Farm Bureau Recommends Improvements For Dairy Industry SCRANTON (Lackawanna Co.) A representative of the Pennsylvania Farm Bureau testi fied before U.S. Sen. Aden Spec tor and U.S. Secretary of Agricul ture Dan Glickman on Feb. lOata hearing held at Keystone Junior College' near Scranton. On behalf of the PFB, Harold Moyer of Wyalusing offered sev eral recommendations to improve the future of the dairy industry, especially in light of the recent record plunge in farm milk prices. PFB represents 26,625 farm and rural families statewide. Moy er is a dairy farmer and serves on PFB’s State Dairy Committee. Referring to the 27 percent drop in the Basic Formula Price (BFP) for milk between last September and December, Moyer said, ‘The financial strain that roller coaster prices are putting on many Penn sylvania dairy producers is real.” While milk price projections are optimistic for the remainder of 1997, Moyer said, “... many pro ducers are still facing serious fin ancial stress with the lower prices now being experienced.” Attention has recently been fo cused on the activities of the Na tional Cheese Exchange in Green Bay, Wisconsin. The Exchange trades an estimated one percent to Adams Holstein Board Advances Program Plans GETTYSBURG (Adams Co.) Plans for a spring tour, a follow-up report on membership enrollment, and die approval of an operating budget for 1997, topped the agenda at a meeting of the board of directors, Acfarihs CodXty Holstein Association, held Satur day evening at the Landing Restaurant in Hanover, Pennsyl vania. President Kevin Holtzinger presided. Membership Chairman Marvin Brown reported a current total of 58 members enrolled, 12 short of goal for the club. Persons inter ested in supporting this dairy industry organization through membership ate encouraged to call him at 359-7700 or call Kevin Holtzinger at 259-7211. Breed Improvement committee chairman Todd Gulick supported his suggestion of a dairy tour to Franklin County by presenting a list of Holstein breeders as possi ble hosts. Contacts will be made with the farmers and arrangements Petersheim’s Cow Mattresses Rubber Filled Cow Mattresses \ 117 Christiana Pike (Route 372) *——* Christiana, PA 17509 The Answer to Cow Comfort •Fits Any Stall • Reduces Bedding Costs • Polypropylene Bag Filled with Rubber • Easier For Cows To Get Up And Down ♦NEW! Non-wovensooz. Top Cover - Less Abrasive ALSO: Custom Loop Stalls For Existing INSTALLATION AVAILABLE. CALL FOR DETAILS SAM PETERSHEIM 610-593-2242 three percent of U.S. cheddar cheese production, yet it has a dir ect impact on juicing over 90 per cent of the nation’s milk supply. Prices on the Exchange under went the largest drop in history last October following a period of record high juices. “Producers have legitimate concern about the effect of the Na tional Cheese Exchange lowering die juice of milk too fast and too far for market conditions,” said Moyer. “Recognizing this con cern, Farm Bureau requested ac tion (last November) to be taken to help stabilize producer prices.” Moyer commended Secretary Glickman for responding quickly and favorably to many of Farm Bureau’s requests including mak ing advance school lunch purchas es of dairy products, pruchasing $5 million worth of cheese for do mestic food programs and increas ing the flow of dairy products into international food assistance pro grams. Glickman also announced last month that USDA’s National Agricultural Statistics Service would begin collecting data on cheddar cheese prices received by manufacturing plants across the nation as a way of having a more accurate source of discovery for made for transportation and lunch. An early April tour date is desired. Treasurer Dean Lobaugh pre sented a proposal to provide insur ance coverage for die Dairy Prin cess program. This was adopted on action by<the board. President Holtziner reviewed the proposed operating budget for the current year, reflecting an increase for the Dairy Princes s/promotion pro grams and a doubling of the funds to be awarded in the club’s schol arship program. This was adopted with minor modifications. Looking ahead to the next annual meeting, Phil Van Lieu offered information on optional meeting places. The board voted to hold this event at the communi ty fireball in Harney, Maryland, on Tuesday evening, October 21, 1997. Stole Director Marvin Brown reported that the South central Championship Show will be held on Saturday, August 9, 1997, at the fairgrounds in Ship pensburg, PA. the cheese price. Moyer pointed out that “The dairy industry has a stake in its own future as USDA has been giv en a mandate to consolidate Federal Milk Marketing Orders and is open to consider other pos sible changes in the way milk is priced.” Addressing Secretary Click man, Moyer said, “Pennsylvania Farm Bureau believes that our greatest opportunity to not only address current concerns, but also our long-term competitiveness in the Northeast, is for you to pro vide the necessary environment for producers to come together and bargain for the best possible price that markets will allow.” To accomplish that. Farm Bur eau is recommending that the fu ture consolidated Northeast Fed eral Marketing Order include all current federally unregulated areas in the region. “It is time for everyone in the Northeast dairy industry to play by the same rules,” Moyer said. Currently, three separate feder al orders control milk marketing in parts rtf Pennsylvania while the largest geographic portion of the state is regulated by the Pennsyl vania Milk Marketing Board. ‘The disruption in markets created by the current patchwork of regulations is costing Northeast producers premium dollars that the market could provide with more uniformity,” Moyer said. The differences in prices set for milk in various parts of the United States is also an important issue to Northeast dairy farmers, Moyer said. He pointed out a Cornell University study showing con clusively