Progressive Agriculture Organization

Dedicated to the preservation of our Family Farms and Rural America

Editorial

PROGRESSIVE AGRICULTURE ORGANIZATION

RR2 BOX 165, MESHOPPEN, PA.  18630

Ph: 570-833-5776  Fx: 570-833-5992

E-mail:  proagorg@yahool.com

September 14, 2009

Dear Editor, 

It’s time for all dairy farmers to UNITE behind one dairy bill!  The recent decline in the cheese and butter prices on the Chicago Mercantile Exchange (C.M.C) clearly illustrates one more time that the present milk pricing system is flawed (at best).  The only bill that is geared to correct the serious financial problems facing dairy farmers is the Specter-Casey Bill identified as the “Federal Milk Marketing Improvement Act of 2009” which carries the legal number of S-1645.

This Bill is already in the hands of the Senate Agriculture Committee.  Several members of the House of Representatives are being lined up to have a companion Bill to S-1645 be introduced in the House of Representatives.  S-1645 is the only bill or proposal that establishes a fair price to ALL dairy farmers based on the National Average Cost of Production.  Furthermore,   S-1645 establishes a true supply management program that will be funded by dairy farmers.  The Bill will clearly eliminate any funding for the MILC Program by the USDA.  Equally important, the Bill addresses the problem of excessive imports of dairy products.  There are several other factors in the Bill that are beneficial to all dairy farmers.

The Progressive Agriculture Organization was formed by farmers in 1991 for the purpose of establishing fair prices to farmers for their products.  That year we worked hard in attempt to pass the Leahy Bill that would have helped all dairy farmers.  Unfortunately the proposed Bill lost by three votes in the US Senate.  Dairy farmers have been told over and over again- “wait for the next Farm Bill”.  Well, the dairy farmers have waited more than long enough.  They can wait no longer!   Actions need to be taken, and taken now!!  Yes, it is time to unite behind S-1645.  This could very well be your only opportunity to correct many of the dairy farmers problems. 

 Please, don’t continue to be deceived by the people who thrive on disunity.  These people are the same people who have saddled dairy farmers with these World Trade Agreements that are geared to force more and more dairy farmers out of business.  Also, be aware of any dairy proposal that doesn’t carry a new pricing formula to cover the dairy farmer’s cost of production.  Please don’t leave it up to a few people to decide what your price will be.  S-1645 tells you exactly how your milk price will be determined.

 Finally, we hear constantly that S-1645 will never pass.  We ask different people, “Well, who told you this?”  The usual reply is, “Well, we heard it.  “They” told us so.”   These same “they” people are the same ones who say, “They say it’s going to rain, or snow, or whatever.”  These “they” people are the largest number of unknown people that exist. 

Loren Lopes, a dairy farmer from California was interviewed by a reporter from a national publication for three hours.  Loren was told that the interview would be printed in their next publication beside the Holstein-California Milk Producer Council-Cornell Study Proposal.  When the publication came out, the interview with Loren was not published.  Loren was puzzled.  He made several inquires, and was finally told that a former president of a national organization and Midwest economist, allegedly encouraged the publisher not to print the interview with Loren because S-1645 was not going anywhere, etc. So, now we know who some of the “THEY” are.

 

          This is all the more reason for all dairy farmers to unite behind S-1645.

        Thank you.

                   Sincerely,

                  

                   Dennis Boyanowski   Pres.  Pro Ag     570-869-1179

                   John Tewksbury    V. Pres.  Pro Ag     570-833-4994

                    Arden Tewksbury     Mgr.  Pro Ag      570-833-5776

 

 

 

Press Release

                         FOR IMMEDIATE RELEASE                             

For further information contact: 

                                                                                        Robin Fitch

                                                                                        315-822-5093

NEW YORK DAIRY FARMERS PLAN LARGE DAIRY RALLY

Several dairy farmers from Central New York State are cooperating with Progressive Agriculture Organization (Pro Ag) in promoting a large dairy rally scheduled for August 14, 2009, at the Mount Markham School in West Winfield, New York. The rally will begin at 1:00 PM and will be held in the Middle School auditorium. The school is located on Routes 20 and 51 in West Winfield (across from the West Winfield Federated Church).

Dave Fitch, a dairy farmer from West Winfield, said, “Our dairy farmers have waited altogether too long for action by the US Secretary of Agriculture and the US Congress.”

Richard Becker, a dairy farmer from Mohawk, New York, who is the Co-Chair of the event, along with Mr. Fitch, said, “Scores of dairy farmers have made numerous calls to elected officials urging Congress to take various actions to correct the inequities facing dairy farmers, but so far nothing has been accomplished.”

Gretchen Maine, dairy farmer from Waterville, New York, said, “All we hear from politicians is that they must study the problems and determine what the complaints of the dairy farmers really are. Where have they all been? Last winter, Pro Ag published a flyer estimating the prices paid to dairy farmers for February, March, April, May, June, and July would hover around $12.00 per cwt. And do you know what? Unfortunately, Pro Ag was right, so why should these low raw milk prices be a shock to anyone?”

Arden Tewksbury, Manager of Pro Ag, who, along with Gerald Carlin, fellow dairy farmer, co-authored  “The Federal Milk Marketing Improvement Act of 2009,” commonly called the “Specter-Casey Bill,” asked, “How much more information does anyone need? The average area dairy farmer is going to lose nearly $71,000 in gross income from February through July, and I see no immediate improvement in farmers’ milk prices.”

