MEDFOKD MAIL TKIllL.Vt;, MKDFOHD. OKtfiON
TIII RMI.W. OCTOBER 17, IMS
B 7
Proposed Wheat Sale to Russia Spells Money to U.S. Farmers
By GEORGE B. BROWN
Initfd Press International
MINNEAPOLIS, Minn., (UPI)
Picture a freight train loaded
with wheat stretching almost
from New York to Chicago.
Imagine one sale involving
more wheat than the entire
wheat-producing state of North
Dakota turns out in a year.
Reflect on placing possibly up
lo $500 more in the hands of a
typical North Central wheat
grower.
This is the possible scope of
the proposed 200-mi!lion bushel
wheat sale to Russia a deal
which has its origins among the
wheat shippers of Minneapolis
St. Paul.
The $380 million deal has not
yet been completed because
American government policy so
far has discouraged sales to un
friendly countries. Haggling con
tinued over price and there were
warnings that the Russians
might be short of the gold and
cash needed to pay for the grain.
Figure The Take
While negotiations continued,
wheat men figured the take.
One twin cities association fig
ured that a 200 million bushel
sale could possibly boost the
price of wheat by about 20 cents
a bushel.
For an average farm in the
heavy wheat-growing area of
Northeast North Dakota, for ex
ample, the farmer would have
about 2,500 bushels of wheat to
sell on the basis of 24 bushels
to an acre. A 20 cent per bushel
price increase would give him
an pvrra AOH Snread nnt over
many farmers, the deal could
give agricultural states a big
boost.
The sale would also be an ec
onomic shot in the arm to other
segments of the economy.
For example, the grain would
have to be shipped from the
collection points to the ports and
then to the soviet union.
Tops State Crop
If one railroad train were used
to pull the wheat to a port, it
would stretch 776 miles nearly
the distance from New York lo
Chicago. An average 40-foot box j
car can hold about 2.000 bush
els of wheat. For 200 million
bushels, about 100.000 freight
cars would be needed.
Two hundred million bushels
is more than the entire state of
North Dakota, one of the leading
wheat producers, will grow this
year. The state's wheat produc
tion is estimated at 1.37 million
bushels.
Price was a big barrier in the
negotiations. If the government
granted the export license U m'II
wheat at world prices, about
$1.90 a bushel, then American
taxpayers would be paying the
growers a subsidy of possibly
up to 50 cents a bushel. That's
the difference between the world
market price and the price in
this country.
Russia has admitted a short-
, age of wheat. Russians are
I bread eaters, consuming about
i four times as much per person
' as the average American. Sov
: iet Premier Nikita Khrushchev
I has asked his people to i'se
bread carefully. He told them
I that bad weather had led to a
! poor crop of wheat this year.
19S8 Crop Recalled
; American agriculture experts
! believe the soviet union has not
had a really good wheat crop
since the bumper year of 1958.
As a result, the reserve supplies
'built up in 195R have steadily
i dwindled, and this year's poor
crop finished off surplus slocks.
Selling wheat to the Russians,
pro-sale men argued, could
make money for U. S. 'armors
and at the same time give So
viet agriculture a black eye.
The United States has a sur
plus of wheat, presently esti
mated at about 1.2 billion bush
els. Wheat men said this is not
staggering, since it represents
only about one year's supply.
Agriculture Secretary Orville
Freeman estimates this year's
crop of wheat at 1.1 billion bush
els, or about 200 million bushels
less than domestic and inter-
. national demand. As a result,
! Freeman has estimated Amer
i ica's surplus will decline to
about an even 1 billion bushels.
Private Sale Favored
Despite the surplus, exporters
were nearly unanimous in feel
ing that any wheat sold to the
Soviet Union should come from
current production and not irom
government-owned stocks. They
said a private sale would help
boost the price for wheat in this
country and thus help the farm-
How did the negotiations get
started'.'
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T
OARD COII
Burton Joseph, head of the T.
