Farm Organizations Object To Stopping Class I Milk Support
VERNON ACHENBACH, JR.
Lancaster Farming Staff
Three farm organizations this
week have issued statements
opposing the removal of a $1.05
per hundredweight state price sup
port for drinking milk.
The Pennsylvania State Grange,
the Pennsylvania Farmers ’Associ
ation, and the Pennsylvania Far
mers Union all report having rep
resentatives testify before the state
Milk Marketing Board to continue
the Class I price differential for a
least a year.
Seemingly at root of the call for
the extension of the price support
is the increased cost to produce
milk and the projected sharp
decline in current prices paid for
milk.
The $1.05 per hundredweight
over-order differential was added
on to milk prices September to
help dairymen who were suffering
greatly increased feed costs due to
the 1988 drought and the 1989
rains. The differential is to begin
phase-out May 31.
All three organizations agree
that the support should continue,
JoiiidCb
VFARMS r
CALL TOLL FREE FROM
ANYWHERE IN THE U.S.A,
Hours: Monday Thru Friday, 7:00 to 5:30; Saturday 7:00 to 3:00
JOHN DEERE 450 SERIES END-WHEEL GRAIN DRILLS
TO OUR VALUED CUSTOMERS...
In order to assure you of your 1990 John Deere equipment needs, please consider
placing an order early in the season. Just give us a call and we wilt be happy to
help you with any questions you may have on equipment availability.
but do not agree for how long.
Melvin Eckhaus, PFA commod
ity director to the PMMB, on Wed
nesday said that the farmers asso
ciation recommends an extension
of the over-order price until May
31, 1991, “to give dairymen a
return for their management and
equity capital,” according to a PFA
statement
Grange dairy chairman Robert
Pardoe Sr. did not set an extension
deadline, but in testimony spoke in
support of continuing the support
PFU representatives also did not
provide a timetable for removing
the $1.05 differential, but gave
similar reasons for its continuance.
The PFU did, however, suggest an
additional support price of $1 per
hundredweight for fluid milk dur
ing May, June, July and August
and 75 cents per hundredweight
during September, October,
November and December.
“We have enjoyed a reasonable
price for milk for the past few
months,” Grange spokesman Par
doe said. “But our milk price is
now dropping rapidly. Hay pri
ces ... remain high and other
LEHIGH AG EQUIPMENT
RD #6, Allentown, Pa.
1-800-DEERE-PARTS or 1-800-333-7372
10 -12’ And 13’ IN STOCK
AND AVAILABLE FOR IMMEDIATE DELIVERY
WE’RE BIG ON
MALL TRACTORS,
costs have increased, such as fuel
prices and equipment repair and
replacement” he said.
According to Grange officials,
dairymen are losing purchasing
power on the farm as milk prices
start to drop.
Parity, a measure of purchasing
power in comparison to other com
ponents of society, shows that
dairymen are receiving “only 55
percent of parity. Parity price of
milk, at last report is $25.70,”
according to a news release.
“The widely fluctuating
(Minnesota-Wisconsin) price
series sets the price of Class I milk
in Pennsylvania even though those
fluctuations have little to do with
our Class I market” Pardoe said.
“We suggest the PMMB set a
Class I price in Pennsylvania
regardless of the M-W series. Our
farm price would still vary, but not
as drastically as our current sys
tem,” he said.
PFA representative Eckhaus
said that dairymen had already tes
tified to the PMMB that their profit
margins are not high enough to
enable them to replace necessary
215-398-2553
•om 30 to 55 hp!
Deere with “big tractor” features
id accessory options
LEADERSHIP AT WORK I tUM
machinery and equipment.
Eckhaus said he based his one
year extension recommendation
on a management return of five
percent of gross sales and six
percent interest on equity. He said
that means dairymen in Pennsylva
nia received 1989 prices at least
$1.82 below production costs if
management and equity are
included.
Additionally, Eckhaus said the
effect of weather continue.
“Pennsylvania dairy production
is still 7.5 percent lower than it was
in January 1989 and eight percent
lower than in February 1989,” he
said. “Both the numbers of cows
and production per cow are signif
icantly lower. In fact, of all the
major dairy producing states, Pen
nsylvania is the slowest to recover
from the adverse weather,” Eck
haus said.
According to PFU spokesman
Arden Tewksbury, the over-order
price must continue because of
poor weather and poor quality, but
high priced, roughage farmers
have to feed and the price of sup-
JOHN OCKRE
TOO
Lancaster Farming, Saturday, March 24,1990-A45
plemental feed required to provide
balanced diets for their herds.
Tewksbury also told the board
that the last year’s inordinately wet
weather created more than poor
hay quality. He said a number of
fields were put out of condition
physically (“rutted up”) and will
require plowing; an additional
expense.
Bob Junk, president of the Fay
ette County chapter, told the
PMMB that fanners he represents
in the southwestern portion of the
state will require a continued over
order price until the end of the
year.
According to PFU calculations,
if existing premiums are lost, the
average dairy farmer will get about
$3,000 less in gross receipts in
June than they did in January.
Steel Tube Gates
Gate
Gate
Panel Gates
12’ Gate
14’ Gate
Call For Details:
HENRY B. HOOVER, INC.
1731 W. Main St.
Ephrata, PA 17522
717-733-6593
AGWAY
547.99
552.99
$38.99
$44.99