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Al4

Farm Unity IdealDoesn't Match Reality

MFB President andAFBF Vice PresidentSmith is often askedwhy there are policydifferences among aggroups.

"Why can't all farm organiza-tions unite and work togethertoward a common goal?" Thatquestion has been asked foryears, especially during timesof stress such as we are ex-periencing now.

Those who propose united ac-tion by all farm organizationssay that if only agriculturespoke with "one voice," all ofits problems could be solved somuch easier.

Sounds reasonable in theory,but there are reasons why it re-mains only theory.

In Michigan, with its diverseagriculture, achieving completeunity in the farming communitywould be particularly difficult.Our state has a multitude oforganizations with goals of pro-moting the interests of pro-ducers of a specific commodity.What's good for one commoditymay not be good for another, sothere's little chance of completeunity there.

Farm Bureau is a generalfarm organization with theeconomic well-being of totalagriculture as its top priorityand that creates special chal-lenges that don't always"match" with those of singlecommodity organizations.

Assuming that the policies ofthe various farm organizationsreflect the personal philos-ophies of their farmer-members,it's easy to understand why uni-ty in agriculture is an illusive,unrealistic objective. Farmneighbors may be poles apart intheir beliefs on one issue, butclose together on another. Thesame holds true for theirorganizations.

4

No other farm organizationspends as much time, effortand resources as Farm Bureaudoes to assure that its policiesreflect the thinking of a majori-ty of its members. Yet, totalmember support for every poli-cy is idealistic, not realistic. 50,how can we expect total unitybetween all farm organizationswhen there is, by virtue of theindependent thinkers who makeup the memberships, disagree-ment among some members ofan organization on certainpolicies?

More often than not, farm or-ganizations are united in whatthey want to achieve. The lackof unity comes in how toachieve that common goal.Solving the farm credit crisis iscertainly one example of thatunity of purpose and differ-ences in methods to solve it.

Even though Farm Bureau hasa proud record of defending itsfarmer-member developed poli-cies, it also has never beenlimited to hearing only fromthose who agree with thosepolicies. Both the American andMichigan Farm Bureaus meetregularly with representativesof other farm organizations toshare viewpoints on issues anddiscuss how we can work to-gether if policies permit.

Last year, at both the stateand national levels, Farm Bu-reau met with other farm organ-izations to discuss our mutualconcerns for Farm Bill '85. In re-cent months, we have joinedforces with other farm groupson the Balanced Budget Brigadeand appeared with other ag

organizations at CongressmanWolpe's budget hearing andstate Sen. Nick Smith's commit-tee hearings on the farm creditcrisis. Every year, the boards ofMichigan Farm Bureau and Mich-igan Milk Producers Associationmeet to discuss areas of com-mon concern and to cement ourlong-standing working relation-ship.

In mid-March, an agriculturalsummit meeting at FB Center inLansing brought representa-tives of all the state's recog-nized general farm organiza-tions together to discuss FarmBill '85, an issue of crucial con-cern to all of us.

There will be more meetingsbetween Farm Bureau and otherfarm organizations this year asthe new farm bill is developed.While it is unlikely that therewill be a concensus of opinionon all the complex componentsof Farm Bill '85, hopefully theshared desire to work togetherfor the best farm legislationpossible will make us as"united" as it's feasible to be.

This continuing dialogue be-tween farm groups belies exag-gerated reports of a "split" inthe agricultural community. Itis only when dialogue ceasesthat common goals are for-feited for the sake of jealouslyguarded identity. I think we'reall united in assuring that won'thappen.

Elton R. Smith, PresidentMichigan Farm Bureau

RURAL LIVING, APRIL 1985

COUNTRY LEDGER

Looking Ahead With DopeBy Connie Turbin

Controversy, uncertainty andeven despair have marked theearly months of 1985. Yet amidthe seriousness of a farm finan-cial situation and the firstrumblings of Farm Bill '85debate, a group of over 100young farmers met in Lansingto plan, to learn and to preparefor their future.

The young farmers who at-tended the 1985 Young FarmerLeader Conference, March 6-8,have a clear understanding ofthe challenges their businessesand their families face in thefuture. They came to the con-ference because they know thatthey must have access to andapply the very best tools offeredin agriculture and their FarmBureau organization to strength-en their hold on a secure future.

Some of the participants werereturning for their third orfourth conference to get their

Elton Smith was among the bid-ders at the AgriPac auction at theYoung Farmer Leader Conference.Young Farmers and guests tradedgreenbacks for bogus bucks to bidon a variety of items.


annual "skills and leadershipcharge up." There were alsothose attending the conferencefor the first time. They were notdisappointed. The workshopsranged from a look at newmethods in livestock and cropproduction to computer-aidedfinancial planning and estateplanning.

In sessions focusing onYoung Farmer and FB Women'sprograms in the county FarmBureau, the participants wereencouraged to do their bestthrough participation in leader-ship development and educa-tional programs such as theDiscussion Meet, OutstandingYoung Farm Woman and Distin-guished Young Farmer con-tests.

Throughout the conferencethe mood was serious, but theattitudes were hopeful. MFBYoung Farmer Committee Chair-person David Lott of InghamCounty talks about hopes forthe future of the family farmand the influence of the YoungFarmer program in planning forthat future in a Rural Living in-terview on page 19 of thisissue.

The Winter of DiscontentRural Living readers visit the

halls of Congress, the MichiganFarm Bureau board room, apress conference and a demon-stration on the steps of thestate capitol in an article on thewinter of discontent in the farmsector. It begins on page 10.

And while the legislative de-bate goes on over credit reliefmeasures, teams of manage-ment analysis experts are offer-ing practical, one-to-one adviceto farm families that will getthem ready to apply for springplanting loans. A report on howMSUExtension management as-sistance teams (EMAT)operatebegins on page 14.

Marketing AdviceTurn to page 20 to learn more

about Farm Bureau's programof computerized informationand marketing advice availablewith the MFBAgriCom and Agri-Visor service. The article on thisvaluable service-to-member pro-gram includes information onhow you can improve your mar-keting skills and boost profitsby subscribing to one of theAgriCom options.

Keeping the FaithOur mood in this month's

issue of Rural Living is serious,but we are hopeful, too.

Over three million farm fami-lies like yours, members of theAmerican Farm Bureau Federa-tion, share your concerns. Theyare working together with youthrough the Farm Bureau struc-ture to urge needed relief forfarming families who are strug-gling in the current creditcrisis, and to pursue a farm billpolicy that will allow farmers inthis generation and futuregenerations to farm for profit,not for government payments.

5

LEGISLATIVE REVIEW

AFBFPrepares Farm Bill '85 Legislation

Farm Bureau's Farm Bill'85 - New farm legislationshould emphasize exports as ithelps farmers make the adjust-ment from government pricingto the market system, AFBFPresident Robert Delano toldthe Senate Agriculture Commit-tee March 7 in outlining FB'sfarm program philosophy.

Delano also said the 1985farm program should provideloan rates for the basic exportcommodities - wheat, feedgrains, cotton, rice and soy-beans. He said target prices anddeficiency payments shouldhelp farmers through the transi-tion to a more market-orientedsystem.

The dairy purchase programshould be continued under newfarm legislation, Delano said,and should be tied to an aver-age of previous years' milkprice.

The AFBF board, at its March4-6 meeting, adopted provisionsto be included in FB's version ofthe 1985 farm bill. A summaryof that bill follows.

Dairy - Milk shall be sup-ported at such level equal to90% of the simple average "allmilk" price received by farmersfor each of the preceding threeyears. This price level shall beautomatically revised effectiveOct. 1 of each of the years 1985through 1989, except in thecase of 1985 when the pricelevel revision shall occur on thefirst day of the month followingenactment of the AgricultureAct of 1985. If the USDAsecre-

6

tary estimates that net govern-ment price support purchasesof milk or the products of milkwill be less than 5 billionpounds or in excess of 5.99billion pounds, he or she shalladjust the support price asdetermined in this subsectionaccording to the scale shownon the next page.

Loan Leve,ls for Wheat andFeed Grains - The USDAsec-retary shall make available toproducers non-recourse loansand purchases for each of the1986 through 1989 crops at alevel equal to 75% of the simpleaverage domestic price receivedby farmers for each of the pre-ceding five marketing years, ex-cluding the high and low valuedyears, provided that the level ofloans and purchases shall notbe adjusted by more than 10%

in any year, including the firstyear of such program.

Target Prices I DeficiencyPayments (Wheat I FeedGrains) - The target price in1986 will be frozen at 1985levels. Beginning in 1987, thetarget price shall be set at alevel equal to 110% of the sameaverage market prices used todetermine the loan rates for thecommodities but shall not beadjusted by more than 5% an-nually including 1987. Deficien-cy payments will be computedas under current law.

Acreage Reduction Require-ment - When total carryover ofwheat or feed grains exceeds4% of annual world utilization,or when cotton carryover ex-ceeds 3.5 million bales, or whenthe total supply of rice exceedsthe normal supply by 15%, theUSDAsecretary shall implementa voluntary acreage reduction

AFBFPresident Robert Delano toldthe Senate Agriculture Committeethat new farm legislation shouldemphasize exports as it helpsfarmers make the adjustment fromgovernment pricing to the marketsystem. Delano appeared beforethe committee to outline FB's farmprogram proposals.

program. Authority for acreagereduction and paid diversionprograms shall be continuedthrough the 1989 crop year.

Advance Deficiency Pay-ments - If the USDAsecretarymakes land diversion paymentsas provided for in the Agricul-ture Act of 1985 to assist in ad-justing the acreage of the 1986,1987, 1988 or 1989 crop ofwheat, feed grains, cotton orrice, at least 50% of such aland diversion payment shall bemade available to a producer assoon as possible after the pro-ducer agrees to undertake thediversion of land in return forthe payment.

(continued on page 29)


FB's Dairy Price Support Formula

Tax Tips - Due to the creditproblem, some farmers are seIl-ing all or parts of farms andother farmers are buying. Withthe changing IRS regulations, itis essential to have tax adviceas the tax consequences can besevere. Publication 43, "TaxPlanning When Buying or Sell-ing a Farm," is available fromyour local Extension office. Itwas revised in 1984 and can beof great help.

Beginning Farmer LoanProgram - The annual reportfrom the Family Farm Develop-ment Authority shows that 57loans totaling more than $5million have been approved.Five were disqualified due to

EMATalso includes free legaland tax advice where needed,along with family living budget-ing and stress management.

FB is supporting a proposalnow before the Legislature tofund .an expansion of this pro-gram for the rest of this yearand also next year, if necessary.It would include a telephone"hotline" to the Extension Ser-vice that any farmer could useand be assured of confidential-ity, and job retraining should afarmer want to go into otherwork.

FB also urged the MichiganBankers Association, PCAs andFmHA and other lenders to co-ordinate their efforts to refi-nance, extend loans, lower in-terest rates and speed-up finan-cial aid wherever possible.

FB also recommended fundingthe state Migrant Housing Con-struction Grant program; match-ing programs for producer re-search and promotion programs;requiring the Michigan Tax Com-mission to recognize the declinein farmland values; and con-tinued improvement of the over-all business climate includinglabor issues (workers' compen-sation, unemployment compen-sation, etc.)

