A36-lancastsr Farming, Saturday, July 9, 19Sv
Drought Could
Cut Dairy Farm
Income In Half
ARLINGTON. Va. Effects
of the drought could cut dairy far
mers income in half over the next
12 months. Estimates released
today by National Milk Producers
Federation (NMPF) show a poten
tial drop in net cash income that
could reach nearly 70 percent
because of increased feed costs,
lower prices for the animals which
are culled and sold for meat, and an
impending support price cut in
January. Net cash income is the
money fanners have available to
pay debt principal, income taxes
and family .living expenses.
NMPF says that farmers in the
Midwest, for example, are already
feeding their cows hay that would
normally be used next winter
because their pastures have dried
up.
Farmers who must buy hay face
skyrocketing prices. One feed
cooperative in Ohio reports that it
must purchase alfalfa hay from
Idaho at double the price of last
year’s local hay. While com yields ,
cannot yet be determined, a mini
mum crop loss of 15 to 20 percent
is already likely in most of the
Midwest.
Even before the drought began,
NMPF estimated that dairy far
mers faced a $7OO million loss if
the U.S. Department of Agricul
ture inplements another cut in the
dairy price support level in Janu
ary. A grass roots effort is under
way to convince Agriculture Sec
retary Lyng not to implement
further price reductions.
Says NMPF’s Chief Executive
James C. Barr, "At current milk
and feed prices, a 15 percent
increase in feed costs equates to an
effective reduction to the farmer of
50 cents for each 100 pounds of
milk marketed. This drought
means farmers are already exper
iencing the same impact as a price
cut”
NMPF member cooperatives
meet in St. Louis today to assess
drought damage in the different
regions and to agree upon what
actions must be taken to stabilize
the incomes of the nation’s dairy
farmers.
NMPF is a 73-year-old farm
commodity organization that rep
resents dairy farmers and their
milk marketing cooperatives. The
Federation serves as a forum for
the development of positions on
national dairy policy and commu
nicates the needs and concerns of
its members to the Congress and
the Administration.
CRYSTAL SPRING An
open house and dedication of the
new national office building of the
Red & White Holstein Association
will be held here Saturday, July 23
at 11 a.m. John Carpenter, office
manager, said that visitors from
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LANCASTER FARMING ISSUE
1988 AG PROGRESS DAYS
To Be Held Aug. 16,17,18 at Rock Springs Research Farms
Near State College, Pa.
We’ll have the information
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Featuring
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Holstein Association has 1300
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More information may be obtained
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