9 Milk dealers still unhappy over security bill
HARRISBURG The legislators. The fact is that
introduction of Senate Bill no one could come up with a
1287 to create the Penn- plan which would ac
sylvania Milk Producers’ complish the job and still be
Security Fund has not been fair to all segments of the
enthusiastically received by industry, maintains Milk
the state’s milk dealers. Dealers Association Henry
The fact that such R.Geismger.
legislation-copied from New Senate Bill 1287 still does
York—was not introduced not meet these requirements
earlier has been erroneously and is unfair, he said
blamed on “pressure” from Wednesday. After
milk dealers and "preliminary discussion on
irresponsibility on the legislation it was
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prepared and sent to the
Senafe floor without even an
opportunity to make minor
amendments to clear up
some language, he charged.
Once again the
proprietary milk dealers
not cooperatives - appear to
be the mam economic target
of this legislation. The
Security Fund concept is
“farmer protection in
surance” but neither far
mers nor operating
cooperatives are asked to
ante up one penny for then
own business protection, he
pomted out.
Dealers wish they could
find the same kind of
\ benefactor or financial angle
> to meet losses which they
£ face in the market place due
to bankruptcies and other
business losses when stores,
restaurants or other ac
counts go bankrupt.
The question arises why
should dealers pay for
farmer insurance at one end
and take the losses at the
other end of their business
operation and now long they
can stand it, Geisinger said.
Wien the system began in
the depression ‘3os it was a
little different story. Then
there were over 1100 milk
dealers, most of which were
small, localized operations
with minimum capital and
with low bond requirements.
Today, with fewer than 200
dealers remaining, placing
the cost of this bond or
Security Fund on them
creates a near impossible
situation from a cost stand
point if dealers are to remain
in business, he said.
What is less than thrilling
Egg production challenges new
heights with the Big Dutchman Profit-
Tier cage laying system. Four tiers high
with extreme efficiency in cage design,
the Profit-Tier allows optimum access to
feed, water, fresh air and light. So hens
have excellent conditions for good feed
conversion and high production.
Hire Big Dutchman... together we can grow.
SWBBg A Division Of
indust * ,es iNc
Designers of Quality Systems for PouHiy, Swine and Grain Handling
is the fact that the drive to
make dealers pay comes
mainly from cooperative
leaders and their pressure
on major farm organizations
rather than from in
dependent farmers, he said.
This “sock-the dealer”
approach stems from a
number of organizations
which, according to the best
financial records available,
need a lot to leam about
their own financial
management, Geisinger
said.
It is most unfair to have
the pressure, the big talk and
the accusations against
dealers coming from people
who don’t have to pay the bill
- and co-ops are virtually
exempt though they compete
m the market place where
they are not even required to
pay the minimum pnces
demanded from dealers. It is
miraculous if you can get
someone to pay your bills or
insurance, he said.
If farmers had to pay for
this coverage it would be a
mere fraction of their
current retum-about one to
two cents on a $l2 blend
price. And it certainly would
be a drop in the bucket cost
compared to the millions
paid in recent years for co-op
dues, assessments to cover
losses, money lost in
reblending (again, only a co
op privilege), etc., Geisinger
said.
If farmers paid they could
get 100 percent protection
and could “run the show,” he
said.
From the dealer viewpoint
there are serious com
petitive problems in border
Put the Profit-Tier
to work for you.
1Z- Oil T? T? SYCAMORE IND. PARK
Duj l/utchman® Li I 255 plane tree drive
I I I COMPANY, INC. Route 30 West At
S / S The Centerville Exit
Lancaster Farming, Saturday, March 29,1980—A19
area where out-of-state
dealers, who would not be
forced to pay, sell much non-
Pennsyl vama-produced
milk.
He raised a question as to
whether there is protection
in Senate Bill 1287 for the
Keystone State milk
producer who sells his milk
out of state.
All dealers ask is that
farmers be assessed at least
part-if not all-of the cost of
this insurance. One of these
days, with this kind of
legislation, there no longer
Golden Guernsey
4-H club to meet
April 8
The 4-H Golden Guernsey
Club held its first meeting of
the year at the home of Mr.
and Mrs. Raymond Witmer.
Officers were elected for
the upcoming year. The new
president will be Gerald
Garber, while Connie
Balmer was elected vice
president.
Other new officers in
clude: Mary Witmer,
secretary; & Jay Garber,
treasurer; Joanne
Ferguson, news reporter;
Joe and Doug Rohrer, song
and game leaders; and Carol
and Connie Balmer, county
council officers.
The next meeting will be
held on April 8, at 7:30 p.m.
And you enjoy the efficiency of more
layers per square foot of building space,
as well as better utilization of lighting,
feed and ventilation.
See all the labor-saving features Big
Dutchman built into the money-making
Profit-Tier. We can show you how quickly
it will pay for itself jn_ extra production.
will be independent dealers.
Perhaps that is the aim of
the cooperatives, Geismger
said.
From recent reports it
would appear that many co
op losses stem from
cooperatives fighting
cooperatives for business
and the question continues
as to the soundness of the
pricing structures and
whether the banks, which
lend them money, can
continue to give them
financial help, he concluded.
at Mr. and Mrs. George
Rohrer’s farm. At the
meeting, the members ir..T
hold an auction to bring _a
some money for the club.
After the auction, a slide
presentation is planned.
The club is still open to any
youth between the ages of 8
and 18 who would like to
raise a Guernsey calf.
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