Projected AdjustedSupport Price

(as of March 1985)

12.4612.3412.2211.9811.7411.50

part-time farmers with othersources of income. Of the re-maining 30,000, some 1,500(5%) are in an extremely serioussituation with debt/ asset ratiosof over 70%. Another 4,000(13%) hav~ debt/ asset ratios of40% to 70%. Some 5,000 (17%)farms have a debt/ asset ratioof 11% to 40%. Sixty-five per-cent of the farms have no debtor less than 10%• However, allfarmers are concerned becauseof an uncertain future.

It was also recognized that theoverall farm credit problem isprimarily a federal issue but thestate can also be helpful both inthe short and long term.

For example, FB testimonypointed to the need for fundingto continue and expand theMSLJExtension management as-sistance teams (EMAT)thatwork with individual farmfamilies to determine the bestcourse of action. Many farmershave reported that the programhas made it possible for themto continue farming. Farmersseldom have financial and man-agement advisors while othercommercial businesses withsimilar investments would notthink of operating without asource of such advice.

1041031021009896

Percent ofSupport Price

Less than 33.0 - 3.994.0 - 4.995.0 - 5.996.0 - 6.997.0 - 7.99

More than 8.0 *

* If CCCpurchases are projected to exceed 7.99 billionpounds milk equivalent during the next 12 ~onths, t~eLJSDAsecretary is given discretionary authonty to adjustthe support price by not more than 3% on April I, 1986,and for any subsequent six month period.

Net GovernmentPurchases

While there has not been agreat deal of floor activity onspecific legislation, many com-mittees are active and muchlegislation is being introduced.Work is also in progress on avariety of budget bills.

Farm Credit Crisis - Sen.Nick Smith, chairperson of theSenate Agriculture Committee,held a series of hearings todetermine the farm financialproblem in Michigan. Thosetestifying have included agri-cultural economists from MSLJand other areas, representativesfrom farm organizations,bankers, Production CreditAssociations and the FarmersHome Administration.

Testimony showed that due toMichigan's diversified agricul-ture, the problem is not as wide-spread as in many Midwesternstates.

Of the 58,000 farms in Michi-gan, 28,000 are operated by

RURAL LIVING, APRIL 1985 7

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IRS regulation changes. Nearly75% was used by beginningfarmers for the improvementand purchase of farmland; 26%helped purchase machinery andequipment.

Qualified farmers with the re-quired experience, backgroundand training, and a net worth ofless than $250,000, can borrowup to $250,000 for land and im-provements and $125,000 fordepreciable property.

The average loan in 1984 was$86,048 with interest rates 2%to 4% below prime. Averagefirst year interest savings were$2,820. Loans are madethrough 63 cooperating banksand are financed through thesale of tax exempt bonds.

Balanced Budget SJR II A"- This is a very importantresolution that calls on the U.S.Congress to not only balancethe federal budget but to passan amendment to the U.S.Con-stitution mandating a federalbalanced budget. Such a consti-tutional amendment would goto the states for approval. Itwould require 75% of the statesto ratify.

Over the years Congress hasfailed to balance the budgetwhich has resulted in a totalfederal debt of over $1.5 trilliondollars! The interest which mustbe paid each year is over $180billion! This situation is one ofthe major reasons for today'shigh interest rates, high over-seas dollar value and high bud-get deficit. This in turn harmsagriculture more than mostother parts of the economy.

Thirty-two states have passedresolutions calling on Congressto either submit a constitu-tional amendment to the statesor call a constitutional conven-tion for that purpose. When 34states pass the resolution Con-gress must act by either sub-mitting an amendment to thestates or calling a convention.Michigan would be the 33rdstate and if passed would prob-

-ably spark congressional ac-tion. Twice in the past the peo-ple, through their state legisla-tures, have used this constitu-tional right and in each caseCongress acted rather than calla constitutional convention.

FB policy supports SJR "A."Members are urged to contacttheir state representatives tosupport it in the House. Thestate Senate passed it by a19-12 vote earlier this year.

State School Aid - This isone of the most important bud-get items affecting farmers be-cause of its effect on propertytaxes. This comes after theMOA,MSUAgricultural Experi-ment Station, Extension Serviceand other specific programs.

Gov. Blanchard has recom-mended a $133 million in-crease, plus an additional $45.6million for school employees'retirement. Revenues in theschool aid fund have increasedby $233 million. Some $98 mil-lion of this is dependent on ap-proval of earmarking 10i of thecigarette tax to the fund.

The recommended per pupilformula is $328 (up from $300)plus $68.50 (up $4.50) for eachtax mill for operation. Another$28 per pupil is available at thehigh school level if six classperiods are provided. For a dis-trict levying 32 mills (the state-wide average), the formula pro-vides $2,520 per student.

Increases are also recom-mended for several "categori-cals" such as special education,vocational education, transpor-tation, academically talented,etc.

Total school aid is $2,387 bil-lion, over $594 million of thisamount is for school employees'retirement. Federal aid for thispurpose remains the same at$34.9 million.

Lansing legislative topics arereviewed by Robert E. Smith,senior legislative counsel.


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@

By Donna Wilber

It was the winter of discon-tent.

For many months, the farmincome problem had beenhashed and rehashed in small-town coffee shops, on the dele-gate floors of farm organiza-tions, by agricultural econo.mists and farm' journalists, inthe halls of Congress and theoval office.

It was an insidious problemwhose tentacles reached be-yond the farm gate to all thebusinesses and industries that

10

depend upon agriculture fortheir economic well-being. Tra-ditionally, farmers have beenviewed as producers. That theyare also prime consumers wasno longer debatable.

The total agricultural industrysuffered the devastating impactsof depressed farm incomes andhigh interest rates and the word"survival" took on new, personalmeaning to those involved.

From Problem to CrisisThe seemingly abrupt change

from a broadly-recognized farmincome problem to an imme-diate farm credit crisis caught

many unprepared for the inten-sity of emotions that were bub-bling beneath the surface, readyto break the dam of pride andprivacy that keeps one farmerfrom saying to another, "I don'tthink I'm going to make it."

Even the compassionate, dedi-cated farm leader, Robert Dela-no, who serves as president ofthe American Farm Bureau Fed-eration and is recognized by U.S.News & World Report as one ofthe most powerful figures inagriculture, became a target ofthe anger that was smolderingin the farming community.


Quoted out of context by a re-porter covering the AFBFan-nual meeting in Hawaii in Janu.ary, Delano was accused of be-ing insensitive to the gravity ofthe farm credit crisis.

The Agony ofEconomic Realities

Farm Bureau leaders acrossthe nation proceeded with FB'sproven policy execution proc-ess. Armed with a market-oriented policy, tempered bydelegate recognition for theneed of a "safety net" whileagriculture makes that transi-tion, the organization began itsefforts to reach its priority goalof improved net farm income.

But to those who sat acrossfrom the lenders who had sup-ported their farm plans foryears and listened to the criti-cal review of their debt/ assetratio that preceded the denialfor spring planting loans, long-range plans for im proved netfarm income seemed remote.

A reduced federal deficit thatwould reduce their interest rates... expanded foreign trade ... anew farm bill that would maketheir industry healthy again ...they believed in those goals,but feared achievement wouldcome too late for them.

The reasons they were in thisposition brought small comfort:a strong U.S.dollar, falling ex-port markets, declining landvalues, the "period of adjust-ment" ag economists said agri-culture must go through - thisis what you tell the kids you'dhoped would continue the fami-ly farm tradition that was nowto be broken? Real reasons, yes,but hard to relate to the son ordaughter who wants, more thananything, to carryon that tradi-tion.

20-20 Uindsight

"The continuing technologicalrevolution that is taking place inMichigan agriculture has re-sulted in capital intensificationin the farming industry. The


need for loan funds has in-creased more rapidly than thereserves of lendable funds inrural areas. The rate of increasein total farm debt has almostdoubled the index of deposits incountry banks in major agricul-tural regions.

"This trend suggests thatagriculture could find itselfshort of available funds forloans in the years ahead .... "

That word of warning was is-sued by the House RepublicanRural Development Task Forcein a report called "BuildingRural Michigan - A New Era inAgrarian Industrial Enterprise."The year - 1974.

Few heeded that prediction.Escalating farmland values ofthe 1970s trapped many farmerswho were looking to expand andthought land values would stayfirm and even strengthen. Finan-cial signals sent out by the fed-eral government, rural bankersand other branches of the farmcredit system reinforced thatbelief. As a result, land was bidup considerably higher than itshistorical earning power.

In meetings with the news media,farm and credit groups and legis-lators, MfB President and AfBfVice President Smith has calledfor quick, effective response tothe farm credit crisis.

Today, the same lenders whoencouraged those investmentsare being overly-aggressive indeflating the value of farmlandwhen assessing it for equityvalue, according to MFBPresi-dent Elton R. Smith.

I'IFB Board Takes Action

In Michigan, the need for atemporary change of focus fromlong-range solutions to thefarm income problem to the im-mediacy of the farm creditcrisis was addressed at theFebruary meeting of the MFBboard of directors. The painfulprocess of laying local crisissituations on the board roomtable, plus meetings with keyag lenders, was followed by ac-tion to put part of the respon-sibility for the crisis on thedoorsteps of the lenders andcharge them with helping tosolve the problem.

In a letter to the president ofthe Michigan Bankers Associa-tion and officials of farm creditagencies, MFB President Smithasked for support of the ad-ministration's program de-signed to provide loan guaran-tees to institutions which write-down interest charges on exist-ing loans. Smith said lendinginstitutions "could kill them-selves as well as agriculture" byan overly-aggressive policy ofdeflating farmland value whenassessing it for equity value.

Later in February, Smith testi-fied before the Michigan SenateAgriculture Committee on theneed for immediate action onthe farm credit problem. Heurged the committee membersto use their influence at thefederal level to support AFBF'sfarm credit proposals. (Seeac-companying listing.)

Smith also asked the commit-tee to support the MSUExten-sion Service's management as-sistance teams with adequatefunding to carry out its pro-gram of assisting farm familiesanalyze their financial prob-lems, organize a management

11

plan and obtain assistance fromlenders to implement the plan.

New 'Voices' EmergeThe winter of discontent pro-

vided a fertile environment forthe birth of new "voices" foragriculture. Frustrated, angryfarmers marched on Washing-ton, D.C., and Lansing, withdemonstrations that providedthem with therapeutic ventila-tion, if nothing else.

While demonstrators gathered onthe steps of the state capitol,county fB representatives fromthe Thumb region met with theirlegislators in Lansing to discussproblems and concerns of thestate's farm community.

In Michigan, one of the new"voices" was the Farm UnityCoalition which sponsored afarmers' rally at the statecapitol on Feb. 28. While thatdemonstration was capturingmedia attention, MFB's tele-phone grid system was acti-vated, bringing thousands ofcalls from farms throughoutMichigan to the offices of staterepresentatives and senatorsasking for their help in easingthe farm credit crisis.

Also on the same day as thedemonstration, some 50 Thumbregion farmers visited with theirlegislators about the farmcredit crisis and other concernsduring their annual LansingLegislative Seminar.

