KARL BERGER Special Correspondent WASHINGTON, D.C. It’s a busy time for those who monitor the federal government’s regula tion of dairy industry pricing through the nationwide federal order system. U.S. Department of Agriculture officials, who administer the sys tem. conducted an emergency hearing on the butterfat differen tial last month, are set to open a massive national hearing in Sep tember and hope to hold a hearing on the base pricing system in the near future. That’s in addition to the hearings on multiple compo nent pricing in the Middle Atlantic and several Midwest orders that are in various stages of progress. The changes that may result from this complex and typically cumbersome regulatory process could have significant conse quences for local dairymen, whose milk prices are essentially WESTTALIA HAS A HIGH-TECH BULKING SYSTEM FOR TOP itlc Cluster Rsmoval (ACR) WESTFAUA SALES ENGINEERS EMtom A SouthoaMom PA, I MD, DE, NJ. WV. VA I Robert E Turner I 717-677-9301 I Mobile 717-873-1776 I Wwtom PA, EMtom OH, i A Wootom NY Stan Cerliele 216-527-2220 Mobile 216-386-3570 Federal Order governed by die system. Hence, officials from area cooperative organizations, such as the Pen nmarva Dairymen’s Federation, have followed these issues and, in some cases, offered proposals or testimony. But fanners them selves are often left confused by the daunting technicalities of the regulations. The proposals to change the way in which USDA calculates the butterfat differential comprise the most straightforward of the issues now confronting federal regulators. Trade organizations representing cheese makers, milk processors and ice cream plants - along with two farmer coopera tives that process milk -.- asked USDA officials to take account of the changing price relationship of milk’s skim and butterfat compo nents at a hearing in Alexandria, Va., July 31. The decline in the value of but terfat relative to die skim portion Vial’S HAST BJUffMOfT John Baker 614-623-2113 Mark Wahr 717-966-1396 Aduno, Cumkoriond, Fronkln, Fulton, WNhm Vwk Countba WALTON’S DAHY SDtVICI Gary Walton 717-352-7606 sHAmmSiiFARM savici Dale Wenger 215-405-1025 LEOLA.PA PA: LmeMttf, labanon, Borka, Chwtor Dauphin, Eaalam York CountlM MD: Hartford County FISHOt A THOMPSON, INC. Amoo Ftohar, Rick Thompson 717-656-3307 Hearings Promise Change has divorced the current calcula tion -- which determines how much handlers pay farmers for die amount of butterfat in their milk - from market reality, according to Bob Yonkers, an agricultural eco nomist at Perm State University. Handlers selling surplus cream, for instance, complain that the price they’re receiving does not justify the price they’re paying farmers. The proposed change has the potential to lower slightly the price that some fanners receive for their milk, but it also could raise others’ prices. In fact, the overall impact on fanners is designed to be negligible, accord ing to Jim Fraher, an economist for Atlantic Dairy Cooperative. .The various proposals differ only in their specific details. Each of them would result in a lower butterfat differential than is now the case. Instead of the 11.3-cent differential that was established Westfalia’s Dairying Technology 'T’f 'l'l' I’l “Leading The Way For Leading Dairymen " WESTFALIA BTSTEMAT WESTFALIA SYSTEMAT A Division of Centrlco CANADA 1862 Brummel Drtvc/Elk Grove Village, IL 60007 3169 Joseph Dubreull Street/Lschine. Quebec HOT 3H6 Call Toll Free (800) 323-6723 or (70® 437-8660 Call Toll Free (800) 361-6040 SEGAt DABT SEIVKI 717-465-7606 OXFORD. PA WAI DAIRY SALES Bill Guhl 717-529-2569 TORT ROYAL PA WALNUT DARY * BARN EQUIPMENT Jonas King 717-527-2681 Lavl Stoltzfus 717-436-9429 for June, for instance, adoption of the proposed change would have resulted in a differential between 9.5 and 9.8 cents, according to Ed Coughlin, an official with the National Milk Producers Federation. Because the federal orders require handlers to pay farmers the additional cents per hundred weight for each tenth of a percent that the fanners’ milk exceeds 3.5 percent fat - or, alternatively, to deduct the cents {breach tenth of a percent below 3.S -- the changes would benefit some producers and harm others. “Those plus-up won’t be get ting as much,” Fraher said. “And those making below test won’t be deducted as much.” “Winners” and “losers” under this scenario would be relatively insignificant: perhaps several cents a hundredweight a month and several hundred dollars a year for the average dairyman. Cough- high-tech dairying TBQY.PA DABVLAND SALES A SERVICE Mika kallay 717-297-4128 LONGENECEER IMPLEMENT Dala Longomekar 814-793-3731 WILLIAM SPORT. PA LYCO DAIRY SERVICE Robt. Walts- 717-494-0410 Slava Walls- 717-494-0708 GRANTS VILIE. lIP MD: ADtghany, o*fr»tt, W**ttm MD Count)** WV: Pratton, Mn*ml, Htmpdilr*, Orant Count)** DAIRYMEN INC. Kannalh Van Brannon 1-800-882-COWS Lancaster Farming, Saturday, August 25, 1990-A2S lin said. However, the changes would conuibule further to the declining value of butteifat in pro ducers’ milk checks. Coughlin said the five-hour hearing was notable for die overall agreement of the participants that something needs to be done. Because USDA officials are con ducting the hearing on an emergency basis, the prospect exists for changes to be in place by Oct. 1, he added. No such fast track is expected in regard to the so-called national order hearing, which USDA offi cials have set for seven locations across the country during the months of September and Octo ber. Most interested parties in the Northeast are expected to testify in Syracuse, N.Y., Oct. 1-5. Secretary erf Agriculture Clay ton Yeutter announced the nation al hearing in response to criticism, particularly from the Midwest, (Turn to Pago A 39) Milking Parlors Designsd for Profit WV: B*rkt*y ( J*R*n*n Count)** INTERSTATE DAIRY EQUIP. CO. Wilt Pkmar 301-293-6148/301-682-2847 ewe* HuUmV, N*ntg*iMiy C*untlt* FOGLE'S DAIRY FARM SALES* SERVICE Dava Fogla, Dala Fogla, Mark Johnson 301-795-5670 WESTFAUA SPECIAL WESTFAUA DEALERS FOR THE AMISH DAIRYMEN LOGANTON. PA WINTM KOAD DIESEL SERVICE Tim Sloltdus Ana. Sarvlca 717-725-3890 PABAPBE.PA Lloyd Ranck
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