20—Lancaster Farming, Saturday. July 17,1971 Economist Explains Need for State Milk Resale Price System By Dr. Paul E. Hand, Inter-State Coop Secretary-Economist Recently, when I returned to the office after a hearing in New Jersey, a local television personality had requested I call the station. When I reached the office, they wanted to know why, with Federal Orders setting Class I and Class II prices, farmers wanted the State of Pennsyl vania to set resale prices. This was followed with the question of the value of the Pennsylvania Milk Marketing Board when resale prices were higher in Pennsylvania than in New Jersey. In order to effectively sup port and defend resale price fix ing by both the States of Penn sylvania and New Jersey, sound logical answers must be pre sented to each of the above questions. First, basic to a regulated class price system is a federal order. A federal order is neces sary to classify and price all milk moving in inter-state com merce. This method provides basic stability to the industry. However, a federal order does not provide the answer to all the problems of pricing and marketing milk. We need our state orders for the following reasons: 1. In addition to large nation al chains and dairies, local out lets are necessary for a low cost distribution system. This should include full service or full line milk dealers. A full service dairy serving schools, stores and home de livery routes has a more even requirement for milk needs on a weekly basis and usually on an annual basis. Thus, less re serve or surplus milk is needed to furnish this type dairy with a sufficient quantity of milk for its needs. This reduces the amount of reserve or surplus milk and the resulting pressure for surplus milk to increase Class I prices in order to improve the blend price A proper resale price structure is required to protect the full service milk dealer. 2 Milk is a unique com modity, different in its total production and distribution characteristics than any other product of commerce Milk is highly perishable and deterio rates in quality very rapidly. Farmers must milk cows twice daily or serious health conse quences or loss in income will occur It is imperative that mar kets be available to receive the milk daily. A system of resale price mini mums, which results in a stable market, contributes to confi dence and certainty in the minds of farmers and dealers, should make both farmers and dealers feel that each will re ceive a just and reasonable re turn for his product under such unique circumstances. 3. In addition to the unique nature of the product, dairy farmers are characterized by unique production circumstan ces. The large fixed investment either freezes dairymen into the business or permits entry to only those with large capital re sources. Dairy animals have less than a “salvage” value when sold for beef, and dairy build ings have little or no alterna tive use. Due to the considerable in vestment required and the complexity of production con ditions, a stable, healthy dairy industry is a necessity in order to provide a continuing supply of milk at fair prices. 4. Federal orders are not the panacea for dairymen. An ex pert in the USDA observed the following: “Federal Milk Orders are only one of the devices to help producers through their co operative associations to help themselves to better marketing conditions. It is important to remember that no Federal Milk Order guarantees any farmer a market for his milk. Neither does it guarantee to the produc er who is able to maintain a place in the market, a price for his products which will assure him of any particular income standard. “What the Federal Order does is provide a framework and a set of rules by which a farmer can secure returns com mensurate with existing mar Public Auction 50 HEAD OF HOLSTEIN THURS. NIGHT, JULY 22,1971 storting 8:00 p.m. sharp SALE LOCATED 5 MILES NORTH OF RT. 222 ALONG 897, 2 MILES NORTH OF REINHOLDS, These are all upstate cattle some strictly fresh and the balance are close Aug. & Sept. Cows the right kind for replacements for fall milk. If in need of fall milk, see us. Will also have a few good feeders. HEALTH CHARTS NITE OF SALE Randal Kline Auctioneer Vernon and Ray Kline Owners PHONE Area Code 215 267-2368 or 267-2298 Not Responsible For Accidents Sth ANNUAL INKA SALE BRADFORD COUNTY Friday Night, July 8:00 P.M. Location Troy Fair Grounds, Troy, Penna. Holsteins Selling are cows by local top breeders. Some from untested and unclassified herds. Also some from New York state. These include • From Raymond Goeringer a fresh Clyde Hill Master King Fobes milking 90 lbs. per day. • Two Irvington