Farm News, THE ACTION PUBLICATION OF THE MICHIGAN FARM BUII.AU VOL. 58, NO.2 FEBRUARY, 1979 ea s. rest Roger and Unda Bloll rece've congratulat'ons follow'ng announcemen' of 'he'r .electlon as "OutstandIng Young Farmers" at 'he American Farm Bureau Federat'on annual meeflng 'n M'am' Beach, R~rlda. , '.Michigan .Young Farmers Win Titles Roger Bloss is AFBF "Outstanding Young ~armer" Michigan Farm Bureau's Federation's 60th annual 16, along with young farm The young dairy farmer, registered young cattle. He is representative in the national meeting in Miami Beach, couples from Illinois and who farms in partnership a m~mber of the Michigan "Outstanding Young Far- Florida. Roger and Linda North Dakota. The three with his father, presently Animal Breeders Cooperative mers and Ranchers" com- Bloss of Swartz Creek couples were picked from a . milks 140registered Holsteins and also serves as an officer petition took top honors at the received national recognition field of 35 applicants from as and raises all his herd for Central Genetics, an American Farm Bureau during ceremonies January many states. r e p Iace men t s .fro m organization which he helped organize for the purpose of developing high potential Steve Gazdag Named Michigan Jaycees Top Farmer bulls into outstanding sires. Bloss has served as In the meantime, back in The national contest is chairman of the Genesee Michigan, Steven Gazdag of sponsored by John Deere. County Farm Bureau Policy Kalamazoo, who serves on Gazdag has been active in Development Committee, as the state Young Farmer the Kalamazoo County Farm a delegate to the state annual Committee, was named Bureau as member-to- meetiilg, and attended the "Outst~nding Young Farm- member citrus sale chair- Michigan Farm Bureau er" by the Jaycees. Gaz- man, Local Affairs Com- legislative seminar in dag, who operates a 1,000- mittee chairman, Young Washington, D~C. He is a acre cash crop farm, will Farmer Committee member member of the Jaycees, the represent Michigan in the and serves on the county Chamber of Commerce and Jaycees' national contest in board of directors. He also serves on the Ag Advisory Burlington, Vermont serves on his church deacon Committee for the Swartz February 23-26. board, is a member of the Creek Community Schools. Comstock Township Planning The national title provided Nominees for the Michigan Commission and is a 4-H the young Michigan farm Jaycees' Outstanding Young leader. couple with some unusual Farmer title are judged on The young farmer's plans experiences -- an interview the financial progress of the for the future include ex- with a Libyan journalist, as SIeve Gazdag of Kalamazoo ha. been selected by 'he fanning operation, soil and panding his small hog well as long-distance calls MIchIgan Jaycees a. ,he "OutstandIng Young Farmer" for water .conservation, and the operation to around 50 sows from the news media back '979. He will represen' MIchIgan 'n 'he nat'ona! con'est 'n individual's community and feed out some of his home and personal Vermon' 'n February. Steve Is .hown here a. a con'estan' 'n service. The program is feeder pigs, while main- congratulations from AFBF 'he Discussion Mee' held at 'he MIchIgan Farm Bureau annual supported by the Farm taining 800 to 1,000 acres ill President Allan Grant mee"ng last November. Bureau Insurance Group. cash crops. (Continued on Page 7) PAGE 2 FARM NEWS FEBRUARY, 1979 From the Desk of the President Farm Barl{aininl{ Lel{islation: It "Fits" "sure thing." Such assump- system; it makes it work guaranteed an amount or We must tell them that they tion, however, could create better! Parties sitting down guaranteed a profit is will benefit fronn farm dangerous apathy -- and we together, negotiating prices foolhardy. This will not bargaining legislation' should be aware of some of and terms of trade, con- happen; .. and it shouldn't through a stable supply' of the challenges we face so we sidering supply and demand because behind this so-called food -- that, sinnply, low can be prepared to meet them and market factors, "fits" guarantee, which can only prices discourage production, knowledgeably and ef- very well into the competitive come from government, profitable prices encourage fectively. enterprise system. comes food control or control production. Agricultural Delegates at both the Farm bargaining of that business. Then, it is no bargaining legislation will Michigan Farm Bureau and Here in Michigan, we -are legislation not only fits our longer a free enterprise and, give the industry stability American Farm Bureau fortunate to have _ the ex- needs as farmers, it also fits by the way -- the profits are _which, in turn, will surely Federation annual meetings perience of operating under our philosophy as Farm never very good then. benefit consumers. listed enactment of national state agricultural marketing Bureau members. It is self- "To attempt to assure Last, but not least, we nnust agricultural bargaining and bargaining legislation; help legislation which would people in the cow business or contact our congressnnen, legislation as a top priority we know it is workable and is allow farmers to enhance in the vegetable business or in once this legisl~tion is in- acti vity for their a feasible approach to giving their incomes through the the grain business a troduced again, and urge organization. They believed farmers equity of bargaining marketplace. This is far guaranteed profit every year them" to support and strongly that it was essential power. However, to date, our preferable to some of the is foolhardy ... That's not aggressively work toward to the improvement of net state legislation has been proposals being considered what America is about...". enactment of the bill. They farm incomes. limited to producers of fruits that would make" us depen- There's another group we will be getting pressures from and vegetables, leaving some dent upon the government! must not forget when we are many sides. They will be When such legislation was segments' of Michigan Pat Groggins, publisher of gathering support" for pressured into "doing introduced last year, it had agriculture without adequate the WESTERN LIVESTOCK national farm bai'~aining -- something" for the farnner. the broad support of not only understanding of how a REPORTER, presented a the co~~rs. '"'Their im- They will be pressured by Farm Bureau, but also the na tional farm bargaining act very articulate argument mediate\ .;. reaction to taxpayers . and the Grange, Farmers Union, the would benefit them. We need against government in; legislation which will Administration to hold the National Council of Farmer to work for their un- tervention in the agricult~al enhance farm incomes. may line on spending. Explain to Cooperatives and numerous derstanding and support. industry in a recent editorial: be fear of increased food t!lese congressmen that by commodity groups and There are also some farm- "When someone tells you or prices. We must explain to" supporting agricultural bargaining associations. indicates - to you -that the them how very little impact a bargaining legislation, they'll ers to whom the word With priority status given "bargaining" is synonymous government can take better small increase in raw farm be doing something to help to the effort by the nation's with labor unions and that's care of you than you can -- products has on the price they the farmer help himself -- and largest farm organization enough to "turn them off." you should plant one right on pay -- that it is labor, taxes, it won't cost the taxpC!yers and with the cooperation of We have the challenge' of the end of. their nose. For us energy and transportation anYJhing. other major agricultural explaining to them that farm as a free enterpris~ society to that has the biggest effect on That's a