MILK'S GOT MORE! Problems & Solutions in the Dairy Industry 1919 t Since 1919. the Michigan Farm Bureau has served each new generation of Farm Bureau members with contemporar)l and often innovative services and proerams. That tradition is carried on as the organization looks toward 1990. ATTEND THE LONG-RANGE PLANNING ••SPEAK-Up •• NEETING IN YOUR AREA. GAYLORD JACKSON Monday. June 11 Wednesday. June 19 Chalet Center Sheraton Inn on Jackson Square GRAND RAPIDS SAGINAW Tuesday. June 18 Thursday. June 20 Marriott Inn Holiday Inn East fHoliand Road at 1.15J • Speak.Up meetlnas buln at 7 p.m. JUNE 1985 FARM NEWS VOL. 64 NO.6 A publication of the Michigan Cover photo by Farm Bureau Marcia Ditchie In this issue: Milk's Got More! With more milk than the market demands and ever-changing government polices, dairy farmers have more problems than many other commodity producers 10 MFB Goal! The "Drive for '85" membership campaign carried MFB across the goal line with over 85,553 member families 19 Turn Your Nest Into a Nest Egg Bed and Breakfast guest homes offer a new business opportunity for farm and rural couples 20 COLUMNS Rural Route - page 4 Rural Exchange - page 16 Country Ledger - page 5 Farm Bureau Market Place - page 18 Legislative Review - page 6 Agrinomic Update - page 24 Front & Center - page 15 Discussion Topic - page 26 Michigan Farm I'lews RURAL L1VII'lG: MichIgan Farm News Rural LIvIng Is published monthly. on the first day. by the Michigan farm Bureau Information and Public Relations Division. Publication and editorial offices at 7~7~ West Saginaw Highway. Lansing. Mich. 48909. Post Ofnce Box ~0960; telephone. Lansing 517-~23-7000. Extension 510. SUBSCRII"TIOI'l "RICE: $1.50 per year to members. Included In annual dues. $3.00 per year non-members in Michigan. $5.00 per year non-members out or state. Publication No. 345040. Established Jan. 13. 192~ as MIchIgan Farm News. name changed to MIchIgan Farm News Rural LIvIng Dec. 1. 1981. Third-class postage paid at Lansing. Michigan. and at additional mailing offices. EDITORIALs Connie Turbin. Editor and Business Manager: Donna Wilber. Contributing Editor; Marcia Dltchle. Associate Editor: Cathy J. Klrvan. Associate Editor. OFFICERS: Michigan farm Bureau; President. Elton R. Smith. Caledonia: Vice President. John Laurie. Cass City: Administrative Director. Robert Braden; Treasurer and Chief Financial Orflcer. Matthew But- zin; Secretary. William S. Wilkinson. DIRECTORS: District 1. Arthur Bailey. Schoolcrart; District 2. Lowell Eisenmann. Blissfield: District 3. James Sayre. Belleville; District 4. Elton R. Smith. CaledonIa; DIstrict 5. Albert Cook. Mason; DIstrIct 6. John Laurie. Cass City: DIstrIct 7. Robert Rider. Hart: DIstrict B. Lyle LeCronler. Freeland: District 9. Donald Nugent. Frankrort; District 10. Margaret Kartes. West Branch; District II. Bernard Doll. Darter. DIRECTORS AT LARGE: Dave Conklin. Corunna: Michael Pridgeon. Montgomery; Wayne Wood. Marlette. FARM BUREAU WOMEI'l: Faye Adam. Snover. FARM BUREAU YOUI'lO fARJlIERS: David Lott. Mason. An Outline for Future Success Last month, another chapter 1978 and 1984. From this infor- was written in what could be mation, projections were made "SPEAK-UP" MEETING calIed the Michigan Farm Bu- concerning Farm Bureau in SCUEDULE reau "Book of Success." For the 1990 based on the assumption ] 8th consecutive year, a mem- that present activities would Monday, June 17 - Chalet bership increase was recorded continue. These projections Center, Gaylord with a figure of over 85,000 were compiled into a group of member families. Our organiza- statements about Farm Bureau Tuesday, June 18 - Marriott tion now stands at its all-time as it might be in 1990. Inn, Grand Rapids membership high. Wednesday, June 19 - Sher- Grassroots Feedback This success is due to well aton Inn on Jackson developed and effectively con- The process is now at a point Square, Jackson ducted membership activities. where member input is vitally Thursday, June 20 - Holiday County leaders, volunteers, in- needed. To achieve this input, a Inn East, Saginaw surance agents and staff, in series of "Speak-Up" meetings (Holland Road at 1-75) carrying out the campaign, will be held in June where the demonstrated belief in their or- statements will be presented to ganization, and offered non- members. These statements are members an opportunity to be not a plan, but simple projec- a part of it. tions. Members will be asked to The three hour meetings will While all of us as members or consider the statements and begin at 7 p.m. The schedule is leaders can share in the mem- make suggestions concerning June 17 at the Chalet Center, bership success of our organiza- modifications they feel neces- Gaylord; June 18, Marriott Inn, tion, we must not become com- sary. Grand Rapids; June 19, Shera- placent. We must take bold ac- Members will have an oppor- ton Inn on Jackson Square, tions to see that success con- tunity to present ideas for Jackson; and June 20, Holiday tinues. change and direction, new ser- Inn East, Saginaw (Holland Road For this reason, the MFB vices to be added, or changes in at 1-75). board of directors authorized a activities and services. Every As a Farm Bureau member, long-range planning activity to idea will be revie}Ved and con- you are more than welcome! study the Michigan Farm Bu- sidered. : Your idea may be just what is reau. The board indicated that needed to keep the Michigan Future Goals Farm Bureau the organization members should be involved in the process of planning the After the "Speak-Up" meet- serving the needs of agriculture future direction, programs, ac- ings are completed, the board in the years ahead. tivities and services. Success- will develop goals for the Michi- Come to the meeting and fully meeting the needs of gan Farm Bureau. These goals bring another Farm Bureau mem bers is the key to the wilI be to point the organization member with you. future of Farm Bureau. in the direction suggested by members at. the June meetings. Analysis and Projections This will assure that Farm Under the guidance of an out- Bureau will continue to be suc- side consultant, a committee cessful in meeting the needs of Elton R. Smith, President has spent many hours gather- members. Michigan Farm Bureau ing material concerning ac- tivities of Farm Bureau from ! 