fairgrounds
during the Maryland Holstein
State Sale and during the annual
meeting on Friday at the Holiday
Inn. Some of the itesm will be sold
by silent bid and the remainder
will be sold at the live auction on
Friday evening following the
Annual Awards Banquet
If you would be interested in
donating some interesting crafts,
dairy artifacts, or other items to
help support this worthy cause,
please contact one of the follow
ing: Marsha Remsburg, (301)
473-7959; Judy lager, (301)
725-6751; Lee Majeski, (301)
405-1406.