combination that'"s groups, passage of such bargaining does not threaten attempt to have a 'controlled' prices --- not the raw farm hard to beat! legislation would seem a our pri va te enterprise agriculture where we are product. Elton R. Smith FarlD Bureau: The Leade~ Builder Even this hard-nosed organization's most with Farm Bureau's dues. If example, one group recently defender of the press gets beneficial functions -- not only the list of benefits you wrote: "We should find some riled occasionally by to the individuals who take already have won't convince way to limit the press on the' members of her profession. advantage of Farm Bureau's a farmer that joining Farm amount of news they .can For example, there are a few' multitude of leadership Bureau is a real bargain, publish, like shortage of fuel.1 media people who treat the development opportunities - perhaps a look at' this sam- and hannburger taking a big discovery of a Farm Bureau but to the communities or pling will help: raise in price and many,: J association in the life of a state or nation they serve. Doctors $515 many, more. The press is. person in the public eye as an expose. That's happened recently It's a member benefit that shouldn't be left off the list during the membership Typesetters Printing Press Operators $479 Optometrists $486 $475 killing our country many news reporters ". I was shocked! What they 1 t90 I DONNA ..--. and I've been tempted to send campaign. Have you noticed Electricians $462 are suggesting is a controlled ticulate press is the dictator's them a note explaining a that once a member has used Ironworkers $417 press! nightmare; i.t is ~ free simple fact of life: almost any the organization to build his Plunnbers $404 . American journalism is people's salvation. I hope that person who reaches a or her leader~hip Roofers $336 based on the public's right to Connmunity Group will leadership position in capabilities, you seldom have Carpenters $315 know. The misuse of political consider 'that tr~th. I hope, agriculture will have a Farm to remind them to pay their Auto Workers $200 power, crime .in the city too, that they realize for Bureau background. It's so dues? Local Governnnent streets and in the rural everyone reporter who common that it would be Speaking of membership ... Workers . $168 connmunities, upswings and seems dedicated to so-called more newsworthy to find an the Farm Bureau in Penn- Letter Carriers $120 downturns in the economy -- sensationalism, there are agricultural leader who did sylvania recently compared Railway Workers $128 could be classed as. "bad thousands of other hard- NOT have some Farm the annual dues of other Retail Clerks $115 news" -- but these things working, -dedic~ted jour- Bureau background! occupation-related organi- City Bus Drivers $109 affect people's daily lives and nalists whose goals are to Farm Bureau builds za tions (unions and Bakers $108 they have a right to know so right wrongs and make their leaders; it's one of the profession organizations) they can do something con- communities better places to -structive about them. And -- live. I'm also a hard-nosed we should remember this -- in If that's "killing our MICHIGAN FARM NEWS defender of the Community countries where the press is country," then I am one of The MiChigan FARM NEWS is Eisenmann, Blissfield, R.l; District 3, Group program, but I also get controlled, most of the news those "too nnany news published monthly, on the first day, by the Michigan Farm Bureau Information Andrew Jackson, Howell, R.l; District 4, Elton R. Smith, Caledonia, R.l; riled" by some of -the is good -- but the way of living reporters" who would clean Division. Publication and Editorial District 5, William Spike, Owosso. R.3; "suggestions" that come is not. spittoons rather than work in District 6, Jack Laurie, Cass City, R.3; offices at 7373 West Saginaw Highway. Lansing. MiChigan ~. Post Office Distirct 7, Robert Rider, Hart, R.l; from the groups. For An alert, inquiring, ar- a controlled press. Box 30960. Telephone, Lansing (517) 323- 7000. Extension 508. Subscription 80 cents per year. Publication price, No. District 8, Larry DeVuyst, Ithaca, R-4; District 9, Donald Nugent, Frankfort, 1; District 10, Richard Wieland, R- r--------------------------------------. .' MOVING? I , 345040. Ellsworth, R-l; District 11, Franklin Established January 13. 1923. Second. Schwiderson, Dafter. Planning to move? Let us know eight weeks in advance so you class postage paid at Lansing, Mi. and at additional mailing offices. DIRECTORS AT LARGE: Walter won't miss a single issue of the MICHIGAN FARM NEWS. Attach Frahm, Frankenmuth; Michael EDITORIAL: Donna Wilber, Editor; Pridgeon, Montgomery; Robert Rottier, old label and print new address in space provided. Mail to MICHI- Marcia Ditchie, Connie Lawson, Newaygo. Associate Editors. GAN FARM NEWS, P.O. Box 30960, Lansing, Michigan 48909. OFFICERS: Michigan Farm Bureau; WOMEN OF FARM BUREAU: Mrs. President, Elton R. Smith, Caledonia, R. Andrew Jackson. Howell. R.4. Name _ 1; Vice President, Jack Laurie, Cns FARM BUREAU YOUNG FARMERS: City; Administrative Director, Robert David Conklin, Corunna. Address _ Braden, Lansing; Treasurer and Chief Financial Officer, Max D. Dean; POSTMASTER: mail to: Michigan In using Farm form 3579, News, 7373 City State Zip Code _ Secretary, William S. Wilkinson. DIRECTORS: District " Arthur West Saginaw Highway, Lansing, Bailev, Schoolcraft; District 2, Loweil Michigan A8909. County of Membership _ FEBRUARY, 1979 FARM NEWS PAGE' 3 MSU President Harden Honored by AG Conference Dr, Edgar Harden, In presenting the award, the foodand fibre our citizens. president of Michigan State Frank Merriman, past need," said Merriman. He University, was honored president of the MAC and said Harden's ability to work January 10 by the Michigan former MSU trustee, said with the governor and the Agricultural Conference for farmers are pleased that Dr. Legislature to gain funds for his distinguished service to Harden has "been able to agricultural research has agriculture and the people of regain a sense of direction for been especially appreciated Michigan. The MSUpresident Michigan State University" by the farming community. received a standing ovation and expressed the hope that- -from the nearly 1,000 farm- the board would appoint a In accepting the award, Dr. ers, agricultural leaders, successor who would "build Harden said, "I accept this in agri-business representatives on the foundation he has the knowledge that I had "the and legislators attending the built." greatest teacher ever at 31st Michigan Agricultural "Michigan State University Michigan State University - Conference legislative dinner is the only university those of John Hannah -- and I share at Kellogg Center, East us in agriculture can look to with him what it represents." Lansing. for assistance in producing Governor William G. Milliken introduced the new director of the Michigan Department of Agriculture, Dean Pridgeon, who was recently appointed to succeed retiring B. Dale Ball. Governor Milliken called Pridgeon "a farmer in the Rep. Everitt Lincoln was the winner of the Iood baslcet deepest sense of the word" contributed by the Michigan Farm Bureau during the legislative and lauded him for his door prize drawing at the Michigan Agriculture Conference "distinguished' service" on banquet. the Department of Natural Resources Commission -- Farm Bureau, was won by agriculturally - oriented "where his knowledge, Rep. Everitt Lincoln o.f groups (including Michigan sensitivity, and breadth of Albion. Farm Bureau). It serves as a view earned" the respect of The Michigan Agricultural sounding board and advisory all." Conference legislative dinner ass9ciation, especially in is an annual affair, coinciding regard to the Extension "I think the