4 RURAL LIVING, JUNE J985 COUNTRY LEDGER perform their craft well, they were only speaking the lines. I am sure that the concern the women expressed was gen- uine, but perhaps a dangerous precedent is being set when the emotional appeals of movie cel- ebrities divert the attention of our elected representatives away from their true constituen- cies in rural America. As the discussion over the new farm bill continues, it would be un- fortunate if media celebrities, not farmers, were the ones reading the lines. It is true that our agriculture industry is experiencing serious problems, but we are not to be pitied. Farmers, even those in severe financial difficulty, are not poor - neither in spirit nor in their determination to over- come the current problems in NE fONDA. their industry. STARRiNG J~ SiSSV SPACEK More federal dollars and big- JESSiCA LANGE ger government programs to "save" farmers would be the easy way out of these "hard By Faye Adam, Chairperson has become fashionable to be times down on the farm," but MFB Women's Committee gloomy about agriculture, but as a farm woman and farm the notion that city people neighbor, I know that these The cameras were rolling last would pity us was embarrassing "easy answers" have created month as three Hollywood ac- to me. more problems than they have tresses appeared before a group Films like Country, The River solved in the past. of House Democrats in the Agri- and The Dollmaker have If the House Democrats want brought attention to the prob- to hear how real farm men and culture Committee hearing lems of farm people. Ironically, women feel about agriculture's room to present their views on the plight of American farmers. an earlier famous film, The problems today, they had better The women, Jessica Lange, Grapes of Wrath, which brought get the "stars out of their eyes" Sissy Spacek and Jane Fonda, attention to the plight of and recognize that farmers who had portrayed farm women Depression farm families, want the opportunity to speak in recent popular films, urged starred Jane's father, Henry for themselves when it comes Fonda. But the films have more to their industry. In that public the congressmen on Capitol Hill in common than the Fonda forum, with or without cameras, to come to the aid of farm name, or that they are about they will say that good manage- families with money and pro- farmers. Like most popular ment on the farm and responsi- grams. While these stars of the silver films, these movies capsulize ble fiscal policy in Washington, screen spoke on my behalf (and issues and capitalize on emo- not emotion or easy answers, tion. will save the family farm. yours), this farm woman could not help but feel that the media It would be wise to remember image of farmers had been that when the actresses por- taken down another notch. It trayed farm women, they were acting. Someone else wrote the screenplay, and although they RURAL LIVING, JUNE 1985 5 LEGISLATIVE REVIEW Co-Sponsors for Farm Bill '85 - Congressional support for fB's farm Bill '85 (S. 908 and H.R. 1965) increased substantially after FB national affairs coordinators from around the country conducted a blitz on Capitol Hill in early UOWARD WOLPE BILL SCUUETTE BOB TRAXLER May. As a result of the blitz, the (0- Lansing) (R-Midland) (D- Bay City) number of co-sponsors for the bill more than doubled. Many congressmen on the House and Senate ag committees expect fB's farm bill to be the "stan- dard" used in writing the final legislation. Members of the Michigan congressional delega- tion pictured at right have co- sponsored H.R. 1965. Subcommittees Take Ac- tion on Farm BIII'85 - PAUL UENRY ROBERT CARR GUY VANDERJAGT (R-Grand Rapids) (D-East Lansing) (R-Luther) Various House ag subcommit- tees have been writing sections of the 1985 farm bill and send- ing them to the full committee. As Rural Living went to press, provisions receiving tentative approval include sodbuster, clear title, fmHA credit, wool and mohair, research and trade. A sodbuster provision was ap- proved by the credit and con- servation panel that would bar federal benefits to farmers for the production of a commodity ROBERT DAVIS MARK SIWANDER DAVID BONIER if any portion of it were grown (R-Grayling) (R-Three Rivers) (D-Mt_ Clemens) on fragile land. fB's sodbuster proposal would prohibit all pay- ments to a producer if he or she plowed any erodible land. Also Regarding credit, the panel Garza bill. The provisions are under the subcommittee plan, approved $3.85 billion a year identical to those contained in farmers would be exempt from for farm operating and owner- FB's proposal; however H.R. penalties for land planted dur- ship loans, most of it in the 2100 is a five-year bill, while ing the last five years. FB backs form of direct loans. Included in H.R. 1965 is a four-year bill. a 10-year exemption. The sub- the credit section was the fB- Both bills extend the current committee also approved a con- backed clear title bill which method of supporting wool pro- servation reserve similar to one would eliminate the threat of ducers through a payment pro- backed by FB. Reserve con- double payment faced by buy- gram with the support level set tracts would cover a minimum ers of farm commodities. at 77.5% of a formula tied to a of 10 years and producers could The House ag subcommittee parity ratio. receive up to $50,000 a year in on livestock, dairy and poultry Another House subcommittee land rental fees for putting the reported out the wool and mo- extended funding authority for land into a conservation use. hair title of H.R. 2]00, the de la 6 RURAL LIVING, JUNE 1985 ag research and Extension pro- grams for five years and provid- state Ag Assistance ed for a study of the detection and management of pesticide Program Enacted resistance. The panel also ex- tended the existing Federal