Show Herald Journal Logan Utah Thursday January 10--Tlw 26 1914 Ob the farm Economist sees improving markets in agriculture this year By Ronald L Snyder PhD underlying worries about the future economic vitality of These concerns agriculture remain on both the supply and demand side despite improved For farmers and ranchers the coming year promises to be one of greater market returns We should see increased crop conditions about brought by record US crop acreage reduction and last summer's production and marketings and higher prices for both crop and livestock products Moderate Increases also are drought Many of these concerns become evident as we examine the major factors influencing agriculture over the past two years At the end of 1982 and the in prospect for production expenses if 1984 crop acreage expands and input use and prices respond as expected On balance after accounting for the likely expansion in 1984 croi output and the expected highe: value of inventories 1984 net farm income could exceed the beginning of 1983 land costs were rising at an annual rate of nearly 20 percent Interest rates were at record high levels As producers continue to expand 825 billion level which occurred production surpluses continued to mount and prices declined Many agricultural producers suffered from negative cash 1983's flows US per capita real For consumers the new year Ronald L Snyder to a is likely to be one of continued income continued to fall and member of th W demand for many commodities and food fiber adequate Department at Utah State declined supplies but at moderately University In 1983 the financial position higher prices than in 1983 of agricultural producers conbecause of improved supply and tinue to decline but not as demand balances Stronger follows an increase of oily 3 rapidly as in 1982 Financial demand that will accompany the economic growth along percent in 1983 situations were less critical with increased marketing costs While the future of Fewer borrowers were at their and higher farm prices sugagriculture appears to be credit limits In general borgests a food price Increase in somewhat brighter than the rowing declined Interest rates the percent range This past two years there are some eased downward from a high of in 1983 Net cash income would probably not be as high as 2-- 3--6 TWO GREAT INVESTMENT OPPORTUNITIES QUANTUM 21 ALL BRICK APTS VW's practical 8 percent to 4 percent Because of a decline in the rate of inflation and the worldwide recession the dollar became stronger and US form exports declined Not exactly a banner year for agriculture! Agriculture will still be undergoing severe adjustments in production and marketing in 1984 Low yields due mostly to a severe drought and a high rate of participation in acreage reduction programs within the US have helped reduce sur18-1- mand The 1980’s have seen slowed growth in global demand for 13-1- agricultural products demand While some improvement is expected in 1984 economic recovery is likely to be slow and some countries will continue to have debt problems So next year is likely to be one of modest expansion in demand for agricultural products This sluggish demand of the early 1980's contrasts with sharply increased output and production capacity built up in the 1970’s in response to rapidly growing demand It is likely that with normal production plus global crop supplies sharply However the Impact of reduced crop production on the farm sector is expected to be very uneven Crop farmers participating in the 1983 crop program did reasonably well but livestock producers have conditions agriculture's and are likely going to continue capapcity to produce at recent to suffer low returns brought on price levels will continue to by relatively large meat outpace demand over the next several years The implications supplies and rising feed costs In 1984 a continued recovery of this imbalance are of concern in the global economy will to farmers and policymakers stimulate demand for agriculalike tural products without unduly Compounding the problem increasing costs Global com- from the US standpoint was modity supplies still are large the loss of export market shares but shandy lower US produc- in the early 1980's reflecting tion will bring supplies into much better balance with de See FARM page 15 MITSUBISHI “WHEN YOU CAN AFFORD THE BEST NOWS THE TIME TO OWN IT" approach to European luxury located in downtown Logan fully cupiod with gran rants of 50000 plus! 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