Ddly f
Monday, Augu:t 3, 1C33
r-'wnffliii
ic.il'
Pegs 14
no
EyJeffObrcchi
T IMO I i J
event: The Department of Agriculture
missive acreage retirement program.
July 1C33 and smother unexpected
event: Severe drought and high temper
atures scorch the Midwest The two
factors are combining for an unusual
situation in agriculture that could
prove costly for some area farmers.
This situation is unbelievable," said
Fritz Oltjenbruns, who farms with his
father near Ceresco in. northern Lan
caster County. "Soybeans haw risen $3
a bushel in the last two months and
the other day (Aug. 16), their price
varied 50 cents a bushel during just
one day."
The Oltjenbruns enrolled half of
their 700 acres in the PIK program.
"I wish I would have went into PIK
100 percent," Oltjenbruns said. "I.Iy
com was green yesterday, but after
today's heat, Tm afraid to go look. I
know the yield is half gone."
Terrell Dreamer, who farms 400
acres near Alvo in western Cass
County, portrays a different situation.
"I thought seriously about going into
PlK and decided against it I guess I
made the wrong choice," Dreamer
said. "It sure would be nice to know
that you're going to get a PIK crop in
October and not have had to worry
about your production costs and the
weather."
Dreamer said he planted only corn
and soybeans and that choice.b com
pounding his problems.
"At least some of the corn I planted
wasone seed company's most
drought-resistant variety" Dreamer
said. "But even the weeds have a hard
time growing when they dont get rain
for over a month. This drought is
terrible."
. . The drought area is roughly south of
Interstate Id, from Indiana through
central Nebraska, according to Dr.
James Kendrick, professor of agricul
tural economics at UM
Southeast Nebraska fanners who
enrolled in PIK are definitely better off
than those who didn't, Kendrick saidL
Farmers who irrigated crops in sou
theast Nebraska will fare better than
those who didnt, he added.
"A farmer who has a full crop to
market can take advantage of high
grain prices in the fall, due to the
drought," Kendrick sai
The drought has hit Lancaster
County hard. '
"The dryland corn crop in the
county is pretty well done, and the hay
Ccstia-ad ca Pegs 15
LSimqM's -
mm:-
Our Faooiia Garlic Bread &
A j. j
n
i if)
C5
0.-io CJ - LJ I J ilk
Economist: PIK hurts
ag-related businesses
EyllcrslKrks
The federal government Payment-in-Kind
program might be an asset
for the grain farmer, but its effects
on agriculturally related businesses
has not been good, Rcy Frederick,
UNL eztention economist, said.
The PIK program gives surplus
grain to farmers for idling crop land
this year. There are 457,344 wheat
acres and 2.CC3.217 feed grain acres
(corn and sorghum) in the PIK pro
gram, said G eorge Harnett, program
specialist of the Nebraska Agricul
tural Stabilization and Conservation
Services.
-The U.S. Department of Agricul
ture predicted that seed, fertilizer
and pesticide use would decline 12
15 percent, fuel sales would drop 8
to 10 percent, machinery purchases
would decline .2 to 3 percent, and
machinery reparis would drop 1 2 to
15 percent in 1C33 as a result of the
PIK program.
The PIIC program is also causing a
los3 in profits for cattle and perk
producers, Frederick said. PIK has
caused feed prices to riie from 2 a
bushes to about C3.43 atuehcL Feed
is a large cost fester fer livestock
jump in prices h hurtir.g them.
Workers have been leid c!T in
many areas because cftho efTects of
the PIK program, Frederick said.
The biggest laycflj have been in cit
ies where large machinery h produc
ed. The reduction in cgri-bu:Ir.ecce3
is a short term situation,. Harnett
said. As jprain reserves go do.7n, the
prices paid for grain per bushel will
increase, giilng farmers mere pur
chasing pov.er. . 1
A . decrease in UJS. grain reserves
will also result in decreased certs
x for storage, ar.d should ter.cf.t the
government eccr.czueeT, he said.
A wheat cercegs rcductisn pro-
allows a PIK option cf 10 to 20 per
Harnett said he did ret think a nil -
PIE; program interest
cause implement sales to drop
Farm implement dealers in the
. Lincoln area have mixed opinions
about the PIK program's efTect on
their industry. J -.
Don Kuhle, owner of Deltline
Tractor Sales, Inc. in Lincoln, said
he believes the PIK program has
caused a severe reduction in sales
for dealers. Kuhle said his sales for
August are down 40 percent from
August 1CC2 sales. He said he has
laid off about 25 percent of his work
force and will not " rehire those
workers unless the situation
improves greatly. "
The income from the PIK pro
gram i3 going to the bankers to
reduce (the farmers') debt, so I
dent lock for a v;he!2 let cf sales
titl3 frilly ll3 SL11
Hichard Slggs, mar.e-er cf Case
Power and Equipment. Co. in Lin
coin, also has reduced hi3 vcrk
farce. He said he has I.:id cITcpprcs
imately one cf every 12 trcrkers and
does not plan to rehire these
Skaggs said he h cplii:tie, hc;v
ever, about long-rar-j ter.elts from
the PIK program, the drought and
the new federal grei crpert pro
. gram. He said he believes tlleee three
factors vrZl reduce tl:e zzrz I es grain
and force pr;ee3 up, v. Izza x;U give
farmers mere jnene to buy form
n7'- -v
i : 1
r
I !
y-wj ...
t I