USDA announces official dairy support prices GREEN BAY, Wis. - The national support price for milk was reduced from $12.60 to $12.10 per hundredweight on April 1, ac cording to Secretary of Agriculture John R. Block. He added, however, that the current $.50 per hun dredweight deduction from the proceeds of all milk marketed for commercial use by producers will end on March 31. “We have determined that the new support price will assure an adequate supply of wholesome milk to meet current needs,” Block said. “It is our hope that this ad justment will bring supply and demand into a better balance. At the same time, producers will be relieved of the $.50 per hun dredweight deduction required by the Dairy and Tobacco Adjustment Act of 1983.” The support price is being reduced under provisions of the 1983 Act, which authorizes the Secretary to reduce the support price on April 1 if net price support purchases by the Commodity Credit Corporation (CCC) in the next 12 months are estimated to exceed six billion pounds of milk equivalent. “Even with the reduced support price, we estimate net price support purchases by CCC for the next 12 months will be 9.1 billion pounds milk equivalent,” Block said. “The reduction in the support >4* ~ * A farmer’s life isn't always good weather and bumper crops. Sometimes you need financial help That’s why it's good to know that American Bank’s Agri-Business Department has regional offices throughout southeastern Pennsylvania There’s one nearby to help you. Our regional Agri-Business offices give you something most banks can’t Under standing Our Agri-Business experts live and work in your area. Each has a solid farming Palmyra/Myerstown Kennett SquareThorndale Lancaster Reading Andrew C TerreH Gary Kline Bob Zook Dave Myers 717-274-6402 215-444-6060 717-295-8577 William Hughes Or call 1 -800-222-2150 21 5-320-3276 MEMBEHFDIC price is needed to bring about a reduction in the excessive CCC purchases and costs of the program.” The support price of $12.10 is for milk with a milkfat content of 3.67 percent-the national average-and compares with $11.82 per hun dredweight for milk with a milkfat content of 3.5 percent. The $12.10 support price will remain in effect until September 30, 1985,” Block said. “However, the 1983 Act authorizes an ad ditional adjustment in the level of price support on July 1, 1985, depending on estimated price support purchases by CCC for the 12-month period beginning on that date.” The price support program for milk is earned out through CCC purchases of butter, cheese and nonfat dry milk. The CCC purchase prices for these dairy products will be adjusted on April 1 to reflect the lower support price. In calculating the new purchase prices for butter and nonfat dry milk, the reduction in the support price for milk used in making these products is allocated entirely to nonfat dry milk. Also, a single nationwide purchase is established for butter. The purchase prices for cheese will reflect a projected net return for whey sohds-not-fat. The ■ dif ferential between the purchase prices for barrel and block cheese { 3 - A K Z, * v i^' ♦ ■i American Bank a Meridian Bank > * 9 -A**. *. •** * -V •* background, combined with years of banking experience Our special understanding means that loan decisions are made quickly, right in your local branch office Along with the personal attention we ll give you, American Bank has the resources you need When you need farm loans, or any banking service, see the American Bank Agri-Business specialists near you It’s good to know you 're in American Bank territory has been increased from 3.0 cents pnces are unchanged. CCC-owned <* u «ve me newly establishes! to 4.25 cents per pound. dairy products will continue to be purchase pnces. The manufacturing allowances otfered for sale for unrestricted The prices that CCC will pay for used to calculate the new purchase 1186 at P nces about 10 percent dairy products are shown below. Butter 64- & 68-lb blocks (U S Grade A or higher) Nonfat dry milk (spray) 50-lb bags (U S Extra Grade, but not more than 3 5 percent moisture) Nonfortified Fortified (Vitamins A and D) Cheddar Cheese, standard moisture basis 40- & 60-lb blocks, U S Grade A or higher (no vat shall contain more than 38.5 percent moisture) 500-lb. in fiber barrels, U S Extra Grade (no vat shall contain more than 36.5 percent moisture) 1/ Purchase price at New York City and Jersey City, Newark and Secaucus, New Jersey. The price of butter located at any other point outside these cities will be the price at New York City minus 80 percent of the lowest domestic railroad through freight rate for frozen butter in effect on October 1 of each marketing year from such other point to New York City. The appropriate freight rate will be calculated on a per pound gross ■% w v.s * A ■MX-* •» ja'** <* ' * >. “I* /£*: , >• •-,>*,. V < >*■ * , w*l*' \ *y* * *p v* 3* ' * **'>’' v ' 'v ***J , r£* „'• \ ; 4tC •?>*. - ’*•- -'< ~'- r Z- > .: . —t, / An Equal Opportunity Lender weight basis for a 60,000-pound carlot. However, the price at any location shall be not less than the purchase price at New York minus 3 cents per pound. In the area consisting of Maine, New Hamp shire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland and Virginia, CCC will purchase only bulk butter produced in that area; butter * > Lancaster Farming, Saturday, April 13,1985-A23 Products Produced before April 1.1985 and Graded and Offered by April 15.1985 Products Produced on or after April 1. 1985 or not Graded and Offered prior to April 15, 1985 Dollars per pound- 1 4625 1/ 0 9100 0 9225 1 3475 1 3175 produced in other areas is ineligible for offering to CCC in such States. 2/ Single nationwide price for butter at all locations 3/ The cheese price will be ad justed for moisture content, except that price adjustments for cheese with a moisture content of less than 34 percent will not exceed that for cheese with a moisture content of 34 percent. 1 4325 2 0 8475 0 8575 1 2875 3 1 2450 3
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