D2-Lancaster Fanning Saturday, July 27,1991 SCRANTON (Lackawanna Co.) Nearly everyone now agrees that milk prices are on a roll and there are enough signs to sus tain a trend to the end of the year. Cheese price have been the out standing performer with eight con secutive weeks of increasing prices for a total now of 15 cents a pound since May, reviving the often quoted phrase in the dairy industry what a friend we have in cheeses. A chart illustrates the rapid rise in cheese prices in just nine weeks after sitting on their support price for six months. It’s even more impressive when you realize that 15 cents a pound on cheese can translate into $1.50 a hundred on milk. A trend in milk production has also been set since January when it was 3 percent over the previous year. Since then it has pulled even in May and is expected to be below 1990 in June. All of the top five dairy states have been cutting back, but Min nesota and Wisconsin were below a year ago last month. That has helped to increase the cheese price since most of the cheese is made in the upper midwest. Also helping cheese prices, especially barrel cheese, was the announcement by USDA to make advance purchases of dairy pro ducts for next year’s school lunch and feeding programs as well as LEOLA TIRE SERVICE. INC. 717-656-2574 MILK CHECK THOMAS JURCHAK Dairy Specialist Lackawanna County expanding their use in donation programs. Just as important was the decision by USDA to withhold the sale of Commodity Credit Cor poration stocks. Ordinarily these sales would start when the market price reaches 110 percent of the support prices. Cheese prices have already reached that level, but, without CCC sales, market prices can continue to rise as far as the demand will take them. Weather related effects on milk prices are harder to predict, but right now it seems that many areas of the country have problems with too much water or not enough water. So far, estimates of feed prices for next winter aren’t too bad, but in most areas locally, after a very good first cutting, we haven’t made any hay since then. Weather conditions may very well contribute to higher milk prices and it was a drought in the upper mid west that was partially responsible for your record high milk prices in 1989. But that’s get ting it the hard way. Farm Prices All of this has to get translated into numbers on your milk check and this month you will begin to see improvement. Cheese prices were the major contributor to a 35-cent increase in the Minnesota-Wisconsin Price Series to $10.58 for June that is 68 cents over the support price. This 258 W. MAIN ST.. LEOLA. PA makes an increase of 54 cents in two months with more on the way for July. For June, it has provided 36 cents more for Class 111 milk and 15 cents more for Class II in Feder al Order markets. The Class I price lags by two months so the June M-W will give you a$ 13 Class I price in August in Order 2 and that will be the highest so far this year. The uniform or blend price for June in Order 2 was $11.04 at the 201- to 210-mile zone without the Louisville Plan deduction. That was 20 cents better than last month but $2.21 less than last year. If you want to keep looking back, it was $11.62 in 1989 and only $10.66 in 1988. These had Louisville Plan deductions of 40 cents for June. Even so you only have to go back three years not 12, to find a comparable price, so the gap is closing and forecasters are now estimating average yearly prices closer to 1990 than they were this spring. New York Referendum As reported last week. New York state dairy farmers voted in a referendum for a minimum Class I price of $14.50 for one year start ing August 1 on milk purchased in New York. Required to pass was a minimum of 66 percent of all 9,304 producers in the state and it made it with 68.5 percent Forty percent of all the producers were “independents” but only 58.5 per cent of them voted in favor of the minimum price. ROLLING 0N...1N THE 90 • A ■ 4 a m Visit Our Displays At AG PROGRESS DAYS MEETS THE CHALLENGE BRILUON FLAIL SHREDDERS keep going when others stop! one of the most important features is that you get the heaviest gearbox on the market with this machine. 12 & 15 toot. SUPER SOIL BUILDERS am a primary conserva tion tool that breaks up plow pan to absorb moisture and blends surface residue into the soli with enough residue left on top to control wind and water erosion. DEEP TILLS - Featured above is the 7-shank model Deep-Till with the Category fit hitch. This model is equipped with single Individual trash cutting coulters and cuts a 17’6” width. It uses manual gauge wheels. The over order premium to New York producers will be the differ ence between the Federal Order 2 price and $14.50. For August, that would be $1.50 but only on Class I milk. No mini mum prices were set for Class II or Class 111 milk. A separate “pool” would be made for New York state produc ers so all would receive a uniform premium regardless of the Class I utilization of the handler receiving the milk. The premiums however, would be distributed to producers in their monthly milk checks by the handlers. Considering a 40 percent Class I utilization in August, this would mean an over order premium of 60 cents for New York state producers. The $14.50 price in August will replace the $13.85 interim price in effect on Class I milk in New York for June and July, but some of the same problems still remain, such as how to collect for out-of-state milk and how much, if any, of the 60 cent premium will be new money from handlers (Many of whom are already paying pre miums for many reasons, from volume to quality.). (Turn to Page D 3) I rennn.»/uii« | Adamatown AOAMSTOWN EQUIP INC Somorort SUMMIT MACHINERY, INC BadiMarila MILLER EQUIP CO. Berwick CH RINEHIMER A SONS Wataontown DEERFIELD AG A TURF CENTER. INC Carliato GUTSHALLS Dover GEORGE N GROSS. INC. Barton GEORGE V SEIPLE Elizabethtown MESSICK FARM EQUIPMENT CO | MARYLAND | Gettysburg YINGLINQ IMPLEMENT GraancaatJa MEYER'S IMPLEMENTS. INC Waatminaiar FINCH SERVICES Hanovar FINCH SERVICES HANOVER, INC (ntarcourao C fl. HOOBER A SON Lmcmi* LANDS BROTHERS, INC Lebanon UMBERGER'S OF FONTANA | NEW JERSEY 1 LoytvflM GUTSHALL’S. 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