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Warm (banks.
GRUMELLI’S FARM SERVICE
Quarryville, PA 17566
Phone: 717-786-7318
I
INVENTORY REDUCTION!
BIG DISCOUNTS ON
ALL UNITS IN STOCK
LIQUID MANURE HANOLIHG EQUIPMENT
-► BY BETTER-BILT ◄-
USED SPREADERS
1100 gal. New Idea Open Door Vac.
1100 gal. Better Bill Vac.
1875 gal. Huskee
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SHENK’S FARM SERVICE
501 E. WOODS DRIVE LITITZ, PA. 17543
PHONE: 717-626-1151
Home Phone Paul Repine 717 626 2837 Mervin Nissley 717 872 4565
Our Service Trucks Are Radio Dispatched 24 Hr Service Offered
every
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WASHINGTON, D.C. -
The milk production in
creases that characterized
the latter half of 1979 likely
will continue at least through
mid-1980.
This larger milk output,
relatively large commercial
stocks of dairy products, and
a possible weakenmg in
demand due to the economic
slowdown will moderate
year-to year price increases
during the first half of 1980
and hold wholesale dairy
product prices near the
support purchase levels.
Consequently, Commodity
Credit Corporation pur
chases under the price
support program in 1980 will
increase substantially over
this year’s small removals,
U.S. Department of
> v «,
s s >yl
...right now!
Early order discounts now in
effect l Order now take delivery
later get big savings on all your
“Stor-Age” and drying needs
Major steel corporations have
increased their prices recently
which will be reflected in future
prices See your nearest mfs
dealer for big savings that are
yours by buying now 1
1980 milk production seen
higher, price
the
price
is right
Dairy income outlook
Agriculture economists said.
Although year-to-year
increases in farm milk
prices probably will not
match the strong price gams
af 1979, milk-feed price
relationships should remain
relatively favorable.
This is expected to result
in heavy concentrate feeding
and further increases in
output per cow that more
than offset small declines m
cow numbers.
Milk output in 1980 may be
about one percent larger
than this year’s expected
123.5 billion pounds.
October 1979 milk
production increased 2.5
percent over last year, as a
3.3 percent increase m
output per cow outweighed a
ERNON MYERS, INC.
STEEL BUILDINGS &
M
AVCSCO
Lancaster Farming, Saturday, December 22,1979
increases less
cow number decline of about
0.7 percent.
The major producing
states of Wisconsin,
California, and New York
accounted for three-fourths
of the total mcrease.
Production increases and
relatively large commercial
stocks have moderated year
to-year increases in farm
milk prices
During November, far
mers received an average
$12.80 per hundredweight,
about a tenth higher than a
year ago. Manufacturing
grade milk prices were
about a penny below the
support level when adjusted
for fat test.
Farm milk prices for 1979
may average about 14
percent higher tan the 1978
average of $10.58 per hun
dredweight. For all of 1980,
farm milk prices will
probably average 9 to 11
percent higher, with the
largest gams occurring in
the second half of the year.
With larger marketings
and higher prices, 1979 cash
receipts from dairying will
exceed $14% billion, up from
the record $12.7 billion
posted in 1978. As both gross
receipts and costs rose at
similar rates, net income for
dairymen likely ap
proximated the favorable
situation of 1978.
The slowing of milk price
increases m early 1980, along
with continued increases in
production costs, means the
net income outlook, though
still favorable, may not be as
favorable as in the first half
of 1979.
The combination of in
creased milk production and
relatively large commercial
stocks has resulted in
generally steady to slightly
lower wholesale dairy
product prices since early
October.
Wholesale prices of butter,
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block and barrel cheese, and
non-fat dry milk are at or
near their respective sup
port purchase prices and
CCC purchases in October-
November were substantial
for this time of year.
Milk supplies available for
manufacturing purposes will
remain heavy in the coming
months. This likely will hold
wholesale prices near
support prices during the
first half of 1980 except
during February and March,
when they may rise in an
ticipation of higher CCC
purchase prices on April 1.
During October, retail
dairy product prices
averaged about 12 percent
over a year ago, and for the
year may average about 11.5
percent higher than in 1978.
For 1900, dairy product
prices are projected to rise
by 8 to 10 percent.
A bill was enacted on
November 28 which requires
that the support price of milk
be set no less than 80
percent of parity through
September 30, 1981. It also
requires that the support
price be adjusted in the
middle of the marketing
year (on April 1) to reflect
changes in the Index of
Prices Paid by Farmers (the
parity index.)
Larger milk production
and a shift in the utilization
of milk supplies available for
manufacturing this fall
resulted in year-to-year
increases in butter
production, while gains in
American cheese output
eased.
The larger supplies of milk
available for manufacturing
likely will mean increases in
both cheese and butter
production in early 1980.
With American cheese
having lost its wholesale
price advantage due to the
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