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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Nov. 19, 1979)
ueiu paDususaxj I Future of the Family Farm By JOHNNIE LEA HENDON The family farm, one of the last strongholds of traditional American values, is facing extinction due to current U.S. farm policy. The future holds little hope for change. Dr. Ronald D. Knutson, professor of agricultural economics at Texas A&M University, feels that the structure issue—the organization and ownership of farms—is impor tant but will probably be avoided by politicians because of its controver sial nature. “No one wants to say they are against the family farm because of the traditional values it represents,” Knutson said. He explains, however, that the most effective measure to help smaller farmers would do the most damage to the larger farms and cor porate farms. These are the groups that make up the leadership of most producer-oriented farm organiza tions, and therefore have the most input into farm legislation. “Political leadership in agriculture invariably loses with the structure issue,” Knutson said. Another problem in passing farm legislation in favor of family farmers is that these farmers hope to some day become large farmers them selves, and will not support anything that could hurt their futures. Knutson outlined three major steps that could be taken to help family farmers survive. The first measure would limit farm benefits to family farms. He defines family farms as those for which a ma jority of the family’s income is direct ly from the farm and less than half the farm labor is nonfamily. “This definition would probably have to be more liberal to get any legislation passed. It would probably just have to eliminate those farms that are truly corporate-owned with publicly held stock,” Knutson said. The second step Knutson suggests is to discourage nonfarm investment in agriculture. This could be accom plished by doing away with tax loopholes which allow investors to write off farm losses, occurring most ly on paper, against nonfanp in come. Another way would be to tax capital gains 100 percent. The last, and probably most difficult method of stopping nonfarm investment would be to control foreign invest ment in U.S. agricultural lands. Finally, Knutson suggests streng thening antitrust policy with respect to vertical integration in agriculture. He cited examples of meat packing plants buying feedlots and ranches. With this type of financial backing, these corporations can continue to buy out smaller farms and family larms or compete with them on an unfair basis. In some industries, Knutson found that vertical integration can help keep costs down for the con sumer. He uses the broiler industry as an example, since it is highly inte grated. The real price of broilers in 1955, before integration of produc tion and processing was about 31 cents per pound. The real price of broilers now is about 13 cents per pound, with the lower price due to increased efficiency. Dr. James Copp, professor of sociology at A&M, suggests that the family farm can help balance the ex cesses of corporate agriculture. “The presence of the family farm is a deterrent to these corporations making excess profits, and an incen tive to keep food prices competi tive,” Copp says. Copp also emphasized the more traditional values embodied in the idea of family farming. He suggests, The family farm is a source of peo ple with individualistic philosophy. 11 something goes wrong, they take responsiblity for it.” Despite these economic and social reasons to encourage the con tinuance of family farming, Knutson predicts that structure will be a one- term issue, dependent on Secretary ot Agriculture Bob Bergland. To be remembered, an agricul ture secretary must be associated with an in issue. Bergland wants to be known as a structuralist, ” explains Knutson. He adds, however, that Bergland has indicated he will probably step uTu aS Seeretary of Agriculture, whether President Carter is re elected or not. Knutson observes that the people m line for the job, either Republican or Democrat, are closely associated with commodity organizations, and will not support or initiate legislation against large producers. The possible solution, suggests Knutson, is to try to slowly work ramily farm policies into legislation, starting with such measures as tight ening tax loopholes, strengthening antitrust policy and increasing credit totamilyfarmers. Overissues, lead ing to a comprehensive farm bill, can be dealt with at a later date. Awards office presented By JULIE SMILEY Despite crowded conditions on two vans, two flat tires, fast food and lack of sleep, 2/ students represent ing Texas A&M University’s Saddle and Sirloin Club drove to Louisville, Ky., for the 60th annual National Block and Bridle Club meeting Nov. 11. Dr. Howard Hesby, associate pro- lessor in animal science at Texas A&M, accompanied the students and was elected National Secretary- Treasurer of Block and Bridle, the national organization for students in terested in animal science at univer sities in the United States. It is the parent organization of Saddle and Sirloin. The national meeting is held each November in conjunction with the North American Livestock Exposi tion. The NALE is one of the major liv'estock shows in the \lidwest and the world series of livestock judging for university students. A&M was represented by the Senior Livestock learn, coached by Dr. L.D. Wythe associate professor in animal scien- Aggie team P lac ed 10th out ot 40 teams. The Block and Bridle business meeting included presentation of awards and conduction of business tor the organization. Texas A&M placed first in the published chapter annual yearbook; fourth for their chapter scrapbook; and honorable mention for chapter activities The group left Nov. 8 and drove to Nashville, Tenn., to visit the Coun try Music Hall of Fame, Andrew Jackson s home, Reiman Auditorium (previous home of the Grand Ole Opry) and the Friday evening Oprv performance. Gemeneck The Gooseneck Convertible frailer with removable livestock racks. It’s a stock trailer and a utility trailer. • available with standard %-ton (8 lug) wheels at no extra cost • one-piece 3/16" fabricated steel body & fender for greater strength • 16, 20, 24, 28, 32 ft. lengths • lights, electric brakes & breakaway switch to meet ICC rules • 7:50 X 16/8-ply tires • cross gate • sandblasted, primed with rust prohibitor and painted with 2 coats of enamel • drop-leg jack (less cranking/no blocks) • treated flooring • other models include horse vans, lowboys, metal top, third axle, metal compartments over neck Write or call for literature and local dealer information Gooseneck Trailer Mig. Co.,Inc. Box 832-P/Bryan, Tx. 77801/(713) 823-0034 Meeting discusses rural problems Wichita Falls, Texas is among 10 United States cities where a public meeting will be held in December to obtain comments on issues affecting American agriculture and rural life. Secretary of Agriculture Bob Bergland announced. The meeting on Dec. 6 is planned to accommodate persons in Texas, Oklahoma, and Louisiana. Bergland said that a broad-based public discussion of the issues that shape national policies is needed to promote the kind of agriculture and rural living this nation wants for the future. “The forces that have shaped American agriculture as we know it today need to be re-examined. Our intent is to develop the most comprehensive package of factual information and recommendations for use in proposing future polices, especially new farm legislation when the current farm bill expires in 1981,” said Bergland. Loans available for farm land Texas Voters recently approved a constitutional amendment that will authorize issuance of $10 million in state bonds to guarantee payment of loans made by private lending institutions for the purchase of farm or ranch land by individual Texas citizens. The amendment, which was introduced in the legislature by State Representative Luther Jones of El Paso, will provide up to $100 million in loans from the sale of the bonds. The loans will be made by private lenders, but the state could help the farmers pay back their loans, charging 6 percent interest. To qualify for the loan provisions and applicant must have lived in Texas at least 5 years and must have farm and ranch experience and training to qualify. The amendment was promoted by a group calling itself “Texans to Save the Family Farm” and included support of Agriculture Commis sioner Reagan Brown and Governor Bill Clements. The amendment will provide younger Texans a way to offset the high down payments now required for farm and ranch loans and help continue the family farm concept. A similar program has been successful in reducing down payments in Minnesota.
