Carolina Journal; Farm Crisis

A production of the South Carolina Educational Television Network. Tonight told Carolina Journal a look at the crisis of the family farm is the problem nationally a problem in our state too busy from farmers in the state's top agricultural office and we'll hear about friends at the State Museum in our museum about all this tonight. CAROLINA. Good evening everyone. Movies such as country and the river television news stories from the Midwest. Even country music songs paint a picture of the small farm in trouble. What's the story in South Carolina tonight we will begin to examine the issue and we'll start with a visit to a farm in the Midlands. Here's Wayne Philips. Farmers throughout the United States are in the midst of an economic crisis that is arguably the most serious in our country's history. Farmers across the nation are going out of

business seemingly every day. The reasons are many including low land values. The loss of foreign markets. Cost to produce a product versus the resale value of that product and high interest rates that are eventually leading to loan foreclosures. Farming has always been a tough occupation. Farmers work long and hard and are at the mercy of the environment and the marketplace. And I've always looked towards the government for help and protection during times of need. South Carolina farmers are victims of this current crisis although perhaps not as much so as farmers in the Midwest John Roussel works 2000 acres in Richmond County named the boondocks farm. He's been growing corn wheat and soybeans for almost 33 years and feels that his business is secure at least for now. We're surviving. About the most I can say we finish this fast year 1985 about even.

Great deal that was a tribute to 1984 so it bean crops that I sold for a good price. It was sold in early 85 So right now I'm just about even a wooden board far as windy as I'm one of the more fortunate I think. How does the boondocks one fit in on a national scale are you better off than most are you about in the middle or are you losing out. I Fortune am probably a little bit better off than most. Somewhere above that 50 percent line. Why. Do you do that. Better then other farmers who can also fortunately have been in the seed bed as in my products have brought a little more in the market place than they currently are bringing and it has been one hell and I don't know the rest. I haven't made great capital investments in a land that's what's put a bought a bunch of people out of business particularly in the Midwest now we don't

nationally they have about too much crap price land in agriculture can't pay for. Talking nationally how does in your experience South Carolina fit in nationally we're in excellent shape compared to the Midwest and down through the Mississippi Valley area. Just out it a national conference and had the opportunity about three weeks ago to talk with people farmers from all over his nation and it's really gotten to be suicidal in the Midwest. We hear about is something sensational where this man shot himself and three other people but we don't hear about the fellow that went to his banker and told him they were going to foreclose he goes home shoots himself it's really a suicidal situation in parts of our nation. What in your opinion seems to be the the big problem with the farm crisis what is

costing. Well there is no one thing that anyone can point a finger and say this is it. Because if we could we could fix it. But it's a thing that has evolved and I think it probably started with us and in the mid 70s we had tremendous exports of commodities and we were feeding the world in fact roughly a third of our. Production. Is shipped overseas in one form or another. And. We were asked by the government in mid 70s to line up and buy big machinery such as this and. Produce were all needed and the farm community responded to that. We cleared out the Pedros and made the big fields and. Then it was embargoed as everyone knows. Because of some Russia's actions and. All these other nations say well they can do that to Russia or they can do it to

us. Japan and oh I can think of East Germany and. The European common common market nations. Else try looking for a new market each and every result of that some of our developing nations and I can cite Brazil as one that jumped in and got into soybean production which is directly competitive with overseas shipments when they can hire $3 labor down at $3 a day labor not per hour but Bird Day and we grown almost double that per hour. So we're we're noncompetitive from that standpoint. What would happen if the government got out of farming completely and said John you grow whatever you want you work at your own loans with the banking facilities. Sell it for whatever you can get for it what have you made a most wonderful plane or if they got out.

Completely. Now let me cite one example. Of Grange going overseas that we are still selling. And the certain conditions half of them must be shipped. And American bought of ships. And that is about three times the rate of foreign ships. But you're adding about 20 20 25 cents per bushel of grain to send it overseas on American ships as opposed to. A foreign ship. And. That. Is nothing but savage dies in a maritime commission. Which is a labor union. We know that they are all in three people home some of ships where one would do. And so that as yakking at prices. And as I mentioned before we had. Things in Bargo. So we've lost time.

