A26-UincMtir Farming, Saturday, April 29,1989
By Blair J. Smith
PSU, Dept of Ag Economics
The Minnesota-Wisconsin
Price Series (M-W)'
Most of our readers know how
important the M-W is to farm milk
prices throughout the United
States. It reflects prices actually
paid for Grade B milk in Minne
sota and Wisconsin, and serves as
the basic price for milk that is re
gulated under all the federal milk
marketing orders across the coun
try. These orders account for
about 80 percent of all Grade A,
and 70 of all milk produced in the
U.S.
The M-W was at $ll.lB in Jan
uary 1988 (3.67 butterfat basis),
58 cents above the support price.
By June the M-W had fallen to
$10.61, just one cent above the
support price. (Remember, the
support price went from $ll.lO to
$10.60 on January 1,1988.) Then,
during the period July through De
cember the M-W rose to $12.54,
an increase of $1.93, and stood
$1.94 above the support price. By
March 1989 the M-W fell to
$11.25, a reduction of $1.29 from
its December high. This was just
65 cents above the March support
price (then still at $10.60).
For the months of April, May,
0
Golden Acres '
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PENNSYLVANIA
Danvlll*
Btnton Maiwtale
L ft K Mill* /I7a7BSSSo
717-925-6200 717-278-4880
Hopwood Kutztown
Brogue Farmers Feed Ivan Leid
Ralph Daugherty * Supply 215-682-7926
717*927-6084 412-438-2700
HughMviH*
Chambaraburg Farnsworth
Charles Myers ' Farm Supply
717-263-3328 717-884-2106
Milk
Prices
and June the support price will be
raised to $ll.lO, only IS cents be
low the March M-W. These three
spring months are normally ones
of highest seasonal production and
lowest seasonal prices. Further
more, buyers of butter, powder,
md cheese, anticipating a return to
lower support prices in July, may
:hoosc to limit purchased of such
products to current operating
iccds, rather than risk holding in
ventories whose values are likely
o decline with the decline in the
support price. Thus, we can prob
ibly expect the M-W to be at or
tear the $ll.lO level for most of
he next three months.
CCC Purchase Prices
Because uncommitted CCC in
’cntories are now composed al
most exclusively of butter, all the
50-ccnt increase in the support
price for April through June has
been assigned to powder. Thus
powder prices will rise from 72.75
cents to 70 cents per pound, while
CCC purchase prices for butter
will remain unchanged at $1.32
per pound. Cheese purchase prices
will rise by five cents per poiund
for both blocks and barrels. It has
not yet been announced how the
50 cents will be taken off the sup
port price on July 1. Speculation
is, however, that most of it will
come off butter, leaving powder
prices near their newly established
levels. The motivation for tilting
prices toward powder in both the
rise and fall of the support price is
that the demand for non-fat milk
has grown much stronger relative
to the demand for butterfat during
the last two or three years.
$1.05 To Continue
BRED TO BE A WINNER...
SEASON AFTER SEASON
s''
Bolden Acres®
/ s
Jersey Shore Lewietown
Charles Edwards John McCallps
717-323-0921 717-248-7681
LaocyviK*
Parr* Finn
Equipment
717*869-1
Some Recent Developments
In Pennsylvania
Last fall the Pennsylvania Milk
Marketing Board raised the re
quired Class I minimum price to
be paid for Pennsylvania produced
milk by $1.05 for the period of
September 1988 through February
1989. The rationale for thisrift-
EXCEPTIONAL YIELD POTENTIAL
• Widely Adapted, Fast Drying, 107 Day Hybrid
- Yields with 115 Day Hybrids
• Compact Ears - Medium Tall Plants
• Strong, Stiff Stalks, Excellent Standability
• Ideal For High Populations, Narrow Rows &
Intensive Farming Practices
• Pays Off In Bln w/Low Fuel Costs
• Proven Performer In Every Way!
Lock Havan Nlehotoon
Chatham Rim Mill Fieldabrook Farm
717-769-6192 717-942-6444
Mt. PlMMnt Mills
MeUerville Milling
717-839-8888
Nsw Ringgold
Andrew Seroka
crease was to offset some of the
adverse effects of the 1988
drought on the costs of producing
milk. Early this year the $1.05 pre
mium was extended through Au
gust 1989. Since about 50 percent
of all Pennsylvania produced milk
is used in Class I, the average
You spend months choosing the right tractor or combine for the job,
so why buy the first rotary cutter you see? When you choose an M&W
Prairie Clipper 9 Rotary Cutter you get' a cutter built for reliability and
serviceability. The flexible box section design absorbs shock because
strength is built in, not added on. The special blade design increases the cut
ting capacity with less power. Heavy 1 5/8" blade pins allow blades to be
changed quickly using only one wrench. Standard features include gear
boxes designed for the job, adjustable side skids, replaceable oval blade
pans, a 9,000 pound 8" clutch on PTO shafts and adjustable wheel spacings
on all pull-type models. Complete chain shielding is available on all models.
Don't go shopping for a cutter thinking all cutters are the same. Before
you buy, see the MBiW Prairie Clipper, the right cutter for the job.
For The Name Of Your Nearest Dealer Contact:
HAMILTON EQUIPMENT, INC.
MHjLjRJn 567 S. Reading Road Ephrata, PA 17522
BMr (717) 733-7951
EXCELLENT GRAIN POTENTIAL
103 Day, Best In High Population 22-26,000 Plants Per Acre
Picks Equally Well With Combine Or Ear Picker
Moderately Tall Plant, Medium Ear Placement, Horizontal
Leaf Habit
Excellent Seedling Vigor
Medium Long Ear With Medium Textured Deep Kernels
Compensates With Environment Changes
Good Ear Retention, Stay Green Stalks, Very Good Root System
Excellent Dry Down, Test Weight
Adapted Well To General Stress
price received by Pennsylvania
farmers is now about SO cents
higher than it would have been,
except for whatever over-order
premiums handlers would other
wise be paying voluntarily or
through negotiations with dairy
farmer cooperatives.
Pi
B, >-
Now Tripoli
C.J. Wonaldler
218-767-7611
Pan Argyl
Ralph Shook
215-863-5186
Ouakartown
CJ. Wontldlsr
Bolden Jieres^
Pfei
w
,
Salfordvin*
A.B. Weller t Son
310-287-7049
Shippaiwburg
Richard Bud
717-032-3077
Sun bury
Sunlight reed Stoic
717-280-2911
NEW JERSEY
HCSpUwi NJ.
.lari Reed