Page 4/The Battalion/Wednesday, December 12,1984
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404 University Dr East
College Station • 846 8905
Next to Cenare's
3202 A Texas
Bryan • 779 7662
Across from Wal Mart
Cuts in aid will
affect mid-size
farms the most
By DEENA ELLIOTT
Reporter
The Reagan administration’s pro
posal to cut farmers’ aid 50 percent
to help decrease the federal deficit
would help the agriculture industry
in the long run to be “more compet
itive in world markets and more effi-
cient, but it would also be a higher
risk,” says Dr. Ronald Knutson, a
professor in agricultural policy at
Texas A&M.
Knutson said the current farm bill
will spend $10 billion in aid in 1985.
The increase in the amount of defi
ciency payments, he said, has re
sulted in an increasing reliance of
farmers on the government. The net
farm income, or profit, has been $20
billion, with $10 billion being gov
ernment money, he said.
The federal budget cut, if ap
proved, is not just a matter of de
creasing the federal deficit, Knutson
said. It is a matter of reversing the
trend that has caused farm incomes
to become more distant from the
market and more reliant on the gov
ernment.
In order to compete in the export
market in the early 1970’s, the gov
ernment lowered floor prices and
provided direct payments in the
form of deficiency payments based
on set target prices, Knutson said.
The government spent $3 billion to
$5 billion in farm programs in the
1970’s, he said.
The impact on farmers and
ranchers in the short run would
probably be a substantial decline in
income, Knutson said. Some in
crease in market prices is also a pos
sibility, he said. Livestock programs
could even be favorably affected
with the grain prices becoming more
market sensitive.
A decline in the number of farms
is another probability. The middle-
sized farm will be hurt more than ei
ther large or small operations, Knut
son said. Many small farms have
more off-farm income than on-farm
income, he said, and large farms are
usually more efficiently run.
Also, Knutson said some farmers
would probably be going out of busi
ness — the price for switching to a
market-oriented program after hav
ing a government protection pro
gram.
“Those farmers who are less effi
cient and more in debt will be most
affected,” he said.
People considering agriculture as
a profession would probably find it
less attractive in the short run, Knut
son said.
But in the longer run, “the market
will offer more opportunities and
make agriculture more attractive for
good management,” he said.
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Photo by JULIA COKER
The best method of survival for
the farmer if the cut is approved
would be to do a better job of mar
keting and managing the farm oper
ation, Knutson said.
Students can be seen studying and cramming for exams all over
campus this week. Shellie Prewitt found her quiet niche to study
in the Academic Building. Exams continue through Friday
morning.
He said he expects a cut, but the
final budget cut would probably be a
compromise — not as big as the ad
ministration would like to see. Any
cut in farmers’ aid will probably be
put into effect over a three-year pe
riod.
Police Beat
Dr. Knutson has been involved in
agricultural politics in Washington,
D.C., as a member of the transition
team in 1980 when President Rea
gan first took office and in the early
1970’s under Secretary of Agricul
ture Earl Butz.
ported to the University Police De
partment through Tuesday.
MISDEMEANOR THEFT:
• Thirty-five dollars in cash and
two personal checks totaling $31.56
were stolen from 629-F Blocker.
ASSAULT:
• A custodial employee reported
that a man assaulted her on the third
floor of the Academic Building.
CRIMINAL MISCHIEF:
• The window was broken on one
Announcing
The Texas A&M Writing Contest
Undergraduates and Graduate Students
Poetry and Short Stories
Entries will be accepted from Feb. 4-15
Sponsored by Sigma Tau Delta, Publisher of Nine Poems
Questions: Contact Melissa Romine 693-1904
Dan Bitting 589-3145
of the clothes dryers in the Corps of
Cadets laundry room.
BURGLARV OF A BUILDING:
• Component parts were stolen
from an Apple II computer in the
Learning Resources Center on the
third floor of Sterling C. Evans Li
brary.
HARASSMENT:
• A student reported someone
left several notes on the Memorial
Student Center bulletin boards sug
gesting people call her for “special
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