Torn From the Kiplinger Letters

Wildlife Pests Are Gaining

Wild animals are a growing problem, causing harm to livestock, crops, household pets and, in an increasing number of cases, people, too.

Despite efforts to keep them under control, they're expanding their ranges. Wild pigs, for example, once common only in the Southeast, are now thriving in nearly 40 states. Deer, vultures and starlings are omnipresent throughout the U.S., gobbling whatever they can eat and spreading disease. Coyotes are also on the move, posing a menace to other animals and even chasing folks in city parks.

Warmer winters aid wildlife migrations, prompting animals to explore new areas farther north. Many find haven in parks, city fringes and other refuges where hunting isn't allowed, and they reproduce quickly.

People are moving onto animals' turf, too. Mountain and coastal resort development, for example, create more contacts between man and beast. But as disruptions from wildlife escalate, wildlife advocates are throwing up challenges to how the government is addressing the problem.

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Saving the Family Farm

Faster Generic, "Breakthrough" Drugs Coming

Coming legislation will hasten the availability of both cheaper generic drugs and so-called breakthrough drugs that pave new medical ground.

Congress will add both categories to a measure that will reauthorize a program under which drug and medical device makers pay fees to the Food and Drug Admin. The fees enable the FDA to employ more people to speed reviews of medical products.

Congress will pass the bill by Oct. 1, letting the FDA collect over $1 billion over five years from medical companies, averting large-scale layoffs at the agency.

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Who's Counseling Romney on Foreign Affairs

With his attention now firmly on the debates and the Nov. elections, Mitt Romney is zeroing in on burnishing his foreign policy credentials. Foreign affairs and national security issues are clearly not Romney's strong suit, and he knows President Obama will try to trip him up during the fall campaign.

The presumptive GOP nominee will turn for help to seasoned Washington insiders, old policy hands from previous Republican administrations. Among them:

-- John Lehman, Navy secretary for President Reagan. He'll guide Romney on the defense budget and advocate for keeping Pentagon spending cuts modest.

How much and how fast will the Federal Reserve raise interest rates? Ten of 17 Fed officials expect a hike of one percentage point before 2015. Despite the group's official line that it plans "exceptionally low" rates of 0% to 0.25% at least through 2014, most rate setters disagree. Three expect them to rise this year; three others say 2013. The remaining four think that the about-face on interest rates will happen in either late 2013 or early 2014, starting the Fed's typically slow process of lifting or lowering rates in small steps. The hikes would be the first since 2006.

Our best judgment: Low inflation will stave off increases through this year. But price pressure could rise suddenly after that, as economic growth picks up speed and the $2 trillion the Fed has pumped into the economy since 2008 sloshes around.

Look for the federal funds rate to go to at least 2% by 2018, maybe even 4%.

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Uphill Battle for Obama at NATO Summit

The White House has its work cut out for it at the upcoming NATO summit in Chicago on May 20 and May 21. As the organization's 28 member nations gather, Obama will push to keep U.S. allies committed to the war in Afghanistan, despite the economic strains and in light of the election of Socialist François Hollande in France.

Obama will urge Hollande to back off his campaign pledge to withdraw French troops from Afghanistan as soon as this year. France has 3,600 soldiers remaining there. Hollande isn't likely to budge. But not wanting to completely alienate the U.S., he'll take aim at halting Iran's nuclear program, an issue he and Obama agree on.

The U.S. will also try to get allies to dig deeper to pay NATO-related costs. But that's an uphill battle, given the shaky European finances. On paper, the U.S. pays a third of NATO's $3-billion operating budget. In reality, counting the wars in Libya and Afghanistan and other missions, it's closer to 75%.

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Wireless Firms to Merge Data Plans for Phones, Tablets

Say good-bye to separate data plans for tablets and smart phones. By fall, big carriers will start rolling out combined plans that charge a fixed rate for wireless data usage, regardless of where the information is displayed. Carriers hope the convenience of one bill will translate into more-loyal customers. The costs for combined data plans will track today's going rate: $50 per month for 5 gigabytes. Look for Verizon to kick off the trend, followed by Sprint and AT&T.

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A Site That Tells You Whether to Buy Now or Wait

A severe doctor shortage is looming: Over the next decade, a deficit of 45,000 primary care physicians and a similar lack of surgeons and specialists. Some specialties will decline, despite growing demand from an aging population.

Other medical professionals will fill in: physician assistants, nurses and the like. Many will see their usual roles and responsibilities expanded to pick up the slack. With Congress unlikely to foot the bill for most residency slots, that'll have to do.

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Big Changes Ahead for Health Care

College Demand Helping Drive Building

Not all public sector building is on ice because of government spending cuts. Construction is booming at public colleges -- everything from classrooms and offices to more dormitories to handle a flood of extra students. New buildings valued at $11 billion popped up last year. Even more investment is likely this year. Some 80% of public colleges plan to renovate or build over the next five years.

Driving the boom: 1.7 million more public college students next year alone. Some are priced out of private universities. Others are the last wave of boomers' kids. Lots more nontraditional students as well; returning war veterans on the GI Bill and midcareer types who lost jobs in the recession and are looking for retraining.

Quasi-public authorities that can issue bonds are funding much of the work. Philanthropy has a role, too. Colleges are glad to put your name on a building for cash.

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Rising Sales Spur Small-Business Growth

Used Car Demand High but Set to Slide

Thinking of selling or trading a used vehicle? You'll get the best deal now. So don't sit on the fence. Prices will start to drop later this month, as consumers show a postrecession willingness to pony up for the latest models. Used-car supplies remain tight, a legacy of the 2009 slide in new-vehicle purchases. Fewer folks traded up to newer models, and more who needed cars bought them used.

The hottest sellers: Compacts and other fuel efficient rides. Gasoline misers in good condition will bring higher prices or trade-in values for a few more weeks before a gentle price decline begins. For used trucks and big SUVs, a sharper slide: 3% or so from spring's peak until the end of 2012. High gas prices are the culprit. But even with a retreat, used-vehicle prices will stay strong by historical standards.

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