They nations that. Trade with us a lot of trust us. If they can be assured that our government is not going to stop me from sending them something. I could make a deal. All right grain companies could make deals. To sell at a profit in foreign nations. But we don't have it break. With 32 years experience now. What do you think it's going to take to turn the crisis around in 32 years I've never experienced anything like this. We've had our ups and downs in our hard times and Laois years but when you have to start producing enough product that you know you're going to sell for less than it cost to produce it. There's something wrong and I think it lies with the federal government. And you ask a question about them getting out. I don't think there's any way the government can get out of it. We're in

international politics and they farm products for the farmers of the palm. Where it goes from here we just got to hope we have faith that something will come. There's a lot of hungry people in this world. For farmers like John Breaux to sell who have given most of their lives to the business of feeding the nation and the world what happens economically and politically over the next few years can in many cases have a direct effect on life itself be it another farmer going out of business or a family starving to death in some third world country. For Carolina Journal. I'm Wayne Phillips with me in this segment are three people closely attuned to the condition of the family farm in the state. Bob Bailey is a consultant at the Land Resources Commission and for 30 years was a voice of Agriculture mission in the county as extension agent. Roger flowers is a farmer from Florence County. And Larry Rogers is with the farmer's whole ministration as Farmer program specialist.

Thank you all for being here Bob let's turn to you first as an overview Mr. Ruda soul that story has about the same time agriculture as you've spent. You've been involved for a long time. What's your picture of the situation in our state. Well I don't think we've ever had anything exactly like it but I'll say again and someone is said to tell the hard times don't last but hard man do and I think the big problem with us today of the pharma could get a fair prize for their big commodity which he produces. We wouldn't have such a we wouldn't have this situation. But it's no question about it it calls to foment a day more to produce than is actually getting far. So that's that's his that's a story in a nutshell. And and South Carolina for instance is twenty seven thousand five hundred farmers now over 55 or five thousand five hundred of those are really suffering. They're more or less in Strasser and bottom will lose the farmers no question about it.

And this thing of losing a pharmacologic is just like getting a divorce or losing a member of the family or something like this but I feel this way about now 75 percent of our farmers are healthy. We might say that's a good part of it but it is it is a problem most of our phone as I was talking to a farmer yesterday from Taylorsville he has two sons a graduate from Clemson. Now they want to farm very badly. But of course they're going to have to seek outside employment for a while anyway because the farms is not the most important suppliers of sternly you and your farmer. Florence County what's your story the story of your farm and your family. We have basically a real crop operation of the most of the crops that seem to be in trouble internationally as far as trade goes and cotton corn soybeans and wheat and we fall about 3000 acres and these are all crops and I guess basically like all

the other phones we're suffering along with everyone else. What's it been like as far as current last year or two in this situation as compared to when you started for me when I've been falling about 20 years like someone has already been mentioned it seemed like time and experience has and doesn't have anything to do with it we and I'm experiencing things that I never thought I'd ever see you never even dreamed. Hold on. Well I just like wood it's been mentioned earlier about the cost of production. You know being so much higher than the prices you sell your products for and then some other things we could we I ask and told to I would like to have. Situation where we are selling our products in a free market and a government say and we get they trying to get us there but we have been asked to produce in a free market and sell in a controlled market and it just just didn't work.

We wield the legislated labor fast it's legislated utility. We legislated everything down the line from use of herbicides and chemicals and for a lot in everything which in I'm not saying is all bad in most cases it may be good and then you asked to sell on a world market this free enterprises. And then you also get hit again Laxman mentioned earlier about how we export these things and being competitive with other nations. Well the one that Mr Russell the piece was talking about the shipping I saw you not your he had a silver through to be exact I think it was quoted. I read a quote a quote from the paper the Associated Press this morning it was about as $40 a tonne metric ton ship saw beans or corn any other commodity of this type overseas on American ships and this this was the builder's cargo preference and has to be shipped in American ships and that's legislated. And so you

have no control over that but it cost us more so lessens our competition but yet we are being required to better blot of this and lower the price of our product will fill my gas can benefit from it. So a lot of things involved in this is not just one thing. It's not just bad weather not just bad economic times nationally a lots of factors involved in this and it's too numerous probably if we had time and could list them and covered a stable we could probably get into a lot of that is just a conglomeration of problems beyond our control and in barren humans turn to Larry Rogers. Larry you were the farmer's whole ministration just a quick word about that agency and what you do. I may follow a program specialist and I've been working with the farmers whole ministration approximately 24 years. The We Are the lender of last resort. We make loans to approximately forty five hundred farmers in South Carolina. These are family farmers. The situation that

