Will Asia’s COLUMBUS, Ohio South east Asia’s recent economic trou bles could be the flashpoint for longer-term effects that could hurt U.S. farmers, said agricultural economist Carl Zulauf of Ohio State University. “This is a serious situation of which any informed American needs to be aware and watch for possible future consequences,” Zulauf said. The extent of that seriousness will depend mi whether the crisis in Thailand, Malaysia, the Philip pines and Indonesia spreads to East Asian countries that are ma jor importers of U.S. farm prod ucts, Zulauf said. The latter are South Korea, Japan, and China. Symptoms of Southeast Asia’s troubles festered throughout 1997 with currency devaluations tang ing from 13 percent to 34 percent in the above four countries. The value of South Korea’s currency, the won, has also declined by 20 percent. Currency devaluations make U.S. farm products more ex pensive overseas, which could cut into trade. Zulauf said the crisis is not just a change in currency values, but is a barometer of deeper, structural problems in Asia’s long-touted “miracle” economies. “Problems in economic activity always come from some place you didn’t expect it,” Zulaud said. “There was once unmitigated opti mism in the Southeast Asian region." The underlying troubles can be traced to the past decade when for eign investors optimistically poured money into Southeast Asia Lancaster Farming ■ 1 E. Main St. _ Ephrata, Pa 17522 ■ 717-394-3047 a or Lititz _ 717-626-1164 ■ FAX 717-733-6058 a PHONE HOURS: _ Mon., Tues., " Wed. & Fri. ■ 8 a.m. to 5 p.m _ Thurs. " 7 a.m. to 5 p.m. ■ OFFICE HOURS: ■ Mon. thru Fri. 8 a.m. to 5 p.m. ■ The following categones ■ are available for your classified advertising B In Section C. Deadline m Thursday morning at 9 of m each week's publication a 1- Equipment _ 2- Eq. Wanted " The following categories B are available for your _ classified advertising m in Section D. Deadline a Wednesday afternoon at 5 of each week's publication. ■ la-Construction Equipment ■ 3- and Unloaders 4- and Supplies ■ 5- Equipment 6- Equipment B 7- Equipment _ 8- " Ba-Exotic Animals a 9- & Mules 10- & Goats ■ 11- _ 12- Artificial Breeding ■ 13- Eq. & Supplies m 14- & Supplies 14a-Ratites ■ 15- & Seed 16- ■ 17- _ 18- & Vegetables ” 19- a 20- & Garden 21- Offered B 22- Work _ 23- Wanted ■ 24- Wanted m 25- Opportunities 26- B 27- _ 28- Lost B 29- _ 30- " 31- a 32- 32a-Antiques B 33- Vehicles _ 34- ■ 35- & Trailers ■ 36- Estate Economic Dominoes Tumble On U.S. in anticipation of their future po tential. The infusion of capital pushed growth rates in to the up per-single digits and lower-double digits, and some economists her alded the region as an emerging “tiger” economy. The intense investsment acti vity overheated Southeast Asian economies, and by last summer, investors had lost faith in national currencies. This led to devalua tions and stock market crashes through the latter half of 1997. In addition, Japanese banks are exposed due to massive loans to the region. Add to that Japan’s large debt problem left over from its economic boom of the 1980 s. “Americans still perceive Japan as an economic miracle,” Zulauf said. “However, its economy has not performed well during the 19905, and its government has not made the structural reforms that many experts say is needed.” Asia’s economic problems stem from excess manufacturing capa city, Zulauf said. The region is producing more goods than the world market can absorb. When too few dollars chase too many goods, the result is deflation, or a drop in prices. Hence these coun tries have seen deflated prices for their manufactured goods. “CEOs of major companies have been asking, ‘What happens if this excess capacity comes on the market, and the demand isn’t there to absorb it?’,” Zulauf said. The underlying economic prob lems may eventually hit Asians’ pockctbooks by cutting into in come growth and maybe even re ducing their incomes. Conse We Now Accept Visa (Word Ads Only) CLASSIFIED AD ORDER BLANK PLEASE WRITE CLEARLY \ LANCASTER FARMING } f P.O. Box 609, Ephrata, PA 17522 \ NOTE; Please do not use this form for Mail Box Market Ads, see instructions with Mailbox Markets. Name Addre: City _ Zip — Please publish my. starting with the □ Check Enclosed □ Visa(l3 or 16 numbers) □ Mastercard (16 numbers) (Be sure to include all numbers) Exp. Date: Box Replies: Ads with answers coming to a box number, c/o Lancaster Farming: $1.50 per ad per week additional. This newspaper will not be responsible for more than one incorrect insertion of any advertisement. 