COLLEGE PARK.
Md. Milk producers and build
ing contractors might seem like
strange partners, but they have
been traveling parallel paths
through the businesses jungle for
the past quarter-century or mote,
according to John W. Wysong, a
Maryland extension service agri
cultural economics specialist
Wysong is with the cooperative
extension service at Maryland
Institute for Agriculture and
Natural Resources (MIANR),
which is one of three research and
public service institutions of the
University of Maryland System.
According to two scientific pap
ers authored by the economist,
both dairymen and builders face a
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ERB ft HENRY EQUIP., INC.
New Barllnvllla, PA
One Mils North of Boysrtown
215-367-2169
mblvin j. sheffer,
me.
121 Railroad St.
Hanovsr, Pa.
717-637-3808
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ft HARDWARE
Rt. 328 6 Elliott Rd.
Easton, MO
301-622-6866
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Rd 3, Box 610
Suasax, NJ
201-678-6672
Dairy Industry Faces Supply Adjustment
similar problem oversupply,
lower demand for their products.
While dairy fanners find them
selves facing price-depressing
milk surpluses, commercial buil
ders and developers have produced
an oversupply of office space and
shopping centers.
Both stituations can be attri
buted in part to modem technolo
gy, disappointing consumer
demand and the current economic
recession.
Other parallels between dairy
men and builders also exist. Dr.
Wysong recently said.
While dairy farmers have
depended partly on federal govern
ment price supports, builders were
encouraged by depreciation allow
Pennsylvania Dealers
M.M. WEAVER ft SONS
169 N. Groffdals Rd.
Lsola, Pa.
717-656-2321
STOUFFER BROS. TRIPLE R EQUIPMENT
1066 Lincoln Way Wast RD 1 Box 141
Chambaraburg, Pa. Paach Bottom, Pa.
717-263-8424 717-548-3775
Maryland Dealers
E.T. CLINE ft SONS
510 E. Wilson Blvd.
Hagarstown, MD
301-739-2223
New Jersey Dealers
REED
BROS.
Pstticoat Bridgo Rd.
Columbus, NJ
606-287-3383
(jO)
SCHAFER
BROS.
RO 8, Box 270
Bridgaton, NJ
606-488-1640
tripling of average milk output per
cow have been major factors in
creating excess farm laborers and
forcing them to join the non-farm
work force.
Wysong said that trend slowed
in the 1970 s and 1980 s when off
farm employment opportunities
became tight particularly in the
Lake States and the Northeast
Even in a drought year like
1991, Maryland's milk production
for August was up 3 percent from a
year ago, and Pennsylvania's pro
duction was virtually unchanged.
Meanwhile, the nation's milk out
put declined 1.6 percent.
The federal government's
whole-herd dairy buyout program
of 1986-87 cut the nation's milk
cow numbers to less than 10 mil
lion head a reduction of about
one million cows from the previ
ous level.
It also released additional labor
to pursue non-farm employment
opportunities.
As many persons predicted,
increased productivity per cow
soon erased the expected milk pro
duction drop brought on by the
buyout program and its reduction
in milk cow numbers.
Repeating the release of addi
tional farm laborers and managers
to the non-farm labor pool in
today's recessionary economic cli
mate appears to rule out the possi
bility for another herd buyout
program anytime soon.
Wysong also noted in his study
that the national average milk pro
duction per cow appears likely to
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ances, tax write-offs and liberal
bank lending policies.
Dairy fanners also have bene
fited from substitution of capital
for labor and fairly favorable feed
grain prices.
In a recent study, Wysong noted
that on a typical U.S. dairy farm,
from 193 S to 1939, it took three
full-time workers to handle the
operation of a 30-cow herd.
By 1991, a three-person team
could handle ISO cows. In addi
tion, milk production per cow by
1991 far exceeded average produc
tion per cow in the pre-World War
II era.
For more than 40 years a drama
tic 83-percent drop in labor and
management hours per cow and a
average close to 15,000 pounds of
milk per cow when statistics for
1991 are released.
Even without adoption of
bovine growth hormone, the aver
age output per cow probably wil l
increase another 3,000 pound*;
during the 19905. This could offse
a decline of two million dairy cows
in the U.S. milk herd.
Here's another troubling statis
tic for the dairy world:
Total U.S. population of 132
million persons in the 1940 Census
had expanded to nearly 250 mil
lion persons by 1990. But the
decline in per capita milk con
sumption has nearly offset the
increased production that this
increase of 118 million persons
would have been expected to
require.
Things changed so dramatically
in the nation's dairy industry dur
ing the mid-19705, Wysong said,
that economic projections based
on earlier trends are no longer
valid.
The 1990 farm bill has placed a
floor of $lO.lO as a support price
for manufacturing milk. Local
blend prices range upward from
this level, depending on Class I
utilization (fresh milk consump
tion) and the Minnesota-
Wisconsin basic manufacturing
milk price.
The federal government’s cur
rent budget deficit reduction prog
ram has established tight limits
which threaten continuation of the
current economic crunch for dairy
farmers.