Actually, Tewksbury said, “I am tired of the lame excuses some farm organizations are using to defend their taking no actions. Dairy farmers are experiencing immense suffering, and I mean their suffering is extreme and unprecedented in severity. Some are telling me that they are unable to afford grain for their cattle so they have had to quit feeding grain to their animals. Many agricultural businesses may be eliminated because of the terrible financial losses they are enduring because of the farmers’ low milk prices. Yet nothing is being done to intervene and really fix the problems causing these criminal raw milk prices!”

Both Fitch and Becker are urging all farmers, consumers, and agribusiness people to come to the rally and proclaim to all present just how serious the situation is and how the crisis will only get worse if intervention is not taken.

Beth Gorton, dairy farmer from Brookfield, New York, said, “We are going to do our best to have some US Congressmen and Senators present so the dairy farmers can tell them first-hand about the problems we are facing and what action the dairy farmers want Congress to take.”

Tewksbury concluded by saying, “We want a large crowd on August 14th, and we want them to be vocal! Also, it needs to be noted that many farmers are so angry about the current situation that they want to start a milk withholding action. Although we cannot promote this, certainly the dairy farmers can.”

 

Latest Editorials

 June 24, 2009  

FOR IMMEDIATE RELEASE

SENATOR GILLIBRAND’S EFFORTS ARE NOBLE BUT FALL FAR

SHORT OF MEETING DAIRY FARMERS’ NEEDS

 According to Arden Tewksbury, Manager of Progressive Agriculture Organization (Pro Ag), the recent announcement by Senator Kirsten Gillibrand (D-NY) that she will introduce legislation that would double the payments to all dairy farmers under the “Milk Income Loss Contract” (MILC) program is very honorable, but the efforts fall far short of meeting the needs not only of New York dairy farmers but also of dairy farmers across the United States.

Furthermore, Senator Gillibrands’s news release indicates that dairy farmers are being paid $13.33 per cwt. Tewksbury stated, “The price for May’s milk was $12.18 per cwt, not $13.33 per cwt. The $13.33 per cwt is the price for June’s milk used for Class I milk that is bottled, etc. Senator Gillibrand’s proposed legislation does not address the unbelievable low prices received by dairy farmers for their share of milk that is used for manufacturing purposes.”

The price that dairy farmers received for manufactured milk for May’s production was as follows: Class II milk (used primarily for ice cream) $10.71 per cwt, Class III milk (used for cheese) $9.84 per cwt, and Class IV milk (used primarily for butter and powder) $10.14 per cwt. Actually, the Class I price for May’s milk was $14.22 per cwt. In May, the dairy farmers received a blend price of all four classes of $12.18 per cwt.

The Class I price decreased in June down to $13.33 per cwt, which will probably mean that the price paid to dairy farmers in July on June’s deliveries will be approximately $11.75 per cwt, not the $13.33 per cwt figure. These prices are announced in Boston, Massachusetts. Because of zone differentials, most dairy farmers in New York state and Pennsylvania will receive between 15 cents and 60 cents per cwt less than the $12.18 per cwt price.

While Senator Gillibrand’s news release refers to Farm Credit’s figures indicating that the dairy farmers’ cost of production is at $17.58 per cwt, according to Tewksbury, the most recent figures released by the Economic Research Service (ERS), a division of USDA, from Washington, DC, show that, in April the total economic cost on New York state’s dairy farms was $25.71 per cwt, with Pennsylvania’s dairy farmers’ cost to produce milk at $27.15 per cwt.

While the charts used by Cornell are correct, the charts fail to list the actual pay price to dairy farmers. The charts should have made reference to the actual pay prices to dairy farmers. These are the pay prices dairy farmers have been receiving: 

                                  CLASS I PRICE            STATISTICAL (BLEND) PRICE

January 2009           $18.99                              $14.14

February 2009         $13.97                              $11.75

March 2009              $12.68                              $11.56

April 2009                $13.61                              $12.08

May 2009                 $14.22                              $12.18

June 2009                 $13.33                              $11.75 est.

Tewksbury said, “Dairy farmers can not wait another 5 years to correct the inequities facing all dairy farmers. The current milk pricing system is broken and needs to be fixed now! Again, Senator Gillibrand’s efforts are noble, but we need to clean up the mess now. Reports from various sections of the US indicate that some producers’ prices fell below $10.00 per cwt.”

Tewksbury continued by saying, “I would urge Senator Gillibrand to take a close look at the Specter-Casey Bill S-889. This Bill is geared to correct many of the inequities facing all dairy farmers. Everyone must realize that dairy farmers want to be paid in full from the marketplace, not partial payments from the US Treasury.”

Pro Ag shares the concerns exhibited by Senator Gillibrand regarding dairy prices in supermarkets. A recent survey conducted by Pro Ag indicates that the mark-up on cheese in many stores is between 20 per cent and 30 per cent. Dennis Boyanowski, dairy farmer and Pro Ag President, stated, “This means that a pound of cheese that sells to the consumer for $5.00 per pound costs the retail store approximately $4.00 per pound. Current prices paid to dairy farmers reflect about a $1.13 per pound price. That is a whale of a difference!”

The National Family Farm Coalition, National Farmers Organization, and National Farmers Union are all now lending their support for S-889.

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JUST KICKING TIRES WON’T HELP DAIRY FARMERS’ PRICES!

The announcement of a $12.18 per cwt statistical price for Order I producers (at Boston), coupled with the previous announcement of a Class I price for June’s milk of $13.33 per cwt in Boston, certainly indicates that the majority of dairy farmers need some immediate emergency price relief. This same decline in milk prices will affect dairy farmers all across the US.

