SYRACUSE, N.Y. At the
United States Department of Agri
culture’s (USDA) Federal Order
Reform Listening Session held re
cently in Syracuse, N.Y., Dairylea
Cooperative Director of Planning
and Regulatory Policy Edward
Gallagher voiced the coopera
tive’s strong support for Option
1-A in pricing Class I milk, ex
plaining that it takes into account
the costs associated with trans
porting fluid milk, regional supply
and demand, cost of production
and marketing, and the need to at
tract milk to regions that occasion
ally face production deficits.
“The size of the Northeast’s
market, the challenges of main
taining orderly and efficient mar
ketings for the world’s largest
Class I market, and the presence
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Dairylea Cooperative Supports Implementation
Of Option 1-A In Pricing Class I Milk
The USDA proposed rule for
Federal Order Reform presented
two alternatives in determining
Class I prices when the Federal
Orders are merged and consoli
dated.
Option 1-A, based on solid eco
nomic analysis performed by the
USDA Price Structure Commit
tee, incorporates the unique dyna
mics of the Northeast’s milk mar
ket and does not economically dis
criminate against one or more
milk producing regions to benefit
another.
The alternative. Option 1-B,
of a robust handler segment create
a need to maintain Class I differ
entials at no lower than their cur
rent level and to implement mar
ketwide service payments. Dairy
lea strongly supports Option 1-A
Class I differentials,’’ he said.
GE^r,
ALL
ater Them All
would lower farm revenue in the
Northeast by $ll7 million annual
ly, and create economic hardships
for rural counties dependent on a
strong dairy industry. According
to Gallagher, Option 1-B would
reduce the Northeast’s Class I dif
ferential by about $1.07 per hund
redweight. This would lower
blend prices by about $0.55 per
hundredweight throughout the
Northeast. Secretary Glickman
has publicly slated that he prefers
Option 1-B.
“The implementation of Option
1-B would significantly lower
Class I and blend {sices in the
Northeast and harm producers and
the economies of many rural
counties that depend on a strong
and vibrant dairy industry,” Galla
gher said.
Reports indicate that Secretary
of Agriculture Dan Glickman will
be closely monitoring the volume
of public response he receives on
this matter. FOr that reason. Dairy
lea strongly encourages all North
east dairy farmers to write to their
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Congressional representatives and
Secretary Glickman to urge the
implementation of Option 1-A
under Federal Reform. Responses
must be received by Secretary
Glickman before April 30.
In writing the letters, formers
should make note that:
• Option 1-A maintains Class I
and blend price levels in the
Northeast, as well as other areas of
the country;
• Option 1-A takes into account
the need to deliver adequate sup
plies of fresh milk to consumers at
reasonable prices;
• the alternative. Option 1-B,
would reduce farmers’ milk
Lancaster
our Lancaster County farmers
have a land ethic and sense of
place that will keep them on the
land as long as they are able to
farm,” Stouffer said. “It is this
deeply ingrained and long-term
* -r T v >4>V
Ritchie
Lancaster Fuming, Saturday, April 28,1998-A37
checks by $0.55 per hundred
weight;
• additionally, Option 1-B
would lower farm revenue in the
Northeast by $ll7 million annual
ly, and create economic hardships
for rural counties dependent on a
strong dairy industry.
Dairy lea Cooperative Inc. is s
Syracuse-based, agricultural ser
vice organization, cooperatively
owned by dairy farmers through
out the Northeast It markets more
than 4.5 billion pounds of milk an
nually and participates, and is
invested, in a milk marketing net
work stretching from Maine to
Maryland to Ohio.
Farmland
(Continued from Pago A3l)
commitment to agriculture that is
key to the future of Lancaster
County. No act that any fanner
can take more embodies that com
mitment than the decision of more
and more of those dedicated farm
ers to preserve their lands for
ever.”
Lancaster Farmland Trust is a
private, non-profit organization
that works to preserve Lancaster
County’s productive farmland,
thriving agricultural economy,
and rich farm-related heritage.
The Trust is one of two organiza
tions that preserve farmland in
i anrastef County, but it is the
only organization that Amish and
some other “Plain Sect" farmers
will work with. This point is espe
cially important given that Plain
Sect farmers now purchase the
majority of all farms that arc sold
and kept in farming in Lan
caster County. The government
run Lancaster County Agricultural
Preserve Board is the other or
ganization that preserves Lancas
ter County farms.
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