Experts Split On Feasibility Of Supply Management
BY MARTHA SHELDON
New York Correspondent
SYRACUSE - “In my humble
opinion, the chances of getting a
new farm bill through Congress
before 1990 are zero,” says Rep.
James M. Jeffords, R-Vt, who
serves on the House Agriculture
Committee and the Dairy Sub
committee.
Jeffords delivered his prediction
to more than 150 farmers, milk
handlers, economists and repor
ters attending Cornell University’s
recent conference on Supply
Management Programs for the
Dairy Industry.
Giving the historical perspective
on U.S. dairy policy “how we got
to where we’re at and where do we
go from here,” were: Judd Mason,
former director of economics,
National Milk Producers
Federation; Hollis Hatfield,
director of dairy department,
American Farm Bureau; and
Robert Jacobson, professor,
department of agricultural
economics and rural sociology,
Ohio State University.
The three traced the history of
dairy programs, indicating that in
ATTENTION
TOBACCO FARMERS
GOLDEN LEAF TOBACCO CO.
Has Now Moved Into Our New Location
At 1397 Arcadia Rd., Lancaster
(former American Cigar Bldg.)
near the Farm & Home Center
Any questions concerning your 1986
tobacco crop, please give us a call
between 8:30 and 5 p.m. Monday
thru Friday.
717-392-1281
MAC BAILEY
iii
We Manufacture SOLID STEEL
Gestation Stalls, Farrowing
Crates And Fencing
times past, as in the present, when
milk surpluses abound and prices
drop, farmers press for some sort
of supply management program.
To date, only voluntary programs
have been instituted in this
country, and they have worked
with varying degrees of success.
At other times, price has been used
as the sole supply-management
tool.
Edward Jesse, professor and
chairman, department of
agricultural economics, Univer
sity of Wisconsin-Madison,
discussed the design and im
plications of the major dairy
supply management programs
present and proposed.
He compared the Canadian
industrial milk program, which is
a national program, with the
European Economic Community
program, still in its infancy, the
California milk quota system
which uses quotas to assign
marketing rights to the higher
priced fluid market, and the
Harkm “Save the Family Farm
Bill” program, which was in
troduced in the 99th Congress and
is expected to be re-introduced into
the 100th Congress next year.
Jesse noted that most developed
countries are now using a quota
program. “There is no reason a
quota system can’t be used in the
U.S., but it can’t be very simply
applied. It needs a lot of research
and a lot of planning.”
Stephen Kerr, legislative aide to
Jeffords, described the winners
and losers he envisions under the
Harkm supply-management
program, with respect to farmers,
the ag industry, consumers,
overall economy, and government.
Amongst farmers, the winners
will be those with bases, those who
don’t want to grow, and regions
without a surplus. In the ag in
dustry, Kerr said it’s hard to see
any winners and the losers “may
be many more than we care to
admit.”
Consumers may be the losers
under the Harkin Bill, said Kerr,
except those who are taxpayers,
and they may be winners.
As far as the economy is con
cerned, Kerr was uncertain who
would be the winners and losers.
For sure there would be a loss of
exports due to higher, non
competitive prices.
And when it comes to govern
ment, the bureaucracy and
politicians will be the winners and
the losers will be “anyone not very
adept at manipulating those two
groups of people,” Kerr said.
*5
Jeffords is not sure the country
needs an alternative to the present
dairy program. He said the milk
promotion program is working, the
diversion program worked, and
the present farm bill is saving
taxpayers $6 billion in surplus
purchases. The new tax bill may
add other benefits to farmers, he
said.
While Jeffords urged dairymen
to join RCMA to get over-order
prices for their milk, he
acknowledged that there are some
things he doesn't like about the
present farm bill, specifically the
price support cuts set for 1988 and
1989.
The reality of the political
climate is that the present ad
ministration is death on the Harkm
bill and quotas, Jeffords said.
Dairy policy in the last five years
We Design And Build Hog
Operations According To Your
Specifications
Lift%B£te> Paffnin{, l 6,1486-A 3? *
has been dictated by the deficit and
deficit reduction more so than by
agriculture concerns, said Jef
fords. And as far as the deficit
goes, next year will be worse, he
predicted.
The recent shift in the Senate
from a Republican to a
Democratic majority may “lead to
game playing,” said Jeffords. With
the ’BB presidential election in
sight, the Congress may pass the
Harkin bill, counting on President
Reagan’s veto, which it will not
override.
Whatever the games played,
Jeffords said, “I will bet you the
Harkin bill will never be enacted
into law ”
Edward Jesse, University of Wisconsin agricultural
economics professor, said, “There is no reason a quota
system can’t be used in the U.S., but it can't be simply ap
plied." He made these comments at the recent supply
management conference hosted by Cornell University.
i>i
He cautioned farmers against
borrowing money to establish a
high base. They may end up with
more debt and less income when
the Harkin bill fails to become law
and the current farm bill reduces
support pfices.
Jeffords advocates fixing the
present bill by eliminating
assessments, removing the price
support reduction, and making
mandatory another diversion
program or another whole herd
buyout.
He would like to institute target
prices and deficit payments, and
ease the government out of the
support program.
EAR CORN
Paying Top Prices For
Good Quality Ear Corn
• Wet or Dry
• No Quantity too large
or too small
• Fast Unloading -
Dump on Pile & Go
• Easy access - 2.2
miles off 283 bypass-
Manheim, Mt. Joy
exit
• Daily Receiving 7:30
A.M. to 5 P.M. - un
loading evenings &
Saturdays by appt.
• Trucks available for
pick up at your farm.
Call Anytime For Price
717-665-4785
JAMES E. NOLL GRAIN