Diversion played right into dairyman’s hands UNIVERSITY PARK Many be able to qualify for payment Program without ci Pennsylvania dairy farmers will under the Dairy Diversion production or making any cl ATTENTION Now Call Toll Free 1-800-692-6249 KNOW YOUR ENEMY AND SAVE YOUR TREES FROM THE GYPSY MOTH SERVING FARMERS NEEDS THROUGHOUT PENNSYLVANIA FOR THE PAST 8 YEARS WE ARE NOW TOP DRESSING WHEAT Covering The State Of Pennsylvania ED & DICK'S AIR SERVICE RD 3, Benton, Pa. 17814 717-784-5027 New Case 1594 human engineered for high productivity New high comfort cab option instrumentation, steering, lighting new power rating-85 hp* (63 kW) for improved performance lower link sensing new Quick - Tach loader available optional MFD (Mechanical Front Drive) for all-season traction 12-speed synchomesh or optional 12-speed power shift transmissions Plus a host of interrelated design features that minimize fatigue and promote field productivity See us soon. Field testa new Case 1594. 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START NOWI Help Control The Gypsy Moth By Planning Ahead And Call For More Information, Prices & Appointments FOR AERIAL SPRAYING IN MAY Richard Karschner, Owner Based at The Bloomsburg Municipal Airport 1-800-692-6249 new human engineered seating, controls & JUNE NOW AVAILABLE: PRING AND FALL CHRISTMAS TREE SPRAYING WE SPRAY ALL VARIETIES OF CROPS! Any Size -- From House To Thousands of Acres 'Mir s PTO rating in their operations, says Jack Kirkland, Penn State Extension agricultural economist. “Pennsylvania dairy farmers have proven that you can have your cake and eat it too, probably much to the discomfort of government policy makers,” he said. itting langes The diversion program pays farmers $lO for every 12 gallons that they reduce production by over a 15 month period. It was designed to help eliminate large surpluses of milk which are sold bade to the government in order to make sure dairymen’s milk is priced at support levels. The program is run by voluntary sign-up by the farmer. Any farmer who wanted to participate, signed a contract with the government to reduce milk production by a specified percentage below the farmer’s base milk production. The base figure is determined by a historical base period of milk sales, either milk sales for 1982 or an average of 1981 and 1982 milk sales. But since many Pennsylvania dairy farmers already produced less milk in 1983 than their base figure, they will not have to make any further reductions to qualify for the payments. “The program will pay many Pennsylvania dairy farmers for doing something they have already done,” Kirkland says. “But the program is self-financing and in effect, the dairymen are paying themselves. Income is just being shifted through the workings of the program from one group of dairymen to another without any direct cost to the consumer.” Farmers across the state will receive about $25 million in payments. Money for payment in the program comes from an assessment of 50-cents for every 12 gallons of milk sold bv all Lancaster Farming, Saturday, April 14,1984—021 dairymen. Reduction in the state will be much less than the preliminary results of the program suggested, Kirkland says. After looking at the sign-up for the program, government officials estimated that Pennsylvania farmers would reduce production by 254 million pounds. But because many do not have to reduce to meet their base figure, farmers in the state will only reduce production by about 90 million pounds. This is less than a 1 per cent reduction from 1983 levels of production. One gallon is equal to 8.6 pounds. This smaller reduction, along with the fact that many dairymen did not sign up to participate in the program and might continue to increase production, means that the state milk production may increase a small amount this year. Several factors may have in fluenced farmers’ decision not to participate. Many farmers have long-range goals that might not be compatible with participation in the program. Since payments are made only quarterly, others may not have participated because of cash flow needs. Higher feed prices and lower milk prices also cut into farmers’ profits, causing many to increase production in hopes of increasing or even maintaining net income levels. A large number of replacement heifers will also come into milking production next year, meaning there will probably be more cows to produce milk. “One important factor often overlooked which adds to milk production is that dairying is many farmers’ best alternative,” Kirkland says. “They will continue to try to weather this stormy period and continue to produce milk.”
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