■' 1 1 I I ■ ■ |l ' m "
VOL. 29 No. 49
Many mergers seen
in future of co-ops
BY SALLY BAIR
Staff Correspondent
HARRISBURG - To launch
October as Co-op Month,
cooperatives in Pennsylvania took
a look at their future this week.
And what did they see?
Here are a few glimpses into the
co-op crystal ball from a session on
“A Look into the Future” at the
annual meeting of the Penn
syvlania Association of Farmer
Cooperatives at the Downtown
Holiday Inn, Harrisburg, Monday:
Co-ops cannot be all things to
all people.
There will be many con
solidations and mergers ahead for
co-ops.
Sounder business policies
must be adopted.
Farmer loans may be tied to
world market prices.
Over the long haul the future
is optimistic, while there may be
hard times ahead.
Role of co-ops in ag’s future is discussed oy panel at annual
meeting of Pa. Assn, of Farmer Cooperatives including, from
the left, State Rep. David Wright; Wayne Boutwell, president.
National Council of Farmer Cooperatives; Gene L.
Swackhammer, president, Farm Credit Banks of Baltimore;
and moderator George Steele, PAFC vice president.
Pa, dairy farm profits cut in half in 1983
Dairy Exclusive
BY LARRY C. JENKINS
Penn State Extension
Farm Management Specialist
UNIVERSITY PARK - Ac
cording to a recent study of farm
business records, Pennsylvania
dairy farm earnings dropped more
than 50 percent last year. Net farm
income declined from an average
of $16,985 or $283 per cow in 1982 to
$7,343 or $llB per cow in 1983. Bad
weather, lower milk prices, and
higher feed prices were largely
responsible for the cut in profits.
A somewhat better year is ex
pected in 1984, primarily due to
improved weather conditions
which permitted dairy farmers to
rebuild their forage inventories.
Five Sections
And to set the stage for the PAFC
annual meeting, the official
proclamation declaring October as
Co-op Month was presented by
state government representatives.
Secretary of Agriculture
Penrose Hallowell read the
proclamation signed by the
governor which read in part, “to
recognize that Pennsylvania
cooperative organizations and
institutions play an important part
in meeting the needs of many of
our citizens and in improving our
communities.” The proclamation
noted that cooperatives are among
the leading business enterprises in
the Commonwealth, with more
than three million owner
members.
In proclaiming October as
Cooperative Enterprise Month in
Pennsylvania, the Governor said,
“I urge all citizens to recognize the
benefits gained by belonging to
(Turn to Page A 36)
Some improvement seen in 1984; financial base remains secure
This should help offset further
declines in milk prices.
Farm records for 1982 and 1983
from more than 800 Pennsylvania
dairy farms were included in the
study, which was conducted by
farm management Extension at
Penn State. Farms selected had
milking herds averaging 60 cows
and were limited to owner
operator units. Only those farms
with more than 98 percent of net
income from sales of milk and
dairy stock were included. The
purpose of the study was to
determine both the amount and
reason for reduced dairy farm
income.
Lancaster Farming, Saturday, October 6,1984
Robert Delano, center, president of the American Farm Bureau Federation, chats with
John Pitzer, left, former PFA president from Adams County: and Dale King, current
president of the Adams County Farmers Association.
Farm Bureau head visits Adams
BY DICK ANGLESTEIN
GETTYSBURG - Robert
Delano, Farm Bureau president,
sandwiched a visit to the annual
meeting of the Adams County
Farmers Association Tuesday
night between corn harvesting on
his Virginia farm and a trip to
Australia and offered the following
comments at a free-wheeling press
conference prior to his prepared
address:
-The only new element in the
1985 Farm Bill will likely be a
marketplace rather than a big
government orientation. But other
than that there probably won’t be
too many changes.
-He believes in the long run
farmers are better off today than
they were four years ago.
-John Block has been a pretty
good ag secretary, but the job is an
impossible one with all of the
different interests to try and
satisfy.
Feed costs higher
Increased feed prices was one
factor responsible for lower dairy
farm profit in 1983. Pennsylvania
dairy producers increased spen
ding for feed last year by an
average of $2,666 per farm or $43
per cow. Purchased feed ac
counted for 39 percent of total feed
cost and approximated $5OO per
cow in 1983.
Raised feed is responsible for 61
percent of total feed cost on
Pennsylvania dairy farms. This
second component of feed cost had
a large impact on dairy farm
earnings last year.
The amount of raised feed used
is measured by the change in feed
inventory and by disappearance of
crops produced during the year.
Inventory increases when amount
of feed placed in storage during a
-The future of Northeastern
agriculture lies in more
specialization, such as fruits and
vegetables, to satisfy the large
nearby metropolitan markets.
-Yes, the Northeast generally
does get shortchanged in federal
Avian quarantine lifted
HARRISBURG - The avian flu
quarantine in southeastern Penn
sylvania, imposed nearly a year
ago, has finally been lifted, Penn
sylvania, Agriculture Secretary
Penrose Hallowell announced
Thursday morning.
However, one farm in the
quarantine zone that has not been
disinfected and several others that
have not yet completed their
thirty-day downtime, will remain
under the quarantine until they are
approved, he said.
Larry Jenkins
$7.50 per Year
ag legislation and programs, with
favor still going to the South and
Midwest,
-More debate is still needed on
how to handle the dairy situation in
the new Farm Bill, but one thing is
(Turn to Page A 35)
The quarantine was imposed last
October in an effort to combat the
avian flu Over 16 million birds
were killed in Pennsylvania
because of the highly contagious
poultry disease that has cost the
federal government almost $5O
million to fight.
Lifting of the quarantine will
allow poultry farmers to resume
normal trade with other states and
nations. There are currently 23
nations with trade restrictions on
U.S poultry products.
year exceeds amount used. If use
exceeds amount placed in storage,
inventory is reduced.
Bad weather
The amount of stored feed in
inventory was substantially
reduced in 1983. Dairy farmers
were unable to replace stores of
feed due to poor weather con
ditions. Daily feed requirements
exceeded amount of feed har
vested, therefore stored feed in
ventory and end-of-year inventory
decreased. Numerous empty or
near empty silos, hay bams, and
granaries appeared by May, 1984.
The reduced value of stored feed
inventory last year averaged
$8,594 per farm or $139 per cow on
farms studied. In order to secure
an accurate measure of net farm
earnings, reductions must be in-
(Turn to Page A 35)