At a news conference indowntown Lansing, MFB Presi-dent Elton Smith and Vice Presi-dent Jack Laurie told reportersthat the organization's activi-ties were not a "counter demon-

12

stration" to the farmers' rallyon the capitol lawn.

"We share the same concernsand the same desire to bringabout a recognition of the seri-ousness of the farm credit prob-lem. We have simply chosen adifferent method of doing that,"Laurie said. "We are fortunatein Farm Bureau to have a struc-ture for continual contact withour state legislators and con-gressmen, not just when acrucial issue arises. Wehavefound that method of operationto be very constructive indeveloping solutions to prob-lems faced by farmers."

Laurie explained the organiza-tion's annual lobbying activitieswhich include meetings withstate legislators every Februaryand March and a trip to Wash-ington, D.C., each spring formeetings with Michigan's con-gressional delegation. Over 500farmers participated in LansingLegislative Seminars this yearand 100 members were involvedin the Washington LegislativeSeminar, March 26-29.

Farmers' SufferingBecomes Political Football

The farm credit issue has be-come a political football gameplayed both here in Michiganand in Washington, D.C., andthere is much concern abouthow the debate will affect con-sideration of the 1985 farm bill.

As Dr. Clayton Yeutter, presi-dent of the Chicago MercantileExchange, told farmers attend-ing the recent AgriCom market-ing seminar, "We're generatingso much antagonism and bit-terness over the credit questionthat, if we're not careful, it's go-ing to totally poison the en-vironment for farm legislation.That's why it's so critical to getover this credit hurdle and getsome relief there so everybodywill calm down and get back tolooking at farm legislation in arational way."

MFBPresident Smith agrees."Farmers should not be hood-winked by politicians who will

The winter of discon-tent provided a fertileenvironment for thebirth of new "voices"for agriculture.Frustrated, angryfarmers marched 'onWashington, D.C., andLansing ...


National Level Action by Farm Bureau on Credit Crisis

• Led the "Balanced Budget Brigade" which brought one milliongrassroots messages to Congress and the administration ask-ing for lower interest rates through reduced governmentspending. (Each 1% increase in interest rates costs farmers $2billion. Elimination of the current $200 billion deficit would re-duce interest rates 3% to 4% and put $6 billion to $8 billion infarmers' pockets.)

• Urged President Reagan to shore up FmHA's loan funding,speed-up of loan applications, assurance that loans are largeenough for a full year's farming operation and direct FmHAloans away from other uses back to the original purpose ofhelping farmers who do not otherwise qualify for financing.

• Testified in favor of programs that would provide federal loanguarantees to encourage lending institutions to write-off orwrite-down portions of principal and interest.

• Testified before the U.S.House Budget Committee meeting inLansing urging adequate USDAfunding for farm credit reliefmeasures, lower interest rates and rejection of any budget pro-posals which place a disproportionate share of spending cutson agriculture.

• Urged President Reagan to move the deadline for sign-up inthe 1985 farm program from March 1 to April 1 to allow pro-ducers time to make production decisions; permit participat-ing producers to be eligible for an advance price support loanon a maximum of 50% of their anticipated 1985 crop; andcommitment of up to $1 billion worth of emergency food sup-plies to famine-wracked Africa, providing additional aid to hun-gry people while helping U.S. farmers by removing price-depressing government stocks.

• Sent a telegram to USDASecretary John Block urging promptimplementation of a Senate resolution on farm credit which in-cluded removing the $650 million cap on the FmHA emergencyloan program; removing the $200,000 cap on loans to indi-vidual farmers; and reducing the minimum positive cash flowrequirement under the guarantee portion of the president'sdebt adjustment program from 110% to 100%.

try to gain favor with their con-stituents by making emergencycredit measures part of FarmBill '85," he said,

"The short-term credit needsof farmers now caught in thecredit crunch deserve imme-diate and separate attentionand should not be part of thefarm bill debate," Smith said.

Disappointed by the president'sannounced veto of farm creditrelief measures, MFBYoungFarmers, led by chairperson DaveLott, called a press conference tourge support of 50% price sup-port payments to farmers.

President Vetoes FB.BackedCredit Relief Bill

On March 6, the presidentvetoed an FB-supported farmcredit relief/African aid bill andeven a telephone call from AFBFPresident Delano the morningof the veto didn't sway Reaganfrom his appointed course toreduce the federal deficit.

MFBYoung Farmer leaders, inLansing for their annual leaderconference, shared their disap-pointment with reporters andtold them they didn't think anoverride of Reagan's veto waslikely.

"We are extremely disappoint-ed that President Reagan choseto veto the farm credit reliefand African aid bill. Farm Bu-

reau strongly supported the leg-islation because it offeredshort-term assistance thatwould allow competent, credit-worthy farmers to plant theircrops," Dave Lott, chairpersonof the MFB Young Farmer Com-mittee, told reporters.

"Farmers will be heading fortheir fields very shortly andthey need adequate credit forspring planting. The emergencyfood supplies to Africa wouldhave provided aid to hungrypeople and, at the. same time,aided U.S. farmers by removingprice depressing governmentstocks.

"We are not optimistic thatCongress will override the presi-dent's veto. The U.S. House isexpected to vote to override it,but the Republican-controlledSenate is not likely to concur.

"As an alternative," Lott said,"we hope that Congress willnow at least approve a simplebill that would provide 50% ad-vance price support loan pay-ments to farmers who sign upto participate in the 1985 farmprogram. If Congress does takethis action, we will do every-thing we can to convince thepresident not to veto such abill."


Management Assistance TeamsOffer Financially TroubledFarm Families Dope and DelpBy Cathy J. /Hruan

Through the long wintermonths, most Michiganiansdream of spring. For farmers,that means planting crops. Butfor some farmers, facing thepotential loss of their farms,the winter was spent trying toarrange financing of farm oper-ating loans. Many were turneddown.

Recognizing the problems fac-ing these farmers, the MSUCooperative Extension Serviceformed teams of trained person-nel to provide individual assis-tance to farm families in devel-oping short-term solutions tocash flow problems, planninglong-term profitability, manag-ing stress and reviewing familybudgeting.

"We are using our resourcesto meet at Jeast part of theproblems facing agriculture inour state," said Frank Brewer,assistant director of agricultureand marketing who is coordi-nating the 13 Extension man-agement assistance teams(EMAT)located throughout thestate. liThe teams have beenquite active and we expectthey'll continue to be untilspring planting starts aroundMay I."

Brewer said that although thefocus of EMATshas been onhelping farmers qualify forspring operating loans, the pro-gram will continue as long asthere is demand.

14

"We haven't turned anyoneaway that we thought we couldhelp," he said. "Farmers in-terested in the program shouldcontinue to make requeststhrough their local CooperativeExtension Service. If necessary,we'll form additional teams orcome up with a new plan. Wedon't want to discourage any-one from asking for help."

If the local Extension officedetermineS' that EMATcan help,the county agricultural agentand home economist meet withthe family to prepare an over-view of the economic situationof the farm itself and how it isimpacting the farm family.

This report, which is confiden-tial, is sent to the EMATmem-bers who review it prior to anon-farm visit.

The EMATin southwest Michi-gan has been one of the busi-est, meeting with one or twofamilies a week since earlyFebruary. Bethel Schmidt, ahome economist in St. JosephCounty for 20 years, is amember of that team.

"I feel very positive about theprogram," Schmidt said. "It'svery time consuming and ex-pensive to have four specialistsspend a whole day with a farmfamily, but maybe that's theway for us to go for a while.We're finding out what's reallyhappening to families. I thinkit's making us better educatorswho will be able to help others,"

Schmidt said the first couplehours of the on-farm visit arecritical to its success. "We ask

the family what their expecta-tions of us are for that day.Sometimes it takes a long timeto get through this part butthey really bring out their prob-lems."

.~

Southwestern Michigan EMATchairperson W. C. "Bud" Searchand home economist BethelSchmidt believe the program ishelping farm families realizetheir past mistakes and plan fora successful future.

Following that session, theExtension management special-ists and farm manager visit theoperation while the home econ-omist and homemaker reviewliving expenses and discuss theemotional health of the fam i1y.

"We've had some families whowere very good managers so wedidn't spend any time on familyliving budgets," Schmidt said."In other cases, the farm fami-ly's draw is substantially abovethe $18,000 average for a Mich-


farm families had the opportunity to learn about "New EconomicRealities in Michigan Agriculture" and MSU's EMATprogram during aseries of meetings around the state, including Ag Action Day March 5 atKalamazoo Community College. Between courses on how to survive thecurrent problems facing their industry, farmers visited the many ex-hibits, ranging from seed corn to computers.

igan farm family. If it's wayabove average, we look at thereasons why, especially if thewhole farm enterprise is goinginto the hole many, many thou-sands of dollars.

"Family spending is a verypersonal thing and we're verycareful in discussing it. But wedo con'sider alternatives be-cause lending institutions lookat what the family is spendingwhen they determine whetherthe farm operation will get theloan."

Utilizing the computerbrought by the Extension spe-cialists, the afternoon session isspent exploring ways to savethe operation. Usually, Schmidtsaid, the problem is finding away to get more income.

"We find that farm familiesare reluctant to say they will goout and get a job some placeelse. They like farming andbelieve in themselves so much,it's hard for them to face thereality that maybe they're goingto have to work off that farm.

"That's been a frustration forus," she said, "because the onlyway they're going to stay sol-vent is to get some more in-come, and in some cases theonly option is to work off the.farm."

Often, when a farm operationis in trouble financially, thefarm wife will get a job off thefarm. But Schmidt said that isnot always a good idea. "Thefarm wife is a very integral partof the farm operation," shesaid. "In some cases, if the wifewent to work the farm would goto pieces because she is reallythe farm management personthere."

For families that are "under-employed," the team oftenrecommends adding some kindof enterprise. In one case,where extra income was neededto build a house for a childreturning to the farm, the farmwife suggested starting aU-pickstrawberry operation. "She hadthe time and skills but didn'tknow if it would help theeconomic situation overall,"Schmidt said. "We costed outseveral options on the com-puter and determined that itwould help."

EMAThas found farm familieswilling to admit they've mademistakes they need to rectify."One family had overextendedthemselves by building a swim-ming pool. They had justified itby saying they never took a

While not all Michigan farmershad trouble getting operatingloans, the tight credit situationwas the topic of many conversa-tions wherever farmers gatheredthis winter.

vacation and needed some kindof recreation. The same familyhad several revolving creditcards that were going behindabout $2,000 each year.

"Another thing we've found isthat they overestimate theircrops and so don't qualify forFmHA loans," Schmidt said."For instance, they say theyhave so many bushels of cornper acre and when we look forthose bushels, they're notthere. They paint a rosier pic-ture than what it really is andwhen they realize this is not go-ing to help them, they're willingto change and face reality.

"It's hard for them to facethat they have failed. Onepotato farm had one good yearin the last five. It's hard to facethat, but when they do, ithelps."

EMATteams are concernedabout increased farm accidents."If farmers aren't able to repairthe machinery as it should be,it may not be safe to operate,"Schmidt said. "They becomeoverfatigued - maybe notphysically as much as mentally- and we know that increasesaccidents."