Most dairy farmers fully realize that milk prices start at the Chicago Mercantile Exchange (CME) (unfortunately!). The cheese prices there still range from $1.10 to $1.14 per pound. It is unthinkable that many programs being developed for dairy farmers still use the CME as the starting point for dairy farmers’ prices. I was shocked this morning when I realized that some proposals still call for some payments from the “MILC” program. If this actually becomes the case, then the statistical price in Order I would be in the neighborhood of $15.00 per cwt. This kind of a milk price must be totally unacceptable to dairy farmers.

According to the Economic Research Service, (ERS), a division of USDA, the national average cost of production across the US was $24.07 per cwt in 2008. While it appears that the cost of production in some states has declined very slightly, let us not forget that one reason for this decline could be a result of the low milk prices paid to dairy farmers that make it impossible for them to purchase necessary items and services. Don’t be surprised to see the cost of production rise in some states because of increases in necessary items purchased by dairy farmers such as grain, fuel oil, etc.

All of these reasons indicate that either the US Congress or Secretary of Agriculture Tom Vilsack must take emergency action and place a floor price of $18.00 per cwt under manufactured milk.

Then Congress must commit to solving the inequities facing dairy farmers once and for all by giving strong and final consideration to passing a new dairy bill that will allow our dairy farmers to pay their bills so they can stay in business and plan for the future. A tremendous number of dairy farmers have told us that they want to see S-889, (“The Federal Milk Marketing Improvement Act of 2009”), passed.

Among other things, S-889 would give dairy farmers a fair price for their milk, S-889 addresses the import-export problem of dairy products, and S-889 contains a milk-supply program funded by dairy farmers.

In order to pass S-889, dairy farmers across the US must accelerate their efforts in support of S-889 and make sure their US Congressmen and Senators line up behind S-889.

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 THE MISUNDERSTANDING OF S-889 CONTINUES

First of all, let me say that this economic train wreck that has devastated dairy farmers everywhere with the most appalling milk prices anyone has ever seen was predicted by this writer back in the early fall of 2008. Despite sincere efforts made by countless people to avoid the impending disaster, the train wreck has hit and released its toxic economic destruction into dairy farming communities in all areas of our country. Now we are looking at a Class I price in June 2009 of $13.33 per cwt. This is what I call a really unrealistic price. If you look back to July 1981, the actual blend price in the former Order 2 was $13.33 per cwt.

Think of it! In July 1981, the blend price was $13.33 per cwt, and now, 28 years later, the Class I price in Order #1 is the same $13.33 per cwt! That’s what I call a ridiculously low price.

I just received a call from a 1000-cow producer in Colorado, and he said, “I’m just about done. Something has to be accomplished for our dairy farmers.”

Relating to S-889, “The Federal Milk Marketing Improvement Act of 2009,” I firmly believe that everyone is entitled to his/her opinion about S-889. However, I do believe that if people are going to analyze the bill or state opinions, then they should be careful to read the Bill as well as our 17 points of interpretation of the Bill.

The Bill does establish the value of manufactured milk in all federal orders and unregulated areas. The Class I price will be determined by adding the existing Class I differentials (they vary by orders) in each federal order. Unregulated areas will be assigned a Class I differential by the US Secretary of Agriculture.

The greatest confusion seems to relate to the supply management provision of the Bill. The three million pound reference in S-889 applies only to a new producer. There is not anything in S-889 that prevents any dairy farmers from producing as much milk as they would want to produce on their farms (but, understandably, there needs to be a market for that milk).

The Bill is very clear. If the Secretary finds it necessary to implement the supply management program, then every dairy farmer (except a new startup producer) will participate in the first phase, regardless of his production. In the second phase, only those producers who produce more milk than they did the previous year will be affected, regardless of the amount of their production.

Again, please remember that the 3 million pound exemption applies only to a new producer, not to any existing producer. This was to enable the new farmer to operate for a full year without having to participate in any aspect of the supply management provision if the provision would be activated by the Secretary of Agriculture. The 3 million pound exemption does not preclude any start-up producer from exceeding that exempted amount of milk, but, if that were the case, then that farmer would have to participate in the supply management program, again, if it were to be activated by the Secretary, but only on that amount of milk that exceeds the 3 million pounds.

We have studied cost of production figures for years. It appears now that the cost of production figures in the six major dairy states are over $20.00 per cwt. I believe that an examination of these cost of production figures in these six states reveals that using the national average cost of production as the main pricing factor in S-889 is reasonable.

One thing is for sure, the price of manufactured milk in all 48 contiguous states must be the same. No longer should processors in some parts of the country have a distinct advantage over other processors (Midwest and Northeast processors have been at a disadvantage).

Another thing that must be emphasized is that S-889 does not curtail exports, but, in reality, the Bill could encourage exports. The Bill provides for oversight of dairy product trading.

Will S-889 encourage excessive milk production? A fair milk price for dairy farmers does not necessarily have to cause overproduction. The supply management provision in the Bill will offer reasonable oversight to determine the realistic markets available to dairy farmers. However, everyone must understand the program. I would ask that the supply management program be explained as it is to be implemented in the Bill.

Finally, will S-889 increase the prices to consumers so much that the consumers will be turned off from buying dairy? My feeling is that they will not! Actually, many of the prices in many stores for cheese, etc. seemingly are still reflecting the prices dairy farmers were paid over a year ago.

What about bottled milk? Between 2007 and 2008, the Class I price in Boston was over $20.00 per cwt fifteen (15) times. The highest was September 2007 at $25.16 per cwt. The Pennsylvania Milk Marketing Board (PMMB) establishes minimum retail prices for milk. In September 2007, the minimum price was $3.83 per gallon. Of course, this included the over-order price of 18 cents per gallon which helps a limited number of dairy farmers directly in Pennsylvania.

