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Show March 1974 Utah Farm Bureau News Page 2 By Booth Wallentine UFBF Executive Vice President Some are slow to learn Will good markets and prices last? A booming market for U.S. farm exports has pushed prices of many commodities to recent! highs for a peacetime economy, particularly grains and livestock. The question is, how long will it last? Most of the factors contributing to the present demand are well known. They include bad weather and poor crops in many part of the world, establishment of new trade relationships with Russia and China, the failure of the fish industry in Peru (the main competitor of U.S. soybeans for the protein meal market) and two devaluations of the American dollar which gave greater buying power to foreign currencies. The influence of these favorable factors on expansion of exports was intensified because they all occurred at about the same time. This is a unique happening in itself. The increasing world population and the growing affluence in countries such as Japan and West Germany have sparked a demand for higher protein diets and a greater total consumption of food. This points toward continuing demand and good world prices. The question is whether the U.S. will continue to have as large a share of the world market as it now experiences. Good weather could mean greater production in countries such as Russia. Good world prices also will spur increased production in other countries not normally considered export sources. Japan, for example, is making large investments in Brazil to boost soybean production. This move stemmed from the Administration's embargo this summer on soybean exports which halted the shipment of soybeans already purchased under contract. Export controls on all U.S. farm commodities have now been lifted, but irreparable damqge has been done to our reputation as a reliable supplier in world markets. It is obvious that the U.S, future in export expansion will be influenced more by the trade policy adopted by Congress this fall than by any single factor. The pressures for a U.S. restrictive trade policy are growing daily. The flour millers and taking industry associations are calling for export limitations. These associations look to export controls as a means of bringing back the government farm surpluses that saved them the cost of maintaining grain inventories. Many flour millers have forgfotten how to operate in a market system. Organized labor is supporting legislation that would limit imports as a means of protecting high cost union contracts. But an even greater threat to expanded farm exports comes from demagogic politicians who favor a government-manage- d farm economy with huge government-hel- d REFLECTIONS By El wood Wrong ideas on FB Shaffer -- S3 A prevail Several myths surround Farm Bureau work that ought to be cleared up. How often have you heard some uninformed city thats dweller comment that Farm Bureau-o- h, just for the big farmers. It would do those speakers good to sit in on a session like the Western States workshop in California last month and listen to Farm Bureau leaders describe their farming operations. Fact is, most Farm Bureau members are medium-size- d operators. Of course the larger, more successful farmers are there too. But they dont control the organization or overwhelm it with their numbers. Some of the other misconceptions set that straight. For instance, perhaps you heard the comment that Farm Bureau policy is made at the top, by the big shots. Its made by the big shots, all right-t- he farmers out there in the counties, where policy development takes place. When local and county members decide their policy, then send their voting delegates to state convention to tell the state and national staff members what posture to take on the various issues, they are doing something unique among form organizations. Another tiresome misstatement about farming is that big corporations are taking over; the family farmer is being squeezed out. Nothing could be further from the fact. A good number of big corporate farms are going broke and selling out. $l-a-lo- commodity stockpiles. These politicians are whipping up consumer support for export controls. They are the same senators and representatives who have voted for increased government major cause of inflation and higher consumer food prices. By hoisting the banner of Lets Take Care of Our Own First, they hope to divert public attention away from their contribution to runaway inflation. Farmers will have to mount a high visibility campaign to thwart a restrictive trade policy as Congress considers a new trade bill the proposed Trade Reform Act of 1973. Advocates of cheap food for consumers will attempt to pit farmer against farmer as they seek export controls to shut off export outlets and pile up surpluses of cheap feed grains at home. Lowering domestic feed grain prices may have a special short term appeal to some livestock, poultry and dairy producers-b- ut a backup of U.S. produced surpluses can mean a return to $20 hogs and $25 beef and dramatically lower dairy and poultry prices. Producers can ill afford these