Ce-Uncaster Firming, i^rday,'‘faßr 1 (Continued from Page C 4) the product at a given price. At that price all that is offered is sold. Since demand and supply are constantly changing as result of changes in the other factors affect ing demand and supply, that price for which all that is offered is accepted is also constantly chang ing. If more of a product is offered by producers than consumers are willing to purchase, the price decreases to die level at which con sumers are willing to purchase all that is offered. If less of a product is offered by producers than con sumers are willing to purchase, the price will increase. The next round of price determi nation is affected by that latest market price and the current demand and supply situation. Pro ducers will respond to the previ ously determined price and will usually produce less if the price is lower and more if the price is high er, given that all other factors affecting their decision remain unchanged. Consumers respond to the quantity of product offered and the price determination process results in a new market price. Thus, the determination of price is a very dynamic process and 3JLOjC leasing •W /O RATES FLOORS MIL m With These PerticipJtlnf prices in a particular time period change depending on the changes in supply and demand. Consumer Demand Keys Pricing Process The key to the price determina tion process is consumer demand. Consumers will only purchase a given quantity of pro duct at any given price at a specific point in time. The producer in this situation is a price taker. In other words, unless producers are able to some how control supply, they have no option but to accept the price con sumers are willing to pay. At any given price, producers can’t sell more than consumers are willing to buy. This is especially true in agri culture and even more extreme in the dairy industry. The dairy industry is a regulated market in which the price of milk is controlled. Before the 1930 s the dairy industry was unregulated and the price of milk was determined solely by supply and demand situa tions. However, during the 1930 s the government became involved in the determination of milk prices. This is accomplished through the price support program. In this program, the government deter- GRAIN STORAGE aFs ijjl automatic farm systems 608 Evergreen Rd., Lebanon, PA 17042 (717)274-5333 Cheek Out lew Prices BetmYeu Buy mines a desirable minimum price for milk in the United States. This price is a target price and the gov ernment tries to assure it will be paid to producers. * The Government’s Role How then can it be said that demand determines prices in the dairy industry? The key element that makes this statement true in the dairy industry is the method by which the govern ment seeks to assure that a mini mum price for milk in the United States is obtained. The govern- 4:1 STRIKE IT RICH! SELL IT WITH A LANCASTER FARMING CLASSIFIED 0 BINS AUGERS # * * -iry-"*rnr - r*r i t f ”'^ r ’* r Vnent supports the price of milk through purchases of dairy pro ducts, butter, cheese and nonfat dry milk, from the market by the Commodity Credit Corporation. These purchases actually sup port the price paid to producers by plants who use their milk to pro duce butter, cheese and nonfat dry milk. The price of this milk is unre gulated in the sense that plants pay producers the price determined by the manufacturing market supply and demand. Thus, the price paid to producers decreases or increases dependent upon the level of supply GSI FEATURES: • Sidewall Stiffener Columns • Automatic Control Center • Steep Corrugated Roof • High Tensile Sidewall • Automatic Proof Vents Increase Drying Efficiency • Drying Bushels of Shelled Corn Per Hour Available At 5 Point Removal From 317 Bushels to 2000 Bushels • Top Dry Bin Grain Capacity From 2900 Bushels To 26,000 Bushels Your Grain Equipment Headquarters For Augers All Sizes Available Or Will Custom Make Plan Now For Your Grain Harvest I Powerhead 4”, 6”, 8”, 10” 12” Fans In Stock for ADS GRAIN-AIRE® of milk available and the demand for butter, cheese and nonfat dry milk. The U.S. Department of Agri culture establishes a price series, the Minnesota-Wisconsin price series, of the prices paid to produc ers by the milk plants producing butter, cheese and nonfat dry milk in the Minnesota-Wisconsin area. The M-W price then serves as a basis for establishing the minimum Class I, II and 111 prices in Federal and State milk marketing orders. Dairy farmers are guaranteed these (Turn to Page C 7) TOP DRY SYSTEMS High Performance Dryers \ Auger \ \ Flighting \ \ 4”, 6”, 8”, 10” Tubing Painted Or Galvanized 4”, 6”, 8”, 10” ADS GRAIN-AI NEW LOW COST AERATION SYSTEM Ideal For All Types Of Flat Storage Facilities. The Grain-Aire™ protective screes maximizes air f lot -lil
Significant historical Pennsylvania newspapers