rder 2 dairymen could have earned $32 million in diversion, study says
NEW YORK - According to a
report released by Market Ad
ministrator Thomas A. Wilson,
thousands of Federal Order No. 2
dairy fanners who did not par
ticipate in the 1964-85 Milk
Diversion Program (MDP) lost the
opportunity to receive |32 million
in MDP payments.
Wilson said that a study con
ducting by his office shows that
4,386 dairy farmers reduced
marketings to MDP-qualifying
levels during the fifteen months of
the program (January 1, 1964-
March 31,1985).
However, only 1,279 of these
fanners signed a MDP contract
and were eligible to receive
payments. The remaining 3,107
farmers would have been eligible
for $31.7 million m payments
($10,215 per farm), had they an
ticipated the level of their
marketing decline and signed a
diversion contract to that effect.
There were 1,935 New York
farmers, 106 New Jersey farmers,
and 1,064 Pennsylvania farmers
who reduced marketings suf
ficiently but did not sign contracts.
These farms lost $20.8 million in
New York ($10,730 per farm), $1.2
million in New Jersey ($11,792 per
farm), and $9.7 million in Penn
sylvania ($9,136 per farm).
However, the total loss for all
farms in each state was probably
substantially higher because only
about two-thirds of all New York
and New Jersey farms and about
one-third of Pennsylvania farms
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ship their milk to Order No. 2
regulated handlers and were in
cluded in the study.
Potential losses for each state
and the entire Order are also
underestimated by the study since
only those farms which remained
in business and marketed milk
under Federal Order No. 2
LANCASTER - The Lancaster
County Agricultural Stabilization
and Conservation Sendee will
begin accepting requests for cost
share assistance under the
throughout the entire MDP period Chenango, Jefferson, Oneida,
were included in the study. Farms Otsego, St. Lawrence, and Steuben
which went out of business during in New York and Bradford, Lan
the MDP period were not included, caster, and Tioga in Pennsylvania.
In each of six New York counties Copies of the study may be ob
and three Pennsylvania counties, tained from the Office of the
payments lost by Order No. 2 Market Administrator, 708 Third
farms mounted to more than $1 Avenue, New York, New York
million. These counties were 10017.
Signup for ASCS cost-sharing
Agricultural Conservation.
Program beginning January 2nd.
Any fanner who needs to install
a conservation practice in 1986
may be eligible for monies of
between 50 and 75 percent of the
Lancaster Farming, Saturday, January 4,1986-A3l
costs. Up to $3500 can be earned in
one year.
Leßoy Welk, Chairman of the
County ASC Committee, said that
all requests filed at the ASCS
Office by Jan 31 will be reviewed
together. He emphasized that
approvals are made on a priority
problem basis.
For the program to be cost
effective, the most severe
problems get first chance at being
accepted for cost-sharing. Ap
provals are no longer made on a
first-come, first-serve basis.
Practices that are eligible for
cost-sharing are sod waterways,
diversions, terraces, contour
strips, cover crops, animal waste
systems, no-till plantings, and
spring developments.
To be eligible for assistance to
install these practices, the work
can not begin until approval has
been granted by the Committee.
Most of the practices have a
required life span of 10 years after
the year the practice is installed.
Welk said that funding has been
reduced from previous years but
the demand for cost-share is not as
great either, limited cash-flows
have prevented some farmers
from spending money on con
servation work.
Those farmers who can afford
their share of the cost but need
assistance in cost-sharing should
file an application at the ASCS
Office in the Farm and Home
Center by Jan. 31.
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