In- fuel, chemicals, etc.; equipment secticide, Fungicide and Roden- repair; and lease or purchase of ticide Act (FIFRA)for one' year, used equipment if necessary for but with the understanding that operation of the farm. The loan a bill currently being developed could also be used to refinance with more substantive revisions Emergency Farm Loan Pro- al~or part of a previous loan. To would be substituted for the gram - H.B. 457, introduced qualify, a farmer must show one-year extension later this by Rep. Dodak (D-Montrose), that loans are not available year. Other research provisions passed the Legislature by an from other sources. Negotiation included a statement that new overwhelming vote and was of a loan is up to the farmer federal emphasis is needed in signed into law by Gov. Blan- and the participating lender. research of new food processing chard on a Saginaw County The toll-free telephone hot- technology. farm on May 1. The first loan line, 1-800-346-FARM, is prov- The subcommittee also began was also made that day. ing to be very helpful to many considering a trade title that in- farmers, providing information cludes a bonus commodity pro- on finance, health, legal prob- gram and accepted amendments lems, tax questions, employ- that would allow the USDA to ment and retraining. acquire strategic or other On May 9 Rep. Dodak intro- materials for U.S. farm products duced a bill (H.R. 4960) to add in barter or countertrade trans- another $30 million to the loan actions. It would also allow the program. USDAto use ag commodities to offset subsidies from foreign competition or transportation Kight-to-Know - H.B. 4111 costs such as cargo preference would amend the Michigan MI- costs. OSHA law to adopt the new fed- eral OSHA standards that will take effect later this year. The Commodity Exports - federal standards are designed Farmers could regain some ex- to protect workers from about port markets previously lost 600 hazardous chemicals in the under FB's plan to use govern- Gov. Blanchard signed legisla- workplace through labeling, ment-owned commodity stocks tion enacting the state ag loan program May 1 at Saginaw. The training, education, etc. How- to expand ag export oppor- first loan was also made that day ever, H.B. 4111 would go far tunities. The Bonus Incentive to the Popp family farm in beyond the federal require- Commodity Export Program Saginaw County. ments and could include as (BICEP)would use government- many as 55,000 chemicals - owned commodities now in Some $70 million has been even salt and water. storage as incentives to expand placed in participating banks Under similar bills last year, U.S. export markets abroad. and PCAs throughout the state. the estimated cost to Michigan The export enhancement pro- Interest rates to the lenders are employers would be $60 million gram will be targeted at specific reduced below treasury bill under the federal standards and customers so new sales will be rates and should result in loans $250 million under the state created and the bonus com- an average of 2% to 4% below proposal. The legislation would modities will not interfere with present rates to the qualifying also apply to all (armers, caus- traditional markets. The pro- farmer. Loans are not guaran- ing an added, confusing and gram would also be used to teed by the state. It is a re- costly burden. fight those competitors who duced interest plan. The bank Most chemicals used by farm- subsidize their exports. Using a must repay the state. ers are already regulated under certain amount of specific com- Loans are limited to $100,000 FIFRA, EPA and Michigan pesti- modities avoids future storage per farmer. They can be used cide application laws. Because cost payments. for operating capital such as (continued on page 28) seed, feed, livestock, fertilizer, RURAL LIVING, JUNE J985 7 A CHOOSE FROM THE LARGEST SELECTION OF HEALTH CARE PLANS EVER OFFERED FARM BUREAU MEMBERS. Michigan Farm Bureau members Dimension m is a share-the- Complimentary Coverage now have a bigger than ever cost plan that makes for members 65 and over selection of five affordable monthly payments more supplements Medicare health care plans. Three plans- affordable. coverage. Comprehensive, Dimension III A small deductible charge per This plan provides for extended and Econo Plan-are under- person and co-payment require- and additional benefits to those written by BCS Life Insurance ments give you basic compre- already provided by Medicare. Company, but all are administered hensive coverage at much lower by Blue Cross and Blue Shield monthly payments. A prescription of Michigan. drug program is also available at Our HMO network gives participating pharmacies. you statewide coverage, The Comprehensive Plan including paid doctors'visits. with Master Medical provides Blue Cross and Blue Shield has exceptional protection for The Econo Plan saves you even more money on basic a network of seven HMO plans you and your family: in Michigan. As a member of the comprehensive benefits. Get nearly total protection under one available in your area, you're the basic coverage and receive You pay a $500 deductible for eligible for covered benefits from 100% paid covered benefits with each admission to a hospital per all seven HMOs, statewide. no deductibles. Additionally, year, maximum of three. A co-pay the Master Medical portion for all services, plus a stop loss Call your Farm Bureau secre- provides up to $1 million in limit of $1,000 per person, tary during OPen Enrollment. lifetime benefits for each family makes this the most economical of plans. Consider all the advantages of member. each plan and make your choice during open enrollment June 7 through June 21. Your Farm Bureau secretary can help you. OPEN ENROllMENT-JUNE 7-JUNE 21 liMOs Stress Preventive Care By Cathy J. Kiruan - Medical treatment and refer- Many HMOs also offer supple- ral for abuse of, or addiction to, mental services such as vision The skyrocketing cost of drugs and alcohol, including or mental health care beyond health care is of vital concern detoxification