DlB—Lancaster Farming, Saturday, September 25,1982
The Milk
Cheek
TOM JUECHAK
County Agent
Stay Alert
it we take tune now while
Congress is in recess tor Labor
Day speeches to examine what the
House£enate Conference Com
mittee came up with last month tor
the new dairy price support
program, we’ll have a better idea
ot what will be considered when
they reconvene alter the holiday.
The new marketing year starts
October 1 so, decisions will be
made quickly withui the next tew
weeks to stop the 15 cent increase
in the present 113.11) support price
that was scheduled in the tann bill
passed by Congress in December
ot last year. That bill was to take
care of price supports tor the next
four years but is being changed
betore the tirsl year is finished.
Just an inkling ot how last things
are changing and why you have to
stay alert to be current on how
Patz
with claws and cutters. *
Powerful blower with adjustable blades.
Self-leveling device gives uniform
silage removal.
Power cutter hugs the silo wall to
eliminate silage buildup.
P92Z • Performance Strong as Steel
DISTRICT MANAGER
3.
4.
GEORGE HEA T H 472 Woodcrest Dr Mechamcsburg PA 17055 717 737 0002
Contact your nearest Patz dealer
ALEXANDRIA
MAX ISENBERG
BX4-669-4027
SALLY
LONGACRE
ELECTRIC
215-845-2261
BEDFORD
BENCE FARM
EQUIPMENT
814-623-8601.
BELLEVILLE
MACLAY & SON
717-935-2101
MOYER
CAMPHILL. 215?S V 7s E
LLOYD SULTZBAUGH 3/W> ' a67s
717-737-4554
OUARRYVILLb
UNICORN FARM
CUMBERLAND FARM SERVICE
& DAIRY INC. JAMES E. LANDIS P & S EQUIPMENT,
717-263-1965 717-786-4158 INC.
kl 301-452-8521
CHAMBERSBURG
your future income will be at
tected.
As ot now, this is how we stand
on the House-Senate Conference
Committee proposals tor the new
dairy price support program.
For the years beginning October
I, 1982 and 1983, the price support
will be $13.10 eliminating the in
crease ol 15, 75 and CO cents
provided in the 1981 legislation.
That's wiping out $1.50 in mcreases
from 1983 to 1985. For October i,
1984, the new proposal calls tor a
price thal represents the same
•percent or parity ” thal $l3. to will
be on October 1,1983. That puts it
down to about 60 per cent aq
cordtng to present estimates.
In addition to all this, the
Secretary ot Agriculture has been
given discretion to reduce the price
ot all milk sold by 50 cents on
HAMBURG
SHARTLESVILLE
FARM SERVICE
2X5-488-1025
LEBANON
MARVIN J. HORST
DAIRY EQUIPMENT
717-272-0871
MILTON
AUTOMATION STEAD KfcNNfcDYVILI t Ml)
717-437-2375
PIPERSVILLE
Tally Sheet
IbKKb HILL
TERRE HILL
SILO CO. INC.
215-445-5736
MARYLAND DEALERS
lAGERSI
TRI-STATE
FARM AUTOMATION
301-790-3698
PINDER SERVICE CO.
301-348-5263
LINE BORO. MU
WERTZ GARAGE, INC.
301-374-2672
new Windsor mu
ROOP FERTILIZER
& CHEMICAL
301-775-7678
SI REE I. MU
October 1,1982 to ottsel some ol Hie
costs to Commodity Credit Cor
poration and another MJ cents
reduction on April 1, 1983 it CCC
purchases are projected to be
more than live billion pounds ot
milk equivalent.
With last year s CCC purchases
ot Id billion pounds ot milk
equivalent and milk production
still on the increase nationally, you
can bet that CCC purchase will
exceed live billion pounds. Cutting
it all together, it things go ac
cording to the present proposals
you can expect a support price ot
sl2.t>U on October 1 with a reduc
tion ot $12.1(1 on April 1 ot next
year.
Ketuud Available
There is, however, a provision in
the proposal to reduce or retund
the second Ml cent assessment tor
those tanners who voluntarily cut
production below a base period ol
one year starling Oclobei 1,1981 or
two years starling October 1,198(1.
The option, according to the
proposal, is up to the becrelary to
decide whether to use one year or
two years.