FRONT & CENTER

A series of meetings to explain details of tbe FBFarm Bill'85, approved by the AFBFboard of directors in March, and to discuss plans for member support and involvement werebegun March 11 and will continue through April 15. Members of county FB boards of directors,national affairs committees, women's committee chairpersons, young farmer chairpersons andCommunity Action Group minutemen were invited to attend. Remaining meetings, by district,are: April 1 - District 8, April 9 - District 5 and April 15 - District 11. For more informationabout time and location of these meetings contact your county FB secretary.

The U.S. International Trade Commission found there was a reasonable indicationthat Canadian imports were threatening the U.S. hog and pork industry. However, adetermination by the U.S.Commerce Department has been delayed because thousands of tran-sactions by hundreds of producers have to be examined. The preliminary decision is now ex-pected in early April. The investigation was put in motion by the National Pork Council, whichcharged the Canadian government with subsidizing its pork producers thus giving them an un-fair advantage over U.S. producers.

Spring rallies will be held in 10 MFBdistricts during April and May. The rallies aresponsored by the Farm Bureau Women's Committees in each district. The entertainment andprograms offer everything from a baked goods contest to special guest appearances by MDADirector Paul Kindinger and Michigan's first lady, Paula Blanchard. Scheduled dates are: April 9- District 2 at Horton, District 6 at Cass City, and District 7 at Sidney; April 11 - District 3 atSaline, District 9 (location to be announced); April 12 - District 1 at Three Rivers; April 18 -District 8 at Midland; May 2 - District 10 at Spruce; May 29 - District 11 West at Bruce Cross-ing; and May 30 - District 11 East at St. Ignace. The District 5 FB Women held their rally March18 in Flushing.

Counties have begun selecting students for the 1985 Young People's CitizenshipSeminar, June 24-28 at Olivet College. Because of the change in location more students thanever will be able to attend the conference, which emphasizes the need to be informed and in-volved in the decisions that affect their lives, communities, state and nation. Informationabout the conference and the county selection process is available by contacting your countyFB secretary. Deadline for reservations is May 1.

Recipients of MSU's Distinguished Service to Agriculture awards, presented duringAgriculture and Natural Resources Week, were Merlin G. Kraft of Sparta, F. Dale Kuenzli of St.Johns and Robert D. Norris of Berrien Center.

New appointments to the Michigan Bean Commission include grower representativesJames J. Sahr of Saginaw and Einer Thorlund of Greenville. Sahr replaces Carl DeGeusof St.Charles, and Thorlund replaces Calvin Marsh of Edenville. Reappointed to the commission as aprocessor representative was Robert Turner of Dandridge, Tennessee, dry bean buyer for allBush Brothers locations. Appointments are subject to Senate confirmation.

The Doward Death Scholarship has been awarded to Laura Probyn of Lawrence. The$1,000 award, in memory of the Michigan Farm Radio Network's founder, goes to MSUstudentsplanning a career in agricultural radio or television. Probyn is a junior majoring in agricultureand natural resources communication.

The National Dairy Board has filed a complaint with the Federal Trade Commis-sion (FTC)against a calcium supplement advertiser. An "Os-Cal" ad in the March issue ofHealth Magazine states that a person would need to eat three pounds of cheddar cheese tomeet the recommended daily allowance of calcium, when only four ounces would more thanmeet that need for most adults. Dairy farmers will not tolerate the publication or disseminationof erroneous information on dairy foods that could negatively affect consumption, the board'schief executive officer said. If the FTCfinds the ad contained false and misleading information,it has the authority to demand that the advertiser provide notice that it was false and correctthe impressions the advertising has created. MFB President Elton R. Smith serves as one of the36 members on the National Dairy Board.

16 RURAL LIVING, APRIL 1985

provement of our programsthrough the planning and workof the Agriculture 2000 Com-mittee.

We hope that the support ofthe leadership and entire mem-bership of the Michigan FarmBureau is with us as we movetowards our goals. We look for-ward to a continually strength-ened relationship and under-standing in the future. Thankyou for all the help!

Gene Graham, SecretaryAgriculture 2000 Committee

Ag Technology StudentsAppreciate FB Program

On behalf of the students inagricultural technology, I wantto thank Farm Bureau for theag tech seminar sponsored bythe Young Farmer Committee inJanuary. It was an excellentprogram from start to finish.

The students gained some in-sight into the Young Farmerprogram and its development ofleadership. The AgriCom sec-tion was very well done and thediscussion period after dinnerwas stimulating.

Dr. Russel EricksonAssociate Professor, MSU

"It's a ritual. She does it every yearwhen the first crocus comes up.

By Andrea HofmeisterTuscola County

~

FARMETTE

activities and programs thatFarm Bureau helps to sponsor.Some of these include the Agri-cultural Producers' Forum. FFAleadership contests and FFAstate executive committeemeetings.

Even more importantly. thisrelationship has been enhancedbecause of the assistance wehave received in recent months.

The meeting with your boardof directors. the booth at thestate annual meeting and, theNovember 1984 article in RuralLiving magazine are the resultsof the strengthened cooperativerelationship that we feel be-tween the two groups. Our com-mitment and goals for agricul-tural education in Michigan arestronger than they have everbeen, and we highly value theinput and consideration givento us by the Farm Bureau in ourefforts to reach these goals.

Weare firmly committed tovocational agriculture as ameans of teaching the techni-cal, management and leader-ship skills to the people in-volved in the industries of agri-culture in our state. Wewill con-tinue to strive towards the im-

RURALRASCALS - The Duane and Pat Tirrell farm in t:aton Countyis a busy place during lambing season. Despite.the hectic pace. y~u~:keBen and Becky found some newly spread straw ID the sheep barn 0

a break with their special friend. Jellybean.

MORERURAL RASCALS-Wayne and Greg Idalski seem tohave a direct line to the t:asterbunny. Looks like the family dogdoesn't want to be left out. Theyare the children of Bob and MarcyIdalski of Presque Isle County.

FBI Vo-Ag Working Together

On behalf of the" Agriculturein the Year 2000 and BeyondCommittee" and the MichiganAssociation of Teachers of Vo-cational Agriculture (MATVA).Iwant to extend sincere thanksand appreciation to Farm Bu-reau for the support that youhave offered to our efforts.

A strong relationship hasbeen maintained throughoutthe years between vocationalagriculture and Michigan FarmBureau as a result of the many


FARM BUREAU MARKET PLACE

FARM EQUIPMENT

Nog Equipment - Del.Alr Ileat Ex.changers. Osborne Feeders. "'.G. John.son Farrowing Crates. Chore.Time Feed.ing, MI.'l.MiII Systems. t1amllton Distri.butlng Company. 616.751.5161.

(6.12t.2Jp.ts)

Grain Dryers - Stormor Ezee.Dry. FarmFans Automatic. Used Dryers. I'TO andAutomatic. tlamllton Distributing Com.pany.616.751.5161. (6.12t.17p.ts)

Complete Line of !"lew and Used Irrl.gatlon Equipment - Also equipmentfor manure pumping and spreading bygun. tanker. or Injection. I'lummerSupply. Inc .. 1.800.6~2.77~1.

(1'12t.2~p)

fOR SALE: ford 4.row 3 I I cornplanter. MM. 10ft. pull type. doubledisc. 4.row squeeze pump. 10ft. Oliverdrag. ~1~.4~9.2164. (4.25p)

farmer's Antique Tractor andEngine Club - tlerltage Farm. NorthM.52. Adrian. Mich. Consignment auc.t10nand swap meet. Auction Sunday. July2 J. II a.m. Swap meet Saturday andSunday. July 20.21. 12 by 20 ft. swapmeet spaces for $ 10. We need antiquetractors. farm equipment consignmenlsof all type for auctions. Admission atgate $ 1.00. Call or write Auctioneers.Attn: Gaylord Richardson. 97~2 Co. Rd.RS. Delta. Ohio 4~515. Auctioneersphone 419.42~'7780. Vaughn Jo Lewis.~~IO I'aragon Rd.. Tipton. "lich. 49287.Auctioneers phone 1'517.4~ 1.2571.

(4.8~p)

FARM EQUIPMENT

WANTED: 1"1.1.cornplcker and !"l.N.field equipment. Phone 517.52~.280~.evenings. (2.12l.IOp.ls)

Nay feeder for outside 12 bale capacity.$~25. Phone 51 7.~2 I.~ 715. (4.2t.15p)

fencing supplies. Livestock to fieldfencing. Poultry to barbed wire fencing.Steel T'posts to wood fence posts. Chainlink fence to wood panels. Good FenceCo. can literally supply all your fencingneeds. Phone Good Fence Co. 1.616-5~4.5688 or J .800-321'5541. (4.38p.ts)

LIVESTOCK

Baby chicks. ducklings. turkeys.guineas. goslings. banlams. fightinggames. pheasants. bobwhites. chukars.incubators. hatching eggs. medications.supplies. Free picture brochure. Countrytlatchery. Inc .. Box 747.Y. Wewoka. 0'"74884. (3.~t-28p.ts)

2.ln'l sale. Club lambs and club pigs.Quality stock with past winners. AlleganCounty Fairgrounds. April 19. 1985 at 6p.m. For detailed Information call BillTerAvest. 616-67~.687~. (4'29p)

Buckham-Wheaton Club Lamb andProduction Sale. April 20. 1985. 12noon at the farm in "'alamazoo. Seiling125 Suff. ttamp. Shrop Wethers. 40 Suf.folk ewes. 12 Suffolk rams. Call Geo.616-~75'497~. Geo. Jr. 616.~75.7676 orFred 616.679-5544. (4'~5p)

LIVESTOCK

Duroc Boars and Gilts sound anddurable. Delivery available. Jim Pre.vlch. 8147 Forrlster Road. Adrian. Mich.49221. 517.265.4112. (6-12t.18p)

for Sale: Aggressive. purebred York-shire and Nampshlre boars. reason.ably priced. Ro.B Farms. Swartz Creek.Phone 31~.6~5.3 788. (~-~t.15p)

free Catalog - Wholesale prices. reds.cornish cross. barred rocks. sexlinks.white rocks. leghorns. turkeys. ducks.Reich Poultry Farms. R.D.I.. Marietta.Pennsylvania 17547. (12.6t-22p.ts)

Milking Shorthorn: Young bulls. year.lings and calves for sale. Write or visitStanley M. Powell and Family. InglesideFarm. Route 2. ~248 Powell IIwy .. Ionia."lich.48846. (2.6t.27p)

3rd Annual Trl-County Sheep Associ-ation Club Lamb and Breeding SheepSale. Championship bloodlines withmany winners from past sales. Plus fancyclub pigs. April 20. 1985. 7 p.m .. EasternMichigan Fairgrounds. Imlay City. Mich.For more information call Randy lIodger.~ I~.6~6. 7178. or Mike Fleming. ~ I~.798.~775. (~.2t-45p)

DOGSRegistered Giant Black Schnauzerdog. available for stud service. Phone616.67~.6759. (4'2t.15p)

MISCELLANEOUS

Affordable family health protection- Water treatment system removesPCBs. dioxins. and many other agricul-tural / industrial contaminants. Colorbrochure $~. refunded with order. BellAssociates. 6492 Perryville. tlolly. Mich.48442. (4'29p)

Buy In quantity and savel Good FenceCo. is offering special pricing on largedrop shipments. Buy your fencing sup'plies wilh your neighbors and take ad.vantage of BIG SAVINGS.Good Fence Co.can suppy all your fencing needs. GoodFence Co. 1.616-5~4.5688 or \.800.~21'5541. (4-44p.ts)

Why die without a will? Two legal "WillForms" and easy instructions. Only$4 ... Order Today! Guaranteedl TY'Company. Box 1022.MF. Prior. 0'" 74~62.

