100%

Scanned image of the page. Keyboard directions: use + to zoom in, - to zoom out, arrow keys to pan inside the viewer.

Page Options

Download this Issue

Share

Something wrong?

Something wrong with this page? Report problem.

Rights / Permissions

This collection, digitized in collaboration with the Michigan Daily and the Board for Student Publications, contains materials that are protected by copyright law. Access to these materials is provided for non-profit educational and research purposes. If you use an item from this collection, it is your responsibility to consider the work's copyright status and obtain any required permission.

September 13, 1985 - Image 6

Resource type:
Text
Publication:
The Michigan Daily, 1985-09-13

Disclaimer: Computer generated plain text may have errors. Read more about this.

44

mmmmm mmmme COUPON m1mmmmmmmmmmmm
ARMY SURPLUS'
We stock a full line of j
clothing, boots, camping
1 5 & backpacking equipment, ;
and military clothing. II
OFF ALL Open 7 days a week.
MERCHANDISE Coupon expires Spetember 30, 1985 3
* With This Coupon 201 E. WASHINGTON I
(Except Sale Items) pt Fourth St.1994-3572 J MD
ARE YOU
COLOR BLIND?,
WE NEED EXPERIMENTAL SUBJECTS
We pay good money to persons who are
selected by initial tests for these experiments.
Call Dr. Nop, 763-8078
WEEKDAYS 9 A.M. - 6 P.M.

Page 6- The Michigan Daily - Friday, September 13, 1985

Big harvest means

low

0

CHAMPAIGN, Ill. (AP) - Bill
Klein expects his 1985 corn and
soybean harvest to be among the best,
but it comes at a time when prices are
among the worst.
"It's a mixed blessing," said Klein,
who has been farming at Seymour for
nine years. "Big crops usually mean
low prices, and prices are terrible." r
KLEIN, LIKE many farmers, will
get more money for his crops by'
storing most of them as collateral for1
government loans, without which, he'
says, "I'd be in serious trouble." '
The U.S. Department of Agriculture1
estimates that farmers will harvest a1
record 8.47 billion bushels of corn this1
fall and a substantial 2.06 billion
bushels of soybeans.'
About two-thirds of the corn and all
the beans are eligible for the loan
program. And that's where analysts1
expect a major part of the harvest to'
go.
"ALL FARMERS would rather
produce for a market than let the
government have it," said Da-
Friend of Warrensburg, president-
elect of the National Corn Growers
Association.
"But the farmer, no matter what his
conviction, will let his billfold do the
talking, especially if he owes the
bank money."
Klein, who agreed to reduce corn
planting by 10 percent this year at the
government's request, can use grain
as collateral for a loan at the rate of
$2.55 a bushel-much more than the
market offers. Factoring in the
government deficiency payments of-
fered when prices are low, they are
assured of at least $3.03 a bushel for
a substantial part of their corn.
AT NOON Wednesday, corn for
December delivery was selling for
$2.17 a bushel at the Chicago Board of
Trade, and soybeans for December
deliver were $5.03.
In 1973, corn prices peaked at $3.75
and soybeans for $10.90.
The soybean loan rate traditionally
has been well below market prices,
but this year the $5.02 per-bushel loan
THE DAILY
CLASSIFIEDS
ARE A GREAT
WAY TO GET
FAST RESULTS
CALL 764-0557

rate will attract a lot of farmers.
"I've sold a few beans, but the rest
will go into my bins and under the
loan," said Klein.
HE SOLD about two-thirds of his
1985 corn while it was growing, he
said, but the rest of that crop also will
be stored as collateral for a gover-
nment loan.
In nine months, farmers have the
option of repaying the loans if market
prices are higher than loan levels, or
of forfeiting the grain if prices are
depressed. In the latter case, the
government will have bought their
grain for more than anyone else would
pay.
"You've got the majority of your
crop tied up under loan with the world
market prices well below that level,"
said George Fluegel of LeRoy,
president of the American Soybeans
Association. "It will cut down ex-
ports and cost the taxpayer an enor-
mous amount of money for the Iowa
and the storage."
WITH A large amount of corn and
soybeans under loan, grain analysts
expect that as free supplies dwindle,
buyers briefly will bid prices above
the loan levels to entice farmers to
sell.
But the supply is huge and demand
relatively weak, they say, so grain
will continue to pile up and depress
prices.
"All the major grain-producing
countries have expanded production
by a significant amount and there is
an excess supply around the world,"
said Bob Jones, an agricultural
economist at Purdue University. "We
see itbeing stored for a long time."
THE CORN price-support program
of loans and deficiency payments will
save many eligible farmers from
disaster this year, said Darrel Good,
an agricultural economist at the
University of Illinois. If they have
high yields, he said, these farmers
could enjoy very large cash flows per
acre.
The farmers who will suffer in the
short term are those who did not par-
ticipate in the government program
or who were in isolated areas where
corn and soybean yields were low.
Over the long haul, analysts say the
grain glut can only hurt agriculture.
"We think there will be more people
in financial distress at the end of this
year than there were at the begin-
ning," said Jones.
One of the most dramatic in-
dications of serious trouble is the
sharp decline in the value of far-