and referral to the basic services; dental care; to farmers and other self- social agencies services of facilities for in- employed people who must pay HMOs are also required to termediate or long-term care; their own medical bills or provide the following preventive long-term physical medicine health insurance premiums. services: and rehabilitative services, in- Some members may be able -Voluntary family planning cluding physical therapy; and to reduce their premiums and -Services for infertility prescription drugs prescribed at the same time maintain a - Periodic health examinations as an outpatient. high level of benefits by enroll- for adults VanderMolen said there are ing in a Farm Bureau Health - Eye examinations for chil- many other advantages for Maintenance Organization dren for vision correction choosing an HMO over tradi- (HMO) plan if one is available in -Children's hearing examina- tional health care programs, in- their county. tions cluding predictable and con- "Many members fail to seri- -Immunization for children trolled costs, assured access to ously consider the HMO option, and adults a physician 24 hours a day, even though it is often less ex- -Well-child care from birth (continued on page 29) pensive and offers more com- plete coverage than traditional health insurance," said John VanderMolen, MFB Member Ser- vices Department manager. FATHER'S DAY SPECIALS VanderMolen believes this is 21 PIECE SOCKET SET CANTILEVER because many people do not TOOL BOXES understand the HMO concept. -Brown finish "An HMO is a health care -Four trays, 2 system which covers all medical with partitions services - including hospitali- zation and office visits - for a 1017 ... 1713/16 Lx 83/16 W x 10" H set fee paid in advance. There are very few deductibles," he SALE $47.69 LIST $71.60 said. "As long as the subscriber • 1018 ... 181/8Lx 101/16 W X 125/8"H uses the HMO's physicians, they SALE $53.09 LIST $79.80 are assured that their out-of- • 1022 ... 22% Lx 101/16 W X 125/8"H pocket health costs will be SALE $58.29 LIST $87.60 2' piece set contains 6 6-point 1;'''drive minima!." State and federal laws require sockets - 3/1&. 7132, 'I., 8/32, sl1e, "/32, ~" 8 '2-point:y." drive sockets - :y., 111&, '12, 811e, r:-------------- Ship to: ~, "l1e, 3,4,1311e, :y." FLIP-DRIVE'. ratchet, HMOs to offer the following W' drive spinner. :y." drive 3" extension, basic health services: ~" drive spark plug socket ~", 3-Way Tool (6" extension and :y.F x 'I.M adapter), OTY. ORDER NO. PRICE EACH TOT Al - Physician services including blow-molded box consultations and referrals -Inpatient and outpatient SALE $13.49 LIST $28.63 LIMITED SUPPLY AT THIS LOW PRICE hospital services including Payment Sub Total room, board, drugs, oxygen, in- Check Visa 4% Tax tensive care, special duty nurs- MasterCard F.E.T. $2.00 ALL-PURPOSE ing when medically necessary '~ ~ TOTAL TOOL BOXES - Emergency services Card Number - Diagnostic lab, x-ray and Exp. Date • Handy catchall Signature therapeutic radiology for home or car - Home health services at the • Lift-out tray Make Check Out To and Mail To: physician's direction • Brown finish The Chas. A. Strelinger Co. -Short-term mental health • K-20 ... 201/8L X 8% W x 9314" H 31855 Van Dyke, Warren, MI 48090 outpatient care 313-268-4100 Mon.-Fri. 8-5 SALE $25.95 LIST $43.30 RURAL LIVING, JUNE 1985 9 Farmers Talk About Problems & Solutions in the Dairy Industry Milk's got more - more milk 1985 farm bill (H.R. 1965 and "Our aim is to improve pro- than the market demands, and 5.908): ducer income," said Hollis Hat- with ever-changing government "We favor a system where field, director of AFBF's Dairy policies to adjust supply, dairy the price support level would Department. "The only way to farming has become a gamble. be automatically adjusted ac- do that is by deterring or elimi- With such an unsure future, cording to the amount of net nating the price depressing dairy farmers have been search- dairy products purchased by surpluses. Right now the aver- ing for a plan to stabilize their the federal government and age price for manufacturing industry. oppose any assessment of milk is considerably below the 5uch a plan was adopted in producers by the federal support price and we won't January by voting delegates at government as a part of any have respectable prices until the AFBF annual meeting in future dairy legislation. that trend reverses itself. For Honolulu following months of "We support the use of an that to happen, supply needs to grass roots input at county and economic formula or a moving be more in line with market de- state annual meetings across average of the previous three mand." the nation. The policy state- years' all milk price for deter- FB's formula for the long-term ment, which follows, provided mining the support price." plan to bring supply and de- the foundation for the dairy mand closer together, and ulti- provision in Farm Bureau's 10 RURAL LIVING, JUNE 1985 mately improve producer in- and Tobacco Adjustment Act of come, consists of two parts. 1983, this will further deter ex- The first addresses the need for pansion. I would guess within 12 a method of determining the months we will see a lot of dairy support price other than parity. producers deciding whether they "Everyone agrees that Con- are better off to stay in the gress should not be authorized business or move out/' to set the support price," Hat- What is the feeling in Wash- field said, "so that leaves two ington about FB's plan? basic substitutes for parity: the "In terms of maintaining a economic formula or using a support program, there's com- percentage of the three-year plete agreement, as well as moving average market price. agreement that parity is out- "Farm Bureau is on record for dated and that the support both of these, but AFBF's Dairy price should be related to CCC Advisory Committee and the purchases. There is also agree- 'AFBF board have decided to ment that in case government support the three-year moving purchases exceed 7.99 billion average for several reasons. It pounds, there needs