ASS—Lancaster Farming, Saturday, February 28,1981
Dairylea Co-op opposes Reagan dairy plans
WASHINGTON, DC- “Dairy
farmers are willing to participate
in a serious effort to balance the
federal budget. But we don’t want
to take a financial beating six
months ahead of everyone else.”
That was the statement of
Dairylea Cooperative President
Clyde Rutherford Wednesday
before the Senate Subcommittee
on Agricultural Production
Marketmg and Stabilization of
Prices.
Rutherford, a director of
Mushroom growers discuss imports
KENNETT SQUARE - A
feeling of cautious optimism in
continuing efforts to combat the
effects of unported processed
mushrooms was reported at a
meetmg of growers on Monday
night.
Approximately 150 attended the
session sponsored by the American
Mushroom Institute in the Italian
American Club
The bulk of the session was
devoted to present and future
activities of coping with imports
and putting the mushroom in
dustry on a sound economic footing
It was reported that some
financial relief has been attained
by growers since the increase in
tariffs on November 1. But con
tinued efforts will be required to
find other possible alternative
actions in the future to combat the
unports
In the past couple of weeks a
mushroom industry analysis
survey has been launched by the
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National Milk Producers
Federation and the National
Council of Farmer Cooperatives,
was one of several national dairy
leaders who made statements
opposing the proposal by the
Reagan administration cancelling
an 88 cent per hundred pounds
increase in the dairy support price
scheduled for April 1
Present law requires the in
creased based on higher farm
production costs during the past
six months
USDA. Conducted through the
cooperation of the Extension
Service and the AMI, the survey
was started in the Temple and
Chester County areas and will also
move into Michigan, Illinois, In
diana and California
At the conclusion of the six
month survey, a 10-member
special task force, including AMI
representatives and other experts
from throughout the country, will
review results and develop a
program of possible alternative
actions to be taken against im
ports
In early April, the AMI will also
be participating in hearings in
Washington on the favored nation’s
status of China and the effect
China is having on the domestic
mushroom industry as the major
exporter of processed mushrooms
into the U S
Presently, a 33-percent tariff is
imposed on imported mushrooms
This increased amount went into
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“The dairy industry is one of the
half-dozen principal industries in
the country, said Rutherford At
the farm level in New York State
alone it represents more than a
billion dollars of sales of raw milk
This amount is at least tripled as
the milk is transported, processed,
packaged, delivered to stores and
marketed Milk is more than
nutrition It is billions of dollars in
jobs and commerce
• Assuming continued high
production, the dairy support price
effect on November 1 It is
scheduled to be cut five percent on
November 1 of the next two years
It has also been reported that
efforts to obtain quantitative
limitations from exporting nations
have not been successful due to the
lack of cooperation of these
countries
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of parity next October 1 The in
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first only establishes a target price
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What farmers all over the U S
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Over 1980 farmers received for
all their milk a price that averaged
only 72 percent of parity To cancel
the April 1 increase in the support
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price would ultimately have the
effect of dropping returns to
dairymen well below 70 percent of
parity, which is inviting a national
disaster ”
Rutherford cited figures
showing
I-Farm milk production costs for
the U S increased 12.2 percent in
1980 while farm milk prices in
creased only 9 2 percent. For New
York State, farm costs went up 14
percent and farm milk prices only
9.2 percent
2-Consumer milk prices lagged
behind average urban wage rates
by 44 percent between 1950 and
1980 In other words, in 1980 it took
less working time for an industrial
plant worker to buy a gallon of
milk than it did in 1950
3-Between 1967 and 1980, the U.S
cost of living increased 154 per
cent, the cost of food 162 percent
and the retail cost of dairy
products 183 percent.
‘lf we are going to roll back the
inflation rate, that is fine,” said
Rutherford, “but let’s all move
together Singling out one industry
for a rollback is not constructive
It’s destructive ”
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