that milk has value based mi the locationtrf milk pro duction, processing and consump tion. “We recommend die Secretary (of Agriculture) give full con sideration to this study... Mo yer said. “Northeast producers should be allowed to benefit from producing milk where it is needed.” Moyer noted that Farm Bureau is encouraging consideration of changes in the calculation of the Basic Formula Price for milk. “More price stability is needed for many producers to survive,” Moyer said. “Changes that would provide an accurate price discov ery and less volatility is a tall or der.” Stability would eliminate not only the bottoms, but also the peaks of price swings. “We as pro- Bams ■fM Randall G. Renninger Certified Public Accountant Specializing in agriculture and construction industries “We help business people discover ways to cut costs, save taxes, and be more profitable” 100 Foxshire Drive, Lancaster, Pa. 17601 (717) 560-5720 0 Fax (717) 560-5721 ducers need to recognize the trade-off,” Moyer said. Farm Bureau also strongly sup ports the nationwide adoption of what is commonly known as the “California Standards” for solids in milk. “Producers across the country'know higher solids in milk would be well accepted by consumers and would create a greater utilization of our product,” Moyer said. “Adoption of higher solid standards would require no expenditures of government funds and would greatly enhance pro ducers’ prices.” The final issue addressed by Moyer concerned the North Partnering Agriculture’s Future (Continued from Page A 34) should be kept in mind when farm nothing tomorrow.” partnerships arc formed. John Blanchfield, ag manager A Stskel and Ebert version on for the American Bankers’ Associ the economy was portrayed with a ation, talked on how political deci debate between Dr. Barry Flin- sions will affect agriculture. He chbaugh, professor of ag econom- believes agriculture is in excellent ics at Kansas State University and shape because in 1996, ag assets Dr. Mark Edelman, economics reached $1 trillion compared to a professor at lowa State University. $155 billion debt load. The two bickered back and forth With the government offering about the pros and cons of raising no guarantee to bail out fanners if taxes, raising interest rates, and prices drop, Blanchfield said that dealing with inflation. the decision shows that ‘The best Edelman was a former student decision maker is the farmer, not of Elinchbaugh and the two often Uncle Sam. The opportunity is to contested economical issues and exceed to your highest dreams or have since used their debating fail miserably. The no guarantee skills to help audiences understand attitude is what has made this gov both sides of economic issues. eminent great” Using the same charts, the two Blanchfield gave a top 10 list of interpreted the figures differently, signals and changes for agricul- Flinchbaugh believes that interest turn, many of them centering on rates should be raised now to solve trade. He also see major changes to the inflation' problem. Edelman the conservation reserve program, believes inflation isn’t high which is pushing for more land to enough to worry about and is be incorporated into the Chesa largely due to energy trends. He peake Water Shed and encouraged foresees higher interest rates hav- farmers to look more into the issue, ing a dampening effect on The Internal Revenue Service agriculture. Both agreed that the national deficit problem has not been sol ved and that something must be done immediately to lower increases in social security and medicare and medicaid expenses to prevent financial disaster later. “If ag will prosper in the next decade it has to be through exports and can not improve through U.S. consumption, which is the result of dwindling population,” Flin chbaugh said. “Exporting is the greatest suc cess stray in agriculture. While other industries are imprating more and more, ag is exporting more and more,” he said. The fig ures show $32 billion imports in agriculture compared to $60.1 bil lion in exports. Although Flinchbaugh painted an excellent picture for agricul ture’s trade, Edelman gave a thumbs down on the benefit of overall trade. He said, “Interna tional trade has much more risk than our own (U.S.) markets.... The trade picture looks excellent, but the political picture does not The China market could go to Call about our FREE seminars American Free Trade Agreement “The NAFTA agreement was signed without Canada opening its dairy markets” he said. “Canada needs to be (nought back to the ne gotiating table and (to) truly ad dress free trade in the dairy indus try. “Freer markets and trade will continue to bring challenge and opportunity to all dairy producers in the Northeast.” Moyer con cluded. “If we’re provided the necessary changes to allow us to take full advantage of the market place, we can meet those chal lenges and welcome die oppor tunities.” Strengthens has agreed to wait a year to man date that income from a crop that is grown and harvested must be reported the same year and not held over another year for tax purposes. “Expect to see federal interven tion in the cheese exchange. Instead of riding in with money, the government will ride in with regulators,” Blanchfield said of milk prices. He also warned against the “interesting” ways of selling crops that have surfaced. Remember the adage, “If it sounds too good to be true, it probably is,” he said. H. Louis Moore, agricultural economist, gave his ag outlook for 1997, which has been written about in previous issues of Lan caster Farming. Other speakers included Andy Young, state FFA president, who told how FFA has changed in recent years but continues to teach impart strong leadership skills to youth. Jimmy Mullen, county 4-H ambassador, spoke on the ongoing need for farmland preservation programs to insure farms today are here for tomorrow’s future.
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