appointment of with the opening of the Service, Agricultural Dean Pridgeon as director of Legislature and features Experiment Station, and the the department signals the "loot bags" of Michigan College of Agriculture and t strengthening of the _ part- agricultural products. The Natural Resources at - nershi p between those en- . MAC is a federation of Michigan State University. trusted with preserving the environment and those charged with using it in a MFB Legislative Counsel Robert E. Smith (right) chats wHh productive way for the MDA Director Dean Pridgeon (standing) and MIchigan benefir of all society - the Agriculture Commission Roberl ChaHin following presentation farmers," he said. 01 the r 919 M/chlg"an Farm Bureau policies belore the Com. mission on January roo The governor als'o discussed his proposal for a .'Food Fair" to run con- currently. with the Michigan B. Dale Ball State Fair on the state fairgrounds. promote It "would "Grown in . Tribute' Set , Michigan" produce and could _be expanded to include a- tra veling food fair to promote The agricultural industry will pay tribute to B. Dale our agricultural products Ball, recently-retired director of the Michigan Depart- throughout the United States ment of Agriculture, on March 15 at Kellogg Center, and in foreign countries, he Michigan State University, East Lansing. Farmers and agricultural leaders from throughout the explained. Look ahead this Winter state and nation are expected to be on hand to pay tribute Dan Baker of Texas, professional speaker and Though growing season is over and the land is at to Ball for his many years of service to Michigan rest. the cold winter months can be the most agrictPture. A limited amount of tickets are available for former minister, spoke on "Real People in a Real productive on your farm. the event at a charge of $10per person, which will include dinner and a contribution toward a gift. A hQSpitality Business." Baker reminded Use them for planning, for setting goals for the hour, with cash bar, will begin at 6 p.m. and dinner the large audience that future, and the return on your winter months may served at 7 p.m., followed by a brief program. although America has surprise you. Use the form below to make your reservations. Make problems today, life is still Top managers plan ahead. They decide, checks payable to the Michigan Agricultural Conference. basically good and so are sometimes with the aid of a lender or other advisor. Reservations will be taken on a "first come-first serve" people - because "God don't how things should happen. They shape events basis. Reservations must be received by March 1. make no junk!" rather than letting events-shape them. Wrapping up the evening Goals will help you shape events. Make your Send to: was the - drawing for goals realistic. Make them for the short run and Michigan Agricultural Conference legislative door prizes. the long run. Some will be large and some will be 921 N. Washington Winners of 6o-pound bags of small. Make them specific and measurable, so Lansing, Michigan 48903 - sugar, courtesy of Farmers you'll know when you've met them. Please reserve __ tickets for the TRffiUTE TO B. and Manufacturers Beet Look ahead this winter by setting goals for your DALE BALL dinner for: Sugar Association, were year ahead. Need someone to talk to abotl t goal Senator Edward C. Pierce of setting? Try us; we're good listeners. Chances are Name -_.....:.-_--------------- Ann Arbor and Rep. Robert Welborn of Kalamazoo. that we can help when it comes to your financial goals and a line of credi t to meet them. Address _ Winners of choice steaks, -courtesy of the Michigan Michigan Production Credit Associations City Zip Code _ Agriculture Conference, were Alma I Bay City I Grand Rapids I S.E. Michigan (Adrian) I Rep. Drew Allbritten, Grand Kalamazoo I Lansing I Sandusky I Traverse City We cannot attend, but enclose a contribution for his gift. Rapids; Rep. Lucille McCollough, Wayne; Senator Robert Young, Saginaw, and Note: Make checks for tickets or gift contribution Rep. Raymond Kehres, '1 " .... Fanning is everybody's bread & butler. payable to Michigan Agricultural Conference. Monroe. The food basket, ........... - ... - -. contributed. by Michigan • PAGE 4 FARM NEWS FEBRUARY, 1979 Gateways to World. Markets FBS Joins Farmers Export Company By Paula Mohr their produce nation-wide, they soon learned the ficient East Coast ocean-loading facility for the Foreign marketing doors will be opening for middlemen who transported and sold their goods Midwestern states of Michigan and Ohio and Michigan-produced grains with Farm Bureau were interested in personal profits, and not in agreed to arrange for the three-million bushel Services, Inc. announcing membership in seeking true crop values. This spurred farmers terminal, which is currently being renovated, he Farmers Export Company (FEC), a rapidly to band together, forming cooperatives. But said. expanding marketing cooperative located in when foreign exporting markets opened, similar The major U.S. agricultural marketing Overland Park, Kansas. The announcement was obstacles were encountered: only big cor- cooperative includes two other new members, made by Elton R. Smith, president of Farm porations operated facilities for overseas trade. Landmark of Ohio and Ohio Farmers Grain Bureau Services, Inc., and James A. Layton, Indi vidual cooperatives lacked financial Corporation. The twelve-member co-op president and chief executive officer of FEC. strength to compete with these corporate giants. forecasts bulk grain shipments to the new In addition, the FEC has recently finisbed This time, cooperatives united and pooled their Pennsylvania terminal to originate from Ohio negotiations for their first East Coast grain resources, and in 1966, the Farmers Export and Michigan. terminal in Philadelphia, equipped with ocean- Company was born, opening doors for direct export facilities. The export company also has producer grain exports .... Other member-s include Far-Mar-:Co.,.Inc. of terminals located in Alma, Louisiana and Kansas, .Farmers Grain Dealers Associated of This brings Michigan grain producers into the Iowa, Farmers Union Grain Terminal Galveston, Texas. The three terminals will push picture. total annual shipping capacity to 550 million Association of Minnesota, Illinois Grain Cor- bushels. "The Michigan Elevator Exchange is always poration, Indiana Farm Bureau Cooperative For Michigan grain exporters, this integration trying to find better markets-and prices for grain Association, Inc., Kansas City Terminal into world markets will increase grain sales, producers," Kunz said. "By consolidating with Elevator Company, Mississippi Federated encourage competitive farm price~ and increase other states, it is. possible to peI).etrate and Cooperatives, St. Louis (Missouri) Grain Cor- farm investment values, said Donn Kunz, directly export grain to world markets." With poration and Missouri Farmers Association. manager of the Grain Department of Michigan facilities offered coast to coast, world buyers will Elton R. Smith and Edward R. Powell, vice Elevator Exchange, a division of Farm Bureau be able to purchase the quantity and quality of president of Michigan Elevator Exchange Services, Inc. grain desired, he pointed out. Division, Farm Bureau Services, were appointed When farm producers first began marketing The FEC realized the importance of an ef- FEe board directors. The Farmer. Exporl Company has completed negotIatIon. for thl. East Coast termInal In PhIladelphIa. Most graIn .hlpment._to this termInal will orIgInate from ,!"chlgan and OhIo •. Expansion o.f Mid-States Adds Market Power Fall of '79 Tar~et Date for Completion Adding to the marketing president of 'Michigan power of Michigan grain Elevator Exchange, a producers will be