Dairy Industry Is A Complex Beast
(Continued from Pago A3l)
when the supplier has more than it
can sell at a higher price.
Because raw milk is quickly
perishable, selling milk is a con
stantly renewed game of changing
values after all the higher
paying uses of milk are satisfied,
the rest of the milk is sold at less
profit for lower-paying uses; after
those uses are satisfied, the
demand for even lower-paying
uses are then satisified, even if at
below cost
The quantity of milk available to
be sold for all uses is a variable,
and that makes the farm price
extremely volatile.
The milk pricing system
attempts to create an overall
farmer-paycheck value for milk,
after taking into account how it
was used.
The more excess milk sent to
market, the less the farmer
receives, even if it was all used.
The less milk sent to market, the
less chance that those needing it to
make lower-paying dairy products
will get it at a decent price.
Then, three things can
happen either the farmer gets
slightly more money, or an alterna
tive source for milk is found and
the farmer is out, or that low-rung
processor gets out of the business
and the farmer is out
The daily industry is not acting
in a vacuum. Similar changes are
affecting almost the entire spec
trum of human activity in recent
post-Cold War times.
Some of the changes have
caused concern for stability and
dependability.
A recent published report stated
that personal bankruptcies bal
looned during the past three years
while half were because of loss of
employment, many of those
surveyed reported that credit cards
and easy credit were involved.
Accumulating American con-
CROPBUSTER LOAN
Blue Ball National Bank understands the problems of farmers. We
know where the meat, milk, bacon and eggs come from and we know
you are in the only business that has to buy retail and sell wholesale. We
invite you to take advantage of this loan.
The Cropbuster loan may be used for seed, lime, fertilizer, herbicides
and pesticides, and gives you the opportunity to take advantage of
seasonal discounts.
To take advantage of this loan call, Ken Overly or Alan Strock, in the
Agri Sales/Service Department at 1-800-346-3437 or 354-3513
The cropbuster loan is available to all qualified farmers in the BBNB market. Rate
effective on publication date and is subject to change or be withdrawn at any time without
notice, the maturity date of this loan is December 31, 1998.
sumcr credit debt has been identi
fied recently as a major influence
in the continued economic growth
of the United States.
Recently, some economists
have predicted that growing con
sumer credit debt, combined with
an expected recession (as part of a
“normal" economic cycle, which
hasn't been normal) could result in
very serious problems.
According to published reports,
some legislators have already dis
cussed changing some of the bank
ruptcy laws.
Outside of internal pressures
from regulations and, in some
cases, a lack of regulation, outside
pressures persist
Pressure from global influences
upon United States domestic dairy
policy has been strong.
For example, through the New
Zealand Dairy Board, the New
Zealand government has been lob
bying for years in Washington
D.C. to change United States poli
cy to make it easier for New Zea
land to ship its dairy product here,
half way around the world.
New Zealand currently supplies
markets around the world with var
ious and specially manufactured
dairy products. It supplies dairy
products to the tourism-dependent
islands south of the United States,
such as Barbados and Jamaica, for
example.
In 1995, the New Zealand Dairy
Board, represented by a Washing
ton D.C. firm, called for the elimi
nation of United States price sup
ports, and allowing a totally free
market situation prevail.
With the passing of the 1996
Farm Bill, the United States dairy
industry now has a timetable for
the removal of United States gov
ernment domestic price controls.
However, New Zealand can’t
reasonably be credited with the
change in United States policy.
In the United States, there are
MARCH 2 THRU 31
EBBhB
BLUE BALL NATIONAL BANK
Member FDIC
many businesses which export
agricultural products and com
modities around the world, such as
Archer-Darnels Midland (which
had been under investigation for
price collusion). They want better
abilities to place their lower-cost
products in foreign markets and
expand their sphere of business.
In some cases, a company may
be based in the United States but
also have production facilities in
other parts of the world, or wish to
purchase products or commodities
from non-domestic sources.
Former and continued United
States defense-related policy also
has international implications.
United States political policy
toward former war allies, world
peace allies, and defeated nations
also led to the exodus of many
manufacturing, industrial and tex
tile industries to countries with
little environmental §nd safety reg
ulations, and the benefit of
poverty-paid labor.