However, if you use just the Boston price of $25.16, the minimum price would have been $3.65 per gallon. So, in reality, the PMMB was using a Class I price of $26.78 per cwt. In New Jersey, Readington Farms was paying their producers a $1.00 per cwt premium because of their general concern for their producers or a class I price of $26.16 per cwt.

Now, along comes S-889, a Bill that would give all dairy farmers a fair price, and the price, in all probability, would not reach $26.78 per cwt, but the same people who continually argue for the higher price in Pennsylvania at the PMMB hearings (for some producers) appear to be willing to deny other dairy farmers the same opportunity for a fair milk price.

There are many justifiable reasons to support S-889. Maybe the people preaching the global “Free Trade” message do not like S-889, or the people who want to slaughter more dairy cows don’t like the Bill. Whoops! Pardon me; I forgot that the new name for slaughtering these healthy, functional cattle is “herd retirement”!

The time is over-due for dairy farmers to have a new pricing formula.

Let’s not let any more of the global “Free Trade” mentality destroy our dairy farmers as has happened to our manufacturing jobs among many other things.

PRO AG can be reached at 570-833-5776 or by e-mail at proagorg@yahoo.com

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                                                                                         May 4, 2009

EMERGENCY ACTIONS NEED TO BE TAKEN BY CONGRESS FOR ALL DAIRY FARMERS

 

Several months ago, Progressive Agriculture Organization (Pro Ag) submitted four proposals to members of Congress for emergency actions that could have been taken to alleviate many of the financial problems facing dairy farmers all across the United States. So far, no meaningful action has been taken by anyone!

 

Prices for barrel cheese in Chicago are now once again hovering around $1.10 per pound.  It is unreal to allow the very questionable Chicago Mercantile Exchange (CME) to continue to be the starting point for dairy farmers’ prices.

 It is very evident that many dairy farmers are having tremendous difficulties meeting their daily financial challenges. It is unthinkable that Congress and the US Department of Agriculture (USDA) continue to allow this to happen. Dairy farmers have seen their pay (milk checks) nearly cut in half. I wonder if any member of Congress or USDA officials would be upset if their pay was cut nearly in half. 

Actions need to be taken and taken now. These are the four suggestions Pro Ag has already recommended that members of Congress should implement immediately for emergency short-term financial relief for all dairy farmers:              

1. Use the pricing mechanism and the supply management program in the Specter-Casey Bill S-889, or

2. Place an $18.00 per cwt floor under all manufactured milk in the US, or

3. Place at least an additional $3.00 per cwt differential on all Class I milk, or

4. Increase the “MILC” payments up to 100 % of dairy farmers’ losses on fluid milk.

 

“The Federal Milk Marketing Improvement Act of 2009” (S-889) (formerly S-1722) was introduced on April 23, 2009. This Bill would provide long-term price relief to dairy farmers in all regions of our country. However, there are some points of confusion that need to be clarified about S-889.

            

MISCONCEPTIONS CONCERNING S-889 

  1. The Secretary of Agriculture does not set the milk price for dairy farmers. The price will be established by using the pricing formula contained in S-889. The Secretary will make adjustments four (4) times a year based on economic conditions.
  2. S-889 is not a dairy bill just for Pennsylvania or the Northeast. S-889     includes dairy farmers all across the United States (all are suffering).
  3. The Bill does not discriminate against or favor any particular size dairy operation. The supply management provision covers all dairy farmers. If production exceeds the real market needs, then those who overproduce may pay an extra cost.
  4. There appears to be a misunderstanding about the 3 million pound provision in S-889. The Bill states that a new producer may produce up to 3 million pounds of milk during his first year (and only during his first year) before he would be subjected to the milk supply management provision.
  5. There are absolutely no quotas in S-889.
  6. National cost of production is used in S-889 and not regional cost of production because several attempts already have been made to persuade Congress to implement regional dairy programs. They were all shot down by the US Congress with the last one being the Northeast Dairy Compact.
  7. Presently, all manufactured milk in the federal orders is priced the same way, and, basically, the price is the same. No one is complaining about the fact that the current miserable price is the same in all markets. In May 2004, the Class III price was $20.58 per cwt. In July 2007, the Class III price was $21.38 per cwt. Again, at neither time did I hear any complaints raised thatsome regions were benefiting more than others. Now, with the introductionof S-889, with its new pricing formula that is geared to treat all US dairyfarmers equally and fairly, we are hearing allegations that some regions will benefit more than others under this Bill. Let’s get real! This is a phony argument trumped up to kill S-889 by discrediting the Bill’s purpose.

 Humanly and realistically, there is no possibility of establishing a dairy bill that satisfies everyone!

 An examination of the projected pay prices that dairy farmers would be expected to receive in the federal orders as well as in California under S-889 reveals that “The Federal Milk Marketing Improvement Act of 2009” (S-889) is as fair as it can get.

 Remember that dairy products are a national market. Processors in the Southwest and California need to pay as much for their milk as the processors do in the Midwest and in the Northeast—not more, but just as much.

 To clarify important details relating to S-899, the following summary of the bill should prove helpful:

1.) ALL milk produced in the United States will be priced on the national averagecost of producing milk on the dairy farms.

2.) ALL milk used for fluid purposes will be classified as Class I.

3.) ALL milk used for manufacturing purposes will be classified as

            Class II.

 4.) The Class II price will be the national average cost of production. This price will be uniform in all federal and state orders as well as unregulated areas. The Class I price will be determined by using the Class II price plus the existing Class I differentials that are currently in place in each federal order. The state of California and other unregulated areas will be assigned a Class I differential by the US Secretary of Agriculture.

