' ' "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
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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