I'resumably the return! would be
in the proportion to the reduction m
milk produced but could not ex
ceed the same percentage that the
national average ol surplus milk is
to the total production. Kor in
stance, il the surplus production is
projected to be ten percent ol the
national supply a tanner would gel
no more than a OU cent retund atlei
reducing his production by ten
CHQE& FARM DUTY, SINGLE PHASE
sP£*& ELECTRIC MOTORS
1750 R.P.M. TOTALLY ENCLOSE
1 H.P., 143 Frame *1 16.20
1.5 H.P., 145 Frame. . *152.60
2 H.P., 145 Frame .. *201.60
3 H.P., 184 Frame ... ... *240.00
5 H.P., 184 Frame .., *299.60
7.5 H.P., 215 T Frame *434.00
10 H.P., 215 T Frame *525.00
86 Lengths... 2”.. .Second Hand...Bo 95*
44 Lengths... 3 /*”...Second Hand...Bo 26*
2 Lengths...4”...Second Hand.. .40 *2.05
11 Lengths...4”...Second Hand... Black
3 Lengths...6”...Second Hand, Like New
2 Lengths...B”...Second Hand .
BLUE BALL MACHINE WORKS
BOX 176, RT. 322 BLUE BALL, PA 17506 - PH: 717-354-4478
percent trom the base period.
. All ot tins cduld be changed,
somewhat, it the proposed prices
are actually used, but ÜbUA
should do something about the tact
that the present "support pi ice’ ol
$13.1(1 is already Mi cents below the
national average price ot
manufacturing grade milk.
This lias happened because
USLIA has dune nottiuig in the last
three years to adjust the rising cost
ol converting milk into butler,
powder and cheese so, buyers must
pay less than the support price tor
milk so they can sell the butter,
powder and cheese to CCC tor $1.49
on butler; 94 cents tor powdei and
$1.39!) tor ciieese which are the
support prices tor the inanutac
lured dairy products. It s only
window dressmg to talk about
support prices tor milk it the
support prices tor the products
aren’t adjusted accordingly.
Classic Compromise
Before you can appreciate the
work ol the Conference Com
mittee, you should realize that
what they started with was a
benale bill that would have simply
maintained the $13.1(1 support
price tor the next three years and a
House bill that followed the
program suggested by National
Milk I'roducers federation. The
NMPK program included a two
price system and a national
referendum on a live cent
producer contribution to support
milk and dairy product promotion.
Out ol this, and in a mallei ol
days, the Conference Committee
came up with a master! ul com
promise that contained at least bits
and pieces ot nearly every
proposal that had been made m the
House and benate during the
preceding tour months. Politically
it lias something lor everyone but
economically does nothing to
piovide a lasting solution to sur
plus milk production,
for an example, let s look at
UNTESTED PIPE
*1.75
*3.75
*6.50
some ol ttie bits and pieces that
were lilted Irom earlier
suggestions and included ui Uie
Conterence ConunUlee report. The
Administration wanted "complete
discretion’’ in setting the support
price. That was too much tor
Congress but what they got was the
"discretion’’ to add a couple ot 1)0
cent assessments on producers to
reduce the cost.
American t' arm bureau wanted
a trigger mechanism and they got
one ot sorts in the guidelines that
Ui>UA must totlow in making their
assessments. NMFK wanted to
hang on to the parity tormula in
determining the support price and
lliat will be included but not until
1384. beveral national tarm
organizations were supporting
bills that revolved around
production bases and quota plans.
That too is included, slightly, with
the retunds on the second i>o cent
assessment.
You can go on and on tilling the
pieces together bui wlial you
tinally gel will be decided by wlial
each house in Congress does willi
this proposal and Ibal will
probably happen belore the end ot
September. A reduclion in Hie
support price rather lhan an in
crease seems almost a certainly
tor October Isl. A SO cent chop in
Hie support price will iranslale into
a 2b cent di op in the larm price.
Compared lo other tann prices
you 11 be lucky it that s as tar as il
uoes. I'he worry is that the cut will
be deeper to accoiiunudate the
latest budget restrictions. The
second 50 cent cut will add ad
ministrative costs to the program
is the retund provisions are in
cluded. it’s questionable that it will
stay as it is.
All ol tins, ot couise, is meie
speculation until congiess decides
on a program but most people
agi ee that there s little hope tor a
lasting cuie and it the cuts don l go
any deepei, we 11 be lucky.
GIGANTIC
SELECTION
Lancaster
Farming's
CLASSIFIEDS
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