lower prices in the present situation of record high production costs. spen-ding-t- he ! says: Large carryover stocks of whether you call them strategic grain, reserves or whatever are fine for consumers but very bad for the producers of grain. And very bad for livestock men too, in the long run. Nothing like cheap, subsidized grain to crank up overproduction in the meat business. So keep that in mind the next time you hear a politician calling for government-hel- d strategic reserves of farm goods. Remember, in the long run what is best for agriculture is best for consumers. How we confuse Russians 10 shareholders (the others are mostly family corporations) own only 1 percent of all U.S. farms and market only 3 percent of all farm products. Thats no takeover, as we said in this column a couple of months ago. "You're all getting rich" farmers are all getting rich. Doesnt that statement bring a hot feeling to the back of your neck? One year of good prices, like 1973 for part of the farmers, does not a millionaire make. City folks forget that over a five- - or span the poor years average out with the good ones Whatll clear up these misconceptions and You ar part-truth- s? Good work in the counties and good communications about that work. More power to you! UTAH FARM BUREAU ITU NEWS POSTMASTER: Please send Form 3579 to Utah Farm Bureau, East Fourth South, Salt Lake City, Utah 84102 629 Published each month by the Utah Farm Bureau Federation at Salt Lake City, Utah. Editorial and Business Office, 629 East Fourth South, Salt Lake City, Utah, 84012. Subscription price of fifty cents per year to members is included in membership fee. subscription price: One dollar per year. Non-memb- er Second Class postage paid at Salt Lake City, Utah UTAH Elmo FARM BUREAU FEDERATION OFFICIALS Hamilton, Riverton Clearfield Child, Jay C. Booth Wallentine Elwood Shaffer S. W. President Vice President Executive Vice President Editor DIRECTORS: Frank Nishiguchi, Garland; William Holmes, Ogden; Jack Brown, Grantsville; Edward Boyer, Springville; John Lewis, Monticello; Jerold Johnson, Aurora; Kenneth R. Ashby, Delta; Mrs. Paul Turner, Morgan; Robert Johnson, Randolph. Farm people should be particularly opposed to the concept of international food reserve programs. We Yankee taxpayers would foot the bill for producing and storing most of the stocks and the pileup of reserves would depress the American market for farm goods. Karl Hobson, writing in the Utah Farmer-Stockman, Creston J. Foster, Director of Communications, American Farm Bureau Federation 10-ye- af Farmers vs. food reserves - In fact, large corporations, with more than Farm Bureau When will we ever learn? The Congress is again talking about setting up a strategic reserve of grain and other agricultural commodities. The unusually low stocks of wheat have given the advocates of this idea plenty of ammunition. Wheat millers and bakers are making noisy bread prices if we dont threats about stop exporting wheat. Fact is that wheat only amounts to 7c in a loaf of bread. Wheat would have to go to nearly $40 a bushel to be the cause of a $1 loaf of bread. When will we learn that the best protection America can have against food shortages is a dynamic, productive agriculture. If we start building up government stocks of wheat and other commodities, well put a damper on the most productive agricultural machine the world has ever seen. Americans do confuse the Russians. They like things neatly laid out and labelled, and just about when they think they have that job done for the United States, those crazy Americans move the labels around. Take Watergate, and all the g that has on in gone Washington. Can you imagine that in happening any totalitarian country without completely wrecking the nation? The Russians thought it had made us too weak to act, so they tried d us quickly learned better. d Months ago two writers from Pravda, the party publication, visited this country and spent weeks trying to figure us out. They rented a car and drove thousands of miles without restrictions-whi- ch itself was one of the first things they couldnt understand. Then, instead of becoming terribly involved in such things as our political system, they were utfood terly fascinated instead by our fast-serv- e chains and by the fact that you can get almost any kind of food anywhere in this country . . . even Russian foods. Now back home and writing of their trip in Pravda, the men reported: A drive-i- n has posts alongside of which cars park. You push a button and dictate your order. That very minute a girl runs out to your car with a tray that she clips on the window. Three minutes and you have finished your meal. You leave, the Russians said, feeling that the next step will be meals by hose, Still, they liked most of the food; they thought it was top quality. The total availability of fresh milk in the country also fascinated them. Come to think of it, the secret of this countrys strength does lie in our food production and distribution system, which we, but not the Russians, take so much for granted. head-rollin- out--an- Soviet-controlle- -- From INSIGHT, a Farm Bureau radio production |