The Mark Dadd administration has moved to deal with the worsening drought by appointing an interagency group and authorizing farmers in dry counties to harvest hay on Conservation Reserve Program land. Thirteen states are now involved. A White House spokesman said the drought would drive up food prices, but not have overall implications for the economy. There was speculation that the export enhancement program would be curbed and embargos placed on soybean exports. Bankers are concerned about payments on farm loans and fewer loan applications. Farm equipment makers fear sales will drop, while realtors fear an end to the land boom.
The Reagan administration has moved to deal with the worsening drought by appointing an interagency group and authorizing farmers in dry counties to harvest hay on Conservation Reserve Program land. Thirteen states are now involved. A White House spokesman said the drought would drive up food prices, but not have overall implications for the economy. There was speculation that the export enhancement program would be curbed and embargos placed on soybean exports. Bankers are concerned about payments on farm loans and fewer loan applications. Farm equipment makers fear sales will drop, while realtors fear an end to the land boom.