' ' "i The Milk Check TOM JUHCHAK County Agent Compromise The Senate-House Conference Committee on the 1981 Farm Bill before Congress, took only three days to reach a compromise on the Hairy price support program. The important feature was the loss of the 72 5 percent of parity in 1983 contained in the House version that was supported by the National Milk Producers Federation. Equipment leasing arrangements because leasing can sometimes provide them a higher rate ot return than a loan. Leasing also allows them to provide financing that may exceed the permissible limit on a comparable loan. With greater experience in the intricacies of leasing, small country banks should generate many more leasing contracts. Lessors affiliated with banks have increased in number for the same reasons as participating lessors. Many of their lessees are regular customers, so the risk sustained by the bank on financial leases is comparable with that for loans The favorable rate of return on leases should be attractive to bank-affiliated lessors. Manufacturers’ captive 'lessors may be more concerned with generating sales tor the parent company than with the rate of Westfalia ACR " -V ■? < Vtcuurti CyUndtr | | f *EJ MonH ° r »/ r* <f , f/* 2/f V „ CHAMRERSIURG Cumberland harm Dairy Supply, Inc Larry Hughes 717-263-0826 800-692-7406 MONTROSE Farm Construction <4 _ r ed Hirsch Ketr.geration tquipmenl 717-278-3607 Kobert L Janney 215-593-2365 COCHMHVIIIE JEKSEY SHORE fornL Dunlap 7X7-398-1391 The Senate gave up the dollar limits of CCC purchases in their version supported by American Farm Bureau and substituted a ••pounds of milk equivalent” limit. So what you have now is a con tinuance of the present support price of |12.80 for 3.5 milk tor 1982 and a drop to 70 percent of parity in 1983 if Commodity Credit Cor poration purchases are estimated (Continued from Page A 18) return on the leased equipment investment. The extent of their leasing contracts, therefore, tends to run countercyclical to equip "ment demand, which is closely related to net farm income. As farm equipment sales pick up, captive lessors should be less pressured to generate sales throughout leases. Results of a survey of 131 leasing companies indicate that captive lessors generated the greatest net lease value in 1980 with $336 million, or 54 percent of the total, followed by independent lessors with $lB7 million, and banks with $lO5 million. The survey also found that bank-aftihated lessors had the longest average term, 6 6 years tor all leases, compared with 5.4 years tor mdepdent lessors and 4.5 years for captive lessors. ~ Why settle for less when you can have the original? EMcMoie OMkal iMt * “> t % '"■id?- WESTFAUA SVSTEMAT SALES CENTERS MoALISTaVILLE Saner harm bystems Pen n Valley 717 463 2606 Cropstore, Inc 717-463 2606 Dale btutzman 215-287-9650 215 287-7315 OXFORD W&J Dairy bales William Uuhl 717-529-2569 MORE FROM YOUR COWS MORE FROM YOUR TIME MORE FROM YOUR MONEY 40... Rwmtint V*» Precise automatic flow monitoring. New memory strip time. Positive vacuum shut-off. Gentle, delayed removal. Full flow non-plug design. Installs in any dairy. Operation is simple. SCHWEWKSVItLE SPARTAWSBURG Brenner Dairy tquipment Albert Brenner 814-654-7309 to be over four billiou pounds ut milk equivalent. This will continue in 1984 il estimates ai e expected to be over J.b billion pounds and in 1985 the pui chase limit is Ib9 billion pounds ot milk equivalent In any of these years when estimates are below the inaxunum levels the support price can be increased to 75 per cent of parity but no six month adjustment However, this isn’t the end ot the line or the final word. Post hearing briefs are due December 20 and the final bill is to go to the President by January 15 and anything can happen at either place. The big' concern is that the total cost ot the farm bill will exceed the President’s guidelines and get vetoed. However, the word is that these features and provisions are not "east m stone” and will come up tor yearly adjustments and are subject to changes to accomodate budget allotments each year. Under such an arrangement Congress is saying let’s try it if it doesn’t work we’ll change it. Bottom Line Ail of this is interesting and important to understanding the political process and decision making by your Congress and farm organizations that goes into determining prices now that you’ve turned this