HARRISBURG (Dauphin
Co.) The leader of the Pennsyl-
vania State Grange said the organi
sation is proud to recognize the
.Accomplishments of dairy fanners,
as the Grange continues to work to
increase producer profitability.
"With June being recognized as
national and state dairy month, die
Pennsylvania State Grange con
gratulates dairy fanners and their
families for providing nutritious
foods while pumping over $1.5
Dairy Farm Profitability Can Have
Many Different Management Styles
EVERETT NEWSWANGER
Managing Editor
I MANHElM(LancasterCo.)-In
"a summary of Northeast dairy farm
profitability, Jonas Kauffman from
the Pennsylvania Farm Credit
Financial Partners, told a group of
ag leaders Thursday morning that
for a dairy farm to be profitable, a
combination, rather than a single
factor, is needed.
Speaking to the Ag Issues For
um, Kauffman based his comments
on the new compilation of data that
shows how dairy farmers, different
in management style, can still be
profitable. In the breakdown of
various management styles in the
Farm Credit records keeping sys
tem, Kauffmen listed these
categories:
Good with cows.
Labor efficient
Superior milk price.
Low cost
Generalist
The farmers that are good with
cows spend more time and money
bn cow production. Average milk
*old of 23,923 pounds per cow is
the highest among the five
styles. This high production allow
ed these farmers to achieve cost of
production of $13.83 with the third
highest net earnings per cow.
The efficient labor farmers man
aged the second highest herd aver
age that resulted in milk sold per
worker of over one million pounds.
Farms in this management style
averaged 54 cows per worker, well
above average.
Superior milk price came from
certain locations or from the col
ored breeds. Most farmers don’t
have much control over the price of
milk they receive, but quality pre
Pa. State Grange Praises Dairy Farmers
billion into the state’s economy,”
William Steel, Grange master
(president) said recendy.
“The Pennsylvania State
Grange reaffirms its commitment
to be a voice for the dairy industry
in legislative affairs,” he said.
As an advocate for rural Pen
nsylvania. the Grange is a leading
force in agricultural and rural
issues. The Grange with more than
31,000 members in 66 coundes, is
a rural, agricultural and communi
miums, protein or specialty mark
ets contributed to the profitability
of these farms.
The low production cost group
had a cost of $11.49 per cwt
Although milk per cow and milk
per worker are below the top profit
group, these farmers have imple
mented right cost control to
achieve their profits.
The generalist farmer is a good
all-round manager, and although
profits are somewhat less than the
other styles of management, these
farmers are able to respond quickly
to adverse situations in their busi
Potato Diversion Program
WASHINGTON, D.C. The
U.S. Department of Agriculture
Agricultural Marketing Service
(AMS) has announced plans to pay
potato growers to divert 1996 crop
fresh Irish potatoes to charitable
institutions and livestock feed.
The program applied to all types
of Irish potatoes except sweet
potatoes.
The USDA Farm Service Agen
cy offices across the nation have
application forms and are the agen
cy accepting them. Contact a local
FSA office (in the blue pages of a
phone book) for an application
form and more information.
The entire program is to run 60
days and acceptance based on the
number of requests and the availa
bility of funds.
However, the deadline for sub
mitting applications to sell pota
toes in the higher-paying charit
able foods diversion is past it
ty service organization dedicated
to improving the lives of rural Pen
nsylvanians through legislative
action, offering member service
and participating in community
affairs.
In the face of fading milk prices
during the last quarter of 1996, the
Grange successfudy petitioned the
Pennsylvania Milk Marketing
Board to continue the 80-cent
over-order premium through April
1998. The over-order premium is
ness. Many of the smaller farms are
in this category.
There was a significant increase
in dairy farm earnings in 1996, giv
ing the highest net earnings since
1979. Still, many farms were not
profitable with a good manage
ment needed. At the same time
while earnings volatility continues,
some dairy farmers consistendy
achieve superior results.
Like any other business, thepro
fitability picture is dependent on
keeping good records and knowing
how to use them to better manage
the farm.
was June 11.
The program application win
dow for that diversion opened May
29, though the USDA announce
ment was made with short notice.
The program paid $1.50 per
hundred pounds of potatoes that
were graded as U.S. N 0.2 (fairly
clean). For those the USDA
arranged and paid for transporta
tion of the potatoes to charitable
institutions.
The application deadline for the
program diverting potatoes for use
as livestock feed is July 28.
The price paid for those potatoes
is 75 cents per hundred pounds of
U.S. N 0.2 processing grade
potatoes.
All potatoes must meet applic
able grade requirements and be
inspected and certified by federal,
state, or USDA inspectors.
The program is national in scope
and all growers are eligible to
apply.
