FUTURES MARKETS
(Continued from page Al 6)
showed strong gains in cheese
production.
Prices for 40-pound block
cheese fell from $1.2750 per
pound on Monday, July 3, to
$1.25 by Friday, July 7. Barrel
cheese fell more sharply, from
$1.28 per pound on Monday to
$1.21 per pound by Friday.
It's too early to determine
whether this is a trend or not.
There was a short work week at
many plants due to the July 4th
holiday, so there must have been
some extra milk in the system.
Milk receipts at plants are
generally trending down and will
result in less cheese production.
American-type cheese
production in May totaled 323.2
million pounds, 3.4 percent above
May 1999 and 3.4 percent above
April 2000. Total cheese output
jflD VISA 133 Rothsville Station Rd. * Lititz, PA 17543
717-626-4705
WE SHIP PARTS DAILY
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CASE lh
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ib
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GO TOGETHER
Good Service Breeds Growth
• Lancaster DHIA has doubled in cow numbers in 5 years
• From 58,000 cows to 120,000 cows
Good Service Means Quality Technicians in “The Field”
Good Service Means Fast Turn-A-Round in Getting Your
Reports
Our Low Overhead Means Lower Cost to YOU
ASK YOUR NEIGHBORS WHY
SO MANY OF THEM ARE SWITCHING TO LANCASTER DHIA
Lancaster DHIA serves Southeastern & Southcentral
(excluding cottage cheese) was
729.0 million pounds, 8.0 percent
above May 1999 and 5.1 percent
above April 2000. Cumulative
total cheese output through May
2000 was up 5.6 percent over the
same period a year ago.
USDA announced class prices
for June 2000 as follows: Class II
price is $13.08 per cwt. Class 111
price is $9.46 per cwt, and Class
IV price is $12.38 per cwt. The
advanced Class I mover for July
2000 is $12.46 per cwt. The
Class I differential must still be
added to this figure to ‘arrive at
the Class I price. The differential
for Boston, for example, is $3.25
per cwt. Thus overall, class
prices are above what they would
have been under the old system.
Only the Class 111 price is lower
than the old BFF formula and is at
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JtM HARLO
'DHIA
Lancaster Dairy Herd Improvement Association
1592 Old Line Road, Manheim, PA 17545-8222
Telephone (717) 665-5960 FAX (717) 664-2911
1-888-202-DHIA (3442)
redrose.net Web Site - LancasterDHlA.com
Pennsylvania AND Northern Maryland
by Athens
Disk Harrows
IMHMt Coulter
Chisels
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Lancaster
record low prices.
U.S. Senator Rick Santorum
(R-PA) introduced legislation last
month to assist dairy fanners
across the country by creating a
safety net when milk prices are
low. Santorum, a member of the
Senate Agriculture Committee,
introduced the legislation along
with Senator Herb Kohl (D-WI).
The bill is called "The
National Dairy Farmers Fairness
Act of 2000." It creates a sliding
scale of assistance that will be
triggered when the Class 111 milk
price is low. All producers
payments would be limited to the
first 26,000 hundredweight of
milk. So, given milk output of
18,000 pounds per cow, this
program would be limited to a
maximum of 144 cows. In
addition, an incentive payment
can also be earned if a farmer
does not increase total milk
production from the previous
year.
This bill represents a coalition
between two regions of the
Machinery Sales
M-F 7 to 5 Sat. 7 to 11:30
PARTS DEPT. HOURS:
Monday-Frlday 7 AM to 5 PM
Saturday 7 AM to Noon
Alter Hours Emergencies
Call (717) 626-0885
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country that have the most in
common; the Upper Midwest and
the Northeast. Both regions have
lots of small family farmers and
small processors. It provides
price protection to the most
vulnerable members of the dairy
community-small family farmers.
The program would pay more
when milk prices are lowest.
And, a big plus, the program
would not alter existing pricing
programs. It does not fix class
prices, require supply
management, or lump program
benefits onto Class I sales. Thus,
it passes the Washington reality
test.
Finally, I just completed a
study on the Northeast Interstate
Dairy Compact. The results may
be found on my website. They
show that the milk supply in the
six New England states did not
increase above the U.S. average
after the compact was introduced.
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BARN CLEANING SERVICE AVAILABLITwiTH
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To have your barn cleaned with air it will clean off dust, cob webs & lots of the old lime
This will keep your bam looking cleaner & whiter longer
CALL US ABOUT ON THE FARM FLY CONTROL
Serving Southeastern Pa. And More
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Witmer, PA 17585 717-392-7227 or
Toll Free 1-800-727-7228 7:00 AM to 5:00 PM
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A ■ A! 1 A / 1
Lancaster Farming, Saturday, July 15, 2000-A29
Fluid milk consumption did not
appear to change appreciably.
The program increased farm pay
prices by about $0.48 per cwt.
And, the cost of the compact to
processors, about $O.lO per
gallon, was fully passed on to
consumers in the form of a 14-
cent-per-gallon increase in retail
milk prices. Overall, consumers
paid about $0.24 per gallon more
for milk after the compact was
introduced, but $O.lO per gallon
of this increase was related to
other factors. None of these
results can be related to what
would occur if Pennsylvania and
New York were to join the
Northeast Compact.
For more information on dairy
markets, see my website at:
http://www.aers.psu.edu/dairyoutl
ook/