Northwest Arkansas Times from Fayetteville, Arkansas on June 23, 1974 · Page 3
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June 23, 1974

Northwest Arkansas Times from Fayetteville, Arkansas · Page 3

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Fayetteville, Arkansas
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Sunday, June 23, 1974
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Page 3
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Supply Tight, Poorly Distributed Northwe* Arkanto* TIMES, Sun., June 13, 1974 AVrTTBVIU.K, AIIKANtA* · 3A Shortage Of Fertilizer Expected To Raise Food Prices By FREDERICK L. BERNS TIMES Washington Birean WASHINGTON -- The price of food at the supermarket may soon be going up because farmers' supplies of fertilizer are going down. The price you're paying today for corn, rice and cotton goods may soar unless Agriculture Department officials can figure out a way to produce more of what is nedcd to grow them -- fertilizer. Estimates of a fertilizer shortfall run as high as 15 per cent here, and while some agriculture experts are more optimistic all agree t h a t the nation's 2.7 million farmers are unable to buy all the fertilizer that they need. It is the kind of problem that doesn't end in the rural markets, where farmers will lave purchased about 47 million tons of fertilizer in the year ending June 30. Nor does it end in the fields, where about 130 pounds of fertilizer is required for every acre of corn, rice and cotton. The problem ends, according to t h e experts, in the super-markets. "If fertilizer is short," James K . Thornton. a Senate Agriculture Committee staff member, explained recently, "(hen the farmers* yield is lower. Tf the yield is lower, then Ihe availability of products on the market is lower, if the availability is lower, the price to the consumer goes up." The result of that chain reaction, according to a recent article in "Business Week" entitled "Boom in Agrichemi- cals," is that "another jump n the prices of food by the all seems almost a sure bet," POINT OK CONTENTION How bad is the fertilizer shortage is a point of con- ention. The fertilizer Institute, the 275 member trade association or producers, wholesalers and retailers, estimates that current supplies are nearly 15 per cent below demand. The Senate Agriculture Committee says the amount is closer to 10 per cent, while the Agriculture Department refers to a 5 per cent shortfall. "It's not important whether we're five per cent short or whether we're 20 per cent s h o r t . 1 ' said Agriculture Department staff economist J. Dawson Ahall. Of greater importance, he notes, is that supplies are tight and poorly distributed across the nation. At the root of the problem is the shortage of natural gas, an important raw material of ammonia. Ammonia is t h e principal source of nitrogen which is t h e principal component of fertilizer. "Ammonia just can't be had hese days," laments Edwin Vheeler, the Fertilizer Institute resident. "There are only 80 immonia plants in the U.S. and here hasn't been one built in vears. It would cost $50 million o build one now." Basic to the fertilizer shor- ,age is the fact that soaring world-wide demand for foodstuffs has prompted a change n U.S. farm policy to increase roduclion by bringing back into cultivation 50 million acres of farm land that was idled under the old "set aside" program. Big doses of nitrogen- rich fertilizer are needed by this formerly-idle lard. COSTS ZOOM E c o n o m i s t s predict that armers will have spent $4 billion for fertilizer in the year ending at the end of this month. That , figure represents whopping 40 per cent increase over the - previous.