 5.) ALL Federal and State Milk Marketing Orders will remain intact.  Each Milk Marketing Order will be responsible for determining the component value of milk.

 6.) S-889 prohibits any cost of operating milk manufacturing plants (commonly called “Make Allowance”) to be levied on dairy farmers.

 7.) The U. S. Secretary of Agriculture will adjust the value of milk four times a year.

 8.) S-889 calls for an inventory supply management program.  The program is aimed at preventing a build up of domestic milk products and prevents foreign milk products from destroying dairy farmer prices.

 9.) The inventory management program can not be implemented unless the imports and exports of dairy products are in balance.

 10.) ALL dairy farmers will fund the inventory management program. If and only if the program is necessary, then all dairy farmers will receive a lower price on up to 5% of their production.  This price will be half of the value of manufactured milk.  However, the dairy farmers will receive the correct price on 95% of their milk. Please remember if the inventory management program is not implemented, then the dairy farmers will receive the full price.  Also, the U. S. Secretary of Agriculture may decide that only a reduction of one or two percent of total production may be sufficient.

 11.) If this reduction is insufficient to reduce excess production, the Secretary may reduce the price for producers who have increased production over the previous year.  This reduction only applies to the volume of increased production.

 12.) A new producer may produce milk up to 3 million pounds in the Milk Marketing Order he is regulated under before he is subject to the provisions of the inventory management program described in point “11.” This relates only to his first year.

 13.) The intent of S-889 is not to tell dairy farmers how much milk they can produce.  However, over-production will be addressed in the inventory management program.

 14.) An inventory management program is necessary to prevent a small amount of milk from forcing $20.00 per hundredweight milk down to $12.00 per cwt.

 15.) The beauty of S-889 is that this bill will be farmer-funded and will NOT cost the USDA any direct cost.  The dairy farmer’s reward for funding the bill (if necessary) is for the first time the dairy farmers will receive fair/stable prices for his/her efforts.

 16.) Rejection of proposed FMMO amendments will not result in the elimination of the FMMO.

 17.) S-889 allows milk hauling charges to be levied on dairy farmers. The cost of production figures by the USDA pick up the hauling charges. Again, the dairy farmers’ hauling costs are in the cost of production figures.

 Let’s stop the squabbling and get something done and done soon for all our dairy farmers.

 Tomorrow will be too late!

PRO AG can be reached at 570-833-5776.

 

 

 

   SENATOR CLINTON SAYS, “YES, I SUPPORT THE NEW DAIRY BILL.”

                                                     

Dairy farmers across the United States received a big boost last week when Senator Hillary Clinton (D-NY) informed Arden Tewksbury, manager of Progressive Agriculture Organization (Pro Ag), that she supports the new Dairy Bill. The Bill Senator Clinton was referring to was “The Federal Milk Marketing Improvement Act of 2007” identified as S-1722. S-1722 was introduced by Senator Arlen Specter (R-PA) and Senator Robert P. Casey, Jr. (D-PA).

 

Earlier, responding to a letter sent to her by Pro Ag, Senator Clinton sent her brother Hugh E. Rodham to the Ken and Connie Teel farm in Meshoppen Township, Wyoming County, Pennsylvania.

 

In March, Pro Ag sent identical letters to Senator Barack Obama

(D-IL), Senator John McCain (R-AZ), and Senator Hillary Clinton. The letter urged each of the three presidential candidates to visit a family dairy farm. Senator Clinton was the only one to respond to the letter.

 

Dennis Boyanowski, President of Pro Ag, said, “We had only one day to work on the meeting, but over 60 farmers and consumers showed up to listen to Mr.Rodham.”

 

Tewksbury presented Mr. Rodham with a copy of S-1722 as well as some supportive information concerning the dairy farmers’ crisis.

 

Mr. Rodham said that both he and Senator Clinton realize there are serious problems on many of our dairy farms. He promised to deliver a copy of S-1722 to his sister.

 

On Sunday, April 13th, Tewksbury was privileged to meet with Senator Clinton at a rally in West Scranton. He presented Senator Clinton with another copy of S-1722 along with more supportive information regarding the financial crisis facing many of our dairy farmers across the United States. Tewksbury reported, “Senator Clinton said she was 100% behind the dairy farmers and she would review the Bill. She was very enthusiastic about doing something for the dairy farmers.” New York dairy farmers produce over 12 billion pounds of milk annually.

 

Tewksbury told Senator Clinton she could help the dairy farmers and other working people in her role as a United States senator, but she could help out much more as the president of the United States.

 

On Saturday, April 19th, Clinton’s staff contacted Pro Ag for even more supportive information, since Senator Clinton was reviewing S-1722.

 

S-1722 covers many items, but most importantly the Bill would use the national average cost of production to determine the value of milk at the farm level. The Bill as written would not cost the US government any money and would aid all dairy farmers across the country.

 

On Monday, April 21st at a rally in the Scranton Culture Center, Scranton’s mayor Chris Doherty arranged for a short meeting between Senator Clinton and Tewksbury.

 

Tewksbury said, “I told Senator Clinton I would be on a conference call on Wednesday, April 23rd with several farm organizations from across the country, including the East coast to California. These organizations represent thousands of dairy farmers.”

 

Very emphatically and enthusiastically, Senator Clinton said, “Tell them I support the Dairy Bill.”

 

Tewksbury stated, “Senator Clinton is a very friendly and personable lady.”

 

Pro Ag looks forward to working with Senator Clinton and others to resolve the dairy farmers’ crisis and hopes that the other presidential candidates, Barack Obama and John McCain, will choose to respond to the letters they received from Pro Ag in  March.

