Grain Stocks Expected To Rise
In Response To Big Harvests

WASHINGTON —(AP)— Amid a worldwide grain glut and falling prices, American wheat farmers pushed their winter wheat crop nine percent higher than previously expected, the Agriculture Department reported Friday.

Led by excellent crops in Kansas, Oklahoma and Texas, farmers now expect to harvest a record 46.6 bushels per acre of winter wheat and a total of 1.9 billion bushels. Winter wheat is a staple for making bread and a key U.S. export.

Unfortunately for farmers, the national figures mean prices could remain low all year unless flagging exports rebound — possibly around $2.70 a bushel.

"The better job we do at increasing our production, the lower our prices move, and that's the opposite of what happens in a lot of sectors of our economy," Ryland Utlaut, president of the National Corn Growers Association, said of the entire farm picture.

The better-than-expected wheat crop and projections for other big U.S. crops could increase political pressure on Congress and the Clinton administration to boost foreign trade and possibly tinker with the 1996 Freedom to Farm law, which is phasing out subsidies and ended government acreage controls.

Senate Minority Leader Tom Daschle, D-S.D., said Friday that Democrats will attempt to attach amendments to the annual agriculture spending bill next week on the Senate floor, including one setting up a $500 million fund for farmers who suffer steep income losses.

"We will have a series of amendments that we hope will put a little more stability into the farm economy and ... send a clear message to farmers that we understand how serious their situation is," Daschle told reporters.

Republicans intend to resist such changes, pushing instead for restoration of wheat credits to Pakistan and India despite their nuclear tests and for other ways of boosting exports such as fast-track negotiating authority for the president.

"Trade is the future of our nation," said Sen. Chuck Hagel, R-Neb.

Counting spring-planted varieties of wheat, the total U.S. crop this year is forecast at 2.52 billion bushels or slightly less than 1997. Overall yields are estimated at 42.6 bushels an acre, also a new record.

Production of durum wheat, used to make pasta and grown mainly in North Dakota, is projected to jump 46 percent to more than 125 million bushels.

Other types of spring wheat, meanwhile, are down 11 percent at 498 million bushels as farmers switch to more profitable crops, particularly in the Upper Midwest.

Early projections for the corn crop placed total production at 9.6 billion bushels, which is lower than the June forecast but still above 1997's harvest. Stormy weather in the Cornbelt has resulted in uneven growth in many fields and damage caused by wind and hail.

The Agriculture Department expects this year's ending corn stocks to increase by 235 million bushels due to reductions in feed and industrial use. Accordingly, prices are forecast lower at a minimum of $1.95 a bushel.

Corn is used mainly as an animal feed; lower prices reduce costs for livestock and poultry producers.

The preliminary soybean projection was raised 30 million bushels to 2.8 billion bushels, based on a record planted acreage and good harvest prospects. Soybeans have multiple uses, from cooking oil to animal feed to paint.

Although demand for U.S. soybeans and soybean meal have slowed both domestically and around the world, the USDA expects prices to rise compared with previous estimates to as much as $5.85 per bushel. That is still down from the top price of $6.45 a year ago.