(ContlniMd from Pag* A 1) But he changed his mind once he began studying what com pacts could do the dairy produc ers and has since become one of the region's most vocal advo cates for their passage. "Dairy Fanners of America, at its meeting last week in Kansas City, unanimously passed support for the concept of dairy compacts," notes Gardner. " We are working cooperatively with Land O'Lakes, Maryland and Virginia Milk Producers, Dairylea and the Pennsylvania Farm Bureau toward getting legislation passed to support Pennsylvania's dairy producers joining a compact. And DFA's Northeast Council is working to support all the compact propos als within our council area "Legislators need to hear from their dairy farmer con stituents or they will think we don't believe compacts are important," Gardner said, urg ing producers to get in touch with their state senators and representatives on the issue. "The establishment of a dairy compact is Pennsylvania would m no way interfere with the operations of the Pennsylvania Milk Marketing Board," he said "It would, in fact, complement PMMB's pricing program, as well as work well with the exist ing federal orders. And it would allow Pennsylvania to work closely with other northeastern states in setting a fair price for Class I milk" Garner further noted that farm prices for milk have James & Clark, llp “Servin Conveniently located between Ephrata, New Holland and Blue Ball, the law office of James & Clark, LLP is devoted to addressing the unique needs of farm families. Our mission is to provide excellent legal counsel in the following areas of law: Estate Estate Real Estate Business Planning E-Mail Address JClark@PaEstatePlanning.com Producers Seek Dairy Compact Legislation declined some 5 percent in reed dollars since 1985, before addi tional adjustments for inflation are figured. The goal of a com pact to help stabilize prize and thus the dairy industry itself, as increasing numbers of Northeast farmers exit the dairy business due to cash flow squeeze. Beverly Minor, Washington County dairy producer and chairman of the Pennsylvania Milk Marketing Board, indi cates that the PMMB, too, has been doing its homework on compact concepts and issues. "We have been very involved in ongoing discussions about compacts, especially with what has been happening in New Jersey and New York; in fact, we probably initiated some of those discussions," she said. Compacts provide for region al milk pricing systems, reflect ing local milk market condi tions, and work with existing federal milk marketing orders to price the farm value of Class I fluid, or drinking, milk only. They have no pricing impact on milk used for manufacturing any other dairy product, such as ice cream, butter of cheese Dairy compacts first won Congressional approval in the 1996 Farm Bill and generated formation of the Northeast Dairy Compact, which became operational in July, 1997. States can only join if they are contigu ous to those already in a com pact; each state's legislation must be compatible with the law of others in the compact the Needs of Lancaster County Farmers” Planning Settlement Compacts set a uniform Class I price to dairy companies which process and package fluid milk within the boundaries of the compact. Such companies with fluid milk sales outside the compact area receive credits on the vol ume not marked within its boundaries, so they can remain competitive on those outside sales. Processors located outside the compact boundaries are affected by the pricing regula tion on only the volume of Class I they sell into the compact area. Gardner also serves as vice chairman of the New York Producers' Bargaining Agency, which has been instrumental in helping to move a dairy compact bill working its way through New York's legislative body. Compact legislation was recently signed by New Jersey's governor. A compact bill was in the making in the West Virginia's legislature last week, while Maryland and Kentucky producers continue to pursue compact legislation within their states According to Gardner, the New York Dairy Compact task force has gone on record to sup port that state's joining of the Northeast Compact, if legisla tion m the Empire State clears all hurdles. The Northeast Dairy Compact covers the six New England states and has generat ed an additional $3O million in income to the compact area's ATTORNEYS AT LAW 1907 Division Hwy. (Route 322) Ephrata, PA 17522 717-355-2800 dairy producers since its incep tion in July. The Compact's pricing mech anism has been upheld thus far through three increasingly higher court challenges by oppo nents. "A compact can help stabilize milk prices to benefit consumers as well as farmers, " said Gardner, a Potter County pro ducer who milks 90 cows on the family's dairy and crops opera tion. It helps to adjust sudden, wide fluctuations in milk price, such as we have experienced under the federal pricing struc ture. That helps maintain farm stability and discourages sud den increases in milk price at the retail level." Dairy producers, like Gardner, have grown increas ingly frustrated that increases The Dairy A Broad What People VERNON ACHENBACH JR. Lancaster Fanning Staff HARRISBURG (Dauphin Co.) There has been much activity in the nation’s dairy indus try recently. Within the past two weeks, the nation’s largest dairy cooperative Dairy Farmers of America (DFA) announced a pact with New Zealand to make Raised on his family's dairy farm. Jay is keenly aware of the unique legal issues faced by agricultural, family businesses. Jay's practice focuses on the planning that is required to reduce tax burdens and to allow a smooth transition from one generation to the next. A strong accounting background provides Jay a solid basis for tax issues. Jay currently serves as chair of both the Agricultural Law Committee of the Pennsylvania Bar Association and the Estate Planning Section of the Lancaster Bar Association. He is a frequent speaker on estate planning and agricultural issues to the public and to lawyers. Lancaster Farming, Saturday, February 21, 1995-A3l in on-farm milk prices are quick ly translated to the retail mar ket, while decreasing in farm milk prices are not correspond ingly passed on to consumer. "It is critical that dairy pro ducers be in touch with their legislative representatives," Gamer said. "If legislators do not hear from their fanner con stituents, they will think we don't care that a compact doesn’t matter.: Dairy producers interested in more information on the Dairy Compact proposals are encour aged to contact Lewis Gardner at (814) 435-2109, Dennis Schadd, Land O'Lakes dairy cooperative at (215)322-0200, Robert Shore, Maryland and Virginia Milk Producers, at (703) 742-6800, Ed Gallagher, Dairylea, (315) 433-0100, or Joel Rotz, Pennsylvania Farm Bureau, at (717) 761-2740. Compact: Look At Are Saying cheese together in a Midwestern facility, while at the same time lob bying hard in several state govern ments to open up the Northeast Dairy Compact. In the meantime, the industry awaits a final ruling on an appeal of the November decision by fed eral Judge Doty that struck down the Class I differentials set by the Web Page www.PaEstatePlanning.com (Turn to Pag* A 42)
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