causes me a great deal of concern about the farm situation if I might address the situation on a national level and it can be related to South Carolina. But more than 90 percent of the income and neighed income in commodities produced are produced by approximately only 600000 farmers nationwide. And the liquidity and solves the problems of these pharmacists so severe that many of these farmers cannot continue in competitively with nations as was mentioned a few moments ago Brazil Argentina and one heavy with cost price situation with the cost exceeding the potential income and the normal conditions. And these farmers are going out of business within a 5 10 year period unless a cost price situation changes or reverses itself. When you talk with a lot of the farmers who deals with with

you so it's across the desk from you talking over a situation like this what can you say what kind of things do you start start off with and trying to. It helped turn a problem around can you. Well we look into many areas. We first of all have to have a financial statement on the farmer in addition to that we estimate the predicted potential income and project expenses based upon the historical data provided by the farmer. We have many programs available to refinance to destitute to get longer term to pay debts our existing farmers we can reschedule our existing debts. We can provide interest rates at a lower what we call a mid to resource rate which can be a big hip and reduce the interest rates from 10 to 11 percent down to as low as 5 or 6 percent. And this has been a big help. But again unless the cost price situation improves the

situation. This is not going to this is just a Band-Aid. More or less to try to help the farmer through the difficult times. We appreciate all three of you being here Bob Bailey and Roger flowers Florence. Larry Rogers farmers all ministration. We're going to pick up this up you can just a few moments thank you for being with us. Thank. You. And next with us Les Tindall he is commissioner of agriculture for the state of South Carolina. And that's a

constitutional office for the state which gives an indication of the importance of it to the people of the state historically. What we've been hearing. Can you pick up on what we've we've heard a seems of there's been a lot of talk about the national policies and international situation how it affects a farm in South Carolina and for a non farmer that may be kind of astounding that so many things outside of the situation the state can affect someone so directly. Yes it was interesting to hear Mr. Rufus old remarks I believe he'd been found in about thirty two years and I can cap that with 36 years farming. But Mr. Root started farming about the same time I did. Plus minus a few years and we were able to purchase land at their much lower prices. And the farmers that have come on and started farming in the last 15 to 20 years are those that are in

serious trouble is because they had to buy land at inflated prices and interest rates have gone up tremendously over the last 10 years and. It was mention about the U.S. flag ship scare and the graying overseas that has been increased now from 50 percent to 75 percent must be shipped by U.S. flagged ships have a USDA will not have to pick up that other 25 percent it will come out of the department of transportation budget. We're dealing with an international agriculture. It's it started with the embargoes of President Nixon President Ford and President Carter and all three one justified. And what those embargoes did and were no longer under that situation

but the results is still with us. And the result is that a lot of money was pumped into Brazil and Argentina to develop production. And European economic community with a common agricultural policy since the formation of the ECB has been to subsidize their agricultural exports. Now in that case and also in the case of Brazil in Argentina you have the treasuries of those countries subsidizing their agricultural exports and they'll tell you very bluntly and I have had opportunity to sit around the table with the ministers of Agriculture of the EEC a good many years back. They will tell you very bluntly that they will continue subsidizing their agricultural exports because it keeps their farmers in business. The farmers continue to buy supplies from manufacturers

workers live in time. And it's it ripples across the entire economic sector of every country. Now what the U.S. farm has been doing in order to meet the price in the marketplace to compete with the U.S. and and Argentina Brazil the U.S. farmer has been footing that bill. Now a lot of folks will say well you've had services that serves the day that farmers receive really passed right on to the consumer in that the food in the United States is the cheapest food and the best food in the world. And I would welcome you to investigate any other country and you would find that the nearest to that would be something like 15 to 25 percent higher. And it goes on up to in Russia that they 60 percent

of their take home pay for food. So the fact that we have a cheap food policy in the United States and farmers are selling at below cost. Provides the consumer with a very very reasonable grocery budget. And despite the fact the farms are in trouble across this country those grocery prices still aren't skyrocketing those prices staying fairly stable. It's one of the factors that keeps inflation fairly low. That that is true. I'm glad you brought that out. We're out as we have less than two minutes. How does how do you feel as the state's top agricultural officer when dealing with some of these problems that are at the national level and are at the international level like this is it frustrating for you. It's very frustrating but I have to say that the congressmen and the senators that we have represent in South Carolina and Washington have certainly been responsive to my office and to others