responsibility over to the government. But the bottom line for your financial planning for the immediate future is don’t expect any higher price for the next year. Whether you blan>e it on the action or inaction of Congress the support price is staying, for this year only, at $12.80 for 3.5 milk not 70 percent of parity or 75 or 65 Out $12.80, period. It’s interesting to know that in October that $12.80 was 72.8 per cent of parity but in November it increased to 73.2 percent. That’s because the Parity Index (the Index of Prices Paid by farmers; dropped four points that month. It fell because ot some of the strange WESTFALIA systemat TROY Uairyland bales S bervice KOBtKI b IUKNbK Jinn Kelley 717-297-4128 WILUAMSBUIIG LongenecKer Implement Dale LongenecKer 814 793-2985 WfcS THALIA SYS ThMA I HAGERSTOWN MARYLAND 1862 Brummel Ur tlh Grove, 1116000/ 1-800-323 6723 .In Mate harm Automation herald Pottenbergei 301-790-3698 Lancaster Farming, Saturday, November 21,1981—A19 leasuns that gave yon increases over the last two jears such as feeder livestock puces tailing JJ points which has nothing to do with the cost ut producing milk. So, alter two years ot depen dence on government supports because of record high 'milk pioduclion they're saying $l2 80 until October 1082 and enjoy it while you can Alter that the support price is bound to tall to whatever inuumums are set by Congress and the President It will likely be less than the present $12.80 because there’s no way that CCC purchases will tall below the mimmums ot milk equivalent now being considered. It the support price had been set WASHINGTON, D.C. - Value ot livestock exports topped that of livestock imports during the first 8 months of calendar 1981, according to a LfSDA Foreign Agricultural Service report issued last week. The report also shows that value of livestock exports, at $2.2 billion, was up 4 percent from Jan.-Aug. 1980, despite lower export value totals of tallow and grease, hides and skins, furskms and variety meats the top 4 livestock ex ports. Tallow and grease exports, at $458.6 million, were down 6 percent from a year earlier. Exports ot hides and skins, at $463.5 million, were down 2 percent, furskm exports, at $270.2 million, were oft 2 percent; and variety meat ex- WING SEi THE WORLD SALES ENGINEER RD #l, Box 11 Aspers, PA 1/3U4 717-677-9301 NATIONAL HEADQUAATMS Livestock exports top imports SERVING THE FARMERS ' FOR 108 YEARS M fcwMr tmm k I<«M HAMBURG SAVINGS FDSC trust^MPANY >IMIM INIUtANCI OarWAtWN IllUVl VUITII 0111 Hamburg, PA Phone: 215-562-3811 A FULL SERVICE BANK • • • • We Gqther Together In Thankful Spirit . . . To meet with family and friends. to express our thankfulness for the many good things of life these happy customs began with the first Thanksgiving Day. And may they long continue 1 At this season, it’s our favorite custom to extend our thanks and best wishes to our friends and customers To all of you, a happy, hearty Thanksgiving l NOLGEMUTH BROS., INC. Mount Joy, Pa. at 70 percent in October 1081 it would have been $l2 27 instead ot $l2 80 as it is now. No one knows what will happen to the economy and the Parity Index by October 1982 but it it doesn’t change which is very unlikely you can expect 50 cents a hundred less on the support price Any increases in the Parity Index during the next year are not likely to be high enough to get back all of that 50 cents difference so don’t gamble on increases above the $12.80 you have now If, on the other hand, the Parity Index continues to drop and this is a strong possibility then 70 per cent ot parity m October 1982 will be less than the $l2 80 present support price. ports, at $20b.0 million, were down 3 percent from a year earlier. But, higher beef and veal and pork exports more than offset the decline. Beef and veal exports, at |i92.5 million, were up 19 pet.; pork exports, at $184.5 million, were up 63 pet. from a year earlier. On the other hand, the value of livestock imports, at $2.0 billion, was down 5 percent from the Jan.- Aug. 1980- total. Pork imports, at $333.3 million, were up 9 percent, and furskin imports, at $135.4 million, were up 46 percent from a year earlier. But, the value of beef and veal imports, at $976.2 million, was down 16 percent; and the value of cattle imports, at $128.6 million, was off 23 percent from the first 8 months of 1980
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