U.S. CERTIFICATES TO PROVIDE WHEAT/CORN SUPPLIES
From April through December 1986,
the Commodity Credit Corporation (CCC) issued 3.85 billion dlrs
worth of generic certificates and about 1.8 billion had not
been exchanged by January 1, 1987, the U.S. Agriculture
Department said.
    The department said an additional 4.3 billion dlrs in
certificates has been authorized for issuance during
January-August, 1987.
    These certificates will provide ample free supplies of corn
and wheat for the remainder of the crop year, the department
said in a summary of its Agricultural Outlook report.
    Freeing of stocks through certificates is making U.S. grain
more competitive on world markets, it said.
    The department said last summer, for example, certificates
were exchanged for 215 mln bushels of corn. This helped
increase marketable supplies, so farm-level corn prices
averaged about two dlrs per bushel -- somewhat lower than they
would have otherwise.
    The lower prices probably led to an increase in usage of 40
to 50 mln bushels, it said.
    The department said government spending on farm programs in
fiscal year 1987 is projected to fall half a billion dlrs from
1986's 25.8 billion dlrs.
    During 1988 and 1989, the cost escalation of the first half
of the 1980's will reverse. If current policy remains in force,
annual farm program spending by 1992 will be down from last
year's record by more than eight billion dlrs, it said.
    The department said the President's budget proposals for
1988-1992 would cut farm program spending an additional 24
billion dlrs.
    In 1987, foreign economic growth is expected to remain
close to 2.6 pct, the same as in 1986, but above the 2.4 pct
average of 1980-86, it said.
    Partially because of this improvement, U.S. export volume
is expected to rise in fiscal 1987 for the frist time in seven
years, the department said.
 Reuter