 

Other Press Releases and Editorials 


 

IS TIME RUNNING OUT FOR NEW POSITIVE DAIRY LEGISLATION?
Very soon, the United States Senate will reconvene. The members of the Senate will have many important issues to address. However, the passage of a new Farm Bill will be one of their top priorities.
When a Farm Bill is being considered, there are always various groups and agencies running to Congress with their hands out asking members of Congress to fund different programs. A large sum of money is spent on these programs. Many, but not all, of the programs are justified.
Positive New Dairy Legislation Needed
After the disastrous prices received by dairy farmers in 2006, coupled with an ever increasing cost of operating our dairy farms, many people thought there would be a real overhaul of milk pricing to the dairy farmers. So far, this has not happened.
The US House of Representatives has passed its version of the Farm Bill
which basically leaves the pricing of milk to dairy farmers at status quo.
Various dairy proposals have been floated to members of Congress with little response. Sometimes I think that some of these dairy proposals are suggested only for the purpose of confusing the real issues.
However, the largest issue is unstable milk prices to dairy farmers.
A $9.90 per cwt support price will not solve the pricing problems for dairy farmers. The ILC program is costly, and the program covers only a portion of the dairy farmer production. Target programs of $12.00 per cwt only further confuse the issue. Continuing to price milk to dairy farmers on product pricing is not in the best interests of dairy farmers in the long run.
While prices paid to dairy farmers currently are realistic, many people attribute these prices to a worldwide shortage of dairy products. Certainly, depending on a continued global shortage of milk is not the answer to the dairy farmers pricing inequities.
Specter-Casey Bill: S1722
Senator Arlen Specter (R-PA) and Senator Robert Casey, Jr. (D-PA) have introduced a Dairy Bill that would revolutionize the method used to price milk to dairy farmers. The Bill is identified as the ederal Milk Marketing Improvement Act of 2007 (S1722).
S1722 calls for all milk produced in the 48 contiguous states to be priced on the national average cost of production, as determined by the Economic Research Service, a division of USDA.
The Specter-Casey Bill disallows any hauling cost being charged to dairy farmers. In addition, the Bill also eliminates the controversial ake allowance charges that have been lowering the dairy farmers milk prices since the year 2000.
S1722 contains an inventory management section which would control any overproduction possibilities, as well as prohibiting imported dairy products from destroying dairy farmers prices. The inventory management program would be funded by dairy farmers, and it would prevent dairy farmers milk prices from being destroyed.
All other dairy proposals cost USDA an extremely high amount of money and/or allow dairy farmers prices to plunge to the 2006 level.
Both Senator Specter and Senator Casey feel strongly that dairy farmers cost of production must be brought into the milk pricing formula for dairy farmers.
The beauty of S1722 is that the Bill does not cost USDA anything. The Bill does not interfere with any federal or state milk marketing orders.
The Specter-Casey Bill would not raise consumer prices any more than the present level, and S1722 would prohibit the prices paid to dairy farmers from going to rock bottom again.PRO AG can be reached at 570-833-5776.

                             

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WHAT A DISGRACE! CO-OP OFFICIALS CAUGHT WITH 

                     THEIR HANDS IN THE COOKIE JAR!

 

The recent revelation by officials of Dairy Farmers of America (DFA), the nation’s largest dairy co-op, should make all dairy farmers shudder. The news that two former officials, Herman Brubaker, chairman of the Board, and Gary Hanman, were secretly involved in transferring one million dollars ($1 million) of co-op funds to Brubaker, supposedly without any knowledge of the Board of Directors of DFA, is criminal at best.

 

Whatever happened to the Department of Justice (DOJ) investigation of the Dairy Industry? The chief investigator for DOJ allegedly handed his findings to the department over two years ago. This investigator reportedly told some dairy farmers in Louisiana that he discovered more improprieties in the dairy industry than what occurred in the Enron scandal. This same investigator also revealed that he had nearly 200 depositions he had taken in a two-year period.

 

What happened to all of this information? Why hasn’t action been taken? Where is everyone? Did the investigator find many things similar to the actions by the two good ‘ole boys in DFA?

 

Isn’t Gary Hanman the same individual who publicly said a few years ago that dairy farmers were getting more than they deserved?

 

A couple years ago, I attended a Senate Ag Committee hearing that was chaired by Senator Saxby Chambliss. At the end of the hearing, he stated, “Oh, I forgot to introduce my good friend Gary Hanman who used to run DFA.”

 

Is this how dairy decisions are made in Washington, DC? Good ‘ole Gary Hanman gets national attention after he pulled off the one million dollar scandal.

 

Is this how dairy farmers’ prices are affected?

 

Yep, co-op officials transfer millions of dollars for their benefit while dairy farmers go broke!

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        SENATE JUDICIARY COMMITTEE

 

Three years ago, when the original investigation was stalled, I met with Senator Arlen Specter (R-PA) and encouraged him, as Chairman of the Senate Judiciary Committee, to strongly exhort the DOJ to resume the investigation. This request was accomplished.

 

Now it’s time for the Senate Judiciary Committee to take a vigorous look at the entire dairy industry. The Capper-Volstead Act should be examined to see if the co-operatives are really operating for the best interests of dairy farmers. Certainly, there appear to be several scandals that should be examined.

 

Senator Patrick Leahy (D-VT) and Senator Specter should lead the investigation. After all, if Congress can become involved with the misuse of steroids by professional athletes, and if Congress is concerned about professional football coaches’ stealing signals from one another, then they should (and I think they will) jump aboard and get into this dairy mess.

