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Dairy Farmers Ask to Keep Current Milk Premium in Place

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Dairy farmers are still operating on tight margins and they want the Pennsylvania Milk Marketing Board to keep the current over-order premium price in place for another six months.   

The Pennsylvania Farm Bureau has again urged the board to retain the current Class I (fluid milk) over-order premium price of $2.15 per hundredweight.  The board reviews pricing twice a year and will be making decisions for the six month period that starts July 1st.

 Mark O’Neill, spokesman for the Farm Bureau, says dairy farmers are facing many challenges.  He says they’ve seen milk prices decline, as production costs remain high. Last year’s weather conditions resulted in feed shortages and poor quality feed, which can affect costs and milk yield. Many Pennsylvania dairy farmers grow their own feed.

Keeping the current over order premium price would not change what consumers are paying for milk at the grocery store.

O’Neill adds that income over feed costs dropped by nearly 30% over the past year as the overall milk check fell and the cost of feeding the cows rose. This means profit margins are still tight on dairy farms across the state.

The bureau also asked the board to continue the current fuel adjuster premium. Dairy farmers whose milk is produced, processed and sold in Pennsylvania for Class I use receive an additional premium based on the cost of fuel.

Putting the Showmanship in the PA Farm Show…

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Friday is chock-full of dairy judging at the 96th Pennsylvania Farm Show.  While the state’s youth make it look easy to Farm Show visitors, dairy showmanship is actually hard work.  “They can be stubborn at times, but usually just by making some noises or getting their attention… they’ll usually go,” Stephanie Stahl of Somerset County says of maneuvering her dairy cows for the judges.

Working with Stephanie is Chelsea Berkebile of Somerset County, who stresses the importance of keeping your eyes on the judges at all time.  “You always want to move out of the way as they’re moving around, so they can see the animal at their best.”  Hopefully, all of the hard work they do with the animals at home will pay off in the arena.

Some dairy showmen are better than others, however.  “I’ve learned a full appreciation for those who raise the animal, and take care of the animal seven days a week,” says Columbia County State Rep. Dave Millard, a three-time participant in the Farm Show’s Legislative Dairy Showmanship Contest.  “I do my best at it, but I’ve never come away with a first, second or third place.”

State Rep. Mike Tobash of Berks and Schuylkill counties took home top honors in the 2012 legislative showcase.  Farm Show judges will wrap up their evaluations of hundreds of dairy cattle later this afternoon.  You’ll be able to look up the Supreme Champion, and check on all of the results at the Farm Show’s website.  The 96th Pennsylvania Farm Show will come to a close at 5pm Saturday. 

Farm Show, Cow, Milk

Kids can even try milking a cow at this Farm Show display.

Milk Marketing Board Maintains Current Dairy Price

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The Pennsylvania Milk Marketing Board has acted on a request from the Pennsylvania Farm Bureau to maintain its current over-order premium price for Class I milk. The board agreed to keep the price at $2.15 per hundredweight for the six months beginning July 1. In addition, the board will keep its current premium price add on for fuel costs in place.

Farm Bureau President Carl Shaffer says improved milk prices this year are bringing some relief to dairy farmers, who are using any net profits to pay down debt accumulated during 2009, a devastating year for most milk producers.

The Bureau asked the board earlier this month to maintain the price levels, citing the volatility of milk prices over the past three years along with consistently higher fuel, seed, fertilizer and feed costs. Dairy farmers are also concerned about the rain this spring, fearing delays in planting could affect the yield of feed crops. Pennsylvania had its wettest spring on record this year. A lower yield could force dairy farmers to buy additional feed from other sources, further increasing their costs.

Dairy farmers whose milk is produced, processed and sold in Pennsylvania for Class I fluid milk  receive the over-order premium and the premium add on based on the price of fuel.

Consumer should see no change in milk prices as a result of the action.

June is National Dairy Month.  According to the Farm Bureau,   the dairy industry produces over 40 percent of the Commonwealth’s agricultural receipts.