(I J -6t'22p.ts)

Attorney - farm Born and Raised.Familiar with dairy. cash crop. beef andmost farm programs. Engaged in gener.al practice of law with emphasis onestate planning. bankruptcy. financialproblems and associated areas. Desireto work with agricultural related clients.Available statewide. Call or write ThomasBudzynski. 25550 N. River. Mt. Clemens.M148045. ~ I~.46~'525.:5. (1.6t.52p.ts)

Collectables. miniatures. personalhome and office decor catalog. 160pages of beautifully illustrated productsat very low prices. Price $3. refundedwith first order. Prestige Gift. 406D 5th.Roscommon. Mich. 4865~. (~-2t-~Op)

REAL ESTATE

CLASSIFIED AD POLICY

-Farm Bureau members pay 25 cents per word for allc1assified advertisemen ts.

-All other advertisers pay 50 cents per word for one insertionand 45 cents per word for two or more consecutive insertionsof the same ad.

-All advertisements are subject to a 15-word minimumcharge. including member ads.

-Please indicate if you are a Farm Bureau member.-The deadline for ads is the first Monday of the month

preceding publication.- All ads must be pre-paid and may be pre-paid up to oneyear in advance.

-It is the responsibility of the advertiser to re-insert the ad ona month-by-month or year-by-year basis.

-The publisher has the right to reject any advertising copysubmitted.

-No ads will be taken over the phone.

Fill out form below and mail with ad to:Kural Living, P.O. Box 30960, Lansing, Mich. 48909

Name

Address

OFarm Bureau member ONon-member

Run the attached ad in the issue(s):

Words lnsertions Total Due _

NURSERY STOCK

Berry Plants - Raspberries. strawber.ries. blueberries. currants. gooseberries.others. Free catalog. Makielski BerryNursery. 71~0 PiaU Road. Dept. RL. Ypsi.lanti. Mich. 48197. Phone~I.:5.4~4.~67~.

(11.12t.22p)

Asparagus roots - "'B~ state in.spected. $20 per thousand while theylast. Phone DeRuiter Farms at 616.87~-428.:5. (.:5.~t.17p)

Vegetable and melon plants. Largevariety available or will custom grow.Starting at $70 per 1.000. CentralMichigan area. Hall's Farm and Green.house. phone ~ I .:5.655'4279. (~.2t.24p)

"Grow your own sweet potatoesl"Varieties: Portricans. Algold. NuggeUs."Bunch," Centennial. Nancyhall. Cop-persklns. 50 plants - $7.98; 100 -$ 11.98; 500 - $22.95. Postpaid. Fred'sPlants. Dresden. Tenn. ~8225. phone901.~64.5419. (4.28p.ts)

Gladiolus Bulbs - buy direct fromgrower and save. All very large. healthybulbs. Grand Champion varieties. Rain-bow Brite mixture. 50 bulbs. $6.00. 100bulbs. $ 10.00. Postpaid. Send orders toGlad Bulbs.R. Box 55. Zeeland. Mich.49464. (4'2t ..:57p)

MISCELLANEOUS

Scholarships. thousands available.college and high school students qualifyregardless of Income. grades or financialneed. We guarantee students five flnan'clal sources. Many receive over 20 aftercompleting our questionnaire. Send $~for informative scholarship brochureand questionnaire. Nationwide Scholar.ship Finders. Box 2257. Lynchburg.Virginia 2450 I. (.:5-2t'47p.ts)

for Sale: 79 acres. 1.000 ft. frontageon Woodruff Lake. Broomfield Township.Isabella County. Call517.866.2~00 earlymorning or late evening. (2.~t'2~p)

Marco Island. florida. Gulf front con.do; balcony. pool and gorgeous view.Perfect spot for a honeymoon. Phone~ 13.749.5546 or ~ 13.4.:55.1556.

(.:5.4t.17p)

Eighty acre farm near Petoskey. Idealgentleman's farm. close to all.seasons'recreation. Land contract terms. $78.500.Jack Van Treese and Associates. Phone616-~4 7.~94~. (3.3t'19p)

154-acre Norse farm - Good ~'bed.room home. guest house. 2 pole barnsand barn with box stalls. electric andwater. Pasture well fenced. Frontage onlake plus a 5.acre private lake. Eslate.will divide. Priced at $ 150.000.

60 acres very productive 5011. Polebarn. Will grow blueberries. now mostlyin corn. Priced at $~O.OOOwith land con.tract terms.

100'acre grain farm with 2.bedroomhome. 40 acres alfalfa. some woods.Owner would consider split. Priced at$95.000.

fine remodeled 4-bedroom alumi.num cape cod on 40 acres with somewoods and a running creek. $79.900.

38 acres - 10 acres bearing con.Cords. 7 acres young grapes. 5 acrestarts and 8 acres apples. $80.000.

39 acres - 25 acres Welch concords.~ acres Niagra. 4 acres French hybrids. 5acres tarts. $80.000.

10 acres - 18 acres Welch contractconcords. $.:55.200.

21 acres - II acres concords. 2 acresNiagras. 9 acres open. $35.200.

16 acres nature excellent bearingapples. All good varieties. good site andlocation. $.:50.000 - will take land con.tract.

Call "'echkaylo Real Estate Co.. 616.47\.7701. (4.I77b)

RURAL LIVING. APRIL 19851

Young Farmer LinksProud Past &. Uopeful Future

\ ..

By Marcia Ditchie

There is no profession inAmerica which has strongerfamily roots than agriculture.Across the country, generationsare following inthe footsteps oftheir forebearersin attempting topreserve the familyfarm for them-selves and thegenerations tofollow, and Michi-gan Farm Bureau'sYoung FarmerCommittee chair-person is no ex-ception.

"If my sons wantto come back tothe farm afterthey're grown, Iwant to be able toprovide them withthat opportunity,just as my fatherdid for me and his father did forhim," said Dave Lott, who waselected Young Farmer chairper-son at last year's state annualmeeting.

Dave farms in partnership withhis parents, Marvin and VivianLott, on the family's 620-acreHolstein dairy operation nearMason in Ingham County. Heand his wife, Kathy, have threesons, Joshua, 9, and five-year-old twins Jacob and Ethan.

Dave believes the currentcrisis in the farm credit systemwill playa key role in the sur-vival of the family farm, whichhe says will be one of the chal-


lenges facing young farmers thisyear.

"Young farmers in Michiganare going to be affected moreseverely than the more estab-lished farmers. They are ex-

tended farther trying to buildup their equity. But I don'tthink it is as widespread inMichigan as it is in other states.

"We have the opportunity inthis country to advance our-selves, but while we're enjoyingthat privilege, we also have toshoulder the other side of thecoin; we also have the oppor-tunity to fail. It's somethingyou don't like to think about,but farming is like any otherbusiness and you have to be asharp manager, not only in pro-duction, but also in managingyour financial records, to be

successful," Dave said.He credits some of the suc-

cess of his family's farm to par-ticipation in the MFBYoungFarmer program.

"We have instituted somefarm, time andcredit manage-ment concepts onour farm which Ilearned at semi-nars sponsoredby the YoungFarmer Commit-tee," he said.

"We have alsoimplementedsome estate plan-ning ideas. Myfolks are seniorpartners, andtheir folks beforethem, and wewant to makesure that we havethe right type ofestate plan work-ed out so that we

don't incur a lot of hardship ifthe farm is passed from onegeneration to the other," hesaid.

"I've also picked up a lot ofideas for the use of the com-puter which has played an im-portant role in the operation ofthe farm."

Workshops covering theseconcepts continue to be a main-stay of the annual YoungFarmer Leader Conference, butDave says the Young FarmerCommittee has several othergoals for this year to addresstheir challenge of surfacing and(continued on page 28)

19

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AgriCom Subscribers GetAnother Market Exclusive

MFBAgriCom subscribers gotanother exclusive on 1985market outlook and strategiesfor livestock, grain, dry beansand feed at the AgriCom WinterMarketing Seminar, Feb. 20-21in Lansing.

The semi-annual seminar ispresented specifically forsubscribers to the AgriCom,AgriVisor and ACRESservices.The combined information andmarketing advisory service,which now has over 160 sub-scribers in Michigan, is part of aFarm Bureau communicationssystem that brings up-to-the-minute commodity futures quo-tations, cash prices, marketcomments, commodity reports,weather, legislative reports andagricultural news to nearly5,000 farmers in eight states.

During the recent seminar,Michigan subscribers attendedworkshops on the basics of agmarketing, options trading,

20

grain hedging, dry bean market-ing and technical market analy-sis. General sessions provided a1985 agricultural weatheroutlook, information on grainand livestock seasonal pricepatterns, outlook on Farm Bill'85 and international trade, ad-vanced market analysis and amarket outlook and strategiessession for major commodities.

"Basically, subscribers have'hired' a news and informationreporting service and the ser-vices of top-notch marketanalysts to provide a plan ofmarketing alternatives," saysRobert Craig, AgriCom projectleader.

"Hired help" doesn't comemore qualified or at a morereasonable cost to farm market-ers. A report by economist JohnMarten of Farm Journal maga-zine, published last summer,rated the Illinois FB AgriVisorservice the nation's number onemarketing advisory service,

"1 believe a majority offarmers in Michigan couldbenefit from the marketing ad-visory service (AgriCom, Agri-Visor and ACRES)whether theyare in the cash market, hedgingor forward contracting," saysCraig. "A survey of our sub-scribers taken last Septembershowed that, on the average,they are making quite a bit ofmoney by following the"advice."

The survey results revealedthat subscribers who followedthe grains marketing advisoriesfrom September 1983 to Sep-tember 1984 made an averageof $7,360 more than they wouldhave otherwise. Those whofollowed AgriVisor advice onlivestock made an extra $3,887.

"Those profit returns aremerely an indication of Agri-Visor's marketing potential,"Craig says. "Generally, sub-scribers do not allocate all oftheir production following Agri-


AgriVisor market analysts Dan Zwicker and Koger Norem presented mar-ket fundamentals and strategies for livestock, grains, dry beans andfeed at the AgriCom winter Marketing Seminar, Feb. 20-2 I.

Visor advice. They may allocate50% to 75% and market therest on their own."

Training in both technical andfundamental analysis and in-creased confidence in their mar-keting skills developed at theseminars and through daily ac-cess to the computerized infor-mation system have helped sub-scribers develop a personalizedmarketing plan for their farm.