 

We have lost altogether too many dairy farmers and rural support businesses to allow these scandals to go unchecked.

 

Everyone should contact Senators Leahy and Specter to encourage them to get the ball rolling.

 

PRO AG can be reached at 570-833-5776 or by e-mail at proagorg@yahoo.com

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                                                  July 7, 2008                                                                                         

 

 

SENATOR BOB CASEY MEETS WITH DAIRY FARMERS FROM

                                      SEVERAL STATES

 

On July 1, 2008, Senator Robert P. Casey, Jr., met with several dairy farmers from across the United States concerning grave issues facing all dairy farmers regardless of their location.

 

The meeting, which was held in Mt. Pocono, Pennsylvania, was arranged jointly through the efforts of Progressive Agriculture Organization (Pro Ag), Meshoppen, PA, and National Family Farm Coalition (NFFC), Washington, DC.

 

Brenda Cochran, dairy farmer from Westfield, PA, thanked Senator Casey for his tireless efforts to obtain a new pricing formula for dairy farmers. However, Cochran informed the senator that farmers from all regions of the country still need accelerated efforts to continue to secure a new way to price raw milk.

 

Cochran facilitated the meeting in the absence of Pro Ag manager Arden Tewksbury who was released that day from Tyler Memorial Hospital, Tunkhannock, PA, after a sixteen-day stay.

 

A special conference line was in place that allowed NFFC members Loren Lopes and Joaquin Contente from California to address the senator about the plight of many dairy farmers in their state. Contente said he felt corruption and collusion in the dairy industry were placing hardships on many dairy farmers and that these two issues had to be addressed.

 

LoriJayne Grahn, a Pro Ag member from Minnesota, related to Senator Casey all the challenges she was experiencing in Minnesota concerning her efforts to get the message out about the difficulties being experienced by the dairy farmers. She told the senator how grateful she was for all of his efforts. 

 

Bryan Wolfe, a Pro Ag member from Rome, OH, and Vice-President of Ohio Farmers Union, and NFFC Executive Committee member, explained to Senator Casey the need for current federal investigations into dairy industry corruption to move forward and for new ones to be initiated.

 

Senator Casey informed the group that regardless of any difficulties in Washington, he would continue pressing forward in an attempt to develop a fair raw milk pricing formula that would enable farmers to cover their cost of production.

 

Paul Rozwadowski from Wisconsin who serves as chairman of the NFFC Dairy Sub-committee thanked Senator Casey for his efforts to obtain the “feed adjustor” in the “Milk Income Loss Contract” (MILC) program. However, the chairman reminded the senator that the “MILC” program falls way short of correcting the pricing inequities facing dairy farmers.

 

Gerald Carlin, dairy farmer from South Auburn, PA, thanked Senator Casey for co-sponsoring S-1722 (“The Federal Milk Marketing Improvement Act of 2007”), along with Senator Arlen Specter (R-PA). Carlin further stated, “The only way we can correct the pricing mess is by legislation similar to S-1722.”

 

Sherre Boyanowski from Laceyville, PA, and Donna Hall from Muncy, PA, and Hal Drick  from Allenwood, PA --all dairy farmers-- explained to the senator how difficult it is to maintain their families’ dairy farms under the current economic conditions when farm milk prices are reducing drastically while the input costs are out of control. All expressed concern regarding the viability of many of their communities’ local dairy farmers under present conditions.

 

Floyd Hall and Fred Matthews from upstate New York near the Canadian border expressed their concerns regarding the dilemma facing dairy farmers. They told Senator Casey that dairy farmers in New York State are experiencing the same critical problems as are dairy farmers in all other states. Mr. Hall asked Senator Casey, “What don’t the people in Washington understand? Don’t they realize what is happening on our farms?”

 

Representatives from NFFC, Irene Lin and Rebecca Kanter, emphasized to the senator the national scope of the ongoing dairy crisis.

 

Senator Casey again reiterated the difficulties surrounding efforts to obtain needed legislation. However, he was very appreciative for the dairy farmers’ bringing all their concerns to him. He stated that he depends very much on organizations like Pro Ag and NFFC to work with him to solve the problems that are destroying our dairy farmers.

 

Arden Tewksbury, manager of Pro Ag, speaking from his home in Meshoppen, PA, wants everyone to understand that current milk prices paid to dairy farmers are running over $5.00 per cwt below prices received in August 2007. 

 

ProAg can be reached at 570-833-5776 or by e-mail at proagorg@yahoo.com

 

 

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                                    The following flyer shows three things:

 

1.) Prices paid to dairy farmers

 

2.) Prices that dairy farmers would have received if “Make Allowances” for manufacturing milk were not deducted from the value of their milk. Currently, dairy farmers receive approximately $2.50 per cwt less for their milk because of the make allowance deductions. It is anticipated that the $2.50 per cwt deduction will be increasing by about thirty-five cents ($0.35) per cwt by September or October 2008. This will result in a total deduction of $2.85 per cwt.

 

3.) This shows the price dairy farmers would have received if S-1722 (Specter-Casey Bill) (“the Federal Milk Marketing Improvement Act of 2007”) had been in place with our proposed revised pricing formula.

 

ACTUAL PRICE    PRICE FARMERS WOULD HAVE RECEIVED

                                                                       WITHOUT MAKE ALLOWANCE                                                                       

  

1.) JUNE 2008       $19.56 per cwt               $19.56 plus $2.50 = $22.06 per cwt

 

2.) JULY 2008        $20.61 per cwt              $20.61 plus $2.50 = $23.11 per cwt

 

3.) IF S-1722 WAS IN PLACE, WITH THE PROPOSED REVISED PRICING FORMULA, THE   PRICE PAID TO AREA DAIRY FARMERS WOULD HAVE BEEN        $28.55 per cwt

 

This price is determined by using the cost of producing milk as determined by a USDA division. The states used were California, Idaho, Michigan, Minnesota, New York, Ohio, Oregon, Pennsylvania, Texas, Vermont, Washington, and Wisconsin.

