Fanatag, Saturday, My 5,1N0
Milk security
(Continued from Page Al)
described the bill as a
compromise approach. “It’s
a good start and provides
needed protection for
dairymen,” he said.
The compromising started
over the weekend when
Pennsylvania Farmers’
Association backed off its
hard-line demand for a two
cent contribution by dealers,
conceding “passage is
necessary even without
additional funding.”
The State Grange, Penn
sylvania Farmers’ Union,
and six major dairy
cooperatives in the state all
bad supported SB 1287 as
written. They were the
driving forces for the one
cent contribution rate which
now is law.
The State Association of
Milk Dealers argued in favor
of farmer contribution to the
fund and wanted no dealer
contribution at all.
A later proposal, advanced
last November by Secretary
of Agriculture Penrose
Hallowed and supported at
the time by the State
Last minute flurry gets
several bills passed
HARRISBURG - A rush
of activity to beat the
Wednesday night deadline
on the current legislative
session saw several im
portant farm bills go to the
governor for his signiture.
Among them was the
senate’s passing of SB 1287,
the milk security fund, 48-0.
See story on page 1 of this
issue.
The senate also passed
Senate Bills 965 and 986 by
votes of 184-0 and 179-4. The
eminent domain provision in
the second bill drew ‘nays’
from four Pittsburgh area
legislators.
Those bills, known as the
Knapp bills, were passed
with minor changes that
write Allegheny County
(Pittsburgh) and
Philadelphia County out of
the laws. They also apply
only to agricultural land
I
WE APPRECIATE YOUR
- m* BUSINESS AND EXPRESS
K Ntv our “THANKS” FOR
I rl . MAKING 1980 A GOOD
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Y • GUTWEIN HYBRIDS!
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i
Grange, called for split
financing, with farmers and
dealers each contributing
one cent to the fund.
The co-ops opposed this
plan, Hallowell backed away
from it, and the Grange
changed its policy to agree
with the co-op stand asking
for a one cent contribution
solely from the dealers.
In the meantime, Penn
sylvania Farmers’
Association delegates picked
up on the two cent con
tribution idea, but asked
funding only from the
dealers.
On March 28, the Grange,
PFA, Farmers Union, co
ops, and ag political leaders
met to state publicly their
support for SB 1287 as
drafted by Senators Patrick
J. Stapleton and Frank J.
O’Connell. Despite its at
tendance at the meeting,
PFA continued to argue for a
two cent dealer contribution.
Political realities, in
cluding strong lobbying by
the Milk Dealers
Association, dictated this
would not become law.
Legislative roundu.
The bills were shepherded
-through the legislature by
the Grange who went to bat
for the Knapp family. In
their case a school had
condemned their farmland
and then attempted to sell it
for development as a
shopping center.
Should the Governor sign
the bills as expected, far
mers will be protected from
such land speculation by
municipal bodies. The 12
year rollback will cover the
Knapp family who now will
be able to buy back then
lands.
Also passing at the last
moment was HB 2460 which
will declare Johnsongrass a
noxious weed. The House
sent the measure to the
Senate where it probably
will be acted upon next fall.
Although the House also
HAROLD J. DIETRICH
PFA supported the bill in
all other particulars.
Leadership in both the
Senate and House gave the
bill priority, streamlining its
movement through the
agriculture committees and
the floors of both chambers.
The various farmer
associations, the Penn
sylvania Department of
Agriculture, Governor
Richard Thornburgh, and
the State House and Senate
agricultural leadership all
had expressed cautious
optimism that SB 1287 could
become law sometime in
June in honor of dariy
month.
The House cleared the bill
on the last day of June, but it
needed an extra two days to
return to the Senate for
concurrence on the technical
changes and the sub-dealer
provisions which were
written in.
As a whole, the farm
community offered no regret
that the bill actually became
law during the month of
July. It was a measure
dairymen long have needed
to protect themselves
against one of their many
problems: dealer failures.
passed SB 414, the ‘bute’ bill
dealing with medication in
racehorses, the senate
decided to non-concur on
changes made by the House.
SB 414 also should be acted
upon in the fall when the
legislature reconvenes.
Likewise HB 1794, the
nuisance ordinance, remains
tied up in Senate committee.
The measure would
prevent any municipality
from passing a law
restricting normal farming
practices like spreading
manure or applying lime.
The legislature probably
will reconvene about the
third week m September.
In the meantime, farmers
have plenty of time to talk to
their legislators, comment
on the session’s work ac
complished, and discuss
future bills.
CALL
RDI Box 98
RICHLAND, PA 17087
(717)933-4940
UTITZ - The milk
security fund established by
SB 1287 attempts to cover all
milk produced and con
sumed within the Com
monwealth of Pennsylvania.
Milk from other states and
purchased by dealers in
Pennsylvania must be in
cluded in the coverage of the
dealer’s bond.
While not included in the
version passed, the stated
intent of the general
assembly was to speed up
the final milk payments as
soon as possible.
The new law agrees with
old law that final payment to
farmers is to be made no
later than the 15th day from
which the milk was received.
Two funds are established.
The first, dealer con
tribution fund, would accrue
to the Milk Producers’
Security Fund. The second,
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co-op contribution fund,
would accrue to a
Cooperatives’ Security
Fund.
Cooperatives are allowed
to vote themselves out of the
Cooperatives’ Security
Fund. It is doubtful any co
op will vote itself in.
Handler funding will be at
the rate of a penny per one
hundred pounds milk pur
chased until the fund
reaches $4 million.
Title to milk shall be
deemed to have transferred
from producer to buyer at
the point of shipment of the
milk.
Therefore, milk produced
m the Commonwealth and
flowing to a buyer outside
the state is intended to be
covered by the fund.
The out-of-state buyer
would be required to obtain a
license from Pennsylvania
Milk Marketing Board.
Claims will be allowed for
75 percent of losses. No
claims against the fund will
be allowed for sales to
dealers not licensed by the
Milk Marketing Board.
Milk purchased from
producers outside the stated
and sold within the state
must be included in the
dealer’s coverage.
If a bond or alternative
security option is chosen by
the dealer, the total amount
of security must cover any
consecutive two month
period during the current
year.
Withdrawls from the co-op
security fund are allowed
only m the case of ad
judicated bankruptcy in an
amount not to exceed 90
percent of the amount due.
Adjustment will be made
for sales of butter, cheese,
and non-fat dry milk
manufactured for sale to the
Commodity Credity Cor
poration by a dealer or co-op
participating in the fund.
Dealers and co-ops will be£J
eligible for rebates and
credits for those
manufactured products.
The state house is ex
pected to act in an upcoming
session to require speedy
payment for milk so a far
mer’s money is not held by a
buyer for as much as 55 days
as currently is the practice.
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