D2O-Lancaster Farming Saturday, September 9,1989
Lancaster Co. DHIA
(Continued from Pag* 019)
35 RH 4-4 305 20,176
39 RH 6-10 283 23,191
Noah N Martin
12 GrH 3-2
Ivan Z Beiler
Lady RH 6-10
Elvin L Kurtz
Tenille RH 4-6
Ben & Marian Stoltzfus
Hazel GrH 4-7
Clown GrH 4-0
John Z Beiler
Etta RH 5-11
Miriam RH 7-1
Vernon R Umble & Son
Lustre RH 5-9
Parke H Ranck
Mabel RH 4-5
Margo RH 5-9
Vera RH 3-3
Amos W Breneman
76 RH 4-11
Burk-Dell Farms
22 RH 5-1
107 GrH 6-5
197 RH 4-3
Paul H Rohrer & Sons
13 GrH 3-5
Homer G Hess
Kelly RH
Wren GrH
Kate RH
Gypsy Hill Farm
Beauty GrH
Lapp Valley Farm
Esther RH
Doris RH
Firebrd RH
Robert E Kulp
6 RH
83 RH
John Zook
Hazel GrH 4-10 299
Karl W Herr (Red & White)
Rene GrR&W 6-4 305
Timothy Kurtz
53 RH 10-1 305
Samuel F Long
Pat RH 7-11 305
Ralph Petersheim
Stinnie RH 5-3 305
Rowill Farm
11 GrH 6-7 305
Verna 31 GrH 5-11 305
Jonas E StoKzfus
Lill RH 3-10 305
Milk Market News
SCRANTON (Lack. Co.)
August IS, 1989 - If we had a
Spring flush this year it was a
short one and all the signs of lower
milk supplies and higher prices
are popping up all over the coun
try. Nationally, milk production
pulled up even with a year ago in
May and June after increases of
two and three percent since Jan
uary. However, pockets of lower
production have appeared in stra
tegic areas in recent months where
they affect milk prices the most
Minnesota and Wisconsin never
really got started this year and are
now falling two and three percent
behind. As a result the Minnesota-
Wisconsin Price Scries has ad
vanced 78 cents in four months
making a giant leap of 43 cents in
July to $11.76 which is $1.24
higher than last year. That $11.76
is also the highest M - W for July
since 1984 when the Milk Diver
sion Program was on. Milk price
is the most important sign to pro
ducers of lower supplies but a lot
of things were happening to indi
cate a tighter marketing situation.
At the National Cheese Ex
change block prices advanced to
over $1.43 a pound and we
haven’t seen that since the M - W
made its record high of $12.72 in
November 1984. Even butter
prices which had been on the skids
all year, suddenly showed signs of
life and made it up to $1.33 after a
thrce-cent increase in late July. It
doesn’t sound like much but with
the July 1 decrease in the support
price all laid on butter,' it was
enough to allow the Commodity
Credit Corporation to sell 6.6 mil
20,716
305
23,003
303
305
22,872
21,264
21,874
277
305
28,189
23,452
305
305
24,495
305
19,597
18,635
19,616
305
305
297
299
22,446
23,222
22,818
23,708
305
305
305
26,613
305
4-
5-
5-3
22,965
19,280
20,728
305
305
298
292
4-2
27,602
305
305
305
2-11
3-
4-
22,258
23,877
22,389
305
305
5-1
8-6
23,102
18,442
24,894
22,226
26,554
25,289
25,054
23,160
18,407
22,091
lion pounds on the commercial
market at 110 percent of the sup
port price. Since CCC has not pur
chased any powder or cheese for
months and is now selling butter,
the net removals for the second
week of August were a negative
4.3 million pounds of milk equiva
lent compared to 33 million
pounds a year ago. That’s a drop
of 37.3 million pounds of milk a
week. Another sign of lower sup
plies is the increase in spot milk
shipments to the South. During the
second week of August, 121 loads
made the trip from Wisconsin and
that was the largest number since
September 1988 and the schools
haven’t opened yet. Finally, it
may not be the most important
sign but I think it’s significant that
the Market Administrator in Order
68 had to issue a call order for
Class I milk of 22 percent in July
and August to get enough milk for
fluid use in that market. This is not
unusual in Eastern markets and it
may happen this Fall but Order 68
is the Upper Midwest market in
the heart of America’s dairyland
and I thought that was unusual.
