VOL. 33 No. 46 Gov. Wolff and Bill Nlchol, State Holstein Assn, executive secret ary, walk through the barns at the association’s farm at Mid dletown (Dauphin). Gov. Casey Givos*4ieifers Send-Off To Canary Islands MIDDLETOWN (Dauphin) Gov. Robert P. Casey said today that the upcoming shipment of Holstein heifers to the Canary Islands is the type of trade that helped Pennsylvania set new food and agricultural export records. Kansas Economist Compares Farming; Sees Contracting Ahead BY EVERETT NEWSWANGER Managing Editor GETTYSBURG (Adams) A Kansas agricultural economist took a look at the farm situation in Pennsylvania and the Mid- Atlantic states, and found the same trends as in the Midwest. “I was astounded to find that what’s hap pening to farming in the Midwest is also happening to farming in the East,” said Dr. Barry Flinchbaugh, state leader ag economics, Kansas State University. Dr. Flinchbaugh, one of the fea tured speakers at the 110th Annual Convention of the Penn Ag Indus tries Association here this week, said large farms are increasing and small part-time farms are increas ing, but the middle-sized farms are being squeezed out. In this bimod al process the mid-sized farm is too big to allow the operator to take an extra job in town, but too small to take advantage of all the modem efficiencies. “So they get squeezed from either side,” Flinchbaugh said. Flinchbaugh reported statistics that show a relatively small num ber of farms have from one-quarter to one-half million dollars gross annual income but produce from 40 to 60 percent of all agriculture sales. And while there arc more part-time farms in Pennsylvania Four Sections “Foreign markets are eager for Pennsylvania’s quality products,” Gov. Casey said. “These Holsteins are just one of the ways Pennsylva nia is marketing agricultural pro- (Turn to Pogo AST) than in Kansas, the difference is not nearly as great as the “popular notion”. This bimodal system where the medium-sized farm is in trouble is happening in Pennsylva nia just like (in Kansas. The economist said we are clearly moving toward a contract system. And while eastern farmers have contracted vegetable crops for some time, it’s a new idea for mid-west wheat fanners. Contract Farming Flinchbaugh gave three reasons why he sees contract farming in the future. First, biotechnology, while able to reduce pesticide needs with biology, will be costly. These costs will need to be spread over the total industry. The farmer and the local town banker will not be able to foot the bill alone. Because of the large ness of this process, Flinchbaugh doesn’t see us returning to the small-farm agriculture that is often romantically invisioned by envir onmentalists and animal welfare groups. He believes sustainable agriculture will replace some tradi tional inputs with management that requires a high degree of sophistication. Because of low yields at first in the sustainable agriculture Flin chbaugh believes we will need to farm more land, “So, I propose that biotechnology will lead us to lar ger farms.” Flinchbaugh Lancaster Farming, Saturday, September 24, 1988 Current Milk Price Situation Reported BY KARL BERGER Special Correspondent Buoyed by rising prices for cheese and nonfat dry milk, farm milk prices are on the rise this fall, bringing some relief to dairymen beset by higher feed costs. The Minnesota-Wisconsin price series, a measure of the prices paid for milk by manufacturing plants in the upper Midwest, rose 46 cents in August, to $10.98 a hun dredweight for milk containing 3.5 percent butterfat. That was one of the largest gains in the history of the M-W, which the U.S. Depart ment of Agriculture uses to set prices in its federal order system across the country. The August gain will translate into an October Class I price of $14,01 in Federal Order 4, the Middle Atlantic order. Similarly, the October Class I price in Order 2, the New Yoik-New Jersey order, will climb to $13.53. The M-W increase also boosted August Class II prices in the two orders. Analysts are predicting further M-Wgains as strong Cheese sales tighten a supply-demand equation that’s already been squeezed by the drought. Jim Fraher, an economist with Atlantic Dairy Cooperative, said the M-W should peak at about $11.40 this fall, only a couple cents lower than its top level a year ago when the federal government’s support price was 50 cents higher. said." And we will do it by con tracting with coiporate or coopera tive agri-businesses. In addition, the low margins of profit will also head us in the contracting direc tion.” But Flinchbaugh sees the real BY LOU ANN GOOD GETTYSBURG (Adams) PennAg Industries Association gathered for their 110th conven tion at Gettysburg on September 18 through 20. The Tuesday night banquet spotlighted Pat Purcell, a “Lancaster Farming” staff writer, as the ag journalist of the year. She received a plaque and $5OO for what Sam Shenk, director of services for PennAg, called clear, concise writing that showed inde pth research on important issues to farmers. Purcell’s articles were chosen from entries across the state. Her three award winning articles previ ously appeared in “Lancaster Farming.” They included articles on the Chesapeake Bay pollution problems, Garden Spot High School’s Grassland FFA Building our American Communities Pro ject and a series on Johnes, a dis ease in dairy cattle causing eco nomic hardship to state dairy far- (Turn to Pag* A 23) The gains in federal order prices will not come at the expense of lower over-order premiums. These are imposed atop the minimums mandated by the orders. Moreover, the two local over-order bargain ing agencies, the Middle Atlantic Cooperative Milk Marketing Agency and the Regional Cooperative Marketing Agency, are being aided by a local supply demand situation even tighter than the national one, Fraher said. Both MACMMA and RCMA have announced intentions of con tinuing their current Class I pre Southeast Farm Credit Offers Scholarship Again WEST CHESTER The Board of Directors of the South east Farm Credit Service is pleased to announce the availability of its eighth annual $5OO scholarship toward the higher education of a student planning to pursue a career in agriculture. The Southeast Associations have offices in Avon dale and S j 1 verdale with an outpost office in Creamery; the headquar ters office is located in West Ches ter. They serve over 1,350 mem bers of the agricultural community in Bucks, Chester, Delaware, Montgomery, and Philadelphia reason for farmers contracting with agri-businesses to be the need for orderly marketing. “A fast food French fry in Gettysburg, Pennsyl vania, must taste, look like, and cost about the same as the fry in Fresno, California,” Flinchbaugh PennAg Honors LF Writer Arthur McAllister, president of PennAg, presented Pat Purcell with a plaque and $5OO in recognition for her award winning journalism. 508 Per Copy miums -- $1.05 in the case ot MACMMA, 70 cents forRCMA - through at least the beginning of 1989. The $1.05 differential on Class I milk prices imposed by the Pennsylvania Milk Marketing Board is m effect at least through February. And many handlers with independent producers are offer ing similar-sized premiums on their own. Nevertheless, the combined effect of these premiums and the rising prices only restores dairy- counties with long and short-term financing. One of the requirements of the applicant is that his or her parents) or guardian(s) must reside in one of those counties. The applicant must be a high school senior plan ning to attend a four year college on a full-time basis with agricul ture or agri-business as the major emphasis of study. Notification of the availability of the scholarship is being sent to the administrators of the secondary schools in the five-county area. (Turn le Pag* Al 9) said. This calls for quality control, and requires contracting. The fast food people will contract a year in advance for specific quantity, quality and price. In addition, agri (Tum to Pag* A 32) 110.00 Par Ymt (Turn to Pago ASS)
Significant historical Pennsylvania newspapers