A2B-L*ncaster Farming, Saturday, Fabruary 6, 1488
■ RCMA Begins Milk Diversion
(Conllnuad from Pag* A 1)
“It is clear that Farmland is
working to destroy RCMA,” Wil
liam Zuber, a Leßoy, N.Y., farmer
who is president of RCMA, said
bluntly.
In response, RCMA has intensi
fied its own recruitment efforts,
particularly among independent
producers in Pennsylvania, and
begun “diverting RCMA member
milk that would normally be
shipped to Farmland to handlers
who are repaying the RCMA
prices,” Anna said.
Reportedly, two truckloads of
milk that formerly went to Farm
land from producers in southeast
ern New York were diverted both
Monday and Tuesday. In addition,
the 28-day notice required by Pen
nsylvania regulations to shift sup
plies from one dealer to another
was issued by RCMA in January
and will expire Feb. 7, according to
Ed Jones, a dairy farmer and
RCMA organizer in Wayne Coun
ty, Pa.
Presumably, that would clear
the way for further diversions.
RCMA members currently
account for more than half of
Farmland’s supply, Anna said.
Jonas said he and other organiz
ers have been on the road talking to
Farmland shippers in an effort to
enroll in RCMA those who are not
now members and to get members ’
consent to divert their milk from
Farmland. RCMA is guaranteeing
members whose milk is diverted a
four-month alternative market at
their current prices (plus any over
order premiums) and hauling rates,
he said.
A nine-year Farmland shipper
himself, Jonas said he supports the
diversion as a means of forcing the
dealer to cooperate with the
RCMA program, which he views
as the only way of avoiding the
price declines dictated by national
conditions and the recent support
price cut. Although Farmland is
now offering its own premiums
and other inducements on a selec
tive basis, Jonas added, these bene
fits will cease if RCMA discon
tinues its efforts.
Marc Goldman, the president of
Farmland, declined to respond
specifically to these claims in a
phone conversation Wednesday.
Asked why his business has been
seeking dairymen with RCMA
contracts, he said, “We’re an inde
pendent (dairy) and we’ve always
sought an independent supply of
milk.”
Goldman did say that RCMA’s
efforts to prop up Case I prices that
will otherwise decline is the wrong
long-term strategy for the industry
as a whole and for farmers. He
attributed the small rise in Class I
sales recorded nationally in the last
fewyears to declining prices and
increased advertising. He said far
mers should continue to concen
trate on quality and marketing con
siderations rather than what he
called “price-fixing.”
RCMA’s efforts, he added, are
akin to those of union members in
the steel industry several years
ago. In seeking higher prices for
fluid milk, RCMA is making
“much the same mistake that the
union members made,” he said.
The agency has set a price of
$14.45 a hundredweight on Order
2 Class I milk in "cbruary, the
same price it has had «mce Sep
tember. This is 76 cents above the
$13.69 federal order price. In
November, before milk prices
began declining, the premium was
miums for both September and
October milk. This week, it began
sending checks for November milk
at a rate of 16 cents a hundred
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we’re helping all of us.
In the Agri-Finance Department of
Hamilton Bank we finance projects for
active 4 -H and FFA members
That’s because we believe that helping
preserve the family farm is one of the best
ways to insure a better future for us all
And that involves working with our young
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farmers
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Joelle 801 l with her lamb and Jennifer Shellenberger with her steer with Darvm E Boyd Vice President and
Director of the Hamilton Bank Agn Finance Department Hamilton Bank purchased these animals at the Southeast
Dislnct 4 H Baby Beef and Lamb Show in November 1987 and donated them to the Lancaster County Red Rose
4 H Baby Beef and Sheep Club Banquet held at the Countiy Table Restaurant on February 4 Joelle is the daughter
of Mr and Mrs Jay H 801 l R D #2 Mt Joy Jennifer is the daughter of Mr and Mrs Dale K Shellenberger
R D #1 2388 Stumptown Road Bird in Hand
weight. This amount is less than 48
cents for several reasons, includ
ing the fact that premiums apply
only to Class I milk while pay
ments are made on all milk shipped
by producers. However, the diffi-
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REASONABLY PRICED
The 4 -H and FFA are working toward these
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Core States
Hamilton Bank Member fdic
culties with Farmland also have
had an impact. Anna said the pay
ment rate would have exceeded 20
cents if Farmland had reached
agreement with RCMA.
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