BY MARTHA GEHRINGER
WASHINGTON, D.C -
Dairymen holding contracts for
157,411 cattle intended for
slaughter or export in the first
disposal period of the dairy ter
mination program have asked to
delay their disposal deadlines until
later periods, USDA announced
this week.
Notification was sent to 1,140
participants in the DTP that their
request for contract modification
was accepted. These dairymen will
now dispose of their herds in
buyout periods two or three, if they
sign the modified contracts by
June 30.
These delayed contracts are part
of the out-of-court settlement
reached in the National Cat
tlemen’s Association’s suit against
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Over 1,000 Dairymen Shift Periods
the USDA regarding the DTP. With
this adjustment in buyout periods,
the program’s impact on the beef
market will be reduced.
The settlement permitted
dairymen in the first buyout period
to move the slaughter or export
date of their herds to periods two
or three.
All of the dairymen that
requested a change were accepted.
However, “Until the new contracts
are signed we don’t know how
many animals will actually be
shifted,” Charles Shaw of the ASCS
in Washington reported.
If the dairymen don’t sign the
new contracts, they must abide by
the terms of their original con
tract, Shaw said. Buyout par
ticipants will not have another
chance to change their buyout
period, he added.
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Some of the dairymen who
requested the change have started
the process of disposing of their
animals. When these participants
return their new contracts to the
ASCS, they will be required to list a
new set of intentions stating when
their herd will be disposed of, how
many head have been slaughtered,
and how many head remain to be
slaughtered or exported.
This will give the ASCS a final
tally of the impact on the
marketing schedule. Shaw said he
anticipates the influence to be
small since many of the cattle
shifted were moved into the second
buyout period. This move will keep
the buying of meat and expected
reduction of surplus milk on
schedule.
Of the total 157,411 head listed in
the original contracts of producers
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Lancaster Farming, Saturday, June 21,1986-A35
who requested a modification,
124,968 will move into the second
period, and 32,443 will be shifted to
the third.
A few participants did not list a
preference for the second or third j
period and were placed into the'
second period.
“By putting these producers in
period two, we are able to keep the
program running along the way we
were originally planning,” Shaw
said. Since we geared our meat
purchase to the original contracts,
we are able to stay on that
schedule as the beef will be
available, he added.
Having the beef available in the
second buyout period also helps us
to meet the Brazil sale, he said.
Increasing the second buyout
period will offer a financial benefit
as well, Shaw said. “If we get rid of
the animals by February, when
milk production is up, we won’t
have to buy the extra milk, and we
will be saving money in that
regard,” Shaw explained.
Two shift requests were denied.
These two contracts were for a
total of 7,441 head and represented
one-third of the total number of
head being disposed of in their
respective states for the first
disposal period. Under the
agreement with the NCA, to fur
ther reduce the impact on the
market, the number of cattle in
each contract could not exceed this
limit.
In Pennsylvania, 44 producers
requested a shift in their buyout
period. Of the total 4,390 head
listed on the original contracts of
A total of 1,569,416 animals will
be slaughtered or exported at the
completion of the program.
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these participants, 4,256 will be
moving into the second period and
134 will move into the third period,
Jan Waybright of the Penn
sylvania ASCS reported.
Speculating on why some
dairymen participated in the latest
change in the buyout program,
Seth Huisman of the ASCS in
Washington noted, “Some farmers
have young stock they would like to
continue to feed to add weight.” Or
they may wish to wait to market
their animals when prices will be
better, he continued.
Still others may want to continue
milking until their feed is gone, or
they may want to squeeze out a few
more milk checks before they get
rid of their herd, Huisman
speculated.
The NCA thinks that with this
latest move the USDA has made a
step in the right direction, said
Roger Bergland of the NCA. He
added they would like to see the
Brazil purchase agreement, in
volving large amounts of meat,
completed to further reduce the
impact on the beef market.
A total of 931,357 head of cattle
were originally contracted for
disposal during the first period,
April 1,1986 to Aug. 31,1986.
During the second period, 225,943
head were intended for slaughter.
During the third period, March 1,
1987 to Aug. 31, 1987, a total of
271,628 animals were scheduled to
be slaughtered.
The recently announced shifts
will help spread out the number of
animals intended for slaughter
expected in August 1986, USDA
said. A total of 228,950 head were
orginally scheduled for disposal in
August, the USDA announced.
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