to be a relates directly to the market, standby provision to adjust the AFBFEconomist Oollis Oatfleld would be more responsive to support price at that time, more predicts higher milk output in changes in supply-demand con- than what would occur under 1986 due to existing capltaliza. ditions than a formula and tlon in the dairy industry and the the supply-demand adjuster." number of heifer replacements would certainly be simpler to Hatfield said the basic dif- on farms. administer. ference among the various "The second part of Farm dairy proposals concerns the coffee shops and gatherings of Bureau's formula ties the sup- standby provision. The question farmers across the nation. In port price to Commodity Credit is whether there should be an Michigan, four dairy farmers Corporation (CCC)purchases," assessment and diversion pro- agreed to share their views with he said. "This is known as the gram or whether the secretary Rural Living. supply-demand adjuster and of agriculture should have the there is no better indicator of discretionary authority to re- Smith It Good: PH and supply-demand imbalance than duce the support price within National Milk Proposals the level of government pur- allowable limits when net gov- Closer Than Ever chases." ernment purchases exceed 7.99 There's obviously a strong According to Hatfield, very billion pounds (as proposed in bond between the two men who few results for bringing supply the FB plan). have built the nationally re- and demand closer will be seen AFBF annual meeting dele- nowned Red and White Holstein from any dairy proposal in the gates adopted policy against dairy herd on Med-O-Bloom short-term. assessments in future dairy Farm just outside Caledonia in "You don't move in and out of legislation. "The key reason for Kent County. Elton R. Smith the dairy business overnight," this opposition stems from and Jerry Good share more he said. "The capitalization is problems over the past few than a farm partnership. They there and with the number of years in both the'dairy and also share a philosophy of hard heifer replacements on farms, tobacco programs," Hatfield work, sharp management and the support price could drop $2 said. "Many farmers were op- dedication to their industry. and there will still be milk pro- posed to paying both taxes and The hard work and sharp duction for a while. In fact, we're s'pecial assessments for pro- management is reflected in projecting that milk output grams which they found didn't their progressive operation and might be greater in 1986 simply benefit them. For example, twin titles of MSU"Dairyman of because all the ingredients are nearly 90% of the dairy farmers the Year" - Smith in 1953, already built in. did not participate in the diver- Good in 1985. Their dedication "Under the current program sion program, yet they had to to their industry is illustrated there has not been a major en- pay assessments to finance the by active involvement in and try into the business and most program. Previously, these com- leadership service to a long list of the expansion is coming from modity programs were financed of professional associations and units in existence. If the entirely by the federal budget." organizations. secretary reduces the support The debate on which dairy There's even a similarity in price by 50 cents again on July proposal should become law ex- the personalities and man- 1, as permitted under the Dairy tends beyond Congress to rural nerisms of the two men that RURAL LIVING, JUNE 1985 11 mirrors the close relationship that started when Jerry worked on the farm as a boy. The fact that they wear different farm caps - Smith's the gold and brown FB and Good's the blue and white MMPA - would hard- ly rate a second glance under ordinary circumstances. But today, when Farm Bureau and National Milk Producers find themselves with less than complete agreement on Farm Bill '85 dairy provisions, the two caps do have significance, especially when their wearers hold high elected positions in the two organizations, Smith as president of MFB and vice presi- dent of AFBF and Jerry as an MMPA board member. Med-O-8100m partners Elton Smith and Jerry Good wear different farm Smith, who has earned the caps when it comes to dairy policy, but they prefer to focus on the sim- reputation of being an immov- ilarities between the FB and National Milk dairy proposals. able object when it comes to FB policy, has set a strong exam- ple for his protege. Once MMPA During FB's policy develop- diversion program, there would and National Milk Producers ment process, at all levels, be very little downward trend in voting delegates have made there was little support for a the support price, which means their decision, Good stands diversion program and the pro- that the co-ops with big inven- firmly for that policy. There's no ducer assessments. Getting a tories wouldn't get hurt. That's room for com prom ise on the consensus of opinion in Na- really part of National Milk Pro- dairy provision issue, they tional Milk Producers has been ducers' theory on the diversion," agree, but if you're looking for more difficult. Smith said. a pro-con debate, Med-O-Bloom "National Milk has been try- Good agrees that those obser- is the wrong place to find it. ing to get all the co-ops to vations are "partially right." The men prefer to focus on the agree to something and it's "We do have a big investment similarities between the pro- pretty tough to do," Good said. in plants and it costs just so posals. "It is important that we get the much whether you're operating "Basically, I've never seen a co-ops to agree to one idea so at full capacity or part capacity. time when we've been closer they'll support it, and that's dif- When the support price drops, it together than we are right now. ficult when there are so many does cost money on inventory, The National Milk Producers' different opinions in different even though we try to run them proposal and Farm Bureau's areas of the country." real close," he said. proposal are pretty much Smith agrees. "You have to If FB's