expansion division of Farm Bureau of'Mid-States Grain Terminal Services. Boat loadings for at Toledo, Ohio. 1978were 109, setting a new Already the largest grain- record. Total .export sales, loading facility on the exceeding $250million in 1978, Maumee River at the Port of also set new records. Toledo, the terminal is owned . The current expansion jointly by Farm Bureau plans call for 32 additional Services, Inc., Landmark of storage tanks, bringing total Ohio, Ohio Farmers Grain capacity to nine million Cooperative and Indiana bushels; one additional boat- Farm Bureau Cooperative landing facility; six high- Association. speed truck unloading dumps The expansion calls for and improved railroad car nearly doubling its storage hauling. It is expected that capacity and will allow for grain trucks can be unloaded two boats to load in less than four minutes. The simultaneously instead of the target date for completion is- one it can currently handle. fall of 1979. This will be the fifth ex- Mid-States shipped more pansion of the terminal since than 22 million bushels of its acquisitien in 1959, the soybeans last year, making it same time as the opening of the largest exporter of that the S1. Lawrence Seaway. ' commodity on the Great These constant expansions Lakes. The elevator The outline show. the expansIon planned for MId-State. TermInal In Toledo, OhIo. WIth the ex- have been warranted by operation also shipped more pan.lon, two ~ats will be able to load ,/multaneously, storage capacHy .,..,11be doubled, and graIn grain movement increases than five million bushels of truck. will be unloaded In Ie.. than four minute •• The facility Is owned by Farm Bureau ServIces, "c., over the years, explained wheat and 25 million bushels LCI!l~crck01 O"!~ .._Ohlof~._ GraIn c..o!'P!r:ot've.C!'!~ !n.d!anf!fa~"1~Bu,..au CooperatIve AssociatIon . Edward R. Powell, vice of corn. .. .... , •• II • FE BRUARY, 1979 FARM NEWS PAGE 5 Open to Michigan' FarlDers -Latest Market Penetration Allows Co-ops to Make Competition--Not Just Meet it _Membership by Farm serving over 100 country Bureau. Services, Inc. in the elevators in Michigan. Farmers Export Company is Despite this continuing, r the latest in a continuing aggressi ve expansion series of efforts by farmer program, MEE still faced the cooperatives to penetrate problem of having to sell its various levels of the grain grain to five international marketing system. grain companies - whose There was a time when the major interest was not a good only place farmers could sell. return for farmers. So, far- their grain was to local, mers, through MEE, decided privately-owned elevators. to tackle the next penetration There was no. expanded through consolidation. Two marketing system and co-opsin Ohio,one in Indiana, therefore, farmers had to and Michigan Elevator take what they could get for Exchange, purchased the their product. So they pooled Mid-States Terminal at their capital and built or Toledo, providing direct bought their own facilities. access to world markets via Soon there were farmer- the St. Lawrence Seaway. owned grain elevators in This facility brought MEE's nearly every county.. total storage capacity to 17.5 As the years went by, million bushels, enabling it to earnings were plowed back become Michigan's largest Total capacity at tit. Sag'naw '.rmlnal I. 2'1. ""810ft "., ...... and Ita. a sIt'p load-out capac'ty 25,000 hush." p.r ho.ur. Dr.dg'ng 'n tit. ""p 'ood~uf area was completeel last fall. 0' into better services and facilities and the net worth of -handIer of grain and beans. Still faced with the inability the local co-op grew. The to compete with the major farmer who patronized his co- international grain com- op ended up with his money. panies which have very back in a shared ownership wealthy backing, farm~r worth many times his cooperatives took yet another original investment. step toward penetration of Despi te these local world markets - formation of cooperatives' efforts to keep a Farmers Export Compa~y, abreast of farmers' needs, oW'.1ed by .12 major the farmer modernized faster a~rIcultural re~lOnal ~~ps than the country elevators, :W-Ith oc~.n-loadmg faCIlIties demanding services and In. LouIsI~na, Texas and facilities the locals could not Phll8:delphla.. supply fast enough. Michigan !h~s latest step gIves Elevator Exchange had ~Ichlgan farmers an en~y entered the picture by this m~othe world m.arkets WhI~h time, acting as the farmers' ~Ill e.nhance theIr ownershIp, marketing agent. MEE gIve mcr~sed value back to i m pro v ed m a rketi n g farmers In the form .of techniques, found new buyers patronage refunds., or. m- and gathet:ed enough capital vestment of earmng~ I~to to expand its marketing clout. even greater penetratIon. of world markets - all of which Grain termin.als at Ottawa serves to elevate farm prices. Lake,. SagInaw .and Most important, it puts MarysvI~le, and the Qwncy farmer cooperatives in the - Total storage capacity at tit. Ottawa Lair. t.rmlnal', 6 mlll'on hu.h.I. wltlt th. recent completion two silos. The facility can Itandl. a 100-car unl, 'rain, ""'ng 10cars per Itour. 0' Flour MIll became a part of MEE's marketing system, position of MAKING com- petition -- not just meeting it. Expande~. Market SysteDl Topic at "Open Line'" Gasohol Also.on A~enda Farm Bureau Services' expanded grain marketing "muscle" will be reviewed during a series of "Open Line" meetings in February, according to Executive Vice President Donald R. Armstrong. Meetings are scheduled for February 13 at McGuire's in Cadillac, February 20 at Countryside Inn, east of Battle Creek, and February 23 at Zehnders, Franken- muth. Coffee and rolls will be served at 9:00 a.m., with each meeting starting promptly at 10:00 a.m. A com- plimentary "farmers' luncheon" will be served at noon ~nd adjournment is set for 3:30 p.m. Also on the agenda will be a discussion on energy and the economics of gasohol, presented by Professor Bill Stout of Michigan State University's Agricultural Engineering Department. All Farm Bureau members are invited to attend the lb. Mary •• "'. t.rm'nal II anoth.r part stat. '. ,rain produc.r •• 0' th. Mlcltl,an EI.vator belton,. facllltl •• wftldl •• r.. 'h. "Open Line" meetings in their area. (See advertisement in this issue.) PAGE 6- FARM NEWS FE BRUARY, 1979 • Michigan IS Well.Represented Michi~an Farlll Bureau Convpnlion C~nter Hooored for Pro~rallls The Michigan Farm Agricultural Marketing Bureau was recognized as Association), marketing one of the top states in the (non-AAMA), policy WELCOME AMER\CAN FARM. na tion in program development and national achievements during an affairs. Silver stars were won BUREAU FEDERATION awards program at the for commodity activities, American Farm Bureau -JA N '-5. II Federation annua~meeting in women's program, formation, local affairs and in- RINGLING IRO CI Reus Miami Beach. The awards were presented during an political education .. The 11 stars put Michigan J A N 16-26 NOH ALL intermission of the 1979 premiere performance of fourth in the nation, ranked behind New Mexico, North Ringling Brothers and Dakota and Illinois. The Barnum and Bailey Circus, Golden Eagle award for shown exclusively for Farm exceptional service to Bureau on January 16. producing. farmers, which Michigan Farm Bureau Michigan has wonfor the past President Elton R. Smith several years, was not a part accepted the organization's of the awards program this six gold stars and five silver year. stars. Gold stars were Nearly 500Michigan Farm Nearly 500 Michigan Farm Bureau members were In Miami Beach, Rorlda, lor the American Farm received for membership, Bureau members were in Bureau Federation annual meeting. A premiere performance of Ringling Brothers and Barnum and young farmer activities, Bailey Circus was shown exclusively lor Farm