the first time since 1968 Since the production from 

 more than one out of three harvested acres in the 

 United States is being sold in the export market, such 

 sales are extremely important to aghculture's well 

 being Provision of additional government export credit 

 and credit guarantees would facilitate the further 

 growth of sales A reduction in the price of the dollar 

 against the currencies of US trading partners would 

 also enhance US competitiveness in export markets 



and bridges. There has been a retrenchment in such 

 investments during recent years N/loreover, the issues 

 of public versus private funding through user fees, as 

 well as the appropriate level of public funding are as 

 yet unresolved. How these issues are decided will 

 affect ail of US agriculture, but particularly that of the 

 Western states 



SUMMARY 



Financing New Entrants 



With a larger proportion of US farm operators 

 reaching retirement age during the next decade, 

 greater numbers of new entrants may be entering 

 farming. Facilitating their successful entry, along with 

 the intergenerational transfer of farm businesses, will 

 challenge financial institutions and public policy mak- 

 ers. It is likely that substantial innovation in financial 

 arrangements will be required to enable new entrants 

 to gain control of the resources to successfully enter 

 the business. 



The resolution of these issues is important to agri- 

 culture's well-being. In some instances, public sector 

 action may be appropriate. However, successful pub- 

 lic policy solutions will depend on clear understanding 

 of the root causes of the issues addressed. Recur- 

 ring cyclical problems, for example, may require more 

 permanent programs However, problems related to a 

 changing economic environment may warrant only 

 short-term relief to aid in adjustment to that 

 environment. 



Nonfarm Investment in Agricultural Production 



With the growing capital requirements of U.S. agh- 

 culture, and lower farm profit margins, farmers have 

 increasingly financed farm capital investment with debt 

 capital. That, however, can present problems — 

 especially for new entrants One solution to the 

 dilemma of high capital demands would be for farmers 

 to acquire the use of equity capital from off-farm 

 investors, through pension funds, insurance compa- 

 nies, financial leasing, etc Yet, farmers and public 

 policy makers have often avoided a thoughtful, rational 

 analysis of the role for these capital sources in mod- 

 ern agriculture. 



Financing the Essential Public Infra-Structure 



The nation's agricultural sector has greatly bene- 

 fited from past public investment in irrigation, flood 

 control, power generation, waterways, and highways 



63 



