Thursday, October 8,1987AThe Battalion/Page 9 | SCHULMAN THEATRES to help pay tk :ake your doJ Sociology head expects to see !5 percent of farms in U.S. fail ier Aggi I nteers to sew developing stu Oc mg Program iselmg Sen/i ML BERS ETREAI ER 11 »C KTORY! HAVE By Deborah A. Haring Reporter As many as 25 percent of Ameri- a’s farmers could go out of business Lithin the next five years, said Dr. Iteve Murdock, head of A&M’s De- |artment of Rural Sociology. According to the department’s lurveys of Texas farmers, 4.7 per- ^ lent of Texas producers failed in farming between 1985 and 1986. These numbers are similar [enough to those from other parts of Ihe country to predict that over the next five years, up to 25 percent of |he nation’s farmers will be forced to Itop farming, Murdock said. I “We are having — and have had jin the last few years — rates of fail- pie among producers that are pro- lortionately higher than any period ince the Great Depression,” he said. The decline of farming has been a continuing problem for years, iccording to the most recent Census f Agriculture in 1982, Texas had Inly 185,000 farms compared with |ver 380,000 in 1950. What is different about those with current financial problems, how ever, is their characteristics, Mur- |ock said. In the past, those leaving farming enerally have been falling into two 'tegories. Young adults who have en more profitable careers have Bone to college or pursued other op- p ttunities rather than going into Arming, Murdock said. Marginal ! Producers, those who were less ef- ktive, inefficient and unwilling to ■y new technologies, also have left Arming, he said. But the current farming crisis is affecting farmers who ordinarily would be successful, he said. “Those who are failing are young, well-educated farmers in their 30s who are innovative and use well-de veloped forms of agricultural tech nology,” Murdock said. “They are also willing to expand operations by taking in things like economics of scale and production which are nor mally associated with successful pro duction.” for it. And since many had not yet paid a significant amount of their debts when their assets and income fell, they were forced out of busi ness, Murdock said. To determine how a producer is doing financially in Texas, his debts are measured relative to his assets. If this debt-to-asset ratio is greater than 40 percent, the farmer is expe riencing financial stress, he said. In 1985, 24 percent of Texas pro ducers had debt-to-asset ratios of “We are having — and have had in the last few years — rates of failure among producers that are proportiona tely higher than any period since the Great Depres sion.” — Dr. Steve Murdock, head of A&M’s Department of Rural Sociology Murdock said many of the failures have occurred because producers purchased land and equipment in the 1970s when interest rates and land values were high. Then in the 1980s, a number of macroeconomic policy changes led to a decrease in the export market and interest rates which resulted in a decline in land values and assets. An overabundance of agricultural products in the market also forced commodity prices down and lowered many farmers’ incomes, he said. These farmers often still had high payments to make on land that now wasn’t worth what they were paying over 40 percent. The largest farm ing area in Texas, the High Plains, had the highest debt-to-asset ratio in the state and Central Texas had the lowest. Asset values as a whole declined by 20 percent for Texas producers between 1985 and 1986. To better explain the meaning of this, Mur dock compares it to buying a $100,000 home in 1985 and finding out in 1986 that the home is worth only $80,000. The problem is not confined to farms, Murdock said. “The important thing to realize is that this is not simply a problem for producers,” he said. “It is a rural problem. It affects banks. It affects the small-town businessman and in turn all the employees of that busi ness.” Over 70 percent of the approxi mately 1,000 farmers surveyed in the random sample agree with Mur dock. They think this crisis has im pacted their communities, not only through the loss of business, but also through the loss of people from the area and a loss of community spirit, he said. Many farmers also said they have experienced severe depression, mar riage and family conflicts and a loss of possessions. In Texas, with the decrease of oil and gas prices and problems of pro ducers, some people have been un able to pay taxes. This creates a loss of government funds necessary to run community services such as schools, Murdock said. Though Texas is not as severely impacted by debt levels as Iowa and other midwestern states, many of its farms are family-run and it is these middle-sized family farms that are failing most often, Murdock said. But even it 25 percent ot Ameri ca’s farmers go out of business, Mur dock said, the average urban con sumer in America won’t know the difference. “It probably won’t affect the amount of products available or the price paid for these products,” Mur dock said. “Where it will be most evi dent will be in rural areas. Many ru ral towns will fall below the level where they are still viable as commu nities.” Officials to release Saragosa relief records \ PECOS (AP) — Reeves County, pressured by Texas Rural Legal Aid, has agreed to release re cords detailing what was done with donations for ■pirns of the May 22 Saragosa tornado, a state | official said Wednesday. That action was prompted by a town meeting ist week in which Saragosans petitioned visiting ,egal Aid attorneys to file suit against the county : if it did not release all its records dealing with re lief efforts for the disaster, Alpha Hernandez, managing attorney in Legal Aid’s Del Rio office, laid. ! Saragosa, a small town about 25 miles south of ■ecos, was devastated by the May 22 tornado, Bhich hit during a kindergarten-graduation ptercise, killing 30 people. Reeves County and some private organizations accepted donations to forward for the relief effort. There have been several reports of lost or sto len money and goods. In the latest incident, Juana Jaquez, the district clerk, reported last week that someone stole $4,000 of tornado relief money that she was keeping in her car. Hernandez said incidents like that have aroused Saragosans’ suspicions that some county officials have been negligent or possibly dishon est in handling disaster donations. “The request is to find out just \|ho received the money, how much they reeeiv&d and what they did with it and on what basis they distrib uted it,” Hernandez said. mpted Reeves County Attorney Scott Johnson to offer Tuesday to turn over the records later this week, Hernan dez said. “We agreed to hold off on the lawsuit until we could review the material,” Hernandez said. Legal Aid, which is helping tornado victims with legal problems, filed an Open Records Act request Aug. 11, asking the county to release its tornado relief files. “We had received only a partial response,” she said, adding that only county officials peripher ally involved in disaster relief responded. Offi cials more heavily involved, such as Sheriff Raul Florez, did not respond, she said. iNG ESS : BUFFE1 u Can Eat 3.69 jm 3.99 pm ootball games. Lemon Fish IN, INC 5 =PAIR NTIAL DRIVE ISIS LER [STIC 5:00-12:00 ■A Scholarship Opportunities For Outstanding Undergraduates^^'*' tv The following scholarships are currently open for competition: Truman Scholarship Sponsored by: Harry S. Truman Scholarship Foundation. For: Current college sophmores intending to pursue careers in government service of all kinds, including scientific research. Terms: Up to $7,000 annually for tuition, fees, room, board, books for last two undergraduate years and up to two more years of graduate study. 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