Pride Admiral dts. both from Reflector Dams, IVG 88,1 G Plus 84 2 yr. old. • Also a third Pride Admiral never classified and due sale time. All three are top cows. • Three all Pennsylvania Senior Heifer Calves from 1970 are selling. Sired by Kingpin and consigned by George Page, Jr. • Mel Peifer sends two 1 is VG as a first calf due with second calf Aug. 9. Piney Hill Majority bred heifer from VG Ivanhoe Dam with 777 fat. • Bob Tillinghast sends a real nice 2 yr. old fresh and milk ing over 60 lbs. daily. Her Dam has 27,027 milk. Next Dam 20,451 milk, 3rd Dam 20,537 Milk, 800 fat. • Also selling a Kingpin from Reflector Dam. A VG 88 4 yr, old due sale time. • A Marquis dtr. due in Aug. • A Bluegill Reflector Flame, 2 yr. old from a 23,064 Milk 867 Fat Dam. • From Richard Kingsley a Hagan Heifer calf that goes in direct maternal line to Admiral Star Nancy. Excellent and Gold Medal Dam. Also many other fresh cows. Some with calves, show cow prospects, etc., etc. selling. Attend this year’s sale and become one of our satisfied custo mers. Tom and Ernie Young Troy, Pa. Ph. 717-673-8659 or 717-673-5094 keting conditions. The amount of such returns depends on how good or bad marketing condi tions are; and, as you know, there are numerous ways in which producers, acting through their cooperatives, can seek to influence the market.” In this area, we have sought and obtained the help of state resale price fixing to complete the job. Such regulation is still necessary. 5. Unreasonably low resale prices in New Jersey are not in the public interest. The largest dealers selling in New Jersey (Continued on Page 21) Don’t Miss This Sale. Refreshment Stand Auctioneers Refreshment Available CLUB SALE 23, 1971 John Merrymon Sparks, Md. 301-771-4674 SAMPLE COPIES FREE Copies of LANCASTER FARMING are not always easy to find they are not sold on newsstands and perhaps some of your friends may not be acquainted with our weekly service. We’ll be glad to send, without charge, several copies , of LANCASTER FARMING to your friends or busmess associates. Just write their names and .addresses below (You’ll be doing both them and us a favor!) To Street Address & R. D City State Zip • To Street Address & R. D City State Zip (You are not limited to two names. Use separate sheet for additional names.) Your Name Address □ Check here if you prefer to send a Year’s (52 issues) GIFT subscription for $2 each ($3 each outside of Lan caster County) to your friends listed above. If so $ enclosed, or □ Bill me later. Please mall this form to: CIRCULATION DEPT. LANCASTER FARMING P.O. Box 266 Lltill, Pa. 17543 PUBLIC SALE Complete Milking Herd Dispersal of Registered & Top Grade Holstein Cows & Milking Equipment Thursday, July 29, 1971 Located in the ViHage of New Park, York Co., Pa. approx. Yz mile off Rt. 851. Watch for arrows. 34 Head 23 head of registered & 11 head top grade Holsteins. This is a very fine young herd most of which are in their Ist & 2nd lactation. A few samples of the quality of cows in the sale are a registered Ivanhoe granddaughter with 17,481 milk & 720 fat; another Ivanhoe granddaughter with 17,042 milk & 637 fat; a registered Hector daughter with 16,189 milk & 820 fat and many other fine blood lines in the sale such as Ivanhoe Jack, Romandale Performer, Emporer Duke Archie and 15 or more cows with Ivanhoe breeding. Herd is on DHIA and last years ave. was 13,513 lbs. of milk with 520 lbs. fat. Herd will be tested within 30 days and will be eligible for interstate shipment with individual health charts. There will be approx. 12 head fresh by day of sale and where necessary will be checked for pregnancy. Don’t miss this sale for some very fine herd replacements & foundation stock. Mojonnier 325 gal. vacuum tank, 2% HP Bremier com pressor, dumping station with approx. 50 ft. of glass pipe line, 2 units Surge 50 lb. size milkers & straps, heavy duty Model D Surge milker pump completely overhauled with a 2V2 HP motor, extra Surge pulsator, litter carrier complete with good tub & approx. 150 ft. of track with 2 switches, Jamesway metal feed cart, 2 strap on milk stools, 50 gal. electric hot water heat er, stainless steel double drain tubs, drain table, 84 in. snow bucket fits most any manure loader. v Auct. note: sale order, will be dairy equipment first,-fol lowed by cattle. Terms: cash or good personal check. Sale to be held under cover rain or shine. Lunch available on premises. S. GUY & DAVID H. ALLEN, owners Robert L. Sechrist, auctioneer Fawn Grove, Pa. Ph. 382-4379 Not responsible for accidents ot 10:00 A.M. Sharp Dairy Cows Dairy Equipjment 34 Head
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