proposal becomes part alike," Smith said. "It's when we realize that officers of a co-op, of the new federal farm pro- get into excess production of if they can't have a black bot- gram, would it necessitate any over 8 billion pounds that tom figure, are in real trouble. major changes in the Med-O- there's a difference. National "I feel for them; I've been Bloom Farm operation? Milk would kick in a diversion there before. Sometimes, you "I don't thil')k we'd make any payment immediately and the can't help doing some things changes other than the ones Farm Bureau proposal would for the benefit of the co-op that that are currently underway to cut the support price back not are not necessarily for the good get a little more efficient and over 3% for every six months. of the members. This is no cut some costs," Good said. "What it boils down to is secret. Sometimes, like in a One of those changes has been whether or not you're for a local co-op, you get to where installation of a computerized diversion and producer assess- you just can't afford to have a feeding system that Good is ments to pay for it. I think if it margin. It won't work; you've convinced will cut feed and vet were just farmers involved, got to pay the bills. costs. there wouldn't be that much "Every co-op has a terrific in- "Any time you get this long a difference," he said. ventory all the time. With a run with no increase in price, you have to keep tightening 12 RURAL LIVING, JUNE J 985 things down in order to sur- get involved and the rest holler federal budgetmakers take a vive," he said. "It's been four when it doesn't go right. When hardline approach to the dairy years since they raised the price you're in farming, you're in- program. support. Very few working peo- clined to think of a situation as "Every time the price of milk ple can go four years without of right now. You don't think drops 50 cents, we lose $.30,000 an increase in salary. So you about what's good for the in- to $40,000 right off the top. have to keep tightening down dustry in the long run. The next on expenses and try to get milk check gets to be the most more efficient just to survive." important thing. We've got to While the diversion-no diver- look beyond that." sion controversy continues, and the impacts of scientific ad- Carmichael: Budget vancements such as embryo Cutters Threaten Already transfers and hormones remain Fragile Dairy Industry unknown, Smith and Good The here and now of dairy agree that what has affected price support proposals is the health of the dairy industry something that Gary Car- in Michigan - more than any- michael, 32-year-old partner in thing else - is the collapse of a family dairy operation, is the "super pool." thinking about very seriously. When the super pool was in Good management and care- operation, from] 956 to 1984, ful financial planning for the it made Michigan dairy farmers 180-cow operation have brought millions of dollars without a recognition to the family's federal program, they said, If the price of milk drops 50 Osceola County farm partner- cents, Carmichael Farms will through a negotiated price over ship of father Dale and brothers milk more cows. Our philosophy the federal order. The collapse is those with the will and guts to Gary and Doug. Gary was singled of the super pool came when do whatever it takes will make it out for MFB's Distinguished MMPAand Independent Milk through the next two years, Gary Young Farmer award two years Carmichael said. Producers, the state's two ago. He was also among the largest milk co-ops, disagreed original group of Michigan on how the premium was farmers selected for MSU's The question is, how far down shared. Michigan Agricultural Leader- can we go?" he said. "We still "When the super pool's nego- ship Program (MALP). run our budget projections out, tiated price over the federal But Gary Carmichael doesn.t but we've only got so much order was up over $1.00, that believe that honors or leader- money and so much space to made Michigan dairymen a lot ship opportunity will stand in work with. If the price of milk of money. Right now, we're the way of a severe financial keeps dropping that means back to the minimum price set squeeze on their farm if the we've got to watch expenses by the federal order. There's no legislation in the world that's going to fix that up," Smith said. FH's Dairy Price Support Formula Smith and Good also agree that not enough dairy people Net Government Fercent of Frojected Adjusted are sufficiently "involved" to Furchases Support Frice Support Frice really understand the compli- (as of March 1985) cated dairy program to the ex- Less than .3 104 12.46 tent that they can effectively in- 3.0 - 3.99 10.3 12..34 fluence legislation that will im- 4.0 - 4.99 102 12.22 pact their industry. 5.0 - 5.99 100 11.98 "The ones who are involved 6.0 - 6.99 98 11.74 do understand, but there are so 7.0 - 7.99 96 11.50 many who aren't involved and More than 8.0. they're the ones who do most of the complaining. They usually .If CCC purchases are projected to exceed 7.99 billion sit back and take whatever hap- pounds of milk equivalent during the next 12 months, the pens," Good said. USDAsecretary is given discretionary authority to adjust "It's like church or anything the support price by not more than 3°1o on April 1, 1986, else," Smith said. "About 5°1o and for any subsequent six-month period. RURAL LIVING, JUNE 1985 13 even more closely and start cut- who bought land that tripled in ticipating higher prices for their ting costs until we're fine- value," Carmichael said. "Now milk. The result was a massive tuned. We won't be paying off farm machinery brings 20 cents oversupply and a government- bills or notes ahead of time and on the dollar and land prices owned surplus which cost nothing extra is going to be are depressed. Some dairymen, everyone money. done. both young and old, are taking In an attempt to decrease the "For the future, our philos- a step back and deciding to get large surplus, the diversion ophy is that those with the guts out of the business