IIFarmers, whether ornot they are AgriCom IAgriVisor subscribers,do a much better job ofmarketing and improv-ing their net farmincome with marketingeducationll

"Farmers, whether or not theyare AgriCom/ AgriVisor subscrib-ers, do a much better job ofmarketing and improving theirnet farm income with marketingeducation," he says. "Under-standing seasonal price patternsand taking advantage of pricecycles, either in the cash marketor forward cqntracting, and hav-ing the discipline to carry out amarketing plan, is somethingevery farmer can do to increaseprofitability."

Several Options Offeredto AgriCom Subscribers

Subscribers to AgriCom Op-tion 1, who get unlimited toll-free WATStelephone access,pay just $109 a month for twicedaily marketing advisories andaccess to futures quotations,agricultural weather, cashprices, market news, legislativereports, commodity and finan-cial information, bi-weekly mar-keting newsletters, staff mar-keting assistance and educa-tional seminars. Farmers whowish to pay their own telephonecosts and receive all the otherservices can subscribe to Op-tion 2 for just $69 per month.

Other AgriCom options offersubscribers an information"shopping list" with subscriberfees ranging from $35 to $55.Option 3, at $35 per month, in-cludes access to-futures quota-tions and cash prices. Option 4,also $35 per month, includesaccess to agricultural weather,market news, legislative reportsand commodity and financialinformation. Option 5, at $55per month, combines the ser-vices available in Options 3 and4. Options 3, 4 and 5 do not in-clude AgriVisor market advice.

There is also a special optionfor high school vocational agri-culture programs at a cost of$35 per month.

During March, AgriCom up-graded the system's telephonecommunications capability to

carry telephone transmissionsfour times faster and bring ad-ditional savings to subscriberswho have the proper computerhardware and software. Previ-ously, AgriCom communica-tions were transmitted at only300 baud rate. The communica-tions boost will speed transmis-sions to 1,200 baud rate.

That means an eight minutetelephone transmission fromthe AgriCom host computer tothe subscriber's computer willnow take just two minutes toget the same information.

AgriCom subscribers at the con-ference had the opportunity toquestion AgriVisor analysts di-rectly about market strategiesand forecasts.

Because AgriCom is a service-to-member program, operating"at cost," the savings arepassed along to subscribers. Anew Option 1A service for thosewith the 1,200 baud equipmentwill cost only $89 per month.

Subscribers to AgriCom Op-tions 2, 3, 4, 5 or ag education,who pay their own telephonecharges, will also be able totake advantage of the fasterspeed and lower their individualtelephone costs if they have theproper 1,200 baud equipment.Others will continue to accessat the 300 baud rate.


Information I Local AffairsConference Earns

nigh Marks for Action,Fun and Skills Building

Using a hypothetical solidwaste management issue, over75 county FB leaders partici-pating in the first joint Informa-tion / Local Affairs Conference,Feb. 19-20 in Flint, learned howto develop a public informationcampaign and action plan to in-fluence opinion leaders in theircommunities.

The fictitious "Grant County"model described a rural, agri-cultural county supporting adiverse farm economy, wildliferecreation and an emergingelectronics industry. Populationpatterns, soils, water resourcesand roads were also describedin the model.

MfB Local Affairs Specialist RonGaskill presented details of asolid waste management plan forthe fictitious Grant County to In-formation I Local Affairs Con-ference participants.

22

In the opening session, MFBstaff from the public affairs andinformation divisions outlinedthe issue, discussed the re-quired procedures for solidwaste management planningand approval, and presentedthe "communicating for action"plan. Participants were chargedwith putting forward the countyFB's position that the proposedlandfill site plan be abandonedand that an alternate site in thecounty be selected.

Implementation of the infor-mation campaign plan calledfor conference participants toapply knowledge gained invarious workshops. They wrotearticles for the Grant County FBnewsletter, designed brochures,practiced radio and TV appear-ances, staged a news confer-ence, developed advertise-ments, planned exhibits anddisplays, and even prepared aslide/tape presentation.

"Although it was a hypotheti-cal situation, having a problemto work on together was veryhelpful to all of the partici-pants," said Ron Gaskill, MFBlocal affairs specialist whodeveloped the model. "It gavethe skills instruction and infor-mation a focus and gave the op-portunity for hands-on applica-tion of what was presented inthe workshops and general ses-sions."

Involvement and participationcharacterized each session ofthe conference, with a "showand tell" session on the secondday where representatives fromeach workshop reported to thefull conference and presentedsamples of the "hands-on"assignments.

""ands-on" projects, such as thebrochure design assignment inthe graphic design workshop,gave conference participants thechance to tryout their newly ac-quired skills and training.

Comments from evaluationforms indicate that those at-tending the conference ratedthe "hands-on" aspect of thesessions high. "Although wewere aware that this was a fic-titious situation in a fictitiouscounty," wrote one participant,"Grant County's situation couldhappen, and probably is hap-pening, in any number of coun-ties right here in Michigan."


Conference participants turned the tables on a panel of news mediarepresentatives in a special "Meet the Press" session. The fB leadersposed questions about media handling of agricultural issues and howthe media influences consumer attitudes. Panel members were, fromleft, Ross Woodstock, Dick Lehnert, James Mallory and Robert Driscoll.

Another wrote, "The confer-ence helped us see how thesetwo committees need to worktogether more. I like the com-bined conference. It gave moredirection to both committees:.

IMeet the Pressl SessionTurns the Table on Media

Conference participants alsotook part in a "Meet the Press"session. After observing newsmedia representatives questionDr. Ralph Hepp of MSUon the"New Economic Realities inMichigan Agriculture" program,the county FB leaders turnedthe table on the media people.

Questions from the audiencefocused on media handling ofagricultural issues and con-sumer attitudes. Media repre-sentatives for the session wereRoss Woodstock, WILX-TV,Lansing-Jackson; Dick Lehnert,Michigan Farmer; JamesMallory, The Detroit News,. andRobert Driscoll, Michigan FarmRadio Network.

Driscoll also addressed theconference following an awardsand recognition program at theTuesday evening dinner.

Departing from his preparedremarks, Driscoll told the FBleaders that many voices and

Robert Driscoll of the Michiganfarm Radio Network drew on hiscommunications and farm Bu-reau experience to urge fB mem-bers to take an active supportrole in promoting their organiza-tion's farm bill policy.


special interests will be speak-ing out to influence the 1985farm bill legislation. Hestressed that farmers com-municating through theirorganization and supportingthe policy they developedthrough the Farm Bureau policydevelopment process wouldreinforce and strengthen FarmBureau's position as the "voiceof agriculture" in Michigan andin the nation.

Volunteers Recognizedfor Individual Efforts

Recognition for communica-tions excellence by individualmembers of the informationcommittees was a highlight ofthe conference. First throughthird place winners in the firstannual information awards pro-gram were:

• Best News Story - WendyElsey, Cass County; MildredOeschger, Huron County; BettyWery, Menominee County

• Best Radio Project - DawnWilkinson, Allegan County;Joyce Foster, Presque Isle Coun-ty; Cathy Knoerr, Sanilac County

• Best Special Project - An-drea Hofmeister, Tuscola Coun-ty; Geraldine Smith, SanilacCounty; Dale Grabill, NewaygoCounty

• Best Photo - Barbara Mohr,Tuscola County; Dawn Wilkin-son, Allegan County; MildredOeschger, Huron County

• Best Feature Story - WendyElsey, Cass County; Dawn Wilkin-son, Allegan County; MildredOeschger, Huron County

• Best Multi-Media Project -Geraldine Smith, Sanilac Coun-ty; Andrea Hofmeister, TuscolaCounty; Cathy Knoerr, SanilacCounty

• Best Television Project -Dawn Wilkinson, Allegan Coun-ty; Geraldine Smith, SanilacCounty; Faye Postma, ChippewaCounty

• Best Newsletter Design -Dawn Wilkinson, Allegan Coun-ty; Lorraine LaBrake, SaginawCounty; Mildred Oeschger,Huron County

2.3

A G R I NOM I (' U P D ATE

Economists ProjectGuarded Profitabilityfor Livestock Producers

Beef cattle and hog producerscan expect to sell at profitableprices throughout 1985, but de-clining market shares for redmeat works against the enthusi-asm that such a market outlookshould generate, agreed a panelof experts at a Farm Bureau-sponsored forum.

Wayne D. Purcell, professor ofagricultural economics fromVirginia Polytechnic Instituteand State University, told thoseattending the 10th AFBF BeefCattle-Hog Cycle Forum, Feb. 19in Chicago, that despite astrong performance by the do-mestic economy and significantincreases in consumers in-comes, the demand for beefcontinues a pattern of weak-ness observed in recent years.

Purcell called the liquidationin cattle numbers "primarily de-mand induced," as he pointedout that per capita availability

24

of beef in 1984 remained veryclose to the 1983 level, but atretail prices that were roughly5% lower.

"This continues the samepattern seen since 1979 - apattern showing constant or de-clining per capita supplies mov-ing into consumption only atlower prices. Such develop-ments are a sure sign of de-creases in demand," Purcell said.

Another livestock marketingspecialist, Texas A&M's EdUvacek, said the two-year de-cline in cattle and calf numberscould be largely weather related,citing Texas drought conditionsand damaging weather in Ne-braska, Montana and Wyominglast winter, with each of thosestates reporting 7% less beefcows than a year ago.

Uvacek said we now appear tobe in the seventh year of thenew cattle cycle, that began in1979. With improved calf pricesthis year and dramaticallyaltered range conditions, manycattlemen may start rebuildingagain in 1985.

"If this happens, this group ofyears presented an unusual andaborted cattle cycle. It couldalso mean we have embarkedon a brand new cattle cycle -one which began in 1985."

He said it is still uncertainwhether we will return to a tra-ditional seven to nine yearbuildup cycle in beef cattle, orwhether cattlemen might as-sume a more rapid reactiontime, adjusting their productionlevels to demand conditionsmore quickly than in the past.

Uvacek looks for stable fedcattle prices for 1985, with

choice grade steers to averagein the $67 to $70 range, withstronger prices falling in theearlier part of the year. Tightsupplies, because of reducednumbers and possible saving ofheifers for herd rebuilding, willalso mean good premiums onfeeders in the first three quar-ters of the year.

He put the average price with-in the range of $70 to $74 for600 to 700 pound feeder steers.

Concentrating first on thehog cycle, another speaker,Glenn Grimes, Extension econo-mist and livestock marketingprofessor from the University ofMissouri, said the hog cycle hasbeen marred by low returns inthree of the last four years,something unusual for a corn/hog price ratio that wouldusually be considered favorable.

Factors that influence the lowreturns for pork include morelarge producers with high fixedcosts, need for income by finan-cially stressed crop producersand the apparent decline in de-mand for pork.

Grimes called demand a bigconcern for the pork market inthe next few years. He alsopointed to imports as a factorsaying that 8% of the pork con-sumed in this country in 1984was imported, most of it fromCanada, Denmark, Greece, Hun-gary and Sweden. He said theU.S. imported roughly 25% ofCanada's pork output last year.

Grimes looks for total porksupplies to come down slightlythis year, with hog prices stay-ing pretty stable around the an-nual average of $50 per cwt.


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sented with anautographedcase of the pota-toes signed byall Greenville em-ployees.