in the state and supporting what their constituents back here in South Carolina believe then and what we feel like we need. And South Carolina I have to commend all of them for their support. But it is frustrating when. When you don't have your one out of 50 and you don't have then influence in Washington within the Congress except through your congressional delegation I'm just real pleased that we have the delegation up that we have. Well you have to have you back on again pretty soon. Thank you Les gentle commissioner agricultural South Carolina and we're back in just a few moments. So our museum update every two weeks we have a progress report on the state

museum how it's coming toward completion. Jenny Sloan is executive director of the friends of the state museum. That is a new name to us what's it. Well the friends of the state museum is an organization a private nonprofit organization responsible for fundraising in the private sector and for membership development for the state museum the state museum is scheduled to open the public in 1988 in the renovated Mount Vernon Mills Building by street at the club you can now help. What are your goals in terms of the number of members and what are you looking for. What's your target. Well currently we have around 11 hundred member state wide. And we hope by the time that museum opens to have proximity 10000 members that's a goal. Now our membership categories are individual $15 dues annually family is 30 dollars annually and business is 100. Help is for is the benefits to the organization. Obviously one benefit is that the people joining friends of the museum have that sense that they are contributing in

a very tangible way to the state museum. That's right is one good. That's right. Because remember the museum is not open yet to the public to tour. Obviously that benefit. That is an obvious benefit that is missing at the moment. However we do have several interesting benefits to offer we have the museum newsletter images which is mailed out quarterly and the next issue will be out next month in February. This is one of our recent issues. Ok update on the progress of Musial writing the newsletter contains information about the progress of the renovation as well as the services being offered by the museum staff. With of and friends News also we also offer caravan trips twice a year in the spring and in the fall. These are one day field trips that go to different places around the

state of interest with the discipline curators from the museum staff. This spring we'll have a trip to Aiken to visit some historic homes and a thorough bred pricing Hall of Fame. We'll go with Dr. Raja St. Peter's curator of history and Lisa Swenson curator of art. Also this spring we'll have a trip with Rudy manky who is the former natural history curator with the state museum. These trips are very popular and fill up quite quickly. Friends they are open to the public but friends members do have first priority for signing on. You've got some other things here that. Everyone likes T-shirts and coffee yes we've got a few both of both of those here this is a brand new benefit for the friends members we have a museum catalog which will be coming out this month being mailed to all the members and I brought along a few of the items that will be featured in this catalog we have the T-shirts which you're holding up now they're available in children's and adult sizes. The mug should be a popular item

with coffee drinkers and tea drinkers for home and office use. Are you let's be friends much straight in the mug up Holroyd. OK. TV With all the bugs in tissue these collections pencils are very popular with the children they have got some of their substance in here other than living graphite and that's right they're polished stones and sea shells that are similar to those found in our state. That's half half the pencil Lindley. And to carry it all the ever famous top at the museum tote bag. Right. They like when the museum starts will there be a shop you know use of cobblers. Yes there will be a museum store in the building. So this is sort of a precursor to the store items for friends supporters to show their interest in the state museum. We have one other unusual benefit right now to friends members people members who join the friends of state

museum before the museum opens in 1988. We'll be provided with an acid free on bail open which to place family memorabilia such as diaries wedding and birth announcements. How acid for example of what. What does that mean. Why is that important because it will help preserve the articles in it and keep them from deteriorating. And the list of instructions comes along with this as to what can and cannot be placed in it. The envelopes will be sealed up in the museum when it opens in 1988 and opened in 100 years. So you're a good timetable between now and the opening. Yes. And as busy now as you've ever been I get right very busy. Yes the museum renovation is coming along right on schedule and we hope to move that offices into the building about the end of this year.

Thanks Jenny Sloan executive director of the friends of museum. Thank you to him good luck. Thank you. To borrow a Carolina Journal we began a series of programs with the announced add on else candidates for governor in South Carolina. Our first guest is the man who first announced in the Democratic Party state senator he loves are going to Florence and follow on Carolina Journal thank you.