ECONOMIC DEVELOPMENT Agricultural education and economic development are two priorities that play an importan tand integral role in the agricul ture industry. Last month, I dis cussed agricultural education in my column and this month, I would like to devote my attention to agriculture’s role in Pennsylva nia’s economic health and what the department is doing to devel op the economic potential of agri culture in the commonwealth. Agriculture is clearly a driving force in the state’s economy, with every dollar earned by a farmer generating more than $lO in eco nomic activity, from sales to pro cessing, distribution, and retail ing. Yet, we all know that there * WOODS 2240 Shermans Valley Road, P.O. 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Rendell is committed to a strong agricultural sector as part of his overall rural economic de velopment strategy and I am con fident that we can secure a strong future for agriculture in Pennsyl vania. Within the Governor’s stimulus package, $lOO million is earmarked for agriculture and tourism, the state’s leading indus tries. I am working closely with Community and Economic De velopment Secretary Dennis Yab lonsky to ensure that this funding is used in ways that could best strengthen agriculture and our rural communities. It is critically important to all of us that the Governor’s Plan for a New Penn- C&M 'Unique Farm Services” RONI CLARK • Licensed & Insured Phone: 717.361.6065 • Fax; 717.367.0867 e-mail: cnofiies@paonline.com • FREE delivery within a 50 mile area • \oi sylvania be enacted by the Gener al Assembly as quickly as possi ble. Earlier this year, the General Assembly opened up the Small Business First Loan Program and the Machinery and Equipment Loan Program (MELF) for agri culture entities. This week, Secre tary Yablonsky and I stood to gether on Gro-Lan Farms in Franklin County enjoying the new freestall bam the Grove brothers are building with fund ing from the Small Business First Program and AgChoice Farm Credit. In recent months, I have cre ated a Dairy Task Force and a Livestock Protection Program to ensure that Pennsylvania re mains one of the nation’s leading dairy states. And I have been working on many other initia tives and programs designed to let Pennsylvania agriculture take advantage of all available eco nomic opportunities and main tain its position in the state econ omy. Last month, Pennsylvania was selected to receive about $1 mil lion by USD A to create the Key Services i.^ Farm • Pennsylvania Elizabethtown 100 count 25 lb. pail 45 lb. pail Farm Bureau Asks Milk Marketing Board For Continuation Of Milk Price CAMP HILL (Cumberland Co.) Pointing to rising costs on dairy farms and declining milk production in Pennsylva nia, PFB today urged the Penn sylvania Milk Marketing Board (PMMB) to maintain an over order premium of at least $1.65 per hundredweight of milk for the first half of 2004. Farm Bureau Dairy Special ist Joel Rotz testified on behalf of PFB during a PMMB hearing in Harrisburg today. The cur rent over-order premium of $1.65/cwt. will end on Dec. 31. The PMMB over-order premi um is mandated to be paid to dairy farmers on milk pro duced, processed and sold as Class I fluid milk within Penn sylvanias borders. “Pennsylvania producers continue to receive milk prices well below the average produc ers cost of production,” said $ $B5 $lOO Coil for pricing $145 stone Agricultural Innovation Center, a joint project of the De partment of Agriculture and Penn State’s Cooperative Exten sion Service. Congressman Tim Holden and Associate Dean Ted Alter joined USDA State Direc tor Byron Ross and me to ac knowledge the selection of our proposal. This was particularly noteworthy considering that Pennsylvania was one of only 10 states selected for an agricultural innovation center. USDA created the program as part of the 2002 Farm Bill to fos ter farmer ownership of products and processes beyond the farm gate. Once formed, the Keystone Agricultural Innovation Center will provide a network of techni cal assistance and educational opportunities for agricultural producers. The education programs will focus on improving the ability of agricultural producers to evalu ate and choose value-added agri cultural commodities or prod ucts. The technical assistance aspect will focus on processing and other physical properties of agricultural commodities and continues to fall behind year ago levels, which threatens the long-term viability of the indus try. “Milk prices are projected to remain at low levels in early 2004. Costs for Pennsylvania dairy farmers will continue to rise due to the increasing need for supplemental feed pur chases such as soybean meal be cause of low quality forages being harvested as a result of wet conditions throughout the season. In addition to their being a need to purchase these supplemental feeds, they are 33 percent above what they cost last year.” “When producer milk prices fall far short of producer needs, as they do currently, and have for some time, Pennsylvania Farm Bureau has always sup ported the highest level of pre mium the market can bear.” Rotz “As a result, milk PFB urged the Board to sup port at least a $1.65 per hun dredweight premium across the state. “If those that market milk in the state believe marketing conditions will support an even higher level of premium, Penn- pro duc- tion in the state 10% Sale on Everything in Stock From December Ist till Christmas!! Just in time for Christmas shopping!! Lawn Mowers!! 16” to 21” New & Used Push & Gang Mowers. 48” to 11’ wide' 42” & 63” trailmowers & brush cutters! Push & Tow-behind Lawn Sweepers l 26”-32”-42” wide! Auto-turn horse & pony carts with spring seats! Easy entrance Chain saws, hedge & weed trimmers & leaf blowers! 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The Keystone Agricultural In novation Center will rely on the expertise of Penn State’s Cooper ative Extension Service and other project partners to offer farmers and farm groups technical assist ance in analyzing the feasibility of projects and developing busi ness and marketing plans for new crops, new markets, and value added products. If farmers can develop products that allow them to earn a larger share of consum er food and energy dollars, the entire rural economy wins be cause farmers tend to spend their money locally. The Ag Innovation Center is a step in the right direction for Pennsylvania agriculture-particu larly for the value-added sector of our agricultural economy. To gether with other programs we are working on, I am certain that we will be able to continue in crease the agricultural opportuni ties for Pennsylvania agricultur ists. sylvania Farm Bureau supports those higher levels based upon the great need our producers face,” Rotz stated. Farm Bureau presented in formation indicating the aver age price paid to Pennsylvania dairymen during January-June, 2004 will be about $13.74/cwt. If dairy producers price needs for management, interest on equity and a reasonable profit were taken into account, the average dairy farmer would actually ex perience a loss of $2.80 on every hundredweight of milk pro duced. Rotz told the Board. “Pennsylvania’s milk produc tion continues to falter. This disturbing trend has persisted for too long and appears to be increasing.” Rotz testified. “This trend threatens not only the infrastructure of Pennsylva nias dairy industry, but also the entire agriculture infrastructure in the state, since dairy has his torically been the backbone of Pennsylvanias agricultural in dustry.”
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