—Lancaster Firming, Saturday, February 24; 1979
136
PFU wants security fund
producers
for
HARRISBURG - Forney
Longenecker, chairman of
the advisory committee of
the Pennsylvania Farmers
Union (PFU) said recently,
the green light has been
given to push in the State
legislature-for adoption of a
Security Fund for Penn
sylvania dairy producers.
PFU desires a fund
composed entirely of con
tributions from milk han
dlers, which is simihar to the
fund now working in New
York State.
Contributions would not
exceed $.Ol per hun
dredweight on milk pur
chases, and would cease
after the fund amounted to
the dollar value of milk
handled by the state’s
largest dairy in a 60 day
period.
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717 935 2994
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Pa, dairy
A portion of the fund would
be deposited in interest
bearing securities to
generate additional fund
reserves. Fund proceeds
could be used only to pay
producers for milk delivered
to dealers who defaulted in
payments because of
bankruptcies.
The Pennsylvania Far
mers Union fund would
exempt handlers willing to
furnish sufficient bond for
the milk they handle in a 60
day period, provided the
bond is administered to be
paid on identical conditions
and in the same time as the
Milk Security Fund.
Cooperatives also would
be included in the PFU plan.
When cooperatives act as a
processor or manufacturer
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Rt 1, Glenville Rd
Cochranville, PA 19330
215 593 6214
iSjOiH
MOEWS SEED COMPANY
So* 214 Granville 111 61326
Phone 815/339 2201
of milk products, they would
be required to contribute to
the fund at the established
rate. Additionally, they
would contribute for milk
purchases from non
members for processing and
manufacturing.
Longenecker said a bill
would soon be drafted for
introduction in the House or
Senate, and every effort
would be made to promote
the legislation among the
state’s farm community.
“We cannot continue to have
milk producers absorb
losses of $lO,OOO or more in
the failure of a dairy. Bond
ceilings in the state are
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717-274-1242
totally inadequate, higher
bond levels would bankrupt
small handlers, so we
believe a handler-paid fund
is the best solution.”
The organization’s
director in Harrisburg,
Leonard Zemaiti s, noted
that currently farmers are
required to wait more than
55 days after shipment to
receive payment from
dairies. “That’s enough of a
gift to the dames. No other
businesses automatically
extend a 55 day period
without least some
payment. Dairy producers
should not be expected to do
otherwise.”
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