Hallowell unveils
proposal will not encourage
the fund to grow at a fast
rate.
The Ag Secretary ex
plained the size of the fund
and its rate of growth are
dependent on the number of
dealers who choose to
participate m the program.”
“Doubling the assessment
to two cents per hun
dredweight does not assure
the fund will grow twice as
fast.
The two cent per hun
dredweight assessment on
dealers only, will discourage
many dealers from par- “After two years of
ticipatmg,” he added. discussion and plnty of
I STARTED PULLETS 1
1 AVAILABLE i
I 5500 DeKalb Sex Sal, 20 weeks Dec. I
I 25 & Dec. 27 *
I 5000 DeKalb 231,20 weeks Jan. 4 I
I MOYER'S CHICKS, INC. S
| 215-536-3155 |
!<*—*» him i— t-m***mm*>M
BIG FARM POWER AND EQUIPMENT
'' X <7
. . 0 , , J
“ - ■ 1
INDEPENDENT TESTS SHOW THAT
STEIGER TRACTORS PRODUCE
MORE HORSEPOWER - HOURS PER
GALLON OF FUEL THAN ANY OTHER
ASK A FARMER WHO OWNS ONE
(Continued from Page 1)
Hallowell also noted that
the rate of growth is
dependent on the amount of
operational losses incurred
by Pennsylvania’s dealers
within the first few years.
As Daniel Martin had
indicated, Hallowell intends
to keep the existing bonding
requiremnt for one or two
years until the security fund
reaches a workable level.
In the three concepts
presented on Tuesday
evening, Hallowell has
outlined a proposal he says
will pass quickly.
& STEIGER
TRACTORS
SAVE FUEL
4WD TRACTORS TESTED...
TRACTORS WE HAVE SOLD IN PENNSYLVANIA HAVE PROVEN
THAT THEY WILL DO MORE WORK WITH
THAN THE TWO-WHEEL DRIVE TRACTORS THEY
consideration, we needed to
get something that would
pass quickly,” commented
the Secretary.
“The dealers owe money
to the farmer, it is only fair
for them to pay,” he added.
According to Hallowed, a
two cent per hundredweight
proposal would not pass.
At the one cent per hun
dredweight assessment,
Hallowell is confident a
majority of the dalers will
participate.
The dealers are faced with
three choices. The first bemg
to obtain a bond. Secondly, a
dealer may choose to
establish a line of credit with
a bank.
Or, dealers may chose to
contribute to the milk
security fund. At a one cent
per hundred weight charge,
Hallowell views this plan as
reasonable insurance for the
dealers.
It will be a good tool to get
farmers to ship to a par
ticipating dealer, he said.
Participation in the fund
will be an asset to the
dealers since farmers will
Penrose Hallowell
Secretary of Agriculture
know that they are protected
from financial losses, said
Hallowell.
Hallowell also realizes
companies with large
financial reserves may not
participate in a milk
security fund.
According to Hallowell,
the one cent will be assessed
when the dealers write their
milk checks. As they pay the
farmers, they will pay the
one cent per hundredweight
into the milk security fund.
The Milk Marketing Board
will administer the security
fund. The Agriculture
Secretary added, “the
Board will audit records
more completely, and work
Lancaster Farming, Saturday, December 22,1979
with the Bureau of Markets
in completing critical
examinations of the dealer’s
organization ”
A crucial concept of
Hallowell’s proposal in
volves the administration of
a separate fund for the
cooperatives. According to
the proposal, the
cooperatives may contribute
to the milk security fund on a
voluntary basis.
Secretary Hallowell chose
not to comment on the
number of cooperatives, he
thought would participate.
“It is important the
cooperatives decide for
themselves by a mem
bership vote whether or not
they want to take part in it”
stated Hallowell at the town
meetmg.
Hallowell proposed a 90
per cent coverage of far
mer’s losses instead of 100
per cent coverage, as is in
New York’s milk security
fund.
He cites two major
reasons for this decision.
“First the cooperatives
selling to dealers need to
have responsibility to
maintain a line of credit.
They are not to let dealers
build large bills. The fund
00.13
EJ3 3
Diesel
fuel
LESS FUEL
REPLACED...
will not replace good
management,” he noted.
This concept will also
reduce the size of the milk
security fund. As mentioned
earlier, it will take some
tune to accumulate a fund of
sufficient size at the
proposed one cent
assessment fee.
Hallowell assured Penn
sylvania dairymen the intent
of this proposal is to require
all milk sold by farmers in
Pennsylvania to be covered
by the proposal.
He said he seeks to
eliminate the loopholes
which allows milk to be
transferred across state
lines and retitled.
In talking with farm
groups, dealers, and
legislators, Hallowell said he
realizes the importance of
getting a milk security fund
recorded on the books.
He said he is confident his
proposal, if it comes up for a
vote, will be passed.
Although he admits there
may be amendments or
modifications to his proposal
as a result of discussing; the
Secretary said he hopes the
Bill will be passed by the
(Turn to Page 28)
15