. JoseDh Co. feed snnnlpmpnt
firm in Minneapolis, said his
firm made initial contact with
the Russians in Ottawa and set
up the talks.
JoseDh caller) tnnplhor
other grain firms and formed an
association to handle the sale
of the wheat. But, several ma.
jor COmDanies. inrlitHin0 a nai.
of giants in the business Car-
riii ana continental announced
iney would not take part in ne
gotiations because Dip II S.
government had not granted its
approval.
JOSeDh also ran tntn fira nrt
the fee he would collect for act
ing as broker for the sale. Ha
said any money he would collect
Would be turner) nver tn I ha
government since a fee "might
ue misunaersiooa because of my
wife's position in the party."
.Mrs. Joseph In Politics
Mrs. JoseDh is the Demor-rat.
ic Committeevtoman from Min
nesota.
Other grain merchants want.
ed the government to stay out of
the transaction. One spokesman
for this group said that when
tne farmers turned down tha
administration's wheat program
last spring, government agricul
tural policy makers said they
would have to depend on sales
in tne tree market.
"It would be venV unfair for
the government to take away
one part of the open market bv
denying farmers the right to sell
wneai to the boviet Union," he
said.
Politics couldn't be overlooked
in the wheat deal.
M. W. Thatcher, general man
ager of Farmers Union Grain
Terminal Association, predicted
recently that the 1964 farm vole
would be "blown Into a cocked
hat" in next year's presidential
election.
Three strong farm states
Minnesota, W is c o n s i n and
Missouri went for Kennedy
in 1960. They could be pivotal
next year.
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HAIR SPRAY
OSU Professor
Points To Adult ,
Sexual Deception
NEW YORK (UP11 An fire.
1 Ron State University professor
r said Wednesday adults "indulen
in the comfortable deception"
mat sexual misbehavior is pri
marily a problem aliening
America's youth.
Dr. Lester A. Kirkendall, pin.
lessor of family life at the uni
versity, said the traditional sex
ual ethic based on "fear of
negative consequences" is out
dated among young people be
cause "youth simply docs not
scare any more."
Addressing the annual meet
ing of the Planned Parenthood-
World Population Organization
here, Kirkendall declared that
the "major irresponsibility" in
sexual misbehavior should b a
held by adults.
Minor Hypocrisies
"The confusion of youth i 9
only a mirror of the hypocrisies
of the older generation and its
studied refusal to acknowledge
that a problem. . . exists," he
said.
He called for a new code of
sexual responsibility, bringing
sex into a "meaningful, purpose
ful pattern of individual and
social living."
Kirkendall said that certain
films dealing with sex should
be discussed by church groups
which, instead, have banded to-
gether in efforts to prohibit
them from exhibition.
After seeing the movie in
question, he said, the groims
should have "a searching dis
cussion about the quality 'and
nature of the relationships and
the nature and place of sex as
was portrayed in the film and
as they exist in actual life.
"But our irresponsible at
titudes toward sex would not
permit this," Kirkendall said.
aawwiassgarairg ...iiiiCTa
ft
CORNER JACKSONVILLE HI WAY AND LOZIER LANE
Wheat Sale May
Cost Taxpayers
SPOKANE (UPI) - Sales of
wheat to Russia may prove
most costly to the Amcrican-tax-
paycr-consumer than a lot o f
them realize, a grain official
said today.
Merrill D. Sather, executive
secretary of the Pacific North
west Grain Dealers Association,
said Canadian and proposed
American wheat sales tj Rus
sia already have pushed thi
wheat market up.
"For every cent per bushel
thp nrirp nf whont in the ttnitpH
j States goes up, the cost tn tha
American consumer is about
$15 5 million," Sather said.
"It will take only a two cent
average increase over the crop
year to offset the SM-mil'ion
which the U.S. Department of
Agriculture estimates will b e
saved In a year In storage costs
by reducing our surplus by lad
million bushels," he snid.
Sather explained the increased
costs would result from higher
subsidy payments on the wnent
we export and higher prices on
the wheat we use domestically.
0