while they assessment plan was enacted. and the will to survive are going still have something left." In this program, dairy farmers to make it, whatever it takes. If reduced production and were the price of milk drops 50 reimbursed by the government cents, we're going to milk more for the amount of milk they cows," Carmichael said. would normally be producing. That's not a decision every The theory of this program dairy farmer can make. "Most seemed fine, Lauwers said, but have got facilities and capital it never got enough support to for just so many cows," he said. be successful. "It all comes down to cash flow. He said the dairy industry There will be some guys who'll would be better off now if the be all right. They've either ex- support price had been allowed panded and paid for it, or they to decrease when it should have haven't expanded and they're instead of maintaining it and sitting quite well financially. resorting to the diversion pro- Sure, they're going to lose gram. money, but it won't be a threat. Lauwers agrees with AFBF "Frankly, I'm looking for dairy economist Hollis Hatfield that prices not to be as good as the the major reason the diversion Farm Bureau plan proposes. Herd reduction was a dollar and program was not successful cents decision for St. Clair Coun- Farm Bureau's plan is moderate ty dairy farmer Dick Lauwers. was the 50-cent/ cwt. assess- and one that dairymen can live ment farmers had to pay into with. You'll have more dairy the program to help finance it. farms surviving under the Farm Lauwers: People Will Buy At a recent meeting of the Bureau plan, but the one the More If the Price Is Less MMPA,he said it was reported budgetmakers in Washington Dick Lauwers, a St. Clair that over 70% of Michigan dairy will be looking at will be more County dairy farmer, favors a farmers were against the diver- severe, and the pressures on self-adjusting support price for- sion assessment program. agriculture will take effect mula to align consumer de- Lauwers, who serves on the quicker." mand with the supply of milk, MMPA'sdairy advisory board, Carmichael is encouraged while reducing the amount of added that a program such as that FB's farm bill continues to government intervention. this would not be supported in gain co-sponsors among the "1 think the formula that the future. "1 don't think that it Michigan congressional delega- Farm Bureau has adopted is would go again because there tion. That will make a differ- one that we should work for," are too many farmers that real- ence, he said, "but it's all going he said. "As production goes ly begrudge paying that 50-cent to boil down to this surplus. It's higher, the support price will go assessment. going to be gone one way or the lower and this is what we have "1 think it's easier to lower other. When the surplus dis- to work with." the support price and let con- appears, the price of milk is go- Past policies such as legisla- sumers have a little break. J still ing to stabilize. The questions tively set support prices and believe that people will buy we have to ask when we're look- the diversion assessment pro- more product if the price is ing at these plans are when will gram have been well inten- less." that occur and how many dairy tioned, according to Lauwers, Because of the economics farmers will we lose to make but have not worked out the and long hours involved in that happen." way they were planned. dairy farming, Lauwers reduced Making sense of these hard, When Congress took control his herd from over 100 milking economic facts doesn't mean to set dairy price supports away head to 35 in January of this being insensitive to the "human .from the secretary of agricul- year. When it came to comput~ side" of the situation. "In the ture in 1977, Lauwers said dairy ing dollars and cents, the deci- inflationary cycle of the 1970s, farmers backed the shift, an- sion was clear. we had paper millionaires, guys (continued on page 29) 14 RURAL LIVING, JUNE. 1985 FRONT & CENTER Members enrolled in FB's health insurance plans have the opportunity to make changes in their coverage during the annual reopening period, June 7-21, 1985. This reopening is the only time during the year when member subscribers can transfer from 'their current plan to a deductible, no deductible or Health Maintenance Organization (HMO) plan. Upgrades are subject to medical underwriting. Members can also add a dependent child be- tween the ages of 19 and 25, if eligible. All changes will be effective with the Aug. 20 billing. The annual reopening also gives members the opportunity to become better informed health care consumers by investigating all the options available to them and then choosing the one that best suits both needs and budget. Members will receive a side-by-side comparison of the major features and rates for the Blue Cross Blue Shield and BCSplans in early June. Members will also receive information about enrolling in an FB Health Maintenance Organiza- tion plan if one is available in the county. An article explaining the HMO concept appears on page 9. For more information on any of FB's health care plans contact your county FB secretary between June 7 and 21. AgriVisor, Farm Journal's choice for best marketing and advisory service last year, will conduct its third Super Summer Seminar July 14-17 at Lake Geneva, Wis. The seminar will help farmers improve technical skills, detail today's marketing strategies and pro- vide opportunity for relaxation. Information presented will give the attendee what's necessary to make profitable, long-range decisions. The agenda includes outlook and strategy from AgriVisor analysts; a look at the European common market policy; special sessions on point and figure analysis, cycles, Gann, options, bar charting and Elliott wave; and the "big picture" and what it means to you, according to Jim Gill, director of commodities. Before June 1 "early bird" per person rates apply: $100 for AgriCom/ AgriVisor subscribers; $150 for other FB members; $200 for non-FB members. Rates increase $25 after June 1. The registration