UNIVERSITY PARK - The
buyout program is having the
desired influence of reducing cow
numbers, however, total milk
production continues to rise.
Total milk production reached
the 11.1 billion pound level for May
1986, up 2.7 percent from May 1985
figures. This high production came
inspite of a .3 percent drop in cow
numbers.
Pennsylvania, for the same time
period, realized a 2.2 percent in
crease in milk production and a. 1.1
percent drop in cow numbers. In
May 1986 there were 730,000 cows in
the state; this number remained
constant from April 1986. However,
May 1986 is 8,000 cows less than the
May 1985 figure.
Production per cow in Penn
sylvania rose 110 pounds from the
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Production Climbs as Cow
April 1986 level. Although May is a
usual flush month, 1986 per cow
production increased to 1,250
pounds from the 1985 level of 1,210
pounds.
On the national level production
per cow rose 3 percent.
Blend prices continued to drop in
the three Federal Orders found in
Pennsylvania.
Last year, in Federal Order 2,
farmers received $11.78 per
hundredweight compared to $11.25
this year. This price also dropped 6
cents from the April price of $11.31.
With the 67 cent deduction, the
actual farmer price is $10.58.
Federal Order 4 price per
hundredweight in May 1985 was
$12.82 prior to the 67 cent deduc
tion. In May 1986 the price was
$12.27, up 4 cents from the April
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1986 price of 112.23. Jack Kirkland,
dairy marketing specialist at Penn
State, attributed this slight price
increase from April to increased
Class 1 utilization which rose .1
percent.
The western quarter of the state
and the eastern part of Ohio,
Federal Order 36, received $11.86
per hundredweight of milk in May
this year and $12.57 last year. The
May 1986 price dropped 2 cents
from the April 1986 price.
Slaughter cow prices dropped
from 39.4 cents per pound last May
to 35.9 cents this May, Kirkland
reported.
“Farmers are on a treadmill in
an attempt to keep the milk check
the same,” Kirkland said. They
are either reducing costs or in
creasing production, the latter of
bnfed
SPECIAL PRICE
NOW IN EFFECT
Numbers Drop >
which is easier, he added, the price continues to drop and
However, by increasing production forces the treadmill to continue.
(Continued from Page A 43)
home farm. He states, “When you
do custom work, you get to be very
efficient with all your own field
work, too. Being able to run the
machinery more allows us to
justify the purchase of better
equipment .and more modem
equipment.”
Though Hess doesn’t depend on a
set guideline for determining his
custom rates, he lists several
factors which help him determine
his charges. These include his
investment in his machinery,
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maintenance, labor, fuel, and how
much work is available. He feels
that most operators do not charge
enough to cover their investment.
He charges $l2 an acre to no-till in
corn, $65 an hour to fill silo, and $3O
an hour to haul manure.
Hess sees more custom work
coming his way as local farmers
pencil out the cost of purchasing
and maintaining specialized
equipment. Hess notes, “Most
guys with 100-150 acres would be
much better off if they would get
their work custom done. I don’t'
know who can justify the purchase
of equipment for the short time
they’re going to use it each year.”
Extension agent Murray con
cludes that there are some
operations better suited to custom,
work than others. Least ad
vantageous would be haymaking
since weather is a dominant factor
in quality. Custom operators must
usually work in a set time frame«
which might not be the right for a
particular field of hay. He ranks
combining as the most ad
vantageous because of the large
investment in equipment and also
spraying because most operator
rates are fairly reasonable and the■
farmer doesn’t have to worry
about liability, mixing of
chemicals and calibration for
application.
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