A

I

A

Farmer Ralph Jacobs poses with his record corn harvest on his family farm;in
Springfield, Ill. The larger than expected harvest is viewed by some as a bur-
den rather than a blessing, due to low corn prices. Many farmers will store
most of their crops as collateral for government loans.

STAMP
OUT

mland. In Illinois, for example, the
Agriculture Department says the
average price of farmland has drop-
ped from the 1981 peak of $1,314 in
1985, a 40 percent decline.
It is not hard to see why. The depar-
tment says:
" The nation's net farm income, $30
billion in 1981, could dip to $22 billion
this year.
" Agricultural exports dropped
from $44 billion in 1980-81 to $32 billion
last year, and even that figure will be
revised downward.

" Corn exports fell from 62 million
metric tons in 1979-80 to the current
estimate of 41 million for this year,
while soybean exports dropped from
24 million tons to 18 million.
" The ending stocks of corn and
soybeans, the portion of the crops that
could not be sold, had been trimmed
-to just 18 million tons of corn and less
than 5 million tons of soybeans in 1983-
84. Current estimates are that by the
end of the year, there will be 69
million tons of corn and 15 million tons
of beans left over.

0
a

TICKET STUBS
WORTH MONEY?
You bet, at Domino's Pizza
your U of M football ticket stub
is worth $1.00 on any pizza
order with one or more items.
OFFER GOOD ON HOME GAMES ONLY.
Not good with any other offer or special.

Ed. dept. drops financial
aid draft verification rule

(Continued from Page 1)
Grotrian compares the Solomon
Amendment with having "to check on
the height and weight of students as
they check in" for financial aid. He
said the enforcement of the law cost
the University around $15,000 last
year.

Although the military is not curren-
tly conscripting anyone, registration
for the draft was reinstituted-in 1980
under a law signed by then-President
Carter. All male citizens and resident
aliens born after Jan. 1, 1963 must
register within 30 days of their 18th
birthday in accordance with that law.

I

Irish fans fight for tickets
to Saturday's football game

Get the Fresh Alternative. Enjoy
a fresh salad or sandwich, made
one-at-a-time. Even though the world
is going "plastic"-you don't have to eat it.
Stamp out styrofood at Subway.

Ticket stubs expire the firs!
after the game (i.e. NotreI
ticket stub good until Sept

s Thursday
Dame vs. Michigan
ember 19, 1985)

Gt

l

I

1315 S. - I
University -T

A

L I '\

(Continued from Page 1)
the seating and do a service."
Though sales were steady yester-
day, scalpers say today, the eve of the
game, will be their most hectic day.
One scalper positioned in front of the
Union yesterday likened today's an-
ticipate wheeling and dealing to a big
city financial district. "The situation
here is analogous to Wall Street," he
said.
In addition to the scalpers and
Notre Dame fans, the media has a
special interest in this game. Both
teams consider a win in tomorrow's
game crucial.
"CBS alone has 80 or so credentials.
The other major networks will be
here also, along with Sports
Illustrated," Perry said.
Michigan paraphernalia shops and

761-4160

GRAND OPENING SALE
BUY ONE GET ONE FREE
September 13 and 14 Only

DOMINO'S
PIZZA
DELIVERS'
FREE.

bookstores are also being fueled by
the pre-game hype.
"We've doubled up on everything in
stock-clothing, glassware, bumper
stickers, pennants, and buttons.
We've even set up a special display
for the weekend,"said Diane Dotson,
manager at Barnes and Noble
bookstore.
And University students and alum-
ni will be sporting items like these.
University sophomore Mike
O'Donovan has special reason to root
the Wolverines on to victory. His
brother, John, is one of the many
Notre Dame students coming up for
the game.
"I'm real excited about the game.
John and the rest of the family are
coming to see the game. Unfor-
tunately they're all rooting for the
Irish.
Daily staff writer Larissa Sz-
porluk filed a report for this story.
4bfp

WEEKEND
DRINK
SPECIALS
FRIDAY
White & Black

:;I

;A

Back to Top

© 2020 Regents of the University of Michigan