Bureau members at the awards program. Miami Beach for the ac- marketing (American tivities. FB LeQders Urged: Grant Tells FB Women '79 Will be Crucial Year "Get Vocal on the Local" leadership must come from local county Farm Bureaus." He said the state Farm Leads a Bur.eau must work at the state level; the American Farm Bureau must work at the national level; and the . county Farm Bureau must become more active at the local lev~l of government. "Farmers and ranchers can no longer sit by without inputting into local govern- . mental affairs," Armstrong said. Ken Cheatham, director of local governmental affairs Mrs. Vivian loti (rlg~t) accepts a Silver Star for the Michigan for AFBF, told the conference Farm Bureau's women's program. Mrs.. loft, chairman of the participants that becoming MFB Women's Comm/ffee, and four other women from the more active in local govern- state comm/ffee represented Michigan at the Women's Con- ment is a good way for a ference. county Farm Bureau to American Farm Bureau election 'and he has some provide more direct service Federation President Allan outstanding political debts to for members at the county Grant plainly outlined the pay, particularly to organized level. challenges to agriculture and labor," he advised .. "Can you sell a Farm the U.S. economy in his In a brief outline of political Bureau membership based on remarks before the Farm edhcation and com- what your county is now. Bureau Women's delegates munications activities for the doing?" Cheatham asked. and members on January 16 year ahead, Grant urged the "Farm Bureau is opposed at the AFBF Women's women to work with other to the centralization of the Conference in Miami Beach. farm and non-farm groups to RonNelson of MIchiganFarm Bureau's Public AHalrs Division federal government but for served on a panel on local aHa/rs. Michigan Farm Bureau's Grant warned " ... the oppose national health in- the last decade, we in Farm concerns we face are such surance, and to share the rural crime prevention program was of Interest to members Bureau have been guilty of from other states. things as the continually farmers' viewpoint regarding becoming more centralized. rising national' debt, the nutrition programs, world We must return emphasis to hunger and the inflationary MFB'S Rural. Crillle the county level. We must identify our county Farm cheapening of our dollar through deficit financing, impact of unchecked growing consumer and en- government spending. Bureau as a problem solving Pro~ralll Reviewed organization at that level of vironmentalist pressures and the future apportionment of A total of 229 votiQg delegates attended the AFBF government," Cheatham Congress." Women's -Conference in The president of the Kansas annual meeting of the said. Miami Beach. Representing Farm Bureau, John Junior American Farm Bureau Ron Nelson, who heads He also told the women that the Michigan Farm Bureau Armstrong, urged county Federation in Miami Beach. Michigan Farm Bureau's 1979would be a crucial year Women were Mrs. Vivian Farm Bureau leaders to get "Farm Bureau members Local Affairs program, took for the Carter administration, Lott, Ingham County; Mrs. "vocal on-the local" and have are concerned about the need part in a panel discussion on farmers and ranchers and the Claudine Jackson, more impact on local for more involvement in local "Successful Programs and Farm Bureau. Carter is Livingston; Mrs. Faye Adam, governmental affairs. governmental affairs. We How They Work," and beginning to learn to work Sanilac; Mrs. Olis Hudson, Armstrong presided over the must get our message across reported on Michigan's with the Congress, Grant Livingston, and Mrs. Kay local governmental affairs to local governments," successful Rural Crime said. "He (Carter) is getting Wagner, Northwest conference held at the- 66th Armstrong said. '.'And the Prevention program. set forI tile 1980presi.d~nttal Michigan..•. FEBRUARY, 1979 F A R M NEWS PAGE 7 at American Farm Bureau Annual ART HOLST ALAN GRANT Peter Edick "Get in National Involved" Condemns National Talk Meet "It's that little difference that can make a big dif- Health Care Plans ference in your Safemark Peter Edick of Eaton County program,' said Art Hoist represented Michigan In the during the 1979 Safemark American Farm Bureau Conference held in con- Federation's national Discussion junction with the 60th annual Meet. Edick won state honors meeting of the American during the MFB annual meeting In Grand Rapids last November. Farm Bureau Federation. Hoist, who is well-known as a National Football League referee, said, "We paint a line Blosses are Winners across the football field and (Continued from Page 1) we call it the goal line; get- ting there is another thing, Announcement of their recognition needs the at- and when you get there you award came as a "complete tention of those who made it have to have the right surprise" to the Blosses, who successful. material." looked upon their trip to Candidates for the "Out- Hoist challenged the crowd Miami Beach as an op- standing Young Farmers and to get involved, to be a portunity to talk with other Ranchers" title are judged on problem solver and to speak farmers from throughout the farm management abilities the same language as the nation and to see their and the amount of progress person with whom they are organization in action at the made in the farm operation communicating. national level. from the point at which the During the Safemark Before the afterglow of individual started farming. Conference, Leo Waggoner, ALAN GRANT sudden fame had faded, the Consideration is also given to administrative director of the young farm couple was the applicants' demonstrated Iowa Farm Bureau American Farm Bureau with and an idea whose time already making plans to go leadership abilities, both in Federation told the group President Allan Grant con- has come." home and continue their Farm Bureau and in his local that the real success of the demned nationalized health Grant suggested that the farming business. "After community. Safemark program is the care plans, called for con- best way to accomplish all," they said, "our goal was The couples sharing the quality of goods and com- stitutionally imposed spend- spending limitation goals not winning a national title. title with the Blosses are petitive prices Safemark ing limitations and urged would be by an amendment to Our goal was a good farming Steven and Pamela Went- offers. He also said the deregulation of the tran- the U.S. Constitution operation." And a successful worth of Orena, Illinois, and Safemark program can en- sportation industry in his "limiting the spending farming operation that David and Karen Hagert of courage a person to join or address before the 60th an- authority of Congress to a commands n a t i o n a l Emerado, North Dakota. rejoin the organization. nual AFBF meeting in Miami realistic percentage of the Beach January 14. gross national product." "The theory that the people The amendment should be RONALD REAGAN of this country suffer from a initiated by Congress, ratified tremendous gap in health by the states and contain a 44 it care which only the govern- clear-cut commitment for the Government is Not Answer ment can bridge is a political orderly reduction of the fraud," Grant said. national debt, he added. Ronald Reagan addressed "The opportunity for waste the general session of the Charging that railroad, and outright fraud within a airline, bus and trucking American Farm Bureau national system of com- industries have been severely Federation's 60th annual pulsory health care would damaged by excessive, long- meeting and called surely produce scandals to time regulation, Grant said, restoration of the balance make those of Medicaid and "The best thing that could between the levels