- year, anc farmers may seek to pass some of the hike off on the consumer. The fertilizer dilemma more acute in some states than others. In Georgia, where an estimated 34 per cent of the corn crop has not had proper nitrogL'n treatment, farmers are especially upset. "In terms of acreage, the staie could lose up to 701, 904 acres of torn this year, if plants, Including 10 in the U.S., ertilizer is not found somewhere," s a i d Sen. Herman Talmadge (D-Ga,). A maldistribution problem has developed, according to A h o 11 because nitrogen iroducers in the Southwest are elective about whom they supply. "It's a seller's market," Aholt .old a reporter. "Dealers who w e r e n ' t dependable about paying in the past have been cut off by the suppliers, who only have a limited amount to sell." The Agriculture Department is trying to remedy the maldis- tribution problem by locating new suppliers for dealers such fertilizer-hungry states as Georgia and Michigan. Another possible solution that has been proposed is to increase the amount of natural gas supplied to fertilizer plants that they can increase production. ALLOCATION SOUGHT The Federal Power Commission, in conjunction with state regulatory agencies, trying to arrange larger natural gas allocations for the fertilizer plants. A total of 30 new ammonia are or soon will be under construction. Although most of hem won't be completed before 1978, they are expected to relieve the worldwide fertilizer shortage. By the end of this decade the world demand for nitrogen ertilizer will soar to 64 million o n s annually. A report prepared by two Senate Agri- Recovery Room's Special of Specials! Standard Sofa-Reupholstered $139.00 Complete. or Hide-A-Bed . . . Includes . . . Refused Award Mary Ellen Burns of Manchester, Conn., filed an application about a year ago (o obtain tbe rank of Eagle Scout. Officials of (he Long Rivers Council announced that they will inform her she cannot he one. THE FABRIC Any fabric up to 10.00 per yard from any of four full line of books, including Kirsch, Craven, O.V.S., Dogwood, Midwest, Rnshin . . . Hercutons, 100 per cent nylons naugahydes, velvets, etc.. . . Any fabric NOT Scotchgarded we will Scotchgard FREE! THE LABOR Removal of ALL Fabric, Tying of Springs, rewebbing, gluing of Frame, repadding, wood touch-up, any other necessary repairs . . . ALL WORK GUARANTEED to YOUR Satisfaction! FREE Pick Up and Delivery Within a 25 Mile Radius Call 521-8815 3E. Mountain, Fayeileville culture subcommittees predicts that supplies will fall short of that need. "The whole world is hungry for ton, Committee. Some American observers contend that the answer to the nation's fertilizer problem lies overseas, where fertilizer plants can be constructed for less fertilizer," warned Thorn of the Senate Agriculture ( b e c a u s e anti - pollution regulations are fewer), and where natural gas suppliers supplies are more plentiful and cheaper. James A. Fineran, a spokesman for M. W. Kellogg Co., the firm that has built 75 per cent of the world's ammonia plants, predicts that the U.S. could import up to 50 per cent of its nitrogen fertilizer by 1984. A Perfect Gift... (frame not included) 5x7 natural color portrait with No appointment necessary. Selection of poses. Limit: one special olfer per family. Second child photographed individually at 880. Age limit: 3 weeks to 14 years. 88£ charge for each addi- this ad tionaf person in groups. 6 days only, offer ends Sat., June 29 Children's Photographer portraits for pennies today.. that wfl be priceless tomorrow PORTRAITS » PASSPORTS » COPY RESTORATION NORTHWEST ARKANSAS PLAZA Hwy. 71 N., Fayerteville Phone 442-8885 COLLIER WESTERN STORE EASTGATE SHOPPERS CITY HIGHWAY 16 EAST WESTERN HATS at Collier's Western Store In f ayetteville. We Have Hundreds of Western Hats--both Straws and Felts by » AMERICAN · BRADFORD · BULLDOGGER l_l_-_ nil ··PgfPKM SADDLES BOOTS ! WESTERN BOOTS JUSTIN · NOCONA · TONY LAMA At Collier's Western Store You'll Find Orer 1000 Pair of Fine Boors for Men, Women and Children. At Collier's You'll Find Many Saddles Plus A Complete Line of Tack. Saddles by. LONGHORN · "S^ 0 *?, CIRCL f C * BIG HORN CIRCLE C , S | MCO f^. ONE GROUP BOOTS SHIRTS PANTS And Assorted Western Wear REDUCED .\N -\ Comers ha* a leather Repair Shop. We ton. repair saddles, bridle*, ham**, etc Ab* Taylor mode left, ami OMB*. Let m make yo« a belt today! SHIRTS BLOUSES For Men-Womrn-Chirdren N«w brilliant colon or bold stripes. Co to tfie fodeo wearing a new western shirt or blow* from-Cottier WoMm Store, foyrtteviJIe. ^EVERYTHING FOR THE HORSE and flie RIDER COLLIER WESTERN STORr PANTS Shopper* CJrf Highway 16 iart STRIPES FLARES DENIMS

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