A 30—Lancaster Farming, Saturday, October 17,1981
LOUISVILLE, Ky. - Deputy
Secretary of Agriculture Richard
E. Lyng appealed to the nation’s
dairy farmers to endorse a
realistic dairy price support
program as a first step to restoring
economic good health to the dairy
industry.
Speaking to the Great Lakes-
Southern Milk, Inc., annual
meeting, Lyng cited growing
government-held dairy supplies,
the decline in the demand for milk
products, and high costs of present
dairy support programs as serious
economic problems in the in
dustry.
Lyng pointed out that by Oct. 1
the federal government will have
spent a net of $1.89 billion this
fiscal year on dairy price sup
ports; that the government will
own the dairy products made from
16.4 billion pounds of milk; and
take control
of your harvest
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Lyng urges dairy program changes
that per capita dairy consumption
continues to drift downward.
“In the face of those disap
pointing statistics, dairy farmers'
have increased the number of
young replacement heifers to 4.6
million head, about 6 percent more
than last year, and the highest
number in 15 years. It is obvious
that the present dairy price sup
port program not the com
mercial market has been the
attraction for holding more
heifers,” Lyng said.
“I agree with the growing
number of dairymen who say that
the path to a vigorous dairy
economy is to rely less on gover
nment price guarantees and rely
more on voluntary efforts and
industry-sponsored long range
market expansion,” Secretary
Lyng said. “I agree also that the
present dairy support program is
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standing in the way of an improved
economic climate for dairymen,
and until changed, this present
program will merely deepen the
problems in the industry.”
Lyng said that the ad
ministration’s recommendations
for dairy price supports in a range
of 70 to 90 percent of parity, ad
justed annually, would help
dairymen work their way out of
trouble. The dairy price support
minimum would be no less than
$13.10 per hundredweight. If net
government outlays for dairy price
supports exceed $750 million in any
marketing year, the secretary of
agriculture would be authorized to
forego the annual adjustment.
“This is a program that will help
dairymen gradually work their
way out of trouble and build
markets for the future. It is a
market oriented concept that will
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lead to increased dairy con
sumption, which is what all
dairymen want,” Lyng said.
“In the long run, increased dairy
consumption will raise dairy
profits, while increased govern
ment-held dairy stocks will
depress prices and stifle op
portunity,” Lyng said.
Lyng also called on dairymen to
voluntarily cull .their herds more
vigorously. “At today’s costs,
some of the dairy cows aren’t
making the owners any money,
anyway,” Lyng caid. “Those cows
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title recently, at the Maryland
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that are operating below the break
even level are costing the owners
money and their production is
adding to the government-held
dairy surplus and to government
costs.
“Make no mistake about it,”
Lyng said, “those costs add to
government deficits and to
government borrowing. This helps
elevate interest rates and raises
the inflation rate. Dairymen can
help themselves and their country
by culling harder,” Lyng said.
which last year earned John the
same title at Maryland.
Thompson’s Meat Market
bought the steer for $1.32 per
pound.
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