(Continued from Page Al 4) One reason for the recent jump in cheese prices was sluggish milk production, especially in the upper Midwest states. Wisconsin milk production was 4 to 6 percent below last year in recent months. Meanwhile, milk production in many other states showed some growth South western states increased milk pro duction more than 5 percent above last year’s production levels. Conditions around the country in general are favorable for milk production to show some increases this winter and into next spring. Although milk prices may sta bilize and may even increase due to a strong cheese market in late 1993, milk prices will start down ward early in the new year. How far prices fall depends on milk production growth and consumer demand for daily products. Grain prices and the quantity and quality of forages later this winter are major factors in how much milk production will increase early in the new year. On the consumer side, the strength of the U.S. economy is important, but even more mean- Garden Spot Tobacco We are now receiving tobacco daily at our warehouse - Rt. 322 & Reidenbach Rd. Highest prices paid for top quality tobacco. Call us before you deliver 700 Reidenbach Rd., New Holland, PA (717) 354-6934 (717) 354-2340 MANURE LAGOON PUMPING MADE EASIER Medium Duty Wright Rain No Cutting Knives, But Has Open Impeller. Pump Up To 700 GPM at 150 PSI Call Us For Help In Choosing The Right Pump For Your Requirements Manufacturers and Distributors Design and Engineering. ZIMMERMAN IRRIGATION R.D. #3, Box 186, Mifflinburg, PA 17844 (717) 966-9700 Pennsylvania Ag Prognosis Good For 1994 ingful are consumer attitudes tow ard milk and dairy products. Continued Belt Tightening Pennsylvania agricultural pros pects for the new year appear promising. The key word is competition, of which there is more with the pas sage of each year. Increased com petition adds risk to the farm income equation, and farmers react by specializing and produc ing more. The changing weather patterns have also injected more risk into fanning. Tightening the belt and moving forward will likely sum up the financial side of agriculture next year. Getting behind on feed bills was a key problem in financial li quidity for dairy farmers during 1993. The decline in the 1993 com crop could increase financial problems in 1994. Interest And Investment Increase The interest bill to common wealth farmers has declined by more than 20 percent since 1988, a drop of $5O million. That trend will stabilize in 1994 and, as the economy slowly improves, fanners can expect Pump your manure to field regardless of field conditions, using traveling gun, stationary gun on aluminum pipe or underground PVC mains. We feature 3 different pumps to suit your particular application. <£* V Heavy Duty Extra Heavy Duty i. *M|. Magnum Has Cutting Knives, And Open Impeller Will Chop Up Straw and Debris, Pumps Up TO 800 GPM at 170 PSI kIYWOMi V CONCRETE PUMPING SERVICE • Sidewinder 45 Concrete 4O Cubic Yardf Ptr Hour • Pump Up To ISO Ft. Vertical And MO Ft. Horizontal CONCRETE SPRAYING SERVICE A Nm My OfAffifttf Am* • Repair Retaining Walla • Manure Pit Contraction • Strengthen Existing Masonry • Trench Silo Cooetructlan Walk • Silo Repair • Reaeal Manure Pits KEYSTONE GUN-KRETE II Poplar Street Gordonvllle, PA 1752# (717) 768-3641 This Is ths pump for extra rough work, will even chop up 2x4 wood pieces, open Impeller with heavy duty chopper, pumps up to 700 GPM at 160 PSI interest rates to inch up as much as 1 percentage point by the end of 1994. The big ticket item in 1994 will likely be expansion and/or moder nization of livestock facilities. Fanners are increasingly facing an economic environment of tight profit margins. They have few alternatives. They can cut costs more, increase profit per unit pro duced, and/or produce more units of farm product. Dairy farmers, for instance, probably will reason that a profit of $5OO per cow on 40 cows adds up to $20,000 annual income. The same profit of $5OO per cow on 60 cows adds up to a more comfort able annual income of $30,000. Pennsylvania farmers will con tinue analyzing where the money is made in their operations and expanding the profitable parts. Lenders are facing heavy regu latory pressures. Their inability to fund some farmer plans could hold back intended investment in the new year. They will tend to be fund investment plans that focus on high-profit centers. Federal policies are simulta neously putting more risk on the shoulders of Pennsylvania far 'N-KMTI Barracuda mers, and injecting more outside competition. That is bad news for those who have a tough time controlling their costs. Farmers can do virtually nothing to reverse these two important trends. The silver lining is that the present market orienta tion of federal farm policies is making farmers highly competi tive on world markets. On the competition front, GATT (the General Agreement on Tariffs and Trade) and NAFTA (the North American Free Trade Act) will eventually be enacted— in some form. The long-run gains from “firee er” trade will occur as markets become larger. The problem for the individual farmer is survival until the long run gains begin. One survival method is tight control of costs. The five leading cost compo nents in Pennsylvania during 1992, in millions of dollars, were feed ($680); fertilizer- chemical fuel ($380); labor ($350); repairs ($230); and interest ($180). Labor and repairs will likely increase 2 to 3 percent in the year ahead, but the other leading expense categories will continue to decline and to keep Pennsylva- £ PAY OFF WATER FILTERS L cu *t Uwnr Panting, Saturday, Januay 1, 1M4-AlB nia fanners highly competitive. Summary' Gross farm income could eclip se the old record of $4 billion and reach $4.1 to $4.2 billion during 1994. A strong performance is in store for farm production, given favor able growing conditions, high quality feed production, and stable to slightly higher commodity prices for dairy, swine, and spe cialty crops (vegetable and horticulture). All-in-all, 1994 probably will be highly challenging to farmers facing tough competitive markets, and rewarding to those successful ly meeting the cost-control imper ative of 1990 s agriculture. The best news in the economic outlook for grain products is that inventories of most crops are not hanging over the markets. Far mers in Pennsylvania face an interest-rate environment that per mits solid modernization plans to “pencil-out” in 1994. Off-farm income sources will be essential on most farms. This forecast does not translate into an agricultural boom, but with continued tight cost-control, far mers in Pennsylvania will experi ence income gains during 1994. 10” Sediment filters for grit, sand, particles, dirt, etc. Micron Sizes 1. 5. 10. 20. 30, 50. 100 128 qty. - 51.99 ca. case lot s 80 qty. - $2.25 ea. 40 qty. - $2.50 ea, Call (717) 866-5388 WATER SYSTEMS i I 742 E. Lincoln Ave. Myerstown, PA 17067
Significant historical Pennsylvania newspapers