MILK
*| CHECK
W I THOMAS JURCHAK
\ M Lackawanna County
June Dairy Month
June 14, 1991 - The best news
for June Dairy Month is an
increase of 19 cents in the
Minnesota-Wisconsin Price Series
for May, right in the middle of
what we used to call the spring
flush. This puts it up to $10.23
with more to come in June and
July by which time the “normal”
seasonal increases will begin.
Much of the credit again goes to
increasing cheese prices that
started going up the first week of
May. From $1.05 a pound for bar
rels on the National Cheese
Exchange on April 26 the price
has increased steadily to $1.15 on
June 14 with no end in sight.
That’s a total of 10 cents higher in
just seven weeks. So far you’ve
only seen the increases up to May
15 in the M - W price but the rest
will be coming in June. This is a
lot more than expected and
reflects a declining milk supply
brought on by higher cow prices
and lower milk prices. Nationally
for April milk production was
almost back to 1990 levels.
And that’s not all. Powder
prices have firmed up also and
gained over three cents a pound in
May. If that’s not enough, even
butter prices last week increased
from three to eight cents depend
ing on die grade. This brought but
ter prices up to the support price
for the first time this year. Putting
it all together it means higher
prices at the time of the year when
yon least expect them. It also
changes most predictions for milk
prices this year. When the M - W
dropped $2.31 from September to
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December last year most forecasts
indicated we would only get back
about half of that this year. Now
the 10 cent increase in cheese
prices plus the increases in pow
der and butter could be worth a
dollar a hundred by mid summer
with room for more improvement
in the fall and winter.
Farm Prices
However, all of that is in the
future except for the Class 111
price. Mainly your blend price in
May comes from the M - W in
March when it was only $10.02
and starting on its way up. With
the new provisions for three clas
ses of milk in Orders 2 and 4 it’s
interesting to note that when the M
- W takes a sudden jump like this
month, the Class 111 price is higher
than the Class II price. That’s
good now because over 45 percent
of the milk in Order 2 is Class 111
and only 17 percent is Class II for
May. The Class II price was
$lO.Ol and the Class 111 price was
$lO.ll if you’re interested.
All this adds up to a Uniform or
blend price of $10.84 for Order 2
in May. That’s only three cents
more than last month but with the
40 cent suspension in the Louis
ville Plan it’s $1.99 under last
year. May was the low month for
the Class I price at $12.44 but this
will go to $12.65 by July. I realize
it isn’t going up as fast as it went
down but at least it’s going up in
the Spring.
Pennsylvania Premium
This week the Pennsylvania
Milk Marketing Board reduced its
over order premium from $1.33 to
$1.03 a hundred on Class I milk
but extended it for a year to June
1992. Other states have now taken
action to collect Class I premiums
and include Vermont, New Hamp
shire, Maine, Massachusetts, New
Jersey and New York. New York
set a minimum Class I price of
$13.85 for June milk but most of
the other states have chosen to add
$1.39 over the Federal Order
Class I price.
Not all of these are in place yet
and may be challenged by law
suits regarding the collection of
compensatory payments by hand
lers on out of state milk. Even
national legislation has been con
sidered that would limit the parti
cipants in federal programs for
producers getting over order pre
miums through state marketing
orders. Watch for developments.
Study Completed
The USDA study of dairy supp
ly management programs was
completed last month and their
report goes to Congress this week.
Meetings of the House Agricul
ture Committee on June 18 and the
Senate Agriculture Committee the
next day will provide the first sol
id indications of what may be
expected. The USDA study report
was just a report and did not
include anything to indicate a pre
ference for any particular prog
ram. The report has been criticized
for some of the base line data used
in their projections of the impact
of each program on producers and
consumers but the decisions on
what to recommend to the Con
gress are now in the hands of the
agriculture committees of each
chamber.
However,, markup of the bills
for each committee is scheduled
for the following week on June 25
and 26 so you’ll know a lot more
by the end of the month. Just
remember that this is only the first
step toward passage of any new
legislation and, depending on
what is proposed, may not get to a
final vote until the Fall when Con
gress returns from its summer
recess. Speculation on what will
be proposed that can get approved
by the Congress without the risk
of a Presidential veto will be inter-
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esting but don’t be surprised if you
don’t get as much as you hoped
for. Just pray that you get some
thing because, once again as in the
past, there’s little consensus
among producers and organiza
tions on the smorgasbord of prop
osals that will be submitted.
In addition to what the agricul
ture committees may find in the
USDA report some legislators and
the National Milk Producers Fed
eration, as well as other groups,
used the opportunity before the
June IS deadline for the report, to
make proposals of their own.
Among these you can find a par
tial herd buyout program; increas
ing the minimum solids in milk;
limiting Commodity Credit Cor
poration purchases; a producer
board to market surplus dairy pro
ducts and removal of the require
ment for cross compliance in con
servation plans that is required in
all other government programs in
agriculture.
Speaking of cross compliance
the ASCS Form AD-1026 is the
certification that you are in com-
Holstein Association
Advertising Opportunity
STATE COLLEGE (Centre
Co.) The Pennsylvania Hols
tein Association is planning a new
advertising opportunity for it’s
members and others a mem
bership directory.
The association is putting
together a membership directory
with featured advertising through
out. According to association offi
cials, it will be an excellent publi
cation to promote breeding prog
rams, long range herd goals, or
products for dairymen.
The last time the association
published a membership directory
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V
Lancaster Farming, Saturday, June 22, 1991-A27
How’s Your
AD-1026
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U OSYSTEMS
- SPECIALIZED FARM EQUIPMENI__
pliancc with the sod buster prog
ram and eligible for a five cent
refund for 1991 if you don’t pro
duce any more milk than you did
in 1990. That nickel may not be
worth having but if you think you
really want it don’t wait for Con
gress to exempt dairymen because
it may not happen. The argument
is that all other farmers have to
live with it so why not dairymen?
That form AD-1026 must be
completed each year to stay in
compliance. If you never filed one
then check at your county ASCS
office. Right now they’re acting
like it will be required and putting
it in their newsletters.
The first requirement is a Con
servation Plan from Soil Conser
vation Service by 1991 that’s
implemented by the end of 1994.
Depending on your farming prac
tices you may not have to make
many changes but you must, at
least, have a plan this year even if
the changes can’t be made until
next year. Funds for cost sharing
conservation practices are also
dwindling and that may be another
reason to make a move now if you
want to be in compliance in the
future.
was in 1986. The publication does
last and is used regularly by many
people.
The cost for a full-page ad is
$3OO, plus extra feature costs.
If you would like to be involved
in this promotional program,
please contact the Pa. Holstein
Association by June 24. Write to
either the 839 Benner Pike, State
College. Pa.. 16801, or (814)
234-0364.
The is your opportunity to
promote your herd or products on a
long term basis to a progressive
audience of dairymen.
OXFORD. PA 19363
1 (800) 222-2948