A26-Lancaatar Firming, Saturday, February 1,1992
STEVE FORD
808 YONKERS
PSU Extension Specialists
STATE COLLAGE (Centre
Co.) — Dairy farmers have paid an
assessment of 5 cents per hun
dredweight of milk sold in 1991 as
part of the Budget Deficit Reduc
tion Act.
All dairy farmers have the
opportunity to obtain a refund of
that assessment if they meet each
of the following criteria: they
marketed less milk in 1991 than
they did in 1990, they have filed a
conservation plan with their local
ASCS office, and they apply for
the refund at their local ASCS
office between Jan. 1 and March
15. 1992.
In most cases the refund will
not be very large; a 60 cow herd
marketing 15,000 pounds of milk
per cow (9000 cwt.) will have paid
$450 in assessments.
However, in cases where the
dairy farm is going to produce
only slightly more than its 1990
production level, it may pay to
reduce the amount of milk sold
through early drying off of cows,
culling or even milk dumping.
The following worksheet can be
used if 1991 marketings will be
close to 1990’5.
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For Sales and Service Call The Manufacturer
MARTIN ELECTRIC PLANTS
RD #2 Pleasant Valley Rd., Ephrata, PA 17522
Tel: 717-733-7968 Fax: 717-733-1981
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NEW FOR ’92’
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Ask About Quantity Discounts
And Possible Free Delivery
Call 717-539-2615
1991 Dairy Assessment Returns Available Now
LINE A:
Enter the expected assessment
refund. The refund should be
equal to five cents times the total
hundredweights of milk marketed
on the farm. In the example below,
9000 cwt is the expected 1991
farm marketings, which cannot
exceed 1990 marketings.
LINE B:
Enter your expected December
farm gate milk price ($/cwt), net
of all marketing charges: hauling,
coop dues, check-offs, and assess
ments. Make sure that the five
cent assessment charge is also
deducted.
LINE C:
There may be cost savings
when less milk is marketed. If a
cow is dried off early and culled,
there are savings in the feed and
supplies that would have gone into
that cow and her milk production.
Those savings should be entered
on line C. If, however, the cow is
kept in milk production and the
milk is not marketed but is fed to
livestock on the farm, for exam
ple, then the feed value of the milk
should be entered on line C. There
would be no other feed cost sav
ings since the cow is stilLin pro
duction. If the milk is simply
dumped, then there would be no
cost savings and the value entered
on line C should be zero.
LINE D:
Subtract line C from line B and
enter the result on line D. This val
ue is the net return per hundred
weight of milk that would be
given up by reducing marketings.
LINE E:
Reducing marketings in 1991 to
receive an assessment refund also
affects the base production level
1991 DAIRY ASSESSMENT REFUND WORKSHEET
CULL “DUMP” YOUR FARM
Expected Assessment Refund
Expected December Net Milk
Price ($/cwt)
Cost Savings from Reduced
Milk Marketing ($/cwt)
Net Milk Price (B-C)
Expected 1992 Assessment
($/cwt)
F. Net Opportunity Cost of Reducing $7.62
1991 Milk (D+E)
G. Breakeven Milk Reduction (A/F) 59 cwt.
I PENNSYLVANIA! Pikaville Equipment Inc. Norman D. Clerk & Caldwell Tractor ft
RD 2, Oysterdale Road Son, Inc. Equipment, Inc.
Oley, PA 19547 Honey Grove, PA 480 US. Route 46
215-967*6277 717-734-3682 Fairfield, N.J. 07006
201-227-6772
Nicarry Equipment Co.
RD 2, Rt. 61, 3 Miles
S. of Leesport
Reading, PA
215-626-2441
Keller Brothers
R 7 Box 405 Stouffer Bros. Inc.
Lebanon. PA 17042 toes Lincoln Way West
717-949-6501 Chambersburg, PA 17201
717-263-8424
1950 Fruitville Pike
Lancaster, PA
717-569-2500 Stoitzfus Farm Service
Cochranviile, PA
717-693-2407
Marshall Machinery, Inc.
Route 642
Honesdale, PA 18431
717-729-7117
for 1992 assessments. Increasing
1991 production beyond that of
1990 means losing the five-cent
assessment in 1991. However,
more milk marketed in 1991
means that more milk can be
marketed in 1992 while still qual
ifying for the 1992 assessment
refund. 1992 assessments will be
refunded if 1992 marketings are
not greater than 1991 marketings.
The marketing base is determined
LAND PRIDE
Tractor Parts Co.
335 Central Road
Bloomsburg, PA 17815
71 7-784-0250 Straley Farm Supply, Inc.
1 ' 1 yeo East Canal Road
Dover, PA 17315
717-292-2631
M.S.Yearsley & Sons
West Chester, PA
215-696-2990
by only the previous year’s mark
eting level. The 1992 assessment
refund will be at least 11.25 cents
per hundredweight of milk mark
eted (the minimum set in the
Budget Deficit Reduction Act)
and probably will be more. Enter
the expected 1992 assessment on
line E to evaluate the effect of
reducing 1991 marketings on the
potential 1992 assessment fund.
(Turn to Pago A3O)
$450
$13.50
$13.50
$O.OO
$6.00
$7.50
113.50
$0.12
$0.12
113.62
33 cwt.
Loysville, PA
717-789-3117
i.G. Sales & Service
Box 200, Silverdale,
PA 18962
215-257-5135
I NEW JERSEY~~I
Read Brothers
Petticoat Bridge Rd.
Columbus, N.J. 08022
609-267-3363
Rodio Tractor Sales
North White Horse Pike
Hammonton, N.J. 08037
609-561-0141
Frank Rymon & Sons,
Inc.
RD 3, Box 355
Washington, N.j. 07882
201-689-1464
Trenton Ford
New Holland
2836 Brunswick Pike
Trenton, N.J. 08648
609-883-7360