A34—Lancaster Farming, Saturday, January 21,1984
Legislative priority
(Continued from Page Al)
they have incurred as a result of
the Avian.
Using a formula of an average
cleanup cost of 10 to 12 cents a bird,
the proposed state program ap
pears to go well beyond the ap
proximate 10 million birds which
have been killed to date. It appears
that the proposed increased state
funding includes the possibility of
cleanup following any killing of
birds with the mild Avian strain -
if and when the final decision is
made to add these birds to the
depopulation schedule.
Meetings have been held during
the past couple of weeks with
representatives of the dairy in
dustry on a bill which is expected
to be introduced by Rep. Samuel
Morris, chairman of the House Ag
and Rural Affairs Committee, to
get the Milk Security Fund back on
a sound financial basis.
The proposed legislation is
designed to close some of the gaps
in the Fund which have resulted in
its depletion by dealer bankrupt
cies.
A main feature is that the
security aspect of the fund will not
be on a pooled basis, as in the past,
but on an individual dealer basis.
Thus, an individual dealer’s ac
count in the fund would be credited
with a certain amount, providing
continuing protection for
respective producers.
The individual dealer security
arrangement would prevent a
reoccurrence where a major
bankruptcy by a dealer would
deplete the entire fund.
If a dealer’s financial condition
can’t show a ratio of 1.2 to 1 of
assets over liabilities, there are
two alternative plans for con
tributions to the fund.
If the dealer has bonding equal to
75 percent of the highest amount
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owed to producers during any pay
period of the previous year, no
additional payment into the fund is
needed.
But if the dealer has bonding
between a minimum 30 percent
level and the 75 percent level, a
payment of two cents per hun
dredweight would be paid and
credited to his individual security
account.
Both of these pieces of major
legislation are expected to receive
the prompt attention of legislators.
Several other pieces of
legislation are also of interest to
the ag community.
Two bills limiting foreign in
vestment in Pennsylvania
agriculture have been introduced
by Rep. Carville Foster, of York.
These would reduce foreign
acquisition of farmland from the
present 100-acre limit to 10 acres
and exclude foreign-owned cor
porations from receiving Penn
sylvania Industrial Development
Authority funds.
These restrictions on foreign
investment have come out of
concerns expressed by poultry
producers, particularly in Adams
County. These producers have
pointed out that a lot of birds can
be placed in confinement housing
on a hundred acres. Their concerns
pointed to both Japanese and West
German interests in the poultry
industry.
A bill to provide $lOO,OOO foi crop
damages has been introduced into
the House Ag Committee by Rep.
Eugene Smith, of Jefferson. The
money is designed to go to farmers
with crop insurance who suffer
wildlife damage and have at least
half of their land open to hunting.
Senate Bill 63 which-has beefed
up regulations controlling auc
tioneers and auction houses is
awaiting the Governor’s signature.
you know
t...
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At LANCASTER FARMING, we think we
do a good job of keeping you in
formed... and we have over 40,000 paid
subscribers who think so too!
P.O. Box 366, Lititz, PA 17543
F l ' '•>, r • Phone
8l*IT)IITCI 717-626-1164 or 394-3047
Northern Tier Co-op gives report
TROY As predicted by of
ficials of Northern Tier Farmers
Union Milk Cooperative, the
market administrator of Federal
Order §2 has successfully released
money in The Producer’s Set
tlement Fund which was geared
for dairy farmers who formerly
shipped milk to Scheps Cheese
Company of Lemon, Pennsylvania.
Arden Tewksbury, Consulting
Manager of Northern Tier, said the
checks which amounted to ap
proximately $3OO to the average
shipper, were received by the
former shippers of Scheps Cheese
just prior to Christmas, 1983. While
the monies received represent a
small portion of the losses suffered
by the dairymen, the avenue was
opened and the first revenues
imparted to the dairymen as a
result of the bankruptcy.
Tewksbury related that under
normal conditions, fluid milk
handlers pay the difference bet
ween the fluid price and the blend
price into the Producers Set
tlement Fund; then the market
administrator remits the money to
the manufacturing handlers so
those handlers may use the money
to pay the producers the blend
price.
According to Mr. Tewksbury,
when a bankruptcy occurs, the
usual procedure is for the market
administrator to retain the money
in a special account and forward
the funds to producers after an
audit and other courses of action
No progress is reported on the
“bottle bill” to require a man
datory fice-cent refund charge on
bottles and cans.
And the Administration’s efforts
to sell the State Store liquor
retailing system to private en
terprise is expected to be opposed
by a number of farm groups.
have been taken.
William Sturges, president of
Northern Tier, who also serves as
chairman of the ex-Scheps Ship
pers Committee commented the
following; many times Federal
Milk Market Orders are critized
and even condemned by some
dairymen, but here is one more
instance which proves that
dairymen benefit from the Federal
Milk Market Orders.
In August 1983, Northern Tier
Cooperative, with the support of
Pennsylvania Farmers Union and
Pennsylvania State Grange,
formed the ex-Scheps Shippers
Committee. The Committee
engaged Attorney Marian Fur
man, from Harrisburg, to
represent the producers in the
bankruptcy process. Sturges said
are the only real group that is
representing the dairymen in these
proceedings.
Tewksbury feels there are still
three more possibilities in which
ex-Scheps Shippers may receive
money toward their losses.
1. There appears to be ap
proximately $200,000.00 in the
Pennsylvania Security Fund which
is geared for the ex-Scheps
Shippers. However, a law suit filed
by Eastern Milk Producers is
preventing payment of this needed
money to the ex-Scheps shippers. A
hearing ont he law suit is not ex
pected until early spring of 1984.
2. Attempts are being made to
rppnvpr snmp of the milk losses as
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BE
SLOW
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CLASSIFIED AD
Ph: 717-394-3047 or 717-626-1164
a direct expense of hte bankruptcy.
If this attempt is successful, it
could generate $450,000.00 ad
ditional funds for the ex-Scheps
shippers.
3. A strong attempt will be made
by the secured creditors during
January to convert the Court
Proceedings from Chapter 11 to
Chapter 7. This could mean quick
liquidation of the assets of Scheps
Cheese, i.e, dairy farmers would
receive no additional money.
Both Sturges and Tewksbury
agree that they are going to
maintain a strong opposition to the
conversion. Recent developments
gave both farm leaders en
couragement of a possible
reorganization plan under Chapter
11 which would generate extra
money for the ex-Scheps Shippers.
Carl Kaufman, State Director of
Pennsylvania Farmers Union,
affirmed his Organization and the
Pennsylvania State Grange are
still 100% behind the efforts of the
ex-Scheps Shippers Committee.
Kaufman stated he knew this
bankruptcy would be tough, but
leaders of Northern Tier have
worked diligently on all aspects of
the former shippers to Scheps
Cheese.
Kaufman further praised the
work being done by Attorney
Marian Furman. He said, “It is
rewarding to see an Attorney work
so hard on behalf of* dairy far
mers”.
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