"Our quality standards are ex-tremely high," said Paul Cord-dry, president and chief execu-tive officer of Ore-Ida. "To growpotatoes that make the Ore-Idagrade is no easy task. Wepur-chase 20 percent of the entireMichigan crop, so we can speakwith authority about the highquality of potatoes grown in thestate."

MDA staff has been workingwith Ore-Ida in developing thisproduct as part of the depart-ment's ongoing efforts to pro-mote Michigan commodities."This product will offer aunique attraction for restau-rants and increase publicawareness of the fine quality ofMichigan food products," saidMDA Director Paul E. Kindinger.

The "Yes M!ch!gan" brand willbe available for institutionaltrade in the form of french fries,crinkle cuts, shoe strings andtater tots.

The Greenville plant is one ofOre-Ida's seven processingplants across the United Statesand currently employs 550 peo-ple. Introduction of the "YesMIchIgan" brand will extendseasonal operation by .30 days,which is the equivalent in hoursto 62 more jobs .

"We are pleased that Ore-Idahas chosen to expand its prod-uct line in Michigan," Kindingersaid. "They are making a signif-icant contribution to our state."

Michigan PotatoesTake on NewShapes at Ore-Ida

Michigan's first lady, Paula Blan-chard, welcomed the new Ore-Idaproduct line during ceremoniesat the company's Greenville plant.

Michigan~sfirst lady, PaulaBlanchard, special advisor tothe director of the Departmentof Commerce, along with repre-sentatives from the MichiganDepartment of Agriculture andthe Department of Commerce,welcomed the new product lineat a ribbon cutting ceremony atthe Greenville plant on Feb. 28.During a tour following theceremony, Blanchard was pre-

Michigan potatoes have takenon new shapes thanks to Ore-Ida Foods, Inc., of Boise, Idaho.In March Ore-Ida introduced aline of premium quality frozenpotato products for institu-tional use under the "YesM!ch!gan" brand.

The new spuds, produced inMichigan at Ore-Ida's Greenvilleprocessing plant, are labeledwith the "Yes MIchIgan" slogan,barn logo and seal of the PotatoCommission.


Lenders and GovernmentPut the Squeeze onFarm Borrowers

The Discussion Topic isused by Community Ac-tion Groups for monthlypolley discussions.

Because this is the traditionaltime for renewing operatingloans, many farmers in Michi-gan are sitting across fromagricultural lenders, explainingtheir farm plans for 1985 andbeyond. Many are being sup-ported 'by their traditionallenders, but some are not.Some farmers are being told togo elsewhere or to get out offarming altogether while thereis still some equity left in theiroperation.

Marvin Duncan, the chiefeconomist for the Federal Re-serve Bank 'of Kansas City,estimates that 8% to 15% offarmers won't get financing thisspring. Lenders will try to keepforeclosed farmland off themarket as long as possible,leasing it out for other farmersto use. But concerns remainthat eventually it must be puton the farm real estate market,further glutting it and depress-ing prices.

Farmland Values DropFarmland prices are continu-

ing to drop sharply in the Mid-west according to a survey bythe Federal Reserve Bank ofChicago.

Land in Iowa was down 22%in 1984; Illinois land was down16%; Indiana down 12%; andMichigan and Wisconsin downabout 7%.

The fourth quarter drop invalue for the five states was thesharpest since the downwardtrend began in ] 98], accordingto the Federal Reserve Bankreport.

The Bankruptcy TragedyBankruptcy is a personal

tragedy. There is great traumatied to "losing the home place,"

26

being forced to sell off the farmto satisfy debts that grew fasterthan income from livestock orcrops. Many have seen it hap-pen firsthand and know what itdoes to the farm family and tothe community.

There needs to be a nationalawareness of the growing farmdebt problem. At the first gen-eral session of the AmericanFarm Bureau Federation annualmeeting in early January, AFBFPresident Robert B. Delanospoke of "the harsh economicreality now facing one farmer inthree across the country." Headded, "Nothing would helpmore than lower taxes andlower interest rates .... "

The Reagan Aid PlanLast fall, Secretary of Agricul-

ture John Block and PresidentRonald Reagan announced anadministration plan to helpfarmers obtain necessary credit.A $650 million loan guaranteeprogram was announced thatinvolved FmHA emergencyloans. Included in this packageare the guaranteed economicemergency (EE) loans made byprivate lenders with 90% beingguaranteed by FmHA. There is a$200,000 cap on loans to in-dividual farms and it also re-quires a minimum positive cashflow under the president's debtadjustment program of 1] 0%.

But the Reagan administra-tion's fall emergency farmcredit package has been seenas woefully inadequate. Accord-ing to Dr. Neal E. Har!, anagricultural economist at IowaState University, two-thirds ofthe farm debt is owed by farm-ers whose debt to assets ratio isuncomfortably high (50% orgreater). "That's $140 billion,"

Harl says. "It isn't all about togo over the edge, but it's head-ed that way."

Farm Credit LegislationAFBF endorsed S. 457, which

authorized up to $1 billion inAfrican famine relief and alsocarried farm credit riders. Thebill provided a maximum$50,000 advanced price sup-port loan payment on a maxi-mum of 50% of their antici-pated 1985 crop when a farmersigns up to participate in the1985 wheat or feedgrains farmprograms. The loans were re-course loans and carried a9.] 25% interest rate. The billrequired a farmer to have ade-quate security on the loan toprotect the federal govern-ment's position.

In addition to the partial loanadvance, the legislation autho-rized an additional $1.85 billionto guarantee federal farm oper-ating loans; provided $100million to buy down interestrates; reduced minimum cashflow requirements from] 10%

to 100%; and provided addi-tional temporary personnel toFmHA offices to help processand serve loans.

President Reagan vetoed thisbill on March 6, 1985 and saidhe did so because the existingprogram was "good enough, inview of the huge federal defi-cit." Efforts by Congress tooverride his veto were incom-plete as Rural Living went topress. The U.S. House was ex-pected to vote to override theveto, but the Republican-con-trolled Senate was not likely toconcur. If they don't overridethe veto, the legislation is dead.


Short-Term Credit ReliefA Priority for Farm Sector

FmUA OverloadedFmHA originally was created

for one purpose - to makeloans to Depression strickenfarm families. Today, althoughFmHA still aids family farmers,it cannot concentrate on aidingfamily farmers because its pro-grams have become so highlydiversified.

Programs that require notonly funds, but the time and ef-fort of FmHA personnel, includehome ownership loans, rentalhousing loans, congregatehousing loans, water and wastedisposal loans, energy impactassistance grants, communityfacility (sewer and water) fund-ing, business and industry fund-ing, and watershed and floodprevention loans. These pro-grams all draw on the time theFmHA personnel at the nation-al, state and local levels have tospend on the agricultural creditprograms - those programswhich FmHA was established toaddress.

FB has been supporting a pro-posal (under the direction of theAFBF board) that deals with theproblem of FmHA personnelspending so much time on non-farm programs. The thrust ofthe proposal shifts non-farmprograms of FmHA to a new di-vision in the U.S. Department ofAgriculture, thereby allowingFmHA person'nel to deal withonly the farm loans.

Congress, on the other hand,has taken a different route.Present law allows the SmallBusiness Administration (SBA)to loan for disaster assistanceto farmers only if SBA andFmHA have "substantially dif-ferent" interest rates and if afarmer has applied for aid atFmHA first and has been re-fused. A new law would lowerthe SBA interest rate to 4% forthose who cannot obtain creditelsewhere and 8% for those whocan obtain credit elsewhere butprefer SBA's loan program. Thiscompares with FmHA's presentrate of 5% for the first$100,000 and 8% for the next$400,000 for those who can't

RURAL LIVING, APRIL 198.C.

obtain credit elsewhere and13.75% for those who can, Ob-viously, the thrust of the newlaw will be a shift to moredisaster lending from FmHA toSBA.

Farm Credit Crunch -Many Causes, Few Cures

As FB testified before a creditsubcommittee of Congress, thecauses are many, "low com-modity prices, high interestrates, declining land values andbad weather." The testimonysupported farm credit work thathad been underway for the pastsix months to shore up FmHAloan funding, speed loan appli-cations, assure that originalloans are large enough for a fullyear's farming operation, anddirect FmHA funds away fromother uses and back to theoriginal purpose of helpingfarmers who do not otherwisequalify for financing.

FB has backed programs offederal loan guarantees to en-

Unless there is a resolution ofthe farm credit issue, Americanagriculture will suffer a highmortality level, Dr. ClaytonYeutter, president of theChicago Mercantile Exchangetold farmers attending the MFBAgriCom marketing seminar.

"We can't worry much aboutsurviving five years out if wecan't get through the next 60days, so the first priority has tobe something in the way ofcredit relief," he said. "Whetherthat be done by the govern-ment, the private sector or acombination thereof, is beingdebated vigorously in WaShing-ton now, but there has to be aresolution of the credit issue.Otherwise we're in deep troublein American agriculture, andwe're going to have a very highmortality level.

courage commercial lending in-stitutions to write-off and write-down portions of principal andinterest. Since all loans aremade on an individual basis, FBhas testified that loan continua-tion should be closely tied to"individual performance," tak-ing into consideration condi-tions (such as weather) overwhich the borrower has no con-trol.

Discussion Questions

• Are there farmers in yourgroup who would benefitfrom an advanced price sup-port loan payment?

• Have farmland values droppedin your area?

• Do you think farmers withsevere credit problems shouldbe forced out of business?

• Do you believe that the FmHAoffice in your area devotesenough time to the needsof farmers?

"In the short term what we'vegot to do is buy some time forour good producers throughcredit programs and keep themgoing," he said.

Yeutter said he was concernedabout how the current creditdebate will affect considerationof the 1985 farm bill.

"We're generating so muchantagonism and bitterness overthe credit question in Washing-ton now that if we're not care-ful, it's going to just totallypoison the environment forfarm legislation generally.That's why it's so critical to getover this credit hurdle and getsome relief there so everybodywill calm down and get back tolooking at farm legislation in arational way," he said.


27

Agrinomic Update(cantinued fram page 24)

But, said Grimes, "with an 18 ar19 to. I hag/ carn ratio. andstress an grain praducers, herdrebuilding is almast sure to. ac-cur this year.

Grimes added camments abautthe cattle situatian, agreeingwith price predictians in the$66 to. $67 range far chaicesteers. But he daubted the pras-pect far herd rebuilding, sayingfeeder cattle prices are natquite high enaugh to. encaurageherd rebuilding, which wauld re-quire a 15% reductian in cattle-calf slaughter just to. build thecaw-calf herd 1%•

Cancerning the praspects farherd rebuilding, Purcell also.said we cauld see anather yearar two. af canditians that waulddrive resaurces aut af the cattlebusiness.

The final speaker, Dr. PaulPetersan, manager af marketanalysis far Farm BureauACRES,agreed with Uvacek thatstatic cattle numbers and pricescauld be a signal af the end afthe traditianal cattle cycle.

Petersan said red meats havemaved fram perceptian by can-sumers af luxuries an whichthey wauld spend mare as theirincames increased. As factarsin the shift in cansumer prefer-ences Petersan listed: diet andhealth issues, ample chaices afmeat in the diet, new eatinghabits and strang campetitianfram ather praducts.

