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Show The Salt Lake Tribune F5 Sunday, July 15, 1964 Improving Productivity, Cutting Costs Keys to Boeing Future, President Says Debate on Rising Farm Subsidies Awaits Lawmakers By Don Kendall Associated Press Writer When Congress eventually gets down to work on a 1985 farm bill, there will be lots of talk about subsidies to farmers, particularly those who produce milk, wheat, corn and cotton. But the word subsidy is avoided by many members of Congress whose home areas depend heavily on farming and the huge agribusiness industry. Euphemisms such as deficiency payments or supports are preferred. ' No matter what they are called, the federal governments commodity price support operations have soared in recent years. And there is a strong feeling in the Reagan administration and among many lawmakers that the situation has gotten out of hand. According to the Agriculture Departments budget office, net costs of commodity price support operations rose from about $4.04 billion in 1980-8- 1 to $11.7 billion in 1981-8- 2 and to a record $18.9 billion in 1982-8For the fiscal year that will end Sept 30, USDA is forecasting net outlays at about $5.57 billion. Higher Prices This Year The hefty reduction this year is due to higher prices for some key commodities, particularly feed grain, as a result of the sharp acreage cutbacks and drought in 1983. With higher prices, less use is made of the price support loan program. However, with farmers putting land back to work this year and production increasing, market prices are expected to weaken in 1984-8- 5 and support costs rise again, perhaps to around $11 billion, say the budget experts. In much of the publics mind, any federal benefit to farmers is a subsidy. Thats why some lawmakers and USDA officials use other words. And with the recent jump in farm program costs, the forthcoming debate on Capitol Hill will be amply laced with pros and cons about subsidies, whether they are in the form of direct cash payments or indirect benefits. As suggested, the word itself can stir arguments. As an example, some dairy farmers and their representatives are sensitive about the subsidy label on the current milk diversion program which is providing cash payments to those producers who signed contracts with USDA to reduce milk output over a period that began Jan. 1. It is not a subsidy, some contend, because the program is being paid for by dairy farmers themselves through a mandatory deduction of 50 cents per 100 pounds on all milk sold by producers, whether they are in the program or not On June 21, the department reported that more than $136 million had been iaid to dairy farmers for the first three months of the program. The estimated cost for the entire 15 months is about $940 million. also said that about $277 million was collected deductions began since the last Dec. 1 and that eventually the deductions will about cover the entire cost of the payments. Thus, some dairy people say, producers are not getting subsidies because they are paying for the program themselves. Only one in five commercial dairy farmers is participating in the program and is getting payments, although all producers are fee. contributing their However, if the milk program signas USDA had up had been greater the payments originally hoped over the 15 months could have been substantially more than $1 billion, deductions meaning that the would fall short of covering costs. Also, the whole program is the result of Congress passing a law and the federal muscle that it provides. Money is collected from all, rather like a tax, and then redistributed to a minority who perform in a special way. One-ShProgram Moreover, as USDA officials point out, the diversion payments are a one-shprogram and represent only a fraction of total federal benefits to dairy farmers. The main costs of supporting milk , ,i WASHINGTON - prices are in what USDA spends to remove butter, cheese and non-fdry milk from the free market in order to prop up the price of milk that dealers pay to dairy farmers. Although the farmers get no direct cash under that arrangement, their federal benefits are real and so are the at costs to taxpayers. Even with the fees taking care of the diversion payments, the departments milk support operations are still expected to cost about $1.5 billion this fiscal year, down from a record of $2.6 billion in 50-ce- SEATTLE (AP) Frank Shrontz, the new president of the Boeing Commercial Airplane Co., says increasing productivity and thereby keeping down costs are keys to the giant manufacturers future. He is aware that some workers call Boeing the Lazy B, while managers maintain its the worlds most productive airplane company. Overall, I think were pretty effective in terms of getting a lot out of our people, says Shrontz. Im sure there are people out there who are not working to full potential. Were going to see if we can change that Shrontz, who was vice president of sales until he was named president in April, replaces Richard Welch, who became vice president of the parent Boeing Co. The executive says improving Boeings productivity ranks among his top priorities. Its getting tougher to make a profit and the only way to persuade airlines to buy jetliners is to keep down prices by keeping down costs. He plans a crusade to increase the output of the average worker, to get them involved in the process. Go out and tell our people why, he says. They need to know why were putting increasing pressure on that Theres a story there that were going to talk to our people .... about He says Boeing has to make the price of a new airplane attractive enough for airlines to replace their older models. And keeping the price down will help in financing, Shrontz says. Boeing also needs to be more productive to meet the competiton from McDonnell Douglas and the European consortium, Airbus Industrie, he says. On another matter, Shrontz predicted that congestion at airports will force airlines back to larger-modplanes "I think the physical structure at some point might dictate larger planes, he said. That would be good news for Boeings new jetliner models, the 757 and 767. In recent times, the smaller 737 has been the popular plane with airlines. The 737 can carry between 110 and 140 passengers. The 757 carries 185 seats and the 767 carries 210 seats. Im one who believes the 757 will come into its own, Shrontz said The recession delayed that, but it certainly hasnt changed the longterm future. Malls Come to Saudi Arabia commerce. Saudi Arabia - Theof deputy minister traditional souks in the old malls "have RIYADH, of (AP) city Saudi Arabias capital are as crowded as ever, but the shopping action has moved to the sprawling shopping center. The crowds have been flocking to the Dairy Queen ice cream shop, Hallmark greeting card store, Panda supermarket and nearly 120 other stores at Riyadhs first enclosed, American-styl- e shopping mall The center proved so popular in its first six months that a $71 million extension has been started next door. mall Although the American-styl- e was late in coming to this conservative desert city, its arrival has touched off a surge of development More than half a dozen large malls have opened in recent weeks or are under construction, most in the more modern, heavily expatriate northern sections of the city. This is a natural process of development and nobody can stop it said n the Saudi Abdul-Rahma- il, Shop Radio Shade for Genuine TRS-8- 0 Computer Software and Accessories! AMfMCAN mtUiM ft- -- f 3. 50-ce- nt nn o U2Jnr 5 JVuu LI Ls Was $999.00 in 1984 Catalog AS LOW AS 35 PER Hurry! 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Ready-to-Ru- Self-Contain- ed 50-ce- nt 50-ce- nt Now in Session Summer Computer Camps for Ages at Nearby Radio Shack Computer Centers Enroll Today! 8-1- 5 ot ot Western- sprung up worldwide and it had to happen here, he said. But the boom already shows signs of creating a glut and some businesses are suffering Like people elsewhere, Saudi shoppers are attracted to the malls by the convenience. The climate-controlle- d environment is particularly attractive in Saudi Arabia, where temperatures during the long summer can reach 110 to 120 degrees. In a city where public entertainment facilities are virtually the mall provides an area of congregation for families and one of the few places where young people can mix, which sometimes results in warnings from Islamic religious officials against Still, although the Saudis seem to have taken to shopping malls, the cultures clash. 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