A34-Lancaster Farming, Saturday, November 9, 2002 Dairy Reps Testify For Continuing Premiums DAVE LEFEVER Lancaster Farming Staff HARRISBURG (Dauphin Co.) The Pennsylvania Milk Marketing Board (PMMB) heard testimony from a number of industry represen tatives Wednesday, with a majority testifying in favor of maintaining a $1.65 per hundredweight over-order premium for the first six months of 2003, according to PMMB commu nications specialist Tracey Jackson. The over-order premium is the price paid above the federal order price for fluid milk produced, pro cessed, and sold in Pennsylvania. Testimony in favor of maintaining the $1.65 premium came from the Pennsylvania State Grange, the Pennsylvania Farm Bureau (PFB), Dairylea Cooperative, and the Northeast Milk Marketing Agency (NEMMA). NEMMA represents a number of milk cooperatives, includ ing Dairylea, Land O’ Lakes, Mary land & Virginia, and Dairy Farmers of America Northeast. Representatives of Dean Dairies and Tuscan/Lehigh Dairies asked that the premium be set no higher than $1.20 per hundredweight. Arthur Zug, a dairy farmer from Juniata County, testified on behalf of the Grange. He cited continuing tight milk markets and drought conditions as reasons for maintaining the premi um at $1.65. “Economists continue to tell us the market for milk remains tight in DS Is Distributor for: SUPER CHIMNEY - 2100 * ' gff| " Super Pro 2100 Chimney DS/316 Stainless Features 25 Year Warranty Chimney Liners Also Available D,S, Machine Shop Nippenose stove Stoves & Chimneys Rt.3 C ßox n 36? 2388 Old Leacock Rd., Gordonville, PA 17529 Williamsport, PA 17701 717-768-3853 570-745-2391 Pennsylvania,” he said. “According to the Pennsylvania Agricultural Sta tistics Service (PASS), milk produc tion was down 0.8 percent from last year’s September production.” Zug pointed out that the number of milk cows in the state in Septem ber had decreased by 9,000 since Sep tember 2001. That trend is not likely to change over the next six months, he said. “The current over-order premium has not flooded our dairy market with milk, and Pennsylvania produc ers have not had difficulty selling our product,” Zug said. He also spoke about the drought adding to the current crisis for dairy farmers. “Our farm has had a 50 percent yield loss the past two years, which has compounded our financial prob lems,” he said. “Federal programs have helped, but are not the longterm answer. Dairymen would like a fair price for their product, instead of programs to support price levels. Joel Rotz of the PFB based his rec ommendation on projected milk prices and costs of production. He noted that current Class 111 and Class IV milk future prices at the Chicago Mercantile Exchange point to an average blend price of $13.61 per hundredweight during the first six months of 2003. Meanwhile, PASS reports indicate costs of pro duction for the year ending this Sep tember averaged $13.49 per hundred- weight, but did not account for recent feed price increases caused by this year’s drought. Taking into account costs for man agement, interest on equity, and a reasonable profit, Rotz testified that the average dairyman would experi ence a shortfall of $2.69 per hundred weight of milk produced in coming months. Jackson of the PMMB said the three-member board will make a de cision Dec. 4 to maintain or change the premium. (Information supplied by the Pennsylvania Farm Bureau and the Pennsylvania State Grange was in cluded in this report.) CHECK AD WEEKLY FOR MORE BUDGET-PLEASING SUPER BUYSI NEARLY 20 PREOWNED PIECES ON DISPLAY AT 4019 ASHVILLE RD. QUARRYVILLE, PA. I MID-ATLANTIC. aqn systems Liquid Waste Equipment Specialists 800-222-2948 >717-529-2782 • www.midatlanticagri.com Farmers Finalize Resolutions For State Meeting (Continued from Page A 1) protections for farmers’ water rights are also among some 130 policy questions that will be de cided by the organization’s 171 voting delegates from 54 county farm bureaus. “Our work this week was to consolidate the recommendations of farm families across the com monwealth into resolutions that will be debated and decided at our annual meeting,” said Carl Shaffer, a vegetable and grain grower from Columbia County, who serves as vice president of PFB and chairman of its State Policy Development Committee. “The outcome from the annual meeting will become Farm Bu reau’s road map for the year ahead so far as our outreach to lawmakers and the general pub lic.” Pennsylvania Farm Bureau represents about 30,000 farm families and is affiliated with the nation’s largest general farm or ganization, the 5.1-million mem ber American Farm Bureau Fed eration. 1
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