C2—Lancaster Farming, Saturday, August 18,1984
WASHINGTON, D.C. - Charles
Wismer, Master of the Penn
sylvania State Grange and Arden
Tweksbury, Manager of Northern
Tier Cooperative and representing
Pennsylvania Farmers Union
urged the U.S. House Sub
committee on Livestock, Dairy
and Poultry of the Agriculture
Committee to give immediate
consideration to House Bill HR
5037.
The bill, known as the Milk
Producers Prompt Payment Act of
1984, was introduced by
Congressman Joseph M. McDade
(R. 10th District), - Mr. McDade’s
Congressional District has been
rocked by several dairy
bankruptcies during the past few
years, including the most recent
one, Scheps Cheese. The original
bill called for prompt payment to
dairy farmers within 24 hours after
delivery of milk to their handler. In
addition, each handler would be
compelled to establish a trush fund
to protect the dairymen.
According to Tewksbury, the 24-
hour payment period seems to be
lacking support, but the concept of
the milk handler trust fund ap
pears to have substantial support.
In his prepared statement,
Wismer noted the continued losses
suffered by dairy farmers due to
bankruptcies dictate a much
needed change in protecting the
dairymen’s milk check; Wismer
stated he felt the type of a trust
fund as advocated by
Congressman McDade appears to
be the answer. The grange leader
further stated the Pennsylvania
State Grange would urge the
adoption of a three tier pricing
mechanism for all dairymen.
Wismer further stated he agreed to
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case of a bankruptcy.
Tweksbury noted in his remarks
to the Committee that during the
last 10-years dairy farmers in the
Northeast have lost nearly 20
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million dollars due to bankruptcies
by milk handlers. He further
stated, “such conditions can not
continue, and the idea of the trust
fund, which would be untouchable
for other reasons then to pay dairy
farmers could be the answer to the
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present dilemma facing hundreds
of dairy farmers”. The dairy
leader reported that Pennsylvania
Farmers Union and Northern Tier
established policies in February
1984 urging dairy farmers be paid
at least three times a month. Both
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organizations welcome the idea of
the Pennsylvania State Grange’s
position on a three tier payment
play for producers. Tewksbury
noted to the Committee the
discrepancies of payment dates to
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