The Rural Voice, 1983-07, Page 7troubles)," said Ken McKinnon in a
recent interview, "but surprisingly few.
They must be getting production and
finances in line. even though we'll
probably have a fair amount of over -quota
milk," he said. "It's likely there is some
pressure to come, though, in the next
few months of the year, when people find
there's not likely to be any large rebate of
over -quota levy. If they're still counting
on that, they may run into difficulty. But
I'm optimistic." Next year's export levies
could be up, but Canadian industrial milk
consumption is up. he reported.
U.S. LAWMAKERS STILL FIGHTING
SURPLUS DAIRY STOCKS. In May a
state court ruled against Washington's
ability to collect fees as deterrents to
overproduction. Later, a Federal Appeals
court overturned the decision. Instead of
the current fee system, many observers
expect the government eventually to pass
a system which would pay farmers who
cut their milk output.
FARM CREDIT CORP. HAS RUN OUT OF
FUNDS FOR ITS SUBSIDY FOR FAR-
MERS IN TROUBLE. The special farm
financial assistance program which of-
fered a break on interest rates to the tune
of 4 percentage points, is out of funds.
$150 million was allocated. The shut-off
applies to new applications. Applications
already in the mill before the cut-off
announcement will be processed.
EEC SUPPORT PRICES COULD RIP
BUDGETS WIDE OPEN. The 10 -nation
European Economic Community faces
collapse if a growing protectionist trend
continues, according to a London,
England research group known as the
Economist Intelligence Unit. High com-
modity support prices, resulting in
higher than expected expenditures by
governments, are of grave concern, said
another report.
FARMERS TEND TO PAY DOWN DEBT
IN LEAN YEARS AND BORROW HEAV-
ILY IN BETTER YEARS. For example,
total debt owed by U.S. farmers this year
will register one of the smallest gains in
nearly 40 years. It has been a tough year,
especially before PIK came through, but
total farm debt in the U.S. will only rise
by 1.5°°, compared to average gains of
12°i° per year since 1970.
FARMLAND PRICES IN THE U.S. HAVE
BOTTOMED, according to a recent USDA
report. One investor, Steven Leuthold of
Minneapolis, added that mild price
strength has finally occurred after pre-
vious hard drops. But farmland in the
next 5 years will not be as good an
investment as stocks and bonds, Leu-
thold predicted. As for Ontario, this
province's farmland was poised to stabi-
lize or even rise in price after 2 years of
severe pressure, but late spring planting
could cut profits and delay the recovery.
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THE RURAL VOICE, JULY 1983 PG. 5