U.S. CERTIFICATES TO PROVIDE WHEAT/CORN SUPPLIES

  From April through December 1986,
  the Commodity Credit Corporation (CCC) issued 3.85 billion dlrs
  worth of generic certificates and about 1.8 billion had not
  been exchanged by January 1, 1987, the U.S. Agriculture
  Department said.
      The department said an additional 4.3 billion dlrs in
  certificates has been authorized for issuance during
  January-August, 1987.
      These certificates will provide ample free supplies of corn
  and wheat for the remainder of the crop year, the department
  said in a summary of its Agricultural Outlook report.
      Freeing of stocks through certificates is making U.S. grain
  more competitive on world markets, it said.
      The department said last summer, for example, certificates
  were exchanged for 215 mln bushels of corn. This helped
  increase marketable supplies, so farm-level corn prices
  averaged about two dlrs per bushel -- somewhat lower than they
  would have otherwise.
      The lower prices probably led to an increase in usage of 40
  to 50 mln bushels, it said.
      The department said government spending on farm programs in
  fiscal year 1987 is projected to fall half a billion dlrs from
  1986's 25.8 billion dlrs.
      During 1988 and 1989, the cost escalation of the first half
  of the 1980's will reverse. If current policy remains in force,
  annual farm program spending by 1992 will be down from last
  year's record by more than eight billion dlrs, it said.
      The department said the President's budget proposals for
  1988-1992 would cut farm program spending an additional 24
  billion dlrs.
      In 1987, foreign economic growth is expected to remain
  close to 2.6 pct, the same as in 1986, but above the 2.4 pct
  average of 1980-86, it said.
      Partially because of this improvement, U.S. export volume
  is expected to rise in fiscal 1987 for the frist time in seven
  years, the department said.
  

