A26—Lancaster Fanning, Saturday, May 28,1983
Milk dealers favor higher Security Fund payments
HARRISBURG - The state’s
milk dealers support the con
tinuation of the present Penn
sylvania Milk Producers’ Security
Fund Law if tightened up with
a possible increase in payments to
build up the Fund.
The Pennsylvania Association of
Milk Dealers, at its recent con
vention at State College, approved
a policy to maintain the present 1
cent per hundredweight payment
from dealers who do not choose to
put up a bond to protect their dairy
farmers. In addition, it was
suggested that all dealers, whether
or not bonded, put up an additional
cent per hundred until the fund
reaches $2 million. It would be
reinstated should the Fund drop
below $1 million.
Dealers took no position on a
suggestion that dairy farmers also
contribute to the Fund in order to
provide more adequate money.
Nor did they discuss whether or not
cooperatives should pay.
As is known, the Fund had built
up to $734,157 when it was hit by
three bankruptcies Sun Re
Cheese, Shadowbrook Dairy and
Damon Dairy. The claims
amounted to over $1.6 million. The
Milk Marketing Board was
authorized by the state Attorney
General to pay all three claimants
which would have amounted to
about 46 cents on the dollar,
compared to the 75 cent maximum
imposed by the law.
Just as claims were to be paid,
Eastern Milk Producers halted
them via court action, alleging its
claim deserved priority on a first
come, first serve basis. It may also
argue that the full 75% be paid
despite the fact the Fund has in
sufficient money to meet the $1.6
alleged obligation. It may take
months before any decision comes
from Commonwealth Court on the
matter.
There are others who maintain
Wolf gets nutrition position
WASHINGTON, D.C.
Secretary of
Agriculture John R.
Block has named Isabel
D. Wolf as ad
ministrator of the U.S.
Department of
Agriculture’s Human
Nutrition Information
Service.
Wolf has been serving
as acting administrator
of the agency since
March 1; before that she
has been director of
USDA’s office of con
sumer advisor since
March 1982.
“I am confident she
will provide strong
leadership and ex
pertise to the Human
Nutrition Information
Service,” Block said.
“She has demonstrated
a high degree of ability
in service as consumer
advisor and as acting
administrator.”
Wolf completed
graduate studies at the
University of Min
nesota, St. Paul. She
was an instructor,
assistant professor and
associate professor in
the Department of Food
Science and Nutrition at
the University of
Minnesota. She was also
an extension specialist
at the university.
Wolf is or has been a
member of the Institute
of Food Technologists,
the Society for
Nutritional Education,
the National Nutrition
Consortium, Minnesota
State Nutrition Council
and the American Home
no money should have been paid
until the Security Fund reached a
$4 million total, which can be in
terpreted from the act. There is no
court case on this matter,
however.
Currently, there are 264 dealer
licensees in the state, according to
reports from the Pennsylvania
Milk Marketing Board. Of these, 53
have filed bonds amounting to
$43,994,519. There are 70 paying
into the Security Fund as 1 cent per
hundredweight on a monthly basis.
This usually builds up between
$25,000 and $30,000 a month.
There are 141 licensees where no
bond is required, either because
they do not purchase milk from
farmers of they are cooperatives
which, under the law, can “opt
out” and pay nothing. Of the 25
cooperatives licensed, one puts up
a bond, according to the monthly
report, and two pay into the Fund.
Others pay nothing. Neither do 44
producer-distributors who are
authorized only to sell the milk
they produce.
Milk dealers objected to the
quickly promulgated law back in
1980 when it was passed, according
to Henry R. Geisinger, Executive
Vice President of the state dealer
association.
“One could readily see there
would be insufficient money
collected under the plan,” the
dealer spokesman said, “and that
it was just a matter of time until
there would be trouble. It took
three years and now there are
questions about who should get
paid, how much and the rest. 'Hie
law must be tightened up to
eliminate these questions and
some action is needed to put
adequate money into the Fund if
the system is to be retained.”
The dealers propose a number of
changes to make it more workable
in addition to their recom
mendation to pay in additional
Economics Association, has co-authored a
She has written textbook. She wrote 23
numerous articles in University of Minnesota
technical journals and extension publications.
w
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With tighter regulations
money. The controls would require
more financial reports from
dealers, the need to maintain
adequate assets over liabilities,
etc. Penalties and trusteeship
arrangements are suggested in an
attempt to maintain controls.
We can still forsee problems,”
Geisinger added. “In these times
of economic stress there un
doubtedly are dealers who may not
be able to make the grade and
there is inadequate money in the
Fund to pay farmers. In addition,
it is alleged some of the claims
could run into the multi-million
dollar range just from a single
participant among those in the
Fund.
“With the current low profit
margins plus competition from
out-of-state dealers and
cooperatives who pay nothing,
dealers cannot afford to contribute
money that rapidly to build up
adequate ‘insurance’ to protect
producers shipping to these large
handlers. Dealers certainly want
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As of this date there are no ® legislators an
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