THE BATTALION
WEDNESDAY, JANUARY 9, 1980
Page 5
nation
Farm leaders speak out on grain crisis
United Press International
In Iowa, where 20 percent of the
nation’s corn is grown and politicians
now are looking for votes, farm lead
ers say the administration must
..quickly implement its offer to buy
; grain or farmers may be hit with a
; large drop in market prices,
f Illinois Gov. James R. Thompson,
gfearing the Soviet grain embargo will
^endanger his state’s entire economy,
' has offered President Carter a three-
; point plan he said could lessen any
drop in prices due to a domestic glut.
And in Texas, farm leaders say
they hope the administration will not
put the grain it buys back in the mar
ketplace in a fashion that would de
press prices.
“That grain has to move every
day,” said Maurice Van Nostrand
Monday. He is market research
director of AGRI Industries, Iowa’s
largest marketer of export corn.
“They have to step in rapidly and
do that buy grain. If there’s any in
terruption, there’s going to be a con
siderable decline in the market. ”
The offer to buy the embargoed
grain was made in Washington Mon
day by Vige President Walter Mon
dale. He said the government would
offer to buy the contracts held by 22
grain firms, hold it off the market and
then sell it when prices strengthen.
Officials from the Iowa Farm
Bureau and the Iowa Farmers Union
said the government may have to re
verse a fall announcement and call
Candidate ivants to make gasohol
out of grain ivithheldfrom Russia
for a set-aside program, one in which
farmers are paid to idle crop land.
In Springfield, Ill., Thompson
Monday cabled Carter proposing an
increase in the amount of loan money
made available to farmers, from
$2.10 a bushel to $2.50 a bushel. He
also urged that all grain farmers be
allowed to get federal loans — not
just those participating in the set-
aside program.
Thompson also asked the presi
dent and Congress to start outlining
next year’s set-aside program so far
mers will have an idea of how much
grain to plant and “to keep produc
tion in line with demand. ”
Thompson said if Carter fails to
take those steps immediately, “far
mers will suffer disastrously. . . and
it will spread throughout the entire
Illinois economy.”
Carroll Chaloupka, head of the
Texas Farm Bureau, said it was pre
mature to comment until it was clear
what will be done with the grain.
“I’m concerned if they buy that
grain what they’ll do. . . unless they
put it in a reserve and have it at a
price level so that they can’t dump it
and depress the markets for future
grain,’’ said Chaloupka.
Elbert Harp of Lubbock, Texas, a
former vice president of the Grain
Sorghum Producers Association,
said he too was concerned about
“how dedicated the administration
would be in holding that grain off the
market in order not to affect the mar
ket price.”
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United Press International
SAN ANGELO — A candidate for
the Railroad Commission has prop
osed making gasohol from the grain
being withheld from sale to Russia.
“lean tell you one tiling: I’d rather
t»pay American farmers $75 a barrel
r for gasohol than pay the Ayatollah
Khomeini a quarter a barrel for
crude, Buddy Temple said Monday
in a speech to Tom Green County
Democrats.
Temple said grain alcohol is used
for 10 percent of the content of gaso
hol, and that 10 percent would "just
about offset the percentage of oil that
Iran was supplying to the U.S. be
fore they seized our embassy.
The president said that the gov
ernment was going to spend be
tween $2 billion and $3 billion stock
piling the grain. Why not put it to
.usein an experimental gasohol refin
ery operation? said Temple, who is
challenging Railroad Commission
Chairman John Poerner in the
Democratic primary.
Another commission candidate,
Jim Hightower, issued a statement
through his headquarters in Austin
accusing the present three-member
commission of bowing to the de
mands of utility companies lor higher
and higher natural gas prices in
Texas.
He noted that Lone Star Gas Co.
has requested a $20 million rate in
crease, and said the company also is
seeking to make the rates retroactive
to Sept. 5.
“It’s more than the companies
need, and it is much, much more
than hard-pressed Texas consumers
should stand for, ” said Hightower,
who is opposing Commissioner Jim
Nugent in the May 3 Democratic
primary.
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