A Special Background Report On Trends in Industry And Finance
THE FARM BELT is cautiously optimistic as spring planting nears.</br></br>With the exception of winter-wheat areas in the southern plains, weather so far is cooperating with U.S. farmers. While it is still early, "there is no reason to be too concerned about the spring-planted crops," says Richard Pottorff, economist with WEFA Group, Bala Cynwyd, Pa. While subsoil moisture levels may remain below normal, he says, a repeat of last year's drought would be "extremely unlikely."</br></br>Moreover, many farmers are "in real good shape right now," says Mark Drabenstott of the Kansas City Federal Reserve Bank, noting that the drought boosted crop prices, allowing many to sell off reserves at a handsome profit. Farmers plan to plant more this spring, thanks to reduced government set-aside programs and higher crop prices. Increased demand is boosting costs for seed, fertilizer and farm equipment.</br></br>Sung Won Sohn, economist for Norwest Corp., Minneapolis, worries that low grain reserves increases vulnerability to regional weather woes.</br></br>GEORGE WASHINGTON fetes abound on his 200th inaugural anniversary.