Tuesday. June 24,1997 Farm and Home Center. Lancaeter. PA (Arcadia Rd. off Rt. 72)
11:30 -1250 PM Lunch Provided
12:30 -12:45 PM Phil Clemen* Resident and CEO
12:46 - 1:46 PM Jeff Amer, Technical Services
1:46 - 2:15 PM Questions/Answers
Thursday, June 26.1997 Weaver Market* Adamstown. PA (Rt. 697 and 272)
7:00 - 6:00 PM Jeff Amer, Technical Services
6:00 - 6:15 PM Phil Clemen* President and CEO
6:15 ■ 9:15 PM Questions/Answers
Dessert Provided
Monday, June 30,1997 County Fare Restaurant* Myeretowrt FA (Rt. 422, East of Myerstown FA)
7:00 - 7:15 PM Dwight Woelker* Director of Sales
7:15 - 6:15 PM Jeff Amer, Technical Services
6:15 - 9:15 PM Questions/Answers
Dessert Provided ,
the mandated price paid, above the
federal price for milk.
The Grange also helped change
the milk pricing formula after call
ing for an investigation for poten
tial manipulation of the pricing
system under the now-defunct
National Cheese Exchange. Milk
prices are now determined by a
United State Department of Agri
culutrc national survey of cheese
manufacturers.
“This is a better system because
it negates one manu
facturer or company from artifi
cially setting the price,” said Bren
da Shambaugh, State Grange I p
slative director. “This change a
good starring point”
The Pennsylvania State and
National Grange have both urged
the United Slates Congress to
establish a new federal order mini
mum price that is near the cost of
production, which reflects actual
market conditions, and one that is
adjusted annually for inflation.
“A severe problem for dairy far
mers is market volatidty,” Sham
baugh said. “We believe that
incorporating this type of pricing
$5 Million For
(Continued from Page A 1)
1997-98 fiscal year, which doesn’t
start until July 1. The amendments
authorize the immediate ability to
access that $S million, while main
taining the rest of the spending to
be held off until the next fiscal
year.
The legislation specifically calls
for the allocation of “$S million for
the eradication of avian influenza
in this commonwealth. These
funds are to pay for indemnifica
tion and as a depopulation incen
tive for live birds and poultry pro
ducts destroyed during depopula
tion procedures, for manpower,
equipment, and supplies, needed to
destroy and dispose of infected
poultry, and to clean and disinfect
affected premises and other pre
ventative and control measures
and other necesssary expenses
incurred by the (PDA) due to the
avain influenza outbreak.”
The $S million is to be available
through June 30, 1998.
In related actions, the Senate
approved a resolution that directs
the state Department of Agricul
ture to make a report to the Senate
Ag and Rural Affairs Committee
on the avain flu within 90 days.
The report is to be done in con
sultation with the poultry industry
Lancaster Fanning, Saturday, June 14, 19Q7^[7
mechanism would lessen the insta
bility we have seen throughout the
industry in recent months.”
Shambaugh said the Grange
backs the reforms of the federal
marketing order system, mandated
under the provisions of the Fedenl
Agriculture Improvements and
Reform (FAIR) Act, as long as
producers are given adequate time
to transition from federal programs
to international market forces gov
erned by supply and demand.
“As we make the transition from
production decisions governed by
federal program parameters, and
toward decisions based on the
market’s underlying supply and
demand forces, it is imperative that
United States dairy farmers are
ready to compete in a world mark
etplace,” Shambaugh said.
According to Shambaugh, the
Grange supports reducing the
number of orders in the program
and other changes that are to have a
positive impact on dairy fanners.
The Grange has called for
reducing the number of federal
orders from 32 to between 10 and
12.
Avian Influenza
and a final report is to be issued
within nine months.
The final report is to contain
a plan to improve control and reg
ulation of the ‘live market’ indus
try; a plan to establish an insur
ance, or an ‘insurance-like’ prog
ram, to deal with possible ftiture
outbreaks of this disease, or others
of similar character; the rigorous
enforcement of (state laws) parti
cularly those provisions requiring
the reporting of animal disease and
those provisions relating to penal
ties; and...
«(
... That the final report contain
a long-range risk reduction plan
that includes specific research
plans, biosecurity regulations for
the poultry industry and the
framework for destruction of
flocks should an outbreak occur in
the future.”
In other action in Harrisburg,
the Senate Ag and Rural Affairs
Committee on Tuesday approved
the nomination of Acting Secret
ary of Agriculture Sam Hayes to be
secretary, as well as the nomina
tion of Luke Brubaker, owner/
operator of a 450-cow dairy farm
in Lancaster, to serve on the Pen
nsylvania Milk Marketing Board.
More action is expected in Har
risburg regarding these issues this
coming week.