Milk Check
The sign of improving market
conditions that producers under
stand best are the numbers on their
milk check and this month you got
it In Order 2 the Uniform or blend
price for July milk went to $12.38
for a jump of 76 cents over June
and $1.07 better than last July. In
fact it was the best price for July
since 1984, that magic year of the
Milk Diversion Program when
farm milk prices set their record
highs. That $1.07 increase over
Beth RH 3-1
Aaron S Click & Sons
5 GrH 8-0
Mahlon E King
Rose GrH 4-8
Oberholtzer & Zimmerman
10 GrH 4-3
Harol K Witmer
866
826
4.2
3.5
Relisa RH
Moonie RH
Uoyd Stoltzfus
Florence RH
John U Click
Fuzz RH
Jonas M Zeiset
37 GrH
Amos B Alligyer
Ann GrH
Lawrence W Hurst
Goldie RH
Mer-Land Farm
Spirit RH
Romella Farms
80 GrH
Bennie L Fisher
864
863
3.7
862
3.7
862
825
4.0
3.7
861
848
3.0
3.6
860
858
828
814
4.3
4.4
4.1
Lacy 14 GrH
Paul S Sauder
Silky 92 RH
Aaron R Zeiset
43 RH
Kenneth D Myer
Connie RH
Ruby RH
Rohrer Brothers
Fern RH
Libby RH
Buchen Farms
65 GrH 3-6
Meadow Vista Farm
803 RH 2-1
805 RH 2-1
Hawthorne Brothers
104 GrH 4-11
13 GrH 5-2
Wayne & Joanne Erb
Ava 10 RH 4-8
Susie 12 RH 5-3
Harold G Shelly
857
3.8
856
830
805
3.6
3.6
3.4
854
854
805
803
3.7
4.1
3.8
853
3.8
3.4
3.6
853
829
816
852
800
Geno RH
Marvin S Nolt
3.4
851
GrH
GrH
GrH
Donald B Trimble
20 GrH 3-4
JS Smucker & Sons Farm
636 RH 4-10
E Richard Bruckhart
Blossom RH 6-4
Melvin R Eby
137-
Si
851
3.8
849
3.2
848
844
3.6
4.4
844
821
Annie
Dale Weiler
Goldy
844
3.8
305
305
305
305
5-9
5-2
305
305
3-5
305
5-7
305
0-0
305
305
5-5
305
6-9
305
0-0
305
7-10
305
6-9
305
4-2
305
9-7
7-9
305
305
5-
6-
277
302
305
295
305
305
305
305
305
305
7-10
5-4
3-
4-
305
305
305
305
#2
305
305
RH 7-7
305
GrH 4-1 305
last year was real but of the 76
cents over June, 40 cents of that
was your Louisville Plan payment
in June which was the last for the
year. For August milk you start
getting your pay back. The big
bang came from a 57-ccnt jump in
the Class II price from that July M
- W. Over 60 percent of the milk
in Order 2 in July went to Class II
use and the M-W affects that im
mediately. The 43-cent increase
from the M - W in Class I won’t
come to you until September.
However, because the total milk
shipped to Order 2 handlers was
the lowest for July since 1980
your Class I utilization is up soon
er than usual this year. Add to this
a 21-cent increase in Class I prices
next month plus a 36-cent pay
back from the Louisville Plan you
could be looking at another
60-cent jump for August In fact it
would take only a 80-cent increase
to equal last year’s high of $13.18
in November.
Class II Premium
At their July meeting the
RCMA directors appointed a task
force to examine dairy marketing
conditions in the Northeast and re
port back to the Board with their
recommendations in August. As a
result, RCMA will start a 25-cent
premium on Class n milk in Sep
tember in Federal Orders 1 and 2.
This will be in addition to a
65-ccnt premium on Class I milk
in the same markets from Septem
ber to December. Another import
ant change to be made at that time
will be to withhold premiums
from members shipping to hand
lers who don’t cooperate with
RCMA in providing marketing in
formation and premium money so
20,101
4.0
809
20,525
844
19,812
844
4.2
25,676
3.2
843
20,952
23,058
843
829
4.0
3.6
19,379
4.3
843
20,041
4.2
842
24,378
841
3.4
23,147
3.6
840
20,781
4.0
840
25,041
3.3
838
19,537
4.2
838
24,343
3.4
836
19,176
836
4.3
24,810
3.3
835
20,239
18,492
4.1
4.5
835
834
18,899
20,723
835
829
4.4
4.0
3.6
22,623
834
19,858
19,871
4.1
4.0
833
810
832
827
3.1
3.3
26,374
24,761
832
831
4.1
4.9
19,913
16,771
832
4.4
18,765
831
805
805
3.7
3.6
3.6
22,425
22,277
21,830
830
3.9
21,050
829
3.8
21,829
825
4.6
17,853
823
3.3
24,444
823
3.9
20,970
the over order funds can be distri
buted equitably to'the producers.