of Medicare seem mild by happen to the entire trans- government one of the great comparison," he said. portation industry would be issues of our time. In calling for spending to allow competition back in The former California limitations, Grant labeled by turning the government governor said it is time for them "a force to be reckoned out." Washington to turn back to the state and local govern- ROBERT STRAUSS DELEGATES SAY ments "the programs which it has usurped and which it is inadequate to administer." He cited massive federal Reports on "No on welfare programs as an example, then warned that Trade Talk Flexible federal aid to education has The administration's trade 9 now turned into federal control of education. package was described as "a real step forward, instead of Parity ' Delegates to the 60th an- He told the 7,500 Farm backward, and no closing of nual meeting of the American Bureau members that markets or erection of more Farm Bureau Federation re- "government is not the an- trade barriers," by Robert jected the idea of "flexible swer. It is the problem." He Strauss, the President's parity" by an overwhelming said the bureaucracy, which special representative for he characterized as "per- trade negotiations, who vote on January 18. manent employees of the addressed delegates at the At a session that ran late government," actually AFBF annual meeting. into the night, a delegate pro- makes more decisions about Ambassador Strauss said posed replacing the Food and our daily lives than our we stand at a time of Agriculture Act of 1977 with a elected representatives. "unusual peril and unusual plan of flexible government Reagan said government RONALD REAGAN prospect for improvement of supports tied to production "now costs the average bodies take 44 cents out of "Inflation," he said, "has our international trading controls. family more than food, every dollar earned by one cause, and it isn't prices system." He warned that After 90 minutes of debate, housing and clothing all put Americans . . . which pro- and wages. It is caused by "pressures to close borders the proposal was turned down together," and he pointed out rates out to $9,600 for every government spending more here as well as abroad have be a lop-sided count of that various governmental family in the country. than government takes, in." never been so strong." 189-4$.. ... PAGE 8 FARM NEWS FE BRUARY, 1979 Farmer Cooperative Retha Hank~y Appointed Growth Threatened By Paula Mohr 3) Concerning agricultural Beef Commission V. P. Farmers may be facing marketing orders, the The Michigan Beef legislation this year designed Secretary of Agriculture Jndustry Commission has to limit, agricultural should be required to select announced the appointment cooperatives, predicts a the alternative that is the of Miss Retha Hankey of House Agriculture Com- least anti-competitive. At the Lansing as executive vice mittee chairman. present, the secretary can set president of its nine-member Thomas S. Foley, (D- marketing orders without council. Hankey, the first Washington), addressing an having to consider the woman to head a Michigan annual National Council of competitive factors. commodity organization, Farmers Cooperatives For Michigan farmer:s, succeeds Richard Posthumus (NCFC) meeting recently, limiting cooperative mergers of Lowell, who has served as said the legislation will result would affect efficiency and executive vice president from recommendations of the advancements within the since the commission was National Commission to agricultural industry, -said created in 1972. Review Antitrust Laws and LA Cheney, executive Procedures. The recom- secretary of the Michigan Posthumus has been ap- mendations, sent to President Association of Farmer pointed by the Minority Carter in late January, called Cooperatives. Leader ofthe Michigan House for modifications to the "We've had a large number of Representatives, Willjam Capper-Volstead Act af- of cooperatives joining Bryant, Jr., to be the director fecting cooperative mergers together to improve the ofProgram Development and and cooperative marketing operation and efficiency of Legislative Research for the agencies in common. business, and to improve House Republicans. The Capper-Volstead Act of methods and techniques Hankey, who served as 1922permits farmers to join which serve farmers," he Consumer Information together to process, prepare said. All Michigan farmers specialist for the commission, for market, handle, and would be affected if will co"ntinue her role in market the farm products of cooperative expansion were consumer' services until a the members and patrons. regulated, he added. new specialist is appointed, The 22-member com- The USDA estimates that while also undertaking ad- mission. established by the five out of six of the nation's ministrative and legislative President in December, 1977 farmers are members of one duties. to review antitrust laws and or more agricultural With her strong procedures, has specified the coopera ti ves. Approxi=- background in consumer three following recom- mately, 4,500 farmer education, and established RETHA HANKEY mendations: cooperatives serving more contacts in the area, Hankey 1) Although organization of than 3.5 million farmer said she is looking forward to "Beef consumption is in- activity is done-three times a agricultural cooperatives is memberships are the challenges her new creasing in institutional and year. But it pays off: "Studies favored, criteria for judging represented in the NCFC. position will bring in beef hotel areas," sh~ said, "and I show that visual aids have the antitrust treatment, with As Cheney and Kenneth D. promotion. would like to expand further great immediate impact on regard to mergers, and Naden, NCFC president, into institutional consumers. They're very She said the commission . man~gement." successful with getting the marketing agents in com- point out, the commission is will continue to build a mon, should be the same as it comprised of few cooperative In conjunction with the idea across," 'she said. positive program in the Hankey. received her is for other companies (this supports and few understand consumer information area American Dairy Association, means limited cooperative the uniqueness of agricultural the Beef Commission is Bachelor of Science degree in by Feaching consumers Community Services and mergers and limited sales produ~tion and marketing. through print and broadcast currently involved with volume of cooperative But Chairman Foley said promoting dairy and beef Human Ecology and Masters media. The commission in Adult Education and members). cooperatives would not be bases its information on well- products in supermarkets. 