Fear Oil Boost Will Maim US Farm Exports #1 11/20/76

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Fear Oil Boost Will Maim US Farm Exports #1 11/20/76 - FEAR OIL BOOST WILL MAIM U.S. FARM EXPORTS By...
FEAR OIL BOOST WILL MAIM U.S. FARM EXPORTS By GEORGE ANTHAN Ot Ttw RttWW» WtiMngM* Bureau WASHINGTON, D.C. - Ford administration economic planners are quietly signalling to the Carter administration transition teams that a widely-discussed 10 per cent increase in OPEC oil prices next month could have a serious impact on vital agricultural exports from the U.S. They say the economic impact of-an- oil price boost by the Arab dominated Organization of Petroleum Exporting Countries could strike a heretofore unexpected triple blow at farm exports. The price rise would lower the ability of some of the U.S.'s best foreign customers to buy American farm products, thus weakening a U.S. farm economy already beleaguered by high debt and soft wheat and coijn prices and by increasing its bill for imported oil. Caught in a Crosscut They say an oil price rise would boost this country's imported oil bill by about $3.5 billion a year, while undercutting its ability to pay for the increase. A U.S. Department of Agriculture (USDA) economic report states that a 10 per cent increase in oil prices would add an estimated $12 billion to the developed countries' oil bills and cut their economic growth rate. Also, it states that countries that buy about one-third of U.S. farm exports are in serious financial difficulties now, experiencing high inflation rates, deteriorating trade balances and adverse currency movements. Ministers of OPEC countries~are scheduled to meet in Qatar next month and there seems to be little doubt of a price rise in the wake of remarks by King Khaled of Saudi Arabia that a freeze of current prices, which President-elect Jimmy Carter has favored, was precluded by OPEC's obligations. The Wall Street Journal reported earlier this week from Vienna, Austria, that some experts believe a 10 per cent price rise is the minimum recommen- PLANNERS Please turn to Page 4A

Clipped from
  1. The Des Moines Register,
  2. 20 Nov 1976, Sat,
  3. Page 1

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  • Fear Oil Boost Will Maim US Farm Exports #1 11/20/76

    linneacebelinski – 09 May 2013

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