 

The average production cost in these 12 states for June 2008 was $27.09 per cwt.

                                       

                                     S-1722 PRICING FORMULA

              

              Class II Price        $27.09

              Class I Price          $27.09 plus $3.25 existing Class I differential = $30.34

 

              Class II Price $27.09 x 55% utilization = $14.90

              Class I Price   $30.34 x 45% utilization = $13.65

                             BLEND PRICE under S-1722    $28.55

                                                                                     

 

 

HAULING COST- Currently, S-1722 calls for no hauling cost to dairy farmers. However, the USDA’s cost of production formula includes the hauling charges paid for by dairy farmers.

 

Our proposed revised pricing formula uses the USDA’s total economic cost. Consequently, dairy farmers will be charged for their milk to be hauled, but these charges will be picked up in the pricing formula.

 

S-1722 also removes the “opportunity cost of unpaid labor” for producing all milk from the pricing formula. However, at a meeting in Washington, DC, in July 2007, after conversing with Senator Arlen Specter’s and Senator Robert Casey, Jr.’s staff, it was agreed by all parties that the “opportunity cost of unpaid labor” will be placed back in S-1722 (or whatever number is assigned to the Specter-Casey Bill in the next Congressional session) in order to obtain a more realistic price for Class II milk.

 

CLASS I MILK- The price of Class I milk in any markets in the US will be the existing basic formula price (which is the Class II price) plus the existing Class I differential in each marketing order.

 

This flyer uses the cost of production for June 2008.

 

S-1722 actually calls for dairy farmers’ cost of production to be adjusted 4 times a year:

          January 1st, April 1st, July 1st, and October 1st.

 

S-1722 would use the production cost of all 48 contiguous states.

 

PRO AG can be reached at 570-833-5776 or by e-mail at proagorg@yahoo.com

Visit our website at www.proagorg.webs.com

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 December 8, 2008

                                                                What a Christmas Present for Dairy Farmers! 

When the majority of dairy farmers open up their milk checks around December 24th, one more time they will be shocked to find their advance check for the first 15 days of December’s milk to be $12.25 per cwt. ($1.05 per gallon). Many dairy farmers were alarmed when their advance check for November’s milk was $13.62 per cwt. ($1.47 per gallon). It is unbelievable and totally unacceptable that dairy farmers are receiving these kind of prices in 2008

And you know what? It is only going to get worse!

 Everyone knows the tremendous increase in the cost of operations on our dairy farms: including, but not limited to surcharge. Yep, dairy farmers get surcharged on their cost on one end and their pay prices get de-escalated on the other end. Will these surcharges be eliminated? Probably not.

Some people argue that corn prices and other grains are dropping. This is true, but only a small portion of the declining grain prices are flowing into the dairy rations that many dairy farmers purchase.

You know what it boils down to? Have you dairy farmers had enough of these pricing schemes you have witnessed since 1981? Are you ready to stand and demand you receive a fair price for your milk? Or are you going to continue to follow the rhetoric of several? People in the dairy industry that actually, in our opinion, are working against your best interest.

During the debates on the last farm bill, Senators Arlen Specter (R-PA) and Robert P. Casey, Jr. (D-PA) introduced a dairy bill (S 1722) that would have corrected many of the inequities facing dairy farmers. As a dairy farmer where were you when this bill was considered?

Can things get worse? Of course things can get worse! Now, Jerry Kozak, CEO of the National Milk Producers Federation (NMPF) has come up with some more brilliant ideas on how to take advantage of your dairy farmers. Kozak, who has apparently received some divine revelation from some one, wants to eliminate the way milk is priced today and also eliminate that nasty word “make allowance”. Kozak wants milk processors to compete for milk supplies and pay what is necessary for the milk. What Kozak doesn’t tell you is that when the processor competes for milk, they will have their “make allowances” disguised in their bids for supplies of milk. Yes, Kozak will eliminate the nasty words (which the processors wanted) “make allowance”, but they will come around the back door to cover their cost.

But Mr. Kozak fails to mention how the dairy farmers will recoup their cost! Isn’t that amazing? Oh, yes, Kozak also wants to eliminate the prices support program and the Milk Income Loss Contract (MILC) Payments. He has some other brilliant ideas on how that money can be spent, like say help processors produce casein and other protein products. That’s a good idea??? Do you as dairy farmers realize that one of the main uses of casein it to produce imitation dairy products. So good ole Jerry says take more money from dairy farmers so processors can produce products that again will help lower prices to dairy farmers. Then finally, Kozak wants to kill more cows and bred heifers to reduce milk supplies even though the USDA reports that we are a milk deficit producing country.

Lets make one additional comment. Everyone knows that for a business to operate on a continued basis, they have to cover their costs, this is a given. However, Kozak should know better then to attempt to deceive everyone in saying “We want to eliminate the make allowance!” No, Jerry, you just want to come in the back door and cover your cost. However, the worse travesty of Kozak’s remarks are his complete ignorance towards the needs of our dairy farmers to cover their costs!

 It’s up to you dairy farmers. Do you want to follow the blind leadership of people like Jerry Kozak? Or are you willing to stand up with the people who truly want to correct the inequity facing dairy farmers. The decision is yours !

Pro Ag can be reached at (570) 833-5776 or proagorg@yahoo.com