A3B-Lancaster Farming, Saturday, March 29,1986
Dairymen propose
(Continued from Page A 37)
• United States imports of dairy
products would be limited to the
current level (less than 3 percent.)
• All dairy. farmers would be
assigned a monthly production
base. The monthly production base
would be the average monthly
production for the 12 months
preceding implementation of the
PMMP. The monthly base would
be recalculated yearly. New
producers would be assigned a
monthly base of 40,000 pounds.
• Monthly production bases cannot
be bought, sold or assigned to any
other producer. Bases could be
transferred within the immediate
family.
• Juggers would be exempt from
the program for the milk produced
and sold on their farm. Excess
production sold to a dairy
processer would be considered the
same as milk produced over
monthly production base milk and
subject to those regulations.
• Milk prices received by the
farmers would be subject to a
three-tier pricing structure based
on the percent of utilization. This
would be 1. fluid milk parity
price, 2. manufacturing parity
price, and 3. over-monthly
production base milk price. The
parity price for both fluid and
manufacturing milk would range
between 60 and 80 percent parity
with manufacturing parity price
the lower of the two. Parity prices
would be handled in the same
manner as federal orders are now.
Minimal health standards would
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still be enforced and butterfat
differentials would still be in ef
fect. Individual processors have
the option to pay differentials for
total solids, protein, etc. A more
thorough and fairer price parity
system could be achieved by
regionalization of parity (no more
than 10 regions) and computation
of milk parity price specific to the
cost within each region.
• Processors whose fluid milk
sales exceed its producers base
production may, upon certification
of sales, pay fluid milk parity price
for over-monthly production base
milk for that processer’s use only.
• Each month that the cumulative
CCC purchases of surplus milk for
the preceding 12 months is over 4
billion pounds, the CCC purchase
price would be at the current world
market price and it would remain
there until CCC purchases fell
below 2.5 billion pounds for the
preceding 12 months. Each month
that the cumulative CCC pur
chases of surplus milk was 2.5
billion pounds or less for the
preceding 12 months, the CCC
purchase price (support price)
would shift to the current
manufacturing parity price and
would remain there until surplus
purchases were above 4 billion
pounds for the preceding 12
months.
• The producer’s over-monthly
production base milk would be
priced as follows: 1. For each
month the cumulative CCC pur
chases of surplus milk for the
preceding 12 months were in ex-
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cess of 4 billion pounds, the over
monthly production base milk
price would drop $2 per hun
dredweight per month; 2. Each
month that the cumulative CCC
purchases of surplus milk for
preceding 12 months is below 2.5
billion pounds, the over-monthly
production base price would in
cease $2 per hunderedweight. 3.
When CCC purchases of surplus
milk are between 2.5 and 4.0 billion
pounds, the price would remain at
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the previous month’s level, 4. At
program initiation over-monthly
production base milk price would
be zero per hundredweight, 5. The
ceiling and floor for the over
monthly production base milk
price would be limited to plus or
minus the current manufacturing
parity price.
• Revenues generated by over
monthly production base milk
would be remitted to CCC to offset
operation costs.
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The group encourages interest.
They maintain “here is a better
idea. It doesn’t change our system
very much.” The PMMP plan will
enable farmers to increase their
base in times of surplus at a
sacrificing cost to themselves and
reward farmers with higher prices
when milk is needed.
Farmers with questions and
comments can write or call the
spokesman at The Better Idea, P.O
Box 157, Womelsdorf, PA 19567.
Phone is 215-589-5720
SYCAMORE IND. PARK
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