A3B-Lancaster Farming, Saturday, March 16, 1991 BATAVIA, N.Y. The cooperative that represents the majority of New York State dairy fanners today (Wednesday) peti tioned the state to establish an emergency milk market order set ting temporary survival floor prices paid by purchasers of milk produced by the state’s dairy farmers. In a petition filed in Albany with New York State Commis sioner of Agriculture and Markets, Richard T. McGuire, the Region al Cooperative Bargaining Agen cy Inc. (RCBA) requested the commissioner to use his authority under the Rogers-Alien Act of 1937 tp avert disaster in the state’s rural economy caused by a sudden and unprecedentedly sharp fall in milk prices over the past year that is expected to continue through 1991. At the same time, the cost of production incurred by New York State dairy farms has climbed steadily and is projected to rise through 1991. According to RCBA, current milk prices already have fallen below the cost of production for many New York State dairy far mers, and hundreds of dairy farms are at risk of failure in the coming months. The petition requests a state-regulated safety net for prices. Specifically, the price paid to dairy fanners for Class I or fluid milk would not be allowed to fall below $14.50 for one hundred pounds of milk and the minimum price to be paid for Class II milk, used for manufacturing cottage cheese, yogurt and other dairy products, would be $11.50 per hundred pounds. Dairy farmers would actually receive a uniform, or blend price for all their milk of about $l2 per hundred pounds. The minimum prices which the state’s dairy farmers now receive for their milk are established by N~ .Y. Ag Agencies, Officials Support RCMA Efforts ALBANY, N.Y. — The Reg ional Cooperative Marketing Agency’s (RCMA) efforts to raise prices for dairy farmers have gained endorsements from several important sources. New York’s Joint Commission on Dairy Industry Development, several New York State legisla tors, the New York Farm Bureau Dairy Committee and the Grange have expressed support for RCMA’s efforts to provide an economic safety net for the state’s milk producers, RCMA Executive Director Carmen L. Ross reported to the Board of Directors during a meeting March 8 in Albany. Support focuses on a petition to Richard T. McGuire, state com missioner of agriculture and mark ets, which requests that he estab lish a statewide marketing order to set minimum prices on milk by using his authority granted under the Rogers-Allen Act. The peti tion was filed last month by the Regional Cooperative Bargaining Agency (RCBA), an organization in which RCMA is a member. The commissioner has begun the legal steps necessary for acting upon RCBA’s petition, Mr. Ross reported. On March S, he sent out notice of the petition. Interested parties have until March 22 to sub mit additional proposals to the commissioner. After that*date he is expected to announce the hearing. RCBA Asks New York State To Establish Milk Price Survival Floor government market administrators under a joint federal and state marketing system. Prices here are based on market prices for manu factured milk in Minnesota and Wisconsin and are not based either on market conditions in New York State or on New York dairy farmers’ cost of production. The RCBA petition asks the Com missioner to establish a single set of survival prices for the entire state. The RCBA issued the following statement: “On behalf of all the dairy far mers in New York State, we are asking the Commissioner of Agri culture and Markets to establish a survival floor for prices paid by purchasers of milk produced by New York State dairy farmers to head off a disaster now looming for the rural economy of the state. “Due mainly to market condi tions caused by the buildup in the Midwest of huge inventories of manufactured dairy products by large food processing companies, the price of milk in New York State has plummeted more sud denly and precipitously in the past year than at any other time in the last 25 years. During the past year as a whole (December 1989 to December 1990), the price of milk paid to New York State dairy far- mers under the federal milk mark eting system fell by more than 27 percent, and the price is expected to continue to decline substantial ly in 1991. “For many dairy farmers, the cost of production already far exceeds the price they received for their milk. Even lower prices over a long period will result in the fai lure of large numbers of the state’s dairy farmers and will impose severe hardships on many more. This will have a devastating effect on rural communities whose eco nomies are heavily dependent on ROMA is working with many .persons and organizations to arrange expert testimony for the hearing on the plight of the state’s dairy industry. The hearing is a crucial step in the process, because the commissioner’s deci sion on minimum milk prices must be based on information pre sented at the hearing. The RCMA Board of Directors was also informed that directors of Upstate Milk Cooperatives Inc., an RCMA member which had expressed opposition to the Rogers-Alien petition in Western New York, had voted at a special meeting to endorse the RCBA’s Rogers-Alien petition in concept. Upstate and Niagara Milk Cooperative Inc. are expected to submit to the commissioner of agriculture a petition for the West ern New York Milk Marketing Order. This petition should com plement the RCBA petition. RCMA is encouraging its mem bers to write to elected officials to urge them to notify the commis sioner that they support RCBA’s petition and to urge the commis sioner to act as rapidly as possible. “Dairy fanners need help in the form of higher prices, and they need them now,” Ross said. RCMA directors also voted to endorse the concept of federal legislation that would freeze Class (Turn to Pago A 39) dairy farming and ultimately may result in shortages and higher prices for consumers. “The adoption by the Commis sioner of a survival price will help continue to guarantee an adequate supply of reasonably priced milk for the millions of consumers of New York State. ‘The Commissioner has ample, tested authority under the state’s Rogers-Allen Act to establish a survival price for milk producers in order to insure an adequate supply of this essential and highly perishable commodity. The New York State Legislature by statute originally enacted in the 1930 s gave the State Commissioner of Agriculture and Markets the authority and the mandate to establish survival prices for the milk of New York dairy farmers. Milk orders have been in effect in Western New York continuously since 1938. ‘There is no economic reason why the adoption of the survival prices requested will have any adverse impact on consumer Introducing... Keystone Dairy 36% Concentrate Keystone Dairy 36% Concentrate has the correct balance of needed nutrients to maximize milk production throughout the entire lactation and helps to reduce herd health problems. Available in meal or pellet form. your herd using Keystone Dairy 36% Concentrate m prices. There has been no decrease in the retail price of milk paid by New York consumers over the past year despite the sharp decline in prices paid to dairy farmers. In fact, the retail price of milk has risen in some areas; the proportion of the retail price paid to farmers has declined sharply; and the proportion going to retailers in the distribution chain has risen substantially. “Given this structure of the retail price of milk, a minor change at the farm level should have no measurable effect at the check-out counter. Moreover, the failure to adopt a survival price will result in widespread farm fai lures followed by a decline in supply and a significant shortage that will cause prices to consum ers to rise. “Our request for desperately needed emergency action is in keeping with the long-established public policy of the state to insure order in an agricultural sector deemed essential to the state’s economy and to the public wel- Give us a call today,..let us program Working to Improve Tour Bottom Line. KEYSTONE MILLS R.D.3 Ephrata, PA 17522 (717) 354-4616 1975 Route 336 Romulus, NY 14541 (315) 549-2578 fare. The proposed survival price will be lower than the actual cost of production of many farmers. It will be in effect only for 12 months and will sunset automati cally unless the Commissioner makes another finding of an urgent need to continue or modify it.” RCBA is a specialized bargain ing entity set up for the purpose of petitioning the Commissioner under the Rogers-Alien Act. Its membership consists of the Reg ional Cooperative Marketing Agency, Inc. (RCMA), a coopera tive corporation whose member ship, in turn, embraces approxi mately 22,000 dairy farmers in the northeast Following today’s filing, the Commissioner must give notice of public hearing. Following the public hearing, if the Commis sioner makes a favorable recom mendation on the petition, a per iod of public comment then must follow before the Commissioner can rule. The decision-making process could last several months. 4. ** <•*
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