A2O-Lancaster Farming, Saturday, September 28, 1991
Eastern
National
(Continued from Pago Al 7)
—~J
production record of 24,670
pounds of milk, 4.6 percent butter
fat and 3.8 percent protein.
Silver’s lineage is based on Val
iant. Elevation and Chief. Her
dam. Sweetness has two full sisters
which classified Excellent, two
maternal sisters classified as
Excellent and two classified as
Very Good, all with fat records
exceeding 1,000 pounds.
The second highest animal sold
was the first offered during the
sale, consigned by E. James
McMath 11, of Ml. Union, Pa.,
went for $25,000. Bom August
1988, Bardale Cleitus Julie-ET
recently classified as a Very Good
85. She is the Cleitus daughter of
Jim-Slocums Bardale Jody, which
classified Excellent 91,2 E and had
a 353-day lactation record of
25,683 pounds of milk at 4.3 per
cent fat That lactation was started
when she was 2-years, 8-months
old.
The third highest selling animal
was consigned by the Plushanski
Farms, of Kutztown, Pa. and
brought $17,500. Plushanski M
Fright-ET, bom June 1990, is a
Michael daughter out of Plushans
ki Ned Boy Fidelia-ET, classified
as Very Good 88 points as a
4-year-old, with a record as a
2-year-old, on a 365-day lactation
of 27,802 pounds of miik, 5.0 per
cent fat and 3.6 percent protein.
The 47 other cattle, presented or
promised, sold for $lO,OOO or less
and averaged $4,240.43.
According to Nichol, “It was a
great sale with a lot of interest from
Canada and a number of states. I’m
real pleased with everything.”
Nichol said he and others began
seeking out cattle consignments in
May for the sale. He said that
despite the low milk pices and the
poor economy of the dairy indus
try, the sale was successful
because a lot of buyers are seeking
breeding cattle and foundation
cattle for marketing.
According to Nichol, when
selecting the cattle, he had the
international market in mind.
Prior to the sale, Nichol said “In
my mind, this is the best group of
cattle ever offered at the Eastern
National Sale in Pennsylvania.”
Dave Rama, out of Delhi, N. Y.,
said after the show that the sale “Is
one of the top sales of the of the
year. I was a good sale. A really,
really good sale.” Rama, who auc
tioneered for part of the sale,
received $3,100 for his consign
ment, a heifer bom September
1989 and a daughter of Modik Val
iant County-ET to a Very Good 85
point 4-year-old.
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■ Lackawanna County
SCRANTON (Lackawanna Co.) I’m not sure any records were
broken by cheese prices that increased 26 cents in 26 weeks, pulling up
the Minnesota-Wisconsin Price Series for five consecutive spring
months, bull may be sounding like a broken record (if you ’re old enough
to remember the phonograph) reporting these increases to you each
month.
However, it’s the tune that milk producers like to hear and the only cri
ticism I’ve heard so far is that the rhythm is too slow.
Block cheese prices are now up to $1.35 a pound, which is 24 cents or
22 percent above the support price, and still there has been no sales from
Commodity Credit Corporation stocks.
The flip side of the broken record is another increase in the M-W as a
result of the higher cheese prices.
Last month I thought a 41-cent increase would be the biggest jump of
the year, but in August it took a leap of 51 cents to $11.50 for an increase
of $1.48 in five months. That’s still $1.59 less than a year ago; 87 cents
less than 1990 and 52 cents better than 1988.
So the gap is closing with more increases expected to push the M-W
over $l2 by November. If that happens it will be nearly $2 higher than last
year in November or December.
Translating all that into the minimum price (before premiums) that
Order 2 handlers must pay producers at the 201- to 210-mile zone, for
milk testing 3.5 percent butterfat, for August is $12.04 or 45 cents more
than last month.
The increase came from a Class I price of $l3 (up 35 cents); Class II at
$11.51 (up 24 cents) and Class 111 at $11.60 (up 58 cents).
Class I milk was 40 percent of the pool; Class 11, 17 percent and Class
111, 42 percent.
Many producers think only in terms of Class I prices and utilization for
higher farm prices, but with cheese prices providing most of the increases
you should be more aware of Class II and Class HI prices, which are
influenced more directly by dairy product prices.
For instance, from May to August, when the farm price or blend price
increased $1.20, the Class HI price went up $1.49; Class II $1.56 and
Class 156 cents. In addition, the Class II price will increase 80 cents in
October and Class I will go up 92 cents more. You won’t know the Class
111 price until the M-W is determined for September.
With Class II and Class 111 prices on 60 percent of the milk in Order 2,
these are even more important than Class I prices.
The system was designed so that when there is a demand pull on milk or
dairy products anywhere along the marketing chain it would be reflected
in the farm price. Recent increases in cheese prices will eventually show
up in the Class 1 price, but we know already that there’s enough momen
tum built up to make farm price increases continue at least to November.
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Declines in milk production during the hot summer months have also
contributed to higher milk and product prices.
Production dropped all summer and in July went down to 2 percent
below last year, but 1990 was the highest of the last three years.
The decrease in production came with falling milk prices as well as the
weather. It resulted from less milk per cow as well as fewer cows than we
had last year.
The July 1 cattle inventory of USDA shows the number of milk cows
down 1 percent from last year and the year before. It also showed that at
the same time, while milk replacement heifers were unchanged from last
year, their numbers were 7 percent less than 1989. Which means there
aren’t many reserves to bring into production, and what we have in the
milking herd is possibly not being fed for optimum production.
As we learned in 1989, it’s important to know where the production
cuts are occurring.
That year it was Minnesota and Wisconsin that lost production because
of a drought The direct impact on the M-W was felt all over the country.
Now it appears that production is dropping, or at least not increasing, in
nearly all states.
California, with nearly 2 billion pounds of milk a month, is up only 1
percent, but Wisconsin, with slightly higher monthly production, is down
3 percent Pennsylvania is unchanged but New York and Minnesota are
down 2 and 4 percent
Lower production in Southeastern states has also drawn supplies from
the upper Midwest to decrease the supply for the M-W price.
Feed Supplies
Crop growing conditions around the country are about as varied as they
are here in Pennsylvania and New York some areas are good while
others are a disaster.
The hot weather has moved up com maturity and many Helds are
already in the silo or the grower wishes they were.
Those farmers with only one cutting of hay and a short com crop will
have to buy extra forage hay or silage to provide minimums
needed for good digestion. Others have hay and silage to sell at a price.
Right now grain prices aren’t unusually high so fanners should consider
the minimum amount of forage needed and make up the difference with
grain
Which brings us up to the Emergency Livestock Feed Program now
available through the Agricultural Stabilization and Conservation Service
(ASCS) in counties designated for disaster assistance or in contiguous
counties.
County ASCS offices at least in Pennsylvania now have appli
cations available for dairy and livestock fanners who lost over 40 percent
of the total of all their grain and forage crops including pasture.
To be eligible, you must receive over 10 percent of your gross
income including off-farm work from dairy or livestock produc
tion. You should pick up an application as soon as possible if you think
you qualify
You can complete it at home, but be prepared to provide documentation
of your losses.
A convenient change this year over the past is that you can get your
payment at the ASCS office before you purchase the feed and return a
receipt when you buy it And, as I’ve mentioned before, you won’t be
eligible unless you’re in compliance with your conservation plan from the
Soil Conservation Services.
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