deadline is June 14. Rate does not include lodging. For more information contact AgriVisor, Illinois Farm Bureau, 1701 Towanda, Bloomington, III. 61701; or phone 309-557-3147 and ask for Lana Taylor. JoAnn Thome, Comstock Park, and David Putney, Benzonia, have been appointed to the" Michigan Apple Committee by Gov. Blanchard. Both will serve as grower represen- tatives on the committee for terms expiring in 1988. The appointments, which are supported by MFB and MACMA, are subject to Senate confirmation. MFBAgriCom Option 1 subscribers can now access a variety of crop, soil and pest management programs under an exclusive agreement with MSU's PMEXprogram. Previously, these programs we're available to only county Extension agents. Programs include crop irriga- tion, fertilizer recommendations based on soil tests, alfalfa weevil cost-benefit analysis, soil compaction analysis, biological scheduling of field crops and fruit and vegetable pests. Further information on this new service can be obtained from the MFB Commodity Activities & Re- search Dept., P.O. Box 30960, Lansing, Mich. 48909. The 50th anniversary of the Rural Electrification Administration and life in rural America will be commemorated by a year-long pilgrimage of a four-seat carriage drawn by a donkey and accompanied by a foal donkey. The carriage will be equipped with a com- puter /word processor which will be powered by solar cells on the roof to provide syndicated reports to rural publications on how rural electric cooperatives have benefited rural America. The carriage departed Lansing on May 11 and will travel through rural areas of Michigan, Wisconsin, Minnesota, the Dakotas and end up in Tennessee in November. A 10-week interna- tional journey will include stops in Rochdale, England, the recognized home of the cooperative movement; India; and Nepal, where the National Rural Electric Cooperative Association has in- ternational development programs. The carriage will resume its American tour next February, traveling through southern and western states. The Senate Agriculture Committee has approved and sent to the full Senate nominations for USDA's assistant secretaries for economics and natural resources I environment. The committee unanimously approved the nomination of Robert Thompson as assistant secretary for economics to succeed William Lesher who resigned earlier this year. Thompson is a senior staff economist for food and agriculture on the Council of Economic Advisors. The committee also confirmed Peter Myers, chief of USDA's Soil Conserva- tion Service, to be assistant secretary for natural resources and environment. He would suc- ceed John Crowell, who also resigned earlier this year. RURAL LIVING, JUNE J985 15 RURAL EXCHANGE FAKMETTE Chippewa County Ag Awareness Project By Andrea Hofmeister Highlighting Agriculture quilt, designed by Kathy Tuck- Tuscola County Awareness Day in Chippewa er, were representative of 18 County this year was the baby varied commodities produced in quilt presented to the first baby the county. The blocks were born in the eastern Upper hand embroidered by women in Peninsula. the various Community Action Recipient was Daniel Chris- Groups. The quilt was assem- topher Malloy, son of John and bled by Sally Strater. Kathy Malloy of Sault Ste. Marie. In addition, the Malloy family Presenting the quilt (see photo received an assortment of home below) were County FB Secre- grown items from down on the tary Carolyn Hesselink and In- farm including a certificate for formation Committee Chair- the baby's first Christmas tree. person Faye Postma. Faye Postma, Rudyard The individual blocks of the Chippewa County "How come we're so much better at getting the crops up than keeping the lawn down? Someone actually stopped by today to see if our place was for sale!" NEW LOCATION I:MPROVES VISIBILITY ,~ c5}- l;~~ , ,-t~( '.: Summer Steel Sale =--= ---- - * * * J. 1 • *~-- ""-~ Sale Ends July 9/ SArBMA." I~ Farm Bureau Riveted Sickle Assemblies for Haybines Part Make Member Price Mower/Conditioners & Combines AN102009 John Deere $28.49 Gathering Chain Model Sickle Farm Bureau 176-279-C91 I.H. Gathering Chain 28.49 Machine Number length Member Price WK4 4" Vibra Tine Shovel 1.68 BU215A New Holland Guard 5.74 New Holland 469, 1469 9 ft. $ 64.80 WD-3 John Deere Shin 6.34/each* New Holland 479, 488 9 ft. 70.20 058UV I.H.C. Landside 4.61/each* New Holland 489 9 ft. 79.65 NU1036SC John Deere Moldboard 62.28 New Holland 495, 1495 12 ft. 96.53 (soft center) TBUV A.C., Ford, OliverI 8.94/each* John Deere 200 Series 16 ft. 136.35 White Trashboard Combine DP2238 Double Point Cultivator 2.40 I.H. Combine 820 20 ft. 161.33 * Sold only in cartons of six with bolts . • \..~ .j\..J;U .• Jt.~'.,i~~ L W SHARE (WITH BOL TS) 16" from $8.61 ea.• Safemark #40 Chain 1.161ft. Safemark #50 Chain 1.51 1ft. PLAIN DISC BLADE Safemark #60 Chain 2.101ft. 22" from $18.50 CC-124 TWISTED CHISEL 4" SLASH POINT WC.134 DOUBLE POINT $1.73 Ask your local county Safemark coordinator or call your county Farm Bureau secretary. Dealer phone numbers on adjacent page. Send dealer inquiries to: Michigan Farm Bureau Group Purchasing, Inc., P.O. Box 30960, 7373 W. Saginaw, Lansing, Mich. 48909 ESTATE PLANNING: KEEP THE FAMILY FARM IN THE FAMILY'S FUTURE A proper estate plan is as vital as ever if you want to keep your farl11:fi1ta~..an~fin. the family after your death ... Farm Bureau Life Insurance Company of Michigan has been specializing in protect- .. ' ing Michigan farm families for 33 years. Our estate planners understand the complex tax laws and will work with you, your family, lawyers, and trust officers to p~oduce an estate plan to most benefit you. Call your Farm Bureau Insurance agent today. It's the first step in pres~rving'.the family farm .. We're the statewide leader in farm estate planning, working to make your future a little more predictable. FARM BUREAU ~ INSURANCE GROUP Michigan Farm Bur~""" Non-Profit Organization Rural Living Magaz U.S, POSTAGE P.O. Box 30960 7373 W. Saginaw H PAID Lansing, Michigan Lansing, Michigan Permit No. 37