The farm economy is sound and its future is bright. Agriculture remains a
major bulwark of the nation's economy and an even more important factor in
the world food system. The demand for America's agricultural abundance,
here and abroad, continues to grow. In the near-term, the strength of this
demand is expected to press hard against supplies, resulting in continued
price strength.
The health and vitality of current-day agriculture represents a significant
departure from the situation that existed when I came to office four years
ago. In January 1977, the farm economy was in serious trouble. Farm prices
and farm income were falling rapidly. Grain prices were at their lowest
levels in years and steadily falling. Livestock producers, in their fourth
straight year of record losses, were liquidating breeding herds at an
unparalleled rate. Dairy farmers were losing money on every hundredweight
of milk they produced. Sugar prices were in a nosedive.
Through a combination of improvements in old, established programs and the
adoption of new approaches where innovation and change were needed, my
Administration turned this situation around. Commodity prices have steadily
risen. Farm income turned upward. U.S. farm exports set new records each
year, increasing over 80 percent for the four year period. Livestock
producers began rebuilding their herds. Dairy farmers began to earn a
profit again.