Wheat output cut likely

Press, 27 August 1977, Page 9

Wheat output cut likely

[ NZPA Washington ! President Carter is ex- ; pected to approve plans for [ a sizable cut in wheat pro- [ duction next year despite | opposition from Adminis-| [tration economists and the; [State Department, informed' [Government sources have! said. [ One senior official said I that while Mr Carter may | not accept the full 25 per [cent acreage “set aside” pro- ; gramme recommended on Tuesday by the Agriculture [Secretary (Mr Bob Ber- [ gland), the President appeared to be leaning toward ;a substantial reduction, perchaps 20 per cent. The reduction is to curb a mounting | wheat surplus which has depressed farm prices to disaster levels. Mr Bergland argued that supplies in major wheat-eat-ing countries including Russia and India are now high, [and there is little chance of [ a supply pinch. On the other I hand, he maintains, the ! United States Government could be faced with a [$7OOOM or more grain support cost next year if production is left uncontrolled and crops are big, partly because a pending new farm bill provides increases in] support prices.