A32—Lancaster Farming, Saturday, April 9,1983
Co-op cites need for security fund action
SUSQUEHANNA - The Nor
thern Tier Farmers Union Milk
Producers Association
Cooperative is calling on the
Pennsylvania dairy industry to
speed up efforts to rebuild the
depleted Milk Security Fund.
Among efforts being discussed
are:
A levy of two cents per
hundredweight on all milk han
dlers, both propriatory and
cooperatives.
A contribution of one cent per
hundredweight by all dairy far
mers for one year.
Arden Tewksbury, Manager of
Northern Tier, says that moat of
the-other recommendations so far
center around an improved
auditing of Pennsylvania milk
handlers by the Pennsylvania Milk
Marketing Board. Also, improved
screening and surveilance of new
milk handlers intending to buy
milk from Pennsylvania dairy
farmers. Tewksbury said that
these proposed suggestions should
be made part of the present milk
security law, but equally im
portant is the need of speeding up
the amount of payment into the
fund.
Northern Tier and Pennsylvania
Fanners Union have been meeting
with farm organizations, milk
handlers and several Penn
sylvania legislators in an attempt
to seek out and develop some
conformity of ideas for a program
which would build a viable milk
security fund.
Tewksbury said there are ap-
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Northern Tier Farmers Union Producers
proximately 9.2 billion pounds of
milk produced annually in Penn
sylvania. Of this, 3.5 billion pounds
is controlled by licensed milk
handlers participating in the milk
security fund. Other propriatory
milk handlers using about 3.5
billion pounds of milk annually
have adequate bonds or letters of
credit to cover the milk they
purchase.
Carl L. Kaufman, State Director
of Pennsylvania Farmers Union,
claims the present law does not
require dairy cooperatives to bond
themselves nor are they compelled
to contribute to the milk security
fund. Cooperatives handle about 2
billion pounds of milk not protected
by the milk security law.
At a meeting held last week in
Mountain View High School,
Susquehanna County, Tewksbury
listed several plans being con
sidered.
(1) The first and best plan,
according to Tewksbury, would be
to have all milk handlers
adequately bonded. There are
many who claim that this is not
possible, he added.
(2) All milk handlers, both
proprietary and cooperatives, pay
into the security fund at the rate of
2 cents per hundredweight. This
contribution would bring the fund
up to nearly $2 million at the end of
the first year and very close to the
desired |4 million at the end of the
second year. At that point if there
were no drawdowns, the con
tributions would cease.
However if neither of these plans
are formulated and we the in
dustry is compelled to stay with
the existing law as far as revenue
is concerned, there would probably
end up being about 3.5 billion
pounds of milk bonded, 3.5 billion
pounds protected by the milk
security fund and approximately
2.2 billion pounds controlled by the
cooperatives, according to
Tewksbury.
Both Carl and Tewksbury agree
1983
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that milk handlers who cannot or
will not be bonded should pay 2
cents per hundredweight into the
milk security fund. Tewksbury
claims he has talked to several
milk handlers who are willing to go
to that level. However this plan
would still bring in only $700,000
the first year and this does not
bring in adequate protection for
dairy farmers shipping to milk
handlers participating in the fund.
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SATURDAY APRIL 30th. 1983
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R.D. 1 BOX 325
BEDFORD, PA. 15522
814/623-8981
Tewksbury said.
In talking with several
legislators, Tewksbury says it
appears that there is some sen
timent towards having all dairy
farmers contribute 1 cent per
hundredweight into the milk
security fund for one year. This 1
cent payment by producers would
generate an extra $900,000 the first
year and with the 2 cent con
(Turn to Page A 33)
1:00pm
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1983
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