2) The office of the' United decimated by ill-considered Advertising materials. such Comm unica tions from founded, documented Michigan State University. States Department of legi~lation, and suggested research, said Hankey. as colorful beef posters, Agriculture (USDA), which is that the Agriculture Com- mobiles and free recipes are She has worked for the responsible for promoting mittee might try to gain some Strong promotional ac- Michigan 4-H Youth tivities will also continue in being "displayed in grocery cooperatives, should be jurisdiction over the stores. Programs, Cooperative separate from the office legislation when it is in- retail areas, she said, adding -Extension Service, for three troduced in the House. _ she would like to increase Hankey said a lot of years prior to coming to the responsible for enforcing beef promotion in food ser- revenue is spent in super- antitrust violations. The Foley added, however, that Beef Industry Commission in the urban members of vice areas. markets since promotional 1976.. USDA presently promotes and enforces its antitrust Congress would not be easy to regulations. The commission approach on the issue. has also requested that the statement "undue price "The story of the value of cooperatives will have to be Beef Producers ReferendurnSet enhancement," in the Cap- told at the grassroots level per-Volstead Act be defined throughout the country," he Michigan beef producers law that a referendum be held ij'lrough livestock marketing more clearly: said .. will be given the opportunity- after the first five full agencies, local cooperative to vote on whether the calendar years of operation, Extension offices, and by Michigan Beef Industry to assure producer support. request from the Michigan Host Fanillies Needed Commission (MBIC) should continue to operate Any individual who sold" Department of Agriculture cattle in the 1978 calendar and the Michigan Beef promotional, informational year and'in turn, paid an Industry Commission. for Scandanavians and research activities for its MBIC assessment, can vote. I Ballots will be available in American host families are age 16 and 17, will arrive in producers. r late February and early being sought for 500 Scan- the U.S. in late August, 1979, Ballots will be made March. They must be mailed I dinavian high school students attend the local high school, The council was created in available by mail to Michigan to the Michigan Department from Sweden, Norway, and return home in late June, 1972 at the request of beef beef and dairy producers. of Agriculture by March 15, Denmark and Finland for the 1980.The students, all fluent producers. It is required by They will also be available 1979. 1979-80 school year, in a in English, have been program sponsored by the screened by their school DALE A. DEAN'S American Scandinavian representatives in Scan- Auctions Unlimited (R) Student Exchange (ASSE). dinavia and have pocket Selling Holstein Dairy Cattle money and medical in- Farm Machinery and Farm Real Estate The ASSE is also seeking surance. For Top Dollar at Auction American students, age 16-18, Anywhere in Michigan Persons or families in- Phone 517-279-9748 who would like to spend a terested in either of these high school year with a programs should contact Coldwater, Michigan Scandinavian family or Beth Beeker, 1136 N. Miller For 32 years Dale has proven he knows the way to do It better! ! participate in a five-week Rd., Saginaw, Michigan Phone or write for free appraisal family stay in the summer of 48603. Telephone ,(517) 781- or 1979. 0323. Letters should contain List your farm with Dean's P.C. Dale A. Dean, President The Scandinavian students, the writer's phone number. FEBRUARY, 1979 FARM NEWS PAGE 9 Crop Reportinl? Service Changes Name Michigan Crop Reporting economic activity, which is a in many reporting activities. name will be instantly compiled data, with more service. has changed its name significant part of our total "Our primary concern is recognized and used." information interpreting to Michigan Agricultural agricultural data service," that the title more accurately In addition to the name charts and graphs. We will Reporting service,' effective explained Dr. Morrow. and completely describes the change, Michigan minimize tabular materials January 1, according to Dr. Don Fedewa, statistician- entire state and county Agricultural Reporting except in annual reports, " Ralph Morrow, Michigan in-charge of the reporting agricultural data base," service will be publishing a Fedewa explained. Department ~f Agriculture service, reported. that, since Fedewa said. consolidated statistical "We will be going to the deputy director, Bureau of development in 1917 of the "However, the title has release twice a month instead electronic media for its time Agricultural Development. original state-federal been used since 1919 and crop of the average 12 single sheet value, doing more radio "The change was made to cooperative agreement' for a reporting service has been in releases now issued. broadcasts to try to get in- better associate the livestock reporting service, the existence for over 100years, "Our consolidated formation to farmers faster," industry and to i,nclude division has become involved so we don't expect the new statistical releases will have he added. Dr. Hoefer .Appointed '- , '\ Gov. William G. Milliken has announced the ap- pointment of Dr. Jacob A. Hoefer, assistant dean of two colleges at Michigan State University (MSU), to the Natural Resources Com- mission. He replaces Dean Pridgeon who resigned to .. Open Line Meeting Looks Where 'Ibur Farm Comes First become director of the Department of Agriculture. FaRmr1 Milliken also announced the BUreaU reappointments of E. M. FARM BUREAU (Matt) Laitala of Hancock FARMERS PETROLEUM and Charles G. Younglove of SERVICES. INC at Farming in '79 Trenton to the commission. Be more productive; and get the most up-to-date in- Hoefer, 63,is assistant dean of the College of Agriculture formation on the 1979 growing and marketing seasons. and Natural 'Resources, Join the Farm Bureau folks at the 1979 Open Line assistant dean of the College meetings. The meetings are free with a complimentary of Natural Science, associate lunch served. Spend the day learning useful information director of the Agriculture In Cadillac Experimental Station, that could help you in the coming year Farm BureCiu's Feb. 13 at McGuire'.s director of the Kellogg new direct world-wide grain marketing the expan- Biological Station and sion of the Mid-State terminal in Toledo rising farm professor of animal In Battle Creek husbandry. fuel cost and what's being done abo~t it and a lot The governor said, "Dr. Feb. 20at Countryside Inn more. Hoefer is ideally qualified to 1-94 Exit 104 Agricultural leaders ... Co-op pre'sidents, Board serve on .this commission which has been taking on Members, leaders in farm supply and County Farm increasingly complex en- Bureau members ... are encouraged to attend these vironmental responsibilities. meetings and pass along the information to their local He has an outstanding farm groups. background in agricultural and environmental research. All Open Line sessions will be held from 10 a.m. to He brings a new dimension as 3:30 p.m. Come at 9:00 and enjoy coffee well as a broad outlook and and doughnuts. Find out what the under.standing of the in- terdependence of various 1979 outlook is for you and your outlooks of our environment. farm ... from the "Ha ving been born and reared on a farm, and being a S M T W T F S Farm Bureau people. \ leader in agricultural research and education, he is 1 2 3 well-suited to help the Department of Natural 4 5 6 7 8 9 lO Resources (DNR) relate to 11 12 13 14 15 16 17 . Michigan agriculture," Milliken said. 18 1"9,20 21 22 23 24 "And as a leader in the development of many natural 25 26 27 28 science and natural resources programs, he will bring to the commission a new per- spective on many aspects of ecology and environmental protection. ' , P'AGE 10 FARM NEWS FEBRUARY, 1979 Marketing Outlook Ground Bee.f Popularity Grows Despite Price lncreas.e ByJack Anderson common with steaks and popularity of ground meat capita consumption of ground comes increase, .per capita roast. The patrons 'of three will continue. Consumers meat is definitely on the in- ground meat consumption Economics contributed leading hamburger chains have reacted positively to crease, due in part to the trends .upward, with the earlier in the rise' in ground are consuming the equivalent buying proportionately more rapid growth of our food ~xception of the very highest beef popularity. Recently, of two million head-plus of of this nutritious and con- service industry, especially Income groups. however, ground beef has cattle each year and that venient meat and there is no the fast food outlets. _ It is estimated that 40 to 45 continued to increase in price figure