PH MILK Hh check 1 THOMAS JURCHAK W | Dairy Specialist | * Lackawanna County Up And Up SCRANTON (Lackawanna Co.) Reflecting the increasing prices in butter, powder and cheese, but especially cheese, the Minnesota-Wisconsin (M-W) Price Series had the highest increase of the year so far, taking a 41-cent leap from $10.58 in July to $10.99 in August. This makes the fourth consecu tive month of increases for a total of 97 cents since March. It’s still $2.44 lower than thesl3.43 in July of last year but only 79 cents less than 1989, and 47 cents better than 1988. It was after July last year that the M-W price began to drop, but this year it’s on the way up and if the increases continue, it*s expected that we will be passing last year’s price by October. After that a lot depends on what Congress does with a new dairy bill. 21 Cents In 15 Weeks Much of the credit for increases in the M-W again will have to go to cheese prices that continued their climb after fifteen weeks of increases from May 3 to August 9 MR. & MRS. ARTHUR KRALL & FAMILY • Natural Ventilation With Overshot Ridge Vent And Heavy Duty 96” Sidewall Curtain • Painted Steel Gates And Fencing With Posts Reinforced With Rust Sleeves • Adjustable/Self-Locking Headlocks /m Serving The Agricultural Industry For Over 20 Years for a total-to-date of 21 cents from $1.05 to $1.26 with no end in sight Just within the last month, there were increases of seven cents a pound with leaps as high as five cents in one week. So far, no one sees any reason for the increases to stop now, as more milk moves from the upper Midwest to the Southeast; produc tion declines continue nationally; and school openings next month put an additional demand on fluid milk. One uncertainty, in addition to the effect of weather on produc tion, is when the Commodity Cre dit Corporation (CCC) decides to sell some of its 30 million pounds of cheese that it has in uncommit ted inventories. Secretary of Agriculture Edward Madigan promised to withhold CCC sales until milk prices improved, but he didn’t say how much. It’s very unlikely that this would happen now, but it is an important reason why cheese prices continue to climb beyond the 110 percent of the support price, which happened last month when CCC stocks could have been Thanks and Congratulations On Their New Heifer Facility BUILT BY AGRI ” I NO- The Construction Professionals 151 E. Farmersville Rd„ Ephrata, PA 17522 • (717) 354-4271 to FEATURES • Grooved Concrete Floors To Minimize Animal Injury • Greenhouse Paneling Positioned In Roof For Additional Light And Warmth From The Sun In Winter • 8’ Cantilever Roof System Over Feedpad For Added Protection sold. With cheese plants competing with butter/powder plants for decreasing milk supplies, even butter and powder prices are show ing some improvement Powder in particular has had price increases in each of the last three months and is now seven cents over the support price at 92 cents a pound. Butter prices have not shown as much improvement and, while there have been increases the last two months, they were barely enough to bring them up to the sup port price of 98 cents. However, during the first week of August, CCC purchases were the lowest in over two years with some handlers canceling their pre vious offers to sell to the CCC another sign of tightening sup plies and increasing prices. Farm Prices Those increasing M-W prices of the last three months are now all moving down to the farm price and showing increases in the uniform or blend price of 20 cents last month and 53 cents this month. That makes the minimum farm price before premiums —of $11.59 at the 201-210 mile zone for July milk testing 3.5 percent butterfat The big jump was in the Class 111 price from $10.47 to $11.02 or S 3 cents. That made up 43 percent of the July pool. The Class II price was up $l.ll from $10.16 to $11.27, but that was only 18 percent of the milk pooled. The Class I price was up 19 cents and made up 39 percent of the pool. Let Our Experience Work For You For All Your Farm Building Needs, Large Or Small Lancaster Fanning, Saturday, September 21, 1991-A33 With three classes of milk now in all Federal Orders here, there is the opportunity for getting more money for milk going into soft dairy products in Class 11. The difference last month was 25 cents more in Class II over Class 111. With the pattern set in recent months there’s little doubt of blend prices continuing to rise for the rest of the year. Premiums In addition to higher market prices for milk, programs to get higher prices for farmers have pro liferated in nearly all of the North eastern states. Pennsylvania has had it’s $1.05 on Class I Milk for over two years and the Pennsylvania Milk Mark eting Board held a hearing this week to consider increases because of drought damage to crops. Eligible New York farmers recently got a 50-cent premium that reflected a statewide pool. That put a $13.85 price for June on Class I milk purchased and sold in New York. The same program will continue in July, but starting August the Rogers-Alien program requiring $14.50 for Class I milk for one year began. Premiums will vary from month to month, depending on the differ ence between the federal or state order prices for Class I milk and the $14.50 minimum. There were no premiums on Class II and 111 milk in June and July because the market price increased enough to compensate for the differences between the minimum price and the market price. New York handlers are required to report their uses of milk to the state Department of Agriculture and Markets by the 20th of the fol lowing month and pay its produc ers the premium by the 30th of the month. What we still don’t know is how much of the required premium is new money and how much was a drop in the direct premiums paid voluntarily by the handlers. Another uncertainty is the pay ment to New York producers whose milk is sold out of state. These are the compensatory pay ments required of handlers under an amendment to the original law, but are now involved in litigation. However, it also raises the ques tion of premiums to Pennsylvania producers selling milk to New York handlers and how their pre miums may be affected by the New York law. The difference between the $13.85 interim Class I price and the Order 2 price was $1.39 in June, but will drop to $1.20 in July then back up to $1.50 in August and down (051.09 in September as the $14.50 Rogers-Alien price becomes effective. A very different program that Pennsylvania’s in that it provides minimum class prices rather than add on premiums, but-one that should provide benefits to New York farmers and illustrate the val ue of producer organizations like RCMA and RCMB. Recess With your Congressman home for the summer recess until Sept. 10, you may have an opportunity to talk to him about the dairy provi sions of the next farm bill. However, between the bills that were produced by the agriculture committees of the House and the Senate, plus the two “comprom ise” bills that were added just before adjournment, it seems that nearly everything that you could think of has been included. In fact, when they return in Sep tember it may look like they’re starting all over again, but with much less lime to reach a consen sus of what to move on to the floor. It has been suggested that they wail until after the hearings on an alternative pricing system to the M-W and a recommended decision on the national hearings held last year before they decide on the 1992 dairy program. Whether it’s planned that way still may happen, but, in the mean time, the dairy bill is on hold until Sept 10. Emergency Program It appears that some northeast ern counties that incurred crop los ses due to the weather may have some help on feed purchases through the Emergency Livestock Feed Program this fall and winter. Just in case your county is included, don’t destroy damaged crops or replant those fields before you check with your county ASCS office to make an assessment of the loss. Also, get records on what you have harvested in forage or grain crops this year and how they com pare to your normal yields. Also be sure you have Filed an AD-1026 form to show you are in com pliance with conservation plans from SCS as well as the sodbuster program. Without this you won’t be eligible for either the Emergen cy Livestock Feed Program or the five cent refund on your 1991 milk production if it is lower than 1990.
Significant historical Pennsylvania newspapers