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Editor: The American
public, it appears, has been
duped by government in
believing that milk prices at
the retail level would
skyrocket if the 1975 Farm
Bill were approved. This
grossly exaggerated
misinformation, distributed
by the United States
Department of Agriculture
with the blessing of non-farm
politicians across the land,
caused President Ford to
veto the bill on May 1, and
endanger the production of
fresh, wholesome milk and
dairy products in this
country.
Is government folly
leading the United States
into a food shortage rivaling
the energy crisis? Let’s take
a real factual look as to what
is happening from my
vantage point.
Secretary of Agriculture
Earl L. Butz strongly op
posed the 1975 Farm Bill and
recommended that it be
vetoed by the President. His
position appeared to be
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can't help but appreciate
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STOCKING WAREHOUSE
MARTIN DISTRIBUTORS,
LEBANON. PA (717) 866-4906
based on allegations by the
U.S. Department of
Agriculture that the Bill, in
part, would raise milk prices
by 8 cents per gallon, cheese
prices by 10 cents per pound
and butter prices by 20 cents
per pound by the end of 1975.
These allegations are
grossly in error and ignore
both current and expected
marketing conditions. My
own analysis indicates that
these USDA estimates are at
least 100 percent erroneous
and perhaps worse.
It actuality, the Bill would
raise the support prices by
about SO cents a hundred
pounds (less than 5 cents a
gallon) for milk, by
about 7Ms cents a pound
for butter, and only about 4 3 /t
cents a pound for Cheddar
cheese by the end of this
year. In all probability the
impact would be sub
stantially less than these
levels, perhaps as little as
two cents a gallon for milk,
4% cents a pound for butter
and 1% cents a pound for
M
Will. Vbu see, at Read Steel we
' on© in this courtly of ours
product advancement more
rids always been that way.
■ptow until today's agricuf-
America's farmers have welcomed
tor efficiency The kind of products
Read Steel Products. Inc.
(gSg)* i registered trademark of Read Steel Products, Inc.
INC.
Cheddar cheese. The actual
prices, of course, would
depend on the rate
flation in farm production
and living expenses in the
months to come and if such
increases occurred, it is only
fair that farm prices should
change accordingly.
Again, it should be em
phasized that these prices
are supports on the
wholesale level. They are not
market prices on either the
whole sale level or to con
sumers. How consumer
prices are affected will
depend on supply and
demand conditions and on
competition in the
marketplace.
Prices of milk at some
supermarkets currently are
substantially below those
prevailing last year and even
with the Government’s
erroneously estimated in
creases resulting from the
Farm Bill, consumer prices
for milk likely would not
even reach their previous
levels of a year ago.
An Associated Press story,
which recently appeared in
newspapers, stated that
“soaring farm prices drove
the wholesale price index up
1.5 percent in April...”
| MAIL TO:
MARTIN DISTRIBUTORS INC
I RDI, Lebanon, PA 17042
I Name—
I Address
I City
State Zip
Serious Dealer Inquiry Invited
The source of this kind of
information is irresponsible.
Retail food price levels have
resulted from an ever
widening spread between
what farmers receive and
what the consumer pays.
Exorbitant costs in the food
processing and distribution
end have been among the
real causes in any food price
rise this year.
Dairy farmers’ income,
for instance, has dropped
about $l.OO per hundred
pounds of milk (46.5 quarts)
from just one year ago while
costs of producing that milk
Jumped 10 percent over the
same period. The general
public is unaware of this and
farmers are being subjected
to falsification of fact.
Foreign dairy imports
which entered this country at
a record pace in 1973 and
1974, lowered prices paid to
dairy farmers by as much as
$1.86 per hundred pounds
form March to April last
year. Farm production costs
continued an inflationary
climb while beef and calf
prices dropped out of sight.
Off-farm jobs became fewer
in number.
Government called for all
out production of food in 1974
'\A
and 1975 but declined to
reward the producer with
proper financial return.
Now, in face of recession
caused lower demand for
milk and dairy products, the
American dairyman is being
penalized for his efficiency
and high productivity.
Since the depression years
of the '3o’s, small family
farms have deteriorated in
number to the point where
less than 5 percent of our
population is producing the
food for the remaining 95
percent. These farms, in
part, are large and face
heavy indebtedness. Both
situations have been fostered
by low farm income over a
long period of time.
The curtain has been
closed on Act I of the Farm
Bill. Hopefully, an
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Lancaster Farming, Saturday, May 24,197&
HESSTON
When the crew
is you
DEUTX
Tractors
enlightened public will
demand that government,
reconsider this Bill before
the man that feeds us is m ■
longer on the farm.
Abundant supplies of foot
could easily become shor
tages in the ensuing months
and what once was con
sidered a right will becomt
an expensive luxury. W(
need only recall the hig)
costs of oil imported frorr
afar to realize what coult
happen if we depend ot
foreign supplies of food tc
survive.
Remember, a fuel crisis h
serious, but a food shortage
is deadly.
General Managei
Eastern Milk Producer:
Cooperative Association,
Inc.
_^^HESSTON
STAUFFER
DIESEL, Inc.
312 W. Main St.
New Holland, Pa.
Phone 717-354-4181
11
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