Grange member and dairy farmer
Charlie Seidel, from Berks County, testified before the PA Milk
Marketing Board (PMMB) this morning. “The Grange is asking that the
PA Milk Marketing Board keep the over-order premium at the current
$1.55 per hundredweight for at least 6 months,” Seidel told the
Board. "We recommend that this over-order premium be an addition to
the fuel adjustment that the Board has already instituted," he
continued. "We believe that the industry will bear this premium level
without jeopardizing the dairy market."
Mr. Seidel milks 50 registered
Holstein cows and farms 120 acres, growing corn and alfalfa hay, but he
explained, “My total income is from dairy production and a small number
of bull/heifer calf sales.” He said, “I ship 2,500 pounds of milk per
day with a herd average of 18,000 pounds per cow.” Continuing, he told
the PMMB, “Because my milk is produced, processed, and sold in PA, I
directly receive the PA Milk Marketing Board over-order premium."
Seidel said, "If I were to describe my dairy operation over the last six
months, I would have to use the words 'status quo.' Not much
has changed." He explained that, "My feed costs have increased because
of the dry summer we had in Berks County. I realize, however, that not
all parts of the state were as dry as we were in the southeastern part
of the state." He went on to say, "Other than that most of my costs,
excluding fuel, have remained relatively constant."
Mr. Seidel provided the Board with some statistics from the 2005
Keystone Ag Digest report from the PA Agricultural Statistics Service
which shows that milk production in PA is up 5.9 percent over last
year. "However," he said, "the number of cows has decreased by 1000
from one year ago." He explained that, "Even with the increased percent
of milk production, PA seems to remain in a milk deficit situation."
Seidel told the Board that "The Center for Dairy Excellence is
continuing to promote increased production of milk in PA. They believe
that PA is such a deficit state, that we need to increase milk
production substantially."
In closing, Seidel said, "The PA State Grange is urging the PA Milk
Marketing Board to re-authorize the $1.55 per hundredweight over-order
premium for at least 6 months."
The Grange is
a family fraternal organization dedicated to the betterment of rural
America through community service, education, legislation and
fellowship. The Grange includes members of all ages from their Junior
Grangers (ages 5-14), Youth Members (ages 14-24), Young Adults (ages
21-35) and Regular Community (Local) members (age 14 and up). The
Grange represents approximately 16,000 Pennsylvanians across the
Commonwealth. It is the oldest agricultural organization of its kind in
the United States. The National Grange (Patrons of Husbandry),
representing about 300,000 members, began in 1867 and the PA State
Grange was chartered in 1873.
A copy of Mr. Seidel's complete testimony
follows
PENNSYLVANIA
STATE GRANGE
TESTIMONY
PRESENTED TO THE
PA MILK
MARKETING BOARD
BY:
CHARLES SEIDEL
DECEMBER 7,
2005
Good Morning. My name is Charlie Seidel and I am a dairy farmer
from Berks County, Pennsylvania. I milk 50 registered Holstein cows and
farm 120 acres. We grow corn and alfalfa hay, but my total income is
from dairy production and a small number of bull/heifer calf sales. I
ship 2,500 pounds of milk per day with a herd average of 18,000 pounds
per cow. Because my milk is produced, processed, and sold in PA, I
directly receive the PA Milk Marketing Board over-order premium. I am
testifying today on behalf of the Pennsylvania State Grange.
The Grange is asking that the PA Milk Marketing Board keep the
over-order premium at the current $1.55 per hundredweight for at least 6
months. We recommend that this over-order premium be an addition to the
fuel adjustment that the Board has already instituted. We believe that
the industry will bear this premium level without jeopardizing the dairy
market.
If I were to describe my dairy operation over the last six months,
I would have to use the words "status quo." Not much has changed. My
feed costs have increased because of the dry summer we had in Berks
County. I realize, however, that not all parts of the state were as dry
as we were in the southeastern part of the state. Other than that most
of my costs, excluding fuel, have remained relatively constant. We have
not seen a downward trend in milk prices, so my milk check has not
changed significantly either, which is a blessing. This is particularly
important because the dairy industry does not know the fate of the MILC
program. Indications are that it will be re-instituted, but we are not
sure what Congress will ultimately do. We are hoping that Congress will
continue the MILC program, but that is yet to be decided. As a result,
we cannot count on the MILC program in the future.
According to the 2005 Keystone Ag Digest report from the PA
Agricultural Statistics Service (vol. 05, no. 20), milk production in PA
is up 5.9 percent over last year. However, the number of cows has
decreased by 1000 from one year ago. Even with the increased percent of
milk production, PA seems to remain in a milk deficit situation. That is
telling me that PA does not have a glut in the dairy market, and that we
are not threatening our industry. In fact, the Center for Dairy
Excellence is continuing to promote increased production of milk in PA.
They believe that PA is such a deficit state, that we need to increase
milk production substantially.
In conclusion, the PA State Grange is urging the PA Milk Marketing
Board to re-authorize the $1.55 per hundredweight over-order premium for
at least 6 months. Thank you for your consideration in this matter. I
will be happy to answer any questions you may have at this time.