CMjncwtw Farming, Saturday, February 17, 1990
STRONGSVILLE, Ohio
Dairy producers are “cautiously
optimistic” about the 1990’s
marketing picture. Milk Market
ing Inc. (MMI) leaders General
Manager Gordon Riehl and Presi
dent Herman M. Brubaker
reported recently in their annual
addresses to MMl’s 250-member
delegate body.
“The weather has played havoc
on us for the last two years a
drought in 1988 followed by a wet
spring in 1989,” Brubaker said.
“Many producers aren’t counting
on the price of milk staying at its
current level for very long.”
Since October 1989, the price
producers received for their milk
rose as commercial demand
accelerated and drought-affected
milk supplies dried up.
The Minnesota-Wisconsin
(M-W) price, the basis for deter
mining milk prices, pushed far
above support price levels climb
ing to an all-time high of $14.93
per hundredweight in December.
Brubaker said that dairy pro
ducers found themselves in a
somewhat frustrating position
during this potentially' profit
making period. Potential on-farm
profits were offset by reduced
milk supplies, lack of high quality
feed, soaring commercial feed
prices and increasing labor
shortages.
“If dairy producers are. exper
iencing a temporary cash flow
increase, the money seems to be
going into paying off existing
farm debts,” added Brubaker.
“Feed costs remain high in many
areas and producers are still feed
ing their herd’s low-quality forage
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Dairy Producers Cautiously Optimistic
that was harvested last spring.”
Riehl reported that milk pro
duction remains down 6 to 10 per
cent in 'MMI’s marketing region
and two percent below national
levels from year-ago levels.
“We have not seen any particu
lar pickup in milk production and
doubt seriously if we will see
much in this area until dairy pro
ducers get some better feed and
the cows freshen after they’ve had
that better quality feed,” said
Riehl.
Although it is difficult to pre
dict what milk production and
prices will do in 1990, MMl’s
general manager said that MMI
economists predict the average
pay price for 1990 to be about 50
cents per hundredweight higher
than 1989 averages.
Through February, pay prices
to producers should average well
above $l5 per hundredweight - a
price higher than 1989 averages,
MMI officials said.
Riehl explained that most of the
M-W and milk price changes last
season were the result of climbing
block cheese prices. Since May,
block cheese prices have risen
steadily. Riehl said that, although
there is room for the M-W to
expand a bit longer, cheese prices
are already beginning to soften ~
an indication that the M-W may be
nearing its peak.
As the New Year opens two
other factors have already
impacted prices - a 50-cent cut in
the milk support price and an
assessment to meet budgetary cut
backs, Riehl said.
Effective Jan. 1, the milk sup
port price dropped 50-cents per
hundredweight The cut, issued by
Secretary of Agriculture Clayton
I^ was direct response to
the 1985 Farm Bill which calls for
a 50-cent reduction if federal
purchases of milk equivalent is
projected to exceed five billion
pounds.
Also, an one-month assessment
of 6.3 cents was levied on January
milk. Riehl explained that the
assessment is to meet the Con
gressionally imposed 1989
Gramm-Rudman-Hollings (GBH)
budgetary cutbacks. GRH requires
a cut in government spending of
$l4 billion, $29 million of which
belongs to the dairy program.
Brubaker told members that
other critical issues face the daily
industry in the writing of the 1990
Farm Bill.
He said the National Milk Pro
ducers Federation (NMPF), sup
ported by MMI and other dairy co
ops nationwide, endorsed a dairy
policy framework that combines a
market-oriented dairy price
adjustment with standby inven
tory control to limit federal dairy
program costs.
NMPF recommends adjustment
in the milk support price to reflect
the overall supply-demand
balance in the dairy industry. That
would include a modified formula
for calculating milk equivalents
used to determine price support
cuts. Currently, the U.S. Depart
ment of Agriculture calculates
milk equivalents on a milk fat
basis. Brubaker said NMPF con
tends that calculating the milk
equivalent on a total milk solids
basis provides a more accurate
picture of the supply-demand
scenario.
“Our current national dairy pol
icy does not recognize that the
nation’s milk supply is in balance
with demand,” said Brubaker.
“Since 1985, the industry has used
the five billion level, milk equiva
lent, to determine if the support
price would be lowered by 50
cents each year.”
Also critical to the 1990 Farm
Bill are food safety and ground
water contamination issues, Bru
baker said.
Twin Valley Students Win
Project Book Awards
ELVERSON (Chester Co.)—
Twin Valley FFA members recen
tly participated in the Berks Coun
ty Project Book Contest, which
consists of the judging of vo-ag
students’ record books.
Students keep work experience
records on and off the farm, skills
and tasks, wildlife, conservation,
and production. The purpose of
keeping these records is to teach
record-keeping abilities, responsi
bility, and money management.
Students from Twin Valley
competed in this contest. For the
enterprise of work experience on
the farm, Mike Henderson placed
2nd and Brian Beam placed 6th.
Danielle Burke placed Ist for her
records on rabbits. Pam Harrison
placed 2nd in that same enterprise.
In miscellaneous, Doug Shantz
took 2nd place, and Ray Reinhard
placed 3rd. In market hogs, Jill
PLEASE CONTACT YOUR
PARTICIPATING DEALER
PA DEALER
BETHEL
Zimmerman
Farm Service
717-933-4114
ELIZABETHTOWN QUARRYVILLE
Messlck AL * Herr & Bro.
Farm Equip. 717-786-3521
717-307-1319
HANOVER
Melvin J. Sheffer,
Inc.
717-637-3808
IVYLAND
Wm, Hobensack’s
Sons
215-675-1610
215-343-2101
KITTANNING
W.C. Crytzer Eq.,
Inc.
412-543-2441
LITITZ
Binkley & Hurst Bros.
717-626-4705
McALLISTERVILLE
Inch Equipment Co.
717-463-2191
NEW BERLINVILLE
Erb & Henry
Equip., Inc.
215-367-2169
“Public concern for envira
mental issues is growing dail
Suddenly, many special inter*
groups have gained strength i
push for their concerns,” Brubalo
said. He added that limiting pest
cide applications, protection (
well water and nitrate applicatia
are being discussed as part of Ut
effort.
Farmers must work togethi
politically, he said, to educal
those who will write the farm bit
Burkhart placed Ist, Brian Beat
took 2nd, Keith McGowan 3r
Eric Marshall 4th, and Ky
McVaugh 6lh.
Chuck Stoltzfus took 2nd pi
in the dairy enterprise. For w
experience off-farm, Missy Fa
ning took Ist place, Margaret Yi
mush 2nd, Danielle Burke 3i
Kim Hubert 4th, Doug Shantz Si
Keith McGowan 6th, and Kev
McVaugh 7th.
Andy Mast took Ist place
junior record books, and Ry
Marshall 2nd. Mary Beth Hassl
placed first in pleasure horse ai
Erica Hess 2nd. John Rost took 1
in the wildlife conservation pi
jects, and Steve Pavlesich plac
2nd, David Rost 3rd, and Ch
Duncan 4lh.
The top record books from th
contest will go on to compete
the state contest this February.
NEW RINGGOLD
Eckroth Bros.
Farm Equip.
717-943-2131
RINGTOWN
Rlngtown Farm Co.
Equipment
717-889-3184
SPRING MILLS
Route 45 Sales
& Service
814-422-8805
TURBOTVILLE
Coopers Hdwe., Inc.
717-649-5115
1-800-441-FARM
UNION CITY
Kafferlln Sales &
Service
814-438-7636
SHILOH
Farm-Rite Inc.
609-451-1368