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December 3, 2003 – Charles Seidel, a Grange member and dairy farmer from
Berks County, testified on Wednesday before the PA Milk Marketing Board
encouraging the Board to set the over-order premium at $1.65 per
hundredweight.
Seidel milks 40 registered Holstein cows and farms about 120 acres,
growing corn and alfalfa hay, as well as selling a small number of
bull/heifer calves. His total income comes from his farm operation.
He told the Board that, “because my milk is produced, processed and sold
in PA, I directly receive the PA Milk Marketing Board over-order premium
at about 75%.” “The Grange is asking that the PA Milk Marketing Board
set the over-order premium at the current amount - $1.65 per
hundredweight,” he said.
Seidel explained that milk prices have not been high for the first half
of the calendar year. He stated that, “according to the latest PA
Agricultural Statistics Special Dairy Report, [milk] production in PA is
down 4.8 percent from the same quarter last year.” He continued, “there
are 15,000 fewer head since last year as well.”
“ Additionally,” he continued, “milk prices are down 11.6 percent from
the same time one year ago, while production costs have risen 1.3
percent.” He told the Board that, “I have to buy some feed for my dairy
herd. The cost of …soybeans that I have to buy is up about $50.000 per
ton.” Seidel explained that he uses approximately one ton of bought
soybeans per week making his average monthly cost for soybeans alone
$200.00.
He also explained that, due to the wet spring and summer, the quality of
corn silage, hay ledge and hay is poor, causing his milk output of his
herd to be reduced. “You cannot have high-level production with below
average feed,” he said. “Hay costs are remaining constant, but the
quality is poor, so I am paying the same price for a lesser quality
product.”
Seidel stated, “For these reasons, the Grange believes that the market
can bear the current $1.65 per hundredweight.” “As milk production
continues to decline in Pennsylvania we may have to consider increasing
the over-order premium before the traditional six-month review.”
“We are hopeful that the Board will closely monitor the market and
production trends and act accordingly,” he said in closing.
The Grange is a family fraternal organization dedicated to the
betterment of rural America through community service, education,
legislation and fellowship. It is the oldest organization of its kind in
this country.
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