Emerging democracies require
rewards for their people in order to
keep democractically inclined
leadership popular.
Allowing those nations to be
protectionist, while allowing open
access to the United States con
suming market has provided those
nations with economic strength
and growth and a higher standard
of living. The result has been to
showcase the benefits of democra
cy to neighboring, non
democratically inclined neighbor
ing nations.
With the Cold War supposedly
over, the need to continue those
one-sided trade relationships has
ended, forcing truer self-reliance
for those nations, which means an
economic readustmcnt, and possi
ble recession.
With the passage of the General
Agreement on Tariffs and Trade,
and the North American Free
Trade Agreement, more dairy pro-
duct is now being allowed to be
imported in the United States,
forcing increasing competition
with domestic production.
However, United States policy
is changing with regard to those
nations that have been receiving
beneficial considerations to help
maintain world peace and build
support for democracy there.
Currently some of the econo
mies have been faltering as the
beginnings of real democracy has
begun to split up the closely tied
govemment/businesses relation
ships that were established in ini
tial efforts to convert those nations
to democracy.
Further, with the reduction of
United States military posts
around the world, money from
United States military no longer
stimulates some foreign econo
mies as it had.
In order to be successful in
achieving long-term world peace
and security for many people of the
world. United States leadership
has the goal of not acting too hasti
ly in removing, or calling for the
removal of all of the aritiflcial sup
ports from those nations, such as
South Korea.
Differing environmental, labor
and safety regulations are issues
which were mostly ignored in the
final passage of the GATT and
NAFTA trade agreements because
they may have been impossible to
justify immediately, and could
Fruit Growers ITo Meet
HOLLIDAYSBURG
(Blair Co.) Penn Stale
Cooperative Extension and
the Appalachian Fruit
Growers Association are
excited to announce their
annual pesticide recertifi
cation and production
skills meeting for fruit
growers in south central
Pennsylvania.
• TO T»&n .
Stores
Farmers industry
Construction,^
45’ Trailers *9Q°° P«|
Cumberland Valley Farm Toy Show
Ertl, Hess, Winross
Friday and Saturday, March 6 & March 7
Tov Show... Friday 6:00 RM. to 9:00 P.M.
Saturday 9:00 A.M. to 3:00 P.M.
Admission - $2.00/person, under 12
[...Saturday 5:30 PM
Tov Auction,
Sponsored by the Cumberland Valley FFA/Cumberland Valley
Tractor Pullers at the Cumberland Valley Eagle View Gym and
Cafeteria. Refreshments available. Located along the Carlisle
Pike (it 11) North of 181.
Lancaster Fanning, Saturday, February 28, 1998-A35
have pulled the rug out from these
nations’ economics and created a
barrier to sending product to the
United States.
In the meantime, there are
efforts by some to ensure that
United States world peace negotia
tors don’t act too freely in giving
away concessions on any of those
issues with regard to agricultural
production.
That agriculture is a national
security issue has been a common
theme of Pennsylvania Secretary
of Agriculture Samuel Hayes Jr.
He is not alone. Others also have
made, the case that any nation that
doesn’t have a dependable food or
water supply is a nation at risk of
attack or submission.
For this and other reasons, agri
culture was the biggest obstacle in
settling on a GATT, after several
years of failure to deliver and
agreement.
Most trading nations are not
equal in the adoption of trading
restrictions. Negotiating trade
involves other nation’s domestic
policies, because international pol
icy affects domestic policy.
Currently, for the dairy industry,
it seems the outcome of events,
both domestically and internation
ally, is uncertain because the dairy
industry isn’t sure what the gov
ernment will do, the government
isn’t sure what die daily industry
will do, and neither can be certain
what other nations will do.
Information...(7l7) 249-8434
Clip and Save
The meeting will be held
at Irene’s Family Restau
rant on Tuesday, March 3,
from 8 a.m. to 4 p.m. All
fruit growers are invited to
attend.
For program informa
tion and registration, con
tact Blair County Coopera
tive Extension. (814)
693-3265.
There s a group of young
people who are learning the
science
business a. id
technology
of agriculture
They are the members of
the FFA
w
Making a positive
difference in the lives of
students Now AND
FOR LIFE
free