o—Lancaster Farming. Saturday. June 1.1968
Producers Base Programs
At the request of the Market
Administrator for Federal Mar
keting Order 2. a committee rep
i esenting cooperatives, land
giant colleges, major farm or
g imzations. state departments
o agriculture and the Market
Administrator, held a series of
meetings to study every aspect
o' a possible Class I Base Plan
f>r the New York-New Jersey
narketing order.
Class I Base Plans were au
t 'onzed by Congress in the 1965
a nendment to the Agricultural
Marketing Agreement Act of
1137. This authorization will be
eTectue through December 31.
1 *69. The responsibility of the
Class I Base Plan Study Com
mittee was to develop the facts
and procedure for such a plan
and make them available for dis
tnbution to all dairy farmers
selling milk to handlers regulat
ed by Order 2.
What Farmers Will Receive
The Committee Chairman, John
\\ Carncross. retired professor
o' agricultural economics, Rut
gers University, explained that
a producer would receive a high- -
ei price for milk deliveries
equal to his base and the lower
manufacturing price for any ex
cess No limit would be placed
on the amount of milk that he
cm produce or sell
Under the proposed Class I
Base Plan, a producer’s base
would consider his most favor
able 12-month production (best
January, best February, etc)
for the previous three years.
Class I requirements for the
mdrket in twelve consecutive
months preceding the start of
the plan and total base pounds
o all dairy farmers in the milk
shed.
Mr. Carncross indicated that
the plan would provide for recal
culating and transferring bases
and allocating bases to new pro
ducers There are also provi
sions for dealing with hardship
cases
All dairy farmers should res
ide that, although this Class I
Base Plan has been issued, it
has not received the endorse
ment of any organization which
participated in the study nor by
any cooperative 01 handlers who
may make it available to his
producers Under the provisions
o the federal law relating to m
oiporating a base plan into a
federal marketing order it will
be necessary for producers to
request a public hearing before
tie Sectetarj of Agriculture can
set on the mattei If such a plan
i-. lecommended by the Secre
tary aftei a heanng, producers
v ill v ote on this amendment m
dwidually Approval or disap
proval by producers will not af
fect continuance of the Order
Purpose of Plan
The purpose of the Class I
Ease Plan is to make it possible
for any individual dairy farmer
to adjust' his production to the
requirements of the fluid market
without having his blend price
reduced by the increased milk
pi eduction of his neighbors sup
plying the same marketing area
In simple terms, a Class I Base
Plan gives each producer a
“base" reflecting his proportion
ate share of the total fluid sales
i the market for a recent past
period, plus a 10% reserve to
cover short-run fluctuations
Producers would receive a
higher “base blend” price for
that part of their milk included
in the “base” Milk not includ
ed in the “base" and sold from
toe farm would be priced at the
lower “excess” or manufactur
ing price Such a pricing plan is
sometimes called a two-price
plan to describe its provisions
fir separate prices for “base”
and “excess” milk
In effect, a Class I Base Plan
v.ould limit the amount of milk
a farmer can market at the
higher “base blend pi ice’’. The
farmer would not be restricted
as to the total amount of milk he
can produce or sell, but only the
amount of milk he can sell for
the higher "base blend price".
A Class I base, or base excess
plan, removes the necessity for
each individual dairyman to
maintain maximum production
in order to preserve his share of
the more favorable priced fluid
milk market. Under such a plan,
one farmer's surplus production
would have less effect on the
price and income of other farm
ers It may offer an individual
producer an opportunity for in
creasing his income.
With all the time and energy
spent to propose a Class I Base
Plan for New York-New Jersey
marketing area, questions have
to be asked. Will this plan be ac
f//£
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M. HERR EQUIPMENT. Inc.
E.
Willow Street R. D. *l, Pa.
ceptnble by the dairy fnnmpra
in the Order 2 Federal milk
marketing area? Is the proposed
Base Plan better or worse than
the Louisville Plan in use in Or
der 2? Will Congress extend the
amendment past 1969? And. do
dairy farmers understand all
parts of a Class I Base Plan?
(Continued next week)
Robert K. Rohrer
Bulldozing - Grading
Patz Sales & Service
Barn Cleaners - Silo
(Jiiloaders - Cattle Feeders
Quarry ville, R. D. I
Hensel 548-2559
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BUILDS-A. BETTER BIN FOR STORAGE AHD
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Distributed By:
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AUCTION
114 Del. AYRSHIRE
For RAYMOND BARDEEN
Horned, N. T.
SATURDAY, JUNE Bth ot IT A.M.
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. 59 COWS 15 BRED HEIFERS
20 YEARLINGS 20 HEIFER CALVES
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LOTS OF FALL MILK HERE
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A SALE OF GOOD BUYS!
Sale Managed by
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‘Russ’ Castile, N. Y.
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