Lyng's proposals were outlined at the USDA's annual conference on the outlook for agriculture. For the first time in several years the department forecast that farm income would rise to record levels in 1988, taxpayer spending on farm programs would fall, troublesome crop surpluses would dwindle, land prices would stabilize, exports would jump and food prices would rise only modestly.
Among the items on Lyng's wish list were:
* "Small reductions" in crop target prices, which represent the government-guaranteed price. The cuts would be in addition to reductions required under the 1985 farm bill.
* Reduced payments under the feed-grains program to farmers who idled their land. But at the same time, Lyng would expand another program allowing farmers to collect 92 percent of their subsidy payments for land left unplanted. Although the proposals sound contradictory, USDA officials say each would save money because of the way farm programs are structured.
* Lower price supports for other crops not protected by target prices. Such crops include soybeans, peanuts, tobacco, and sugar. Lyng did not specify which crops he would like to see cut.
A 2 percent cut in target prices for wheat, feed grains, cotton and rice stands the most chance of being included in the budget package, according to congressional aides.
"(Reductions in) target prices are almost a given," said a House Agriculture Committee aide, "but who knows what else they will come up with?"
Hanging over Congress is an 8.5 percent cut in government spending that will take effect automatically unless a budget package that meets President Reagan's approval is enacted by Dec. 16.
"There are some who will say that farmers will be unwilling to accept any further reduction in target prices," Lyng said. "But when viewed in the context of an 8.5 percent reduction . . . most would find a modest reduction in target prices a more practical alternative."
Senate Agriculture Committee member Tom Harkin (D., Iowa) said he would seek other ways to make the cuts. Among other things, Harkin wants to halt a scheduled reduction in price-support loans. Doing that, he said, would reduce the amount the government would have to pay to make up the difference between the market price and the target price.
But Lyng cautioned against any plan that would prop up prices and reverse the drive to make U.S. crops more competitive on the world markets.