Campetitars to. red meats aredaing mare to. attract cansum-ers by praviding quick, partiallyprepared meals, ready to.eat,brawn and serve and ather in-navatians. "Paultry and sea-faads have taken the initiativeaway fram red meats in market-ing," Petersan said.

227 page iIIus~ated book explains sausage makingplus home cunng and smoking of meat, fowl andfish. aver 100 recipes. We now have Low Sa"Seasonln~s. Free. equipment and supply cataloghas more Information.

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28

Petersan's suggestians far thered meat industry included far-getting abaut price campeti-tian, catering to. canveniencetastes and warking an their im-age to. cansumers by daing abetter jab af addressing thediet! health cancerns.

David Lott(cantinued fram paf:le 19)

develaping new leadership farFarm Bureau and agriculture.

"Our primary gaal is to. bringnew peaple to. the farefrant, to.develap their leadership skillsand to. pravide an annual farumfar them to. be invalved in thetatal Farm Bureau pragram." hesaid.

"We also.want to. have a cam-municatians avenue with the ur-ban papulatian to. express sameaf aur thaughts and hear sameaf their cancerns so.that we canaddress them.

"Anather ane af aur majargaals is to. wark with FFA and4-H graups in the state to. try to.pravide assistance to. them intheir pragrams. We also.want to.try to. get yaung farmers in-valved in Agripac fundraisingactivities and the Lansing andWashingtan legislative seminarsso. that they are educated in thepalitical arena."

With many majar issues chal-lenging the future af agriculture,farmers will need to. wark ta-gether thraugh Farm Bureau to.pravide a united vaice to.preserve agricultural heritagefar future generatians, andyaung farmers can playa keyrale in accepting that challenge.

"One af the things aur cam-mittee is gaing to. strive far thisyear is to. get yaung farmers in-~alved in Farm Bureau pragramsIn general," Dave said. "We wantthem to. go.thraughaut thewhale spectrum af Farm Bureau.They're mare than just yaungfarmers, they also.have thesame prablems and cancernsthat the rest af the membershiphas."

Dope and Uelp(cantinued fram page 15)

She said the stress the familyis under is also.a cancern to. theteams.

"Often the farm has been pur-chased fram the parents. Whenit is in jeapardy, the 70 ar 80year aid farm cauple is aganiz-ing just as hard as the farmaperatars.

"Then we see the 20 and 25year aids beginning to. came in-to. the aperatian. They had ex-pected to. be farmers and nawit's uncertain if there will be afarm to. make a living an.

"If the children are teenagers,we are finding that they experi-ence an identity crisis with theirpeers because tighter clathingbudgets dan't allaw them to.dress like the ather kids. Also.,many af their friends are gaingan vacatian aver spring breakand they'll be stuck an thefarm."

Schmidt said the family is atrisk acrass the generatians andfamily members need to. gettagether to. apenly discuss thesituatian.

"If they can find ways to. cam-municate they may stick ta-gether, but stress can breakfamilies taa. Werecammendthat they make a gaal ... andwark tagether during this verystressful time to. make theirfamily a stranger unit.

"Often we suggest they laakback to. haw the grandparentsgat thraugh the Depressian.Families that pulled tagetherthen came aut stranger."

The teams also.suggest thefamily cantact cammunityagencies where they can gethelp and suppart while gaingthraugh stressful times. "We letthem knaw what is available inthe cammunity far them andsame are willing to. try it,"Schmidt said. "But many use usas their saunding baard be-cause we're 'autsiders' and theydan't want their neigh bars to.knaw."


Washington(continued from page 6)

Soybeans - The currentloan formula is retained for soy-beans with no additional au-thority for acreage reduction ordeficiency payments.

Sugar - The USDAsecretaryshalI support the price of do-mesticalIy grown sugarcanethrough non-recourse loans atappropriate levels but not lessthan 18<t per pound for the1986 through 1989 crops ofsugar. Sugar beet loan levelsshalI be set at levels that arefair and reasonable in relationto the level of loans for sugar-cane.

Wool and ltIohair - Wooland mohair titles wilI remainsubstantialIy the same as underthe 1981 act.

farmer-Owned Reserve -The farmer-owned grain reservewilI be terminated and replacedby loans to wheat and feedgrain producers to be madeavailable without interest for anine month period. A ninemonth extension wilI be madeavailable which wilI include acharge for interest.

Payment Limitations forDeficiency Payments - Thetotal amount of deficiencypayments (excluding disasterpayments) that a person shalIbe entitled to receive under oneor more of the annual programsestablished under this act forwheat, feed grains, upland cot-ton, and rice shalI be limited to$50,000 for each of the 1986through 1989 crop years. Theterm "payments" as used inthis section shall not includeloans or purchases or any partof any payment that is deter-mined by the USDAsecretary torepresent compensation forresource adjustment or publicaccess for recreation.


Agricultural Export Expan-sion and P.L. 480 - The Ex-port Credit Revolving Fundauthorization would be extend-ed through 1989 with provi-sions for inclusion of blendedcredit programs to offset sub-sidized credit provided by com-peting nations. Blended creditprograms and standby exportsubsidy programs would be ex-empted from cargo preferencerequirements.

Minimum levels of P.L. 480exports would be increased as amethod of liquidating farmer-owned reserve stocks.

This program will provide foran export commodity bonusprogram to offset the advan-tages of export subsidies usedby other countries. This pro-gram will be designed to regainmarkets and reduce CCCandfarmer-owned reserve stocks.This program shall be exemptedfrom cargo preference law re-quirements.

Conservation Reserve andSodbuster - The USDAsecre-tary must provide for a conser-vation reserve program forowners and operators of erosion-prone land to assist them inconserving soil consistent withbudgetary limitations. Con-tracts of seven to 15 yearswould be offered under whichproducers would converterosion-prone cropland to lessintensive uses such as pasture,permanent grass, legumes ortrees.

Any producer who bringsfragile land into productionshall be ineligible for any farmprogram benefits on any crop inhis or her entire farming opera-tion.

Short-Term Credit(continued from page 27)

Yeutter called the administra-tion's proposals for farm legis-lation, "basically on track."

"They're saying we need to goto a more market-oriented agri-

culture and that's precisely thecourse of action we should fol-low in a farm bill. I'd like to seethat happen in terms of reducedloan rates, tied to world marketprices, so we don't price our-selves out of the world market.

"We've got to do things thatwill insure our internationalcompetitiveness and insure theprotection of our market shareand increase our market share.One of the big mistakes we'vemade with farm legislation andwith administration policies inthe last few years is that we'vegiven away our market share in-ternationally. For an industrythat is so export dependent,that is just foolish. We've got tostop making unintelligentpolicy decisions both in Con-gress and the administrationand go out and capture theseexport markets."

Yeutter told the marketingseminar participants that deci-sions made on policies otherthan the farm bill will havegreater impact on their in-comes.

"We've got to deal with theimportant things that affect theincome of farm people todaythat come outside of the farmbill. Fiscal policy - the size ofthe federal deficit - is numberone on my priority list. Mone-tary policy - what happens onmoney supply by the federalreserve - is number two and in-ternational trade policy isnumber three. Then I have farmpolicy and tax policy at about atie for number four on thepriority list.

"With the big tax debate we'regoing to have this year, it isconceivable that what happenson tax legislation might be evenmore important than what hap-pens on farm legislation. Whathappens in exchange rates willdo far more to impact farm in-come than anything that goesin the farm bill. It will be in-finitely more relevant to deter-mining farm income than thefarm bill will be," he said.

29

Opportunities in AgriculturalTourism Focus of ANKWeek

.30

Now paying 10.940/0.U.S. Savings Bonds now

pay like money market accounts!At the current rate-1O.94%-youcould double your money in lessthan seven years. Just hold Bondsfor five years and you get the newhigher variable rates. Plus, youget a guaranteed return. That'sthe kind of change anyone canappreciate.

But some of the bestthings about Bonds haven'tchanged. Savings Bonds are stillas safe as ever. They're stillexempt from state and local in,come taxes. And since Bondscost as little as $25, they're asaffordable as ever. What's moreBonds remain a great way to 'keep our country strong.

You can purchase Bondsalmost anywhere. At neighbor-hood banks, savings and loansand credit unions. Or easier stillright through the Payroll SavingsPlan where you work.

For your free booklet, write:"50 Q&A," U.S. Savings BondsDivision, Washington, DC 20226.

us. SAVINGS BONDS~Paying Better Than Ever"--Variable rate~ apply to Bond~ r.urcha~eJ onand after 11/1/81 and held at ea~t S year~.Bond~ purcha~ed before 11/1/112 earn variablerate~ when held beyond 10131/117. Bond~ heldle~' than S years earn lower intere~l.

Two of Michigan's top threeindustries - tourism and agri-culture - can be combined toimprove the state's economy.

That was the consensus ofover 20 Agriculture and NaturalResources Week sessions onhow to expand business oppor-tunities by promoting Michiganagriculture as a tourist attrac-tion. Formerly called Farmers'Week and Natural ResourcesDays, ANR Week was held March18-23 on the campus of Michi-gan State University.

At a conference on March 19,participants learned the mosteffective locations and advertis-ing schemes for increasing visi-bility of roadside markets andU-pick operations. Tips on in-stalling highway signs, whichagriculture-related businessesoften depend on to attracttourists, were given.

Effective promotion and plan-ning of agricultural festivals asa way to attract tourists werealso explained. Representativesfrom the Michigan wine indus-try outlined the successful ap-proach they use to capture thetourist trade through festivalsand other public relations pro-grams.

Other innovative ideas for ex-panding agricultural businessopportunities, such as runningfarm bus tours and providingfarm vacations, were also onthe program.

One unique approach wasshared by John McDevitt, ex-ecutive vice president ofThomas E. Monaghan, Inc. Hediscussed plans to set up ademonstration farm for thepublic adjacent to the Domino'sPizza office headquarters.McDevitt said the farm, which isdesigned to be a form of adver-tising, will feature crops neededto make a pizza.

Another conference on March20 provided information to helpthose interested in the tourism

industry make investment andplanning decisions. A panel ofstate legislators discussed newand pending legislation, fund-ing, regulation and the state'scommitment to assist tourismthrough advertising and otherservices.

Economic trends for outdoorrecreation, the outlook fortravel, the types of businessesprojected to expand and wherepeople are traveling, in stateand out, were investigated. Theprogram also included ideas ontypes of activities to promoteagricultural tourism, a paneldiscussion on local and regionaltourist acJivities and the sum-mer and fall advertising cam-paign.

Although only three years old,Michigan's bed-and-breakfastindustry is growing fast. A con-ference on the topic, held March21, provided information on im-proving business operation andovercoming problems resultingfrom the industry's youth.

Participants explored ways todevelop the industry by usingreservation services, renovatinghis~oric buildings and creatingan Industry association.

A bed-and-breakfast enter-prise is an owner-occupiedbuilding with three to fiverooms for hire. A continentalbreakfast of juice, rolls and cof-fee is included in the service -hence the name "bed andbreakfast."


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