36 37 36 39 40 ■ ■ (PHONE NUMBERS COUNT AS ONE WORD^ Phone( ) word ad times issue. Classify under I enclose. Signatun quentiy, their demand for foreign goods including U.S. farm pro ducts is expected to decline. Zulauf said Asia’s “rational re sponse” to the economic condi tions would be to “export their way” out of the excess manufac turing capacity. They would sell their products at reduced prices to U.S. consumers, and U.S. pro ducers would be forced to lower their prices. In the short term, a round of de flation would benefit consumers with lower prices, Zulauf said. However, deflation potentially hits company profits and lowers stock prices. Asia’s economic problems would hurt U.S. farmers, who BUY. SELL A LESSON WELL LEARNED... LANCASTER FARMING’S CLASSIFIED ADS GET RESULTS! V/5A PLEASE CALL OUR CLASSIFIED AD DEPT. IF YOU WANT TO ADVERTISE A DISPLAY BOX IN OUR PAPER State havac greatly increased their ex ports to the region in this decade. For example, 32 percent of U.S. com exports go to China and Ja pan; another 30 percent go else where to Southeast and East Asian countries. In addition, more than 40 per cent of U.S. soybean exports and mote than SO percent of beef and pork exports ended up there as of 1996. Zulauf said the above economic scenario is not for certain, and he hope it docs not happen. “I would place a 10 percent to 20 percent probability on a significant impact on U.S. agriculture.’ “These odds may not seem high, but normally the odds of a significant positive or negative event are much lower than this.” FARM EQUIPMENT 1100 gal. vegetable wash ing tank complete w/4’ trash pump and electric truck hoist. Will sell together or separately. Call 609/455-6858. 1300 Ford compact diesel, 600 hrs., very good condi tion, 5' finishing mower, 3pth, power take-off, $7500 080. 610-845-8598 1840 Case skid loader, 2440 hrs, big like new bucket, enclosed cab, heat, nice, $9900. Rubber scraper, good, $350. 814/766-3751. & Master Card p CLASSIFIED ADVERTISING RATES \ 47$ per word per week -1 or 2 times \ 42$ per word per week -3 or more times f 11 word minimum ■, p Wards llime 2 Times 3 Times \ up to 11 5.17 10.34 13.86 \ k 12 5.64 11.28 15.12 7 A 13 6.11 12.22 16.38 i V 14 6.58 13.16 17.64 J ) 15 7.05 14.10 18.90 A \ 16 7.52 15.04 20.16 A < 17 7.99 15.98 21.42 J r 18 8.46 16.92 22.68 \ P 19 8.93 17.86 23.94 ( p 20 9.40 18.80 25.20 J Lancaster Farming, Saturday, December 6, 1997-C7 Agriculture? What should fanners read in to Zulaufs scenario, which may or may not happen, or else may occur in some modified form? “My ad vice to farmers is to stay on top of the situation by collecting in formation and to get your costs of production in order." It would take at least six months before any serious indicators ap pear, Zulauf said. U.S. agriculture could be hurt whether or not the most serious aspects occur be cause of its vulnerability to over seas developments. “Farmers need to ask the ques tion: ‘How can I cut production costs, yet retain or enhance profit ability?’,” Zulauf said. “Remem ber, the farmers who survive in the long run have the lowest cost of production.” Diesel and Electronic Fuel Injection Specialists AMBAC BOSCH Cummins STANADYNE C.A.V. Caterpillar CENTRAL PENN PUMP CO. 2700 Cumberland St. Lebanon, PA 17046 717-274-0665 DEADUNES: SECTION D - WEDNESDAY AT 5:00 P.M. SECTION C - THURSDAY AT 9:00 A.M. OF EACH WEEK'S PUBLICATION i *
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