The idea is to get producers in
volved in getting handlers to parti
cipate in RCMA efforts to provide
the highest premiums that market
conditions permit for all produc
ers.
Another important change at
RCMA is the resignation of Ed
Anna, the manager, who served
effectively in organizing RCMA
to a membership of 22,000 pro
ducers and negotiating premiums
with handlers who have paid a to
tal of $66 million through RCMA
to dairymen since September
1987. More importantly, those
RCMA premiums generated addi
tional premiums to non-members
in amounts that may never be cal
culated and may not even be
known to some producers. Some
of those additional premiums were
even used to discourage dairymen
from joining RCMA and have, so
far, effectively prevented the co
operative from achieving its full
potential. Replacing Ed Anna will
be Carmen Ross who, up until his
retirement in June, was on the
Market Administrator’s staff in
Order 2.
Outlook Uncertain
Even with rapidly increasing
milk prices during the Spring
NUUC
IT'S FITNESS
YOU CAN DRINK.
Aaron R Stoltzfoos
Evie RH 3-6
Best Bros
5 GrH 4-2
77 GrH 5-3
Leßoy R Martin
116 RH 3-2
John Omar Stoltzfus
Fancy RH 6-9
Clair Oberholtzer
Maureen RH
Vernon K Belter
63 GrH
Philip & Kim Hurst
27 RH
Dwight R Houser
Debbie RH
Fred Crider
Jennie RH
Joseph C Wivell
Fantasy RH
Stephen L Hershey
41 RH
Walter M Hurst
114 GrH
Alvin W Sensenig
. 18 GrH
Leon S Musser
85 RH
Raymond E Reitz
Helinor GrH 3-0
Delmar & Susan Weaver
Stefany RH 3-5
Aaron Z Martin
12 RH 5-0
Red Knob Farm
699 GrH 3-4
Leonard J Stoltzfus
Freema RH 4-9
Calvin D Beiler
17 GrH 2-11
John E Coleman Jr
Lollipo RH 3-2
Luke E Martin
18 GrH 5-8
Leßoy M Stoltzfus
Bertha RH
Richard G Wenger
4-4
Bambi RBrSw 9-6
Penn Hill Farm
54 GrH 4-1
John Z Weaver
142 GrH 3-3
Pleasant Pequea Farm
Cinder GrH 9-2
Emanuel S Esh
Reba GrH
Dennis R Bender
6 RH
Kenneth R Weaver
6-2
5-2
Buttercup RH 5-6
Harlan W Hoover
36 GrH 7-5
305
21,358
305
305
21,664
22,907
305
19,758
289
18,994
3-11
305
21,227
3-6
286
17,616
2-11
305
19,894
5-6
289
18,322
6-3
305
18,905
5-4
305
19,809
3-11
305
21,773
4-9
275
23,075
7-10
305
22,120
3-S
305
•18,518
305
19,922
304
18,804
305
22,912
305
23,529
305
20,036
305
19,248
290
19,218
305
18,633
300
23,599
257
20,593
305
18,375
305
22.458
305
19,326
305
23,850
305
19,239
305
17,927
305
20,571 3.8 800
months; even with all the signs of
increasing demand and shorter
supplies and even with disaster
assistance programs passed by
Congress and being considered in
Pennsylvania, few people are pre
dicting any more than a short term
to the present situation. A great
deal of how much these price in
creases benefit you will depend on
your own farm situation and how
much of a disaster you suffered.
Some relief will be available soon
from prices and/or programs but,
just as was predicted last winter
when prices were falling, it won’t
last long. Prices arc only a part of
the equation in determining pro
fits. In spite of Federal Orders and
price support programs competi
tiveness in milk production is just
as intense as in any farm enter
prise and periods of high prices
should be viewed as opportunities
to improve management skills to
endure or survive the periods of
low prices. Some forecasters are
already predicting annual milk
production at ISO billion pounds
next year but let’s make the most
of the present situation before
worrying about that
Prepared by
Thomas Jurchak
Co. Extension Agent
Lackawanna Coop. Ext.
3.8 822
3.7 821
3.5 816
4.1 820
4.3 820
3.8 819
4.6 819
4.1 818
4.4 817
4.3 816
4.1 815
3.7 814
3.5 813
3.6 813
4.3 812
4.0
811
4.3 810
3.5 809
3.4 806
4.0 806
4.1 806
4.1 805
4.3 805
3.4 804
3.9 804
4.3 804
3.5 802
4.1 802
3.3 801
4.1 801
4.4 801