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  • From: "Lynn Wigglesworth" <lynnw1366 AT hotmail.com>
  • To: <homestead AT lists.ibiblio.org>
  • Subject: Re: [Homestead] Democrats, past, present and future-was Video
  • Date: Sun, 30 Aug 2009 21:29:08 -0400

There are government subsidies to dairy farmers, and the government used to step in and buy surplus (mostly cheese and dried milk) to keep prices up. But the hundredweight price to the farmer is set by an incredibly complicated formula, involving (in this area) the distance to Boston and the wholesale price of cheese (I kid you not). Individual coops offer premiums for quality or butterfat or organic milk, but I have yet to meet a dairy farmer that has the slightest understanding of why they are paid what they are paid. Many have been running at a loss for a while now (right now less than $1/gallon goes to the farmer).

And there are no quotas...farmers can add production whenever they feel like it...adding cows to a dairy losing money reminds me of the old joke...two guys are buying eggs by the truckload for $1 a dozen in the country and selling them for $.90 a dozen in the city...they notice that they are losing money, so one scratches his head and says "I know...we need a bigger truck".

Lynn Wigglesworth
Tioga Co. PA
----- Original Message ----- From: <DSanner106 AT aol.com>
To: <homestead AT lists.ibiblio.org>
Sent: Sunday, August 30, 2009 8:43 PM
Subject: Re: [Homestead] Democrats, past, present and future-was Video


Similar here, there are price supports for the industry that have
maintained a price at which the private
farmers could afford to stay in business and turn a small profit. Lately
though, the price has been
allowed to drop to a level that guarantees extreme losses.

Drew


In a message dated 8/30/2009 8:22:46 P.M. Eastern Daylight Time,
gil.white AT xplornet.com writes:

How does that work?

In Ontario we have milk, cheese and dairy marketing boards that set the
price but also control the production. Farmer's are guaranteed a fixed rate
for their produce but only if they stay within their 'quota'. There are
fines if they exceed it. In addition they can only sell to the marketing
board.

From watching my neighbor who was a dairy farmer it was possible for a
small
farmer ( something like 80 cows ) to make a living, though I'm sure in
years
when he had to bring in feed I'm sure he struggled.

He ended up selling off the dairy cattle and switched to lamb production
but
it had more to do with just how much work it was for one person milking
that
many cows twice a day then it had to do with the money.

Gil

-----Original Message-----
From: homestead-bounces AT lists.ibiblio.org
[mailto:homestead-bounces AT lists.ibiblio.org] On Behalf Of Lynn Wigglesworth
Sent: Sunday, August 30, 2009 2:10 PM
To: homestead AT lists.ibiblio.org
Subject: Re: [Homestead] Democrats, past, present and future-was Video

Around here the government has had control of the dairy industry for a
long
time. In Pennsylvania, the retail price of milk is fixed by law...it goes
up, but never goes down, and it's illegal to sell under the fixed price.
$1.50/gallon milk?? We haven't seen that in years...it's around $3/gallon
here, but the farmers see very little of that money. They are predicting
that many PA and NY dairy farmers will be out of business by the end of
the
year.

Lynn Wigglesworth

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