is continuing to in- indication that we will see a Approximately 14 percent percent of oUr beef supply and, during this same time, it crease. turnaround in the amount of of the consumer's food budget reaches the consumer in a has continued to increase in ground meat being consumed is spent on ground meat. In ground form, as either cooked popularity. This trend is not It is predicted that the by the U.S. population. Per addition, as consumers' in- {Continued on Page 10 The word competition connotes different things to classify this as an oligopoly. The names are not as im- different people. For some the word is associated with an portant as the problems creat~ by such situations athletic event; for someone else it may mean a sales whether at t~e local, regional or national level. contest, while for others it may be associated with- One of tl:1e problems created by oligopolies, and politics. Whatever the type of activity it brings to mind, monopolies in particular, without going ipto all the the underlying concept is still the same. It basically technical details, is that they generally restrict output refers to the idea of outdoing someone who has the same and/or raise prices. This obviously means that some objectives as you. consumer demand goes unsatisfied. People who are not In sports it is one individual or team attempting in able to pay the higher prices cannot enjoy the .particular some way to prove its superiority, usually by scoring product or service despite the fact they would have been more points. To a salesman it means putting more of his able to buy it if the system were" 'perfectly competitive." products on the market, getting more dollars for his company or in some way outdoing others handling the Other problems associated with these alternative same or similar products. In poliUcs, it is a matter of market structures and competitive forms include convincing people that you are the best candidate or that restricted entry into the industry, rivalry based on your position on an issue provides the best solution, thus, factors other than price or product quality, imperfect convincing people to vote in your favor. The person or consumer information, etc. Each of these conditions, persons who put together the best team, the-best sales directly or indirectly, has an impact on the prices we pitch or the best campaign, win. pay. Likewise, when the people who purchase products But what does competition mean in economics? How or services possess these powers (as oligopsonists or- does winning in an economic sense influence the way monopsonists), this.will affect the prices received by the prices are set? Are there any rules to the game? These seller. Thus, competition and structural imbalances play are some of the questions that we will examine in our an important role in determining the levels of supply, discussion this time. demand and ultimately the price for the product being Competition, in an economic sense, is really no dif- bought or sold. ferent than competition in a general sense. C"ompetition In an industry characterized by only a limited number helps the economy Allocate scare resources. The game is of producers, producing virtually the same product, to offer the best product for the best price or offer the competition may be severely restricted. In fact, com- best service, attract customers and collect dollar votes. petition may be limited almost entirely to advertising or The person who collects the greatest number of dollar sales efforts because the companies fear the loss of ANATOMY votes is then able to bid for additional scare resources. The system is not perfect. Often there are flaws in its operation caused, perhaps, by a breakdown in com- revenue that might result from price competition. Our discussion of elasticity plays a big role in deter- mining what type of competition will or can take pl~ce in munication, some unscrupulous dealings or some alien these different competitive situations. Quite often in factor interfering with the signals in the market place. In industries where only a few firms exist, they are able to a society classified by economists as "perfectly com- assess the moves of their competitors with surprising OFA petitive," prices are established by the interaction of large numbers of buyers and sellers. No one of them is in a position to influence the market for a given product accuracy. In the food distribution chain, competition can be viewed from several vantage points. Competition at the because products or commodities are assumed to be all production level is often quite different from that which PRICE alike (homogenious) and every participant in the market for that product-or commoqity has an equal amount of knowledge about the market. takes place at the wholesale or retail levels. One of the imp~nding issues in the future will be related to the amount of competition among and between various But where does this ideal situation exist? It doesn't segments of the food chain. The public and elected of- exist in the "real" world. It serves only as a tool to ficials have taken an increasing interest in the amount of measure reality against a sort of ideal or standard that competition and the price discovery process in would be nice to achieve. So what does happen in the agriculture. ,rreal" world? What sort of competition is really being Agriculture, in some instances, has enjoyed a us~? . favorable position regarding the legal rules designed to Competition and ultimately prices are very closely tied protect the competitive nature -of the American to the structure of our economy. Structure refers economy. Special legislation allowing cooperatives to be COlnpetition primarily to the number and type of businesses producing a given product. It is also important to created and 'flourish in now under close scrutiny. Similarly, some segments of the food chain have examine how many substitutes are available for the repeatedly attracted the attention of the Federal Trade product in question. In a situation where only one Commission and Justice Department by their actions company is manufacturing a product that is being relating to "fair" competition as defined by such demanded by the public and for which there are no close legislation as the Sherman Anti-trust Act, the Clayton By: Dr. Paul Kindinger substitutes, the company has a great deal of influence Act, etc. Director over output and price. We generally refer to this as a In our. next discussion of the "Anatomy of a Price - Commodity Activities and monopoly. Part VI," we will take a closer look at some of the "non- Research Division Similarly, where only a few producers are in business market" factors that seem to play an increasingly im- Michigan Farm Bureau and their product is very similar, economists often portant role in determining prices. FEBRUARY, 1979 FARM NEWS PAGE 11 Cattlenlen Get Views on Consumer Attitudes National Paranoia is B~ Business Consumers and cattlemen can at least agree on one issue: good nutrition, said Charles E. Ball, executive vice president of the Texas Cattle Feeder's Association, at the Michigan Cattlemen's Asso- ciation Thirteenth Annual Convention and Trade Show January-19 at Long's Conven- tion in Lansing. But from there, issues on beef prices, food additives and meat's nutritional value divide - the two groups. "Consumer movements with their regulations and government interventions are alarming the meat industry," said Ball. He proposed working with consumer groups on nutri- tional research and education programs to inform the public CHARLES BALL about the nutritional values of BARBARA KEATING beef. "We must be objective and aggressive in giving infor- mation to the consumer," he added. NOTICE OF ANNUAL MEETING "We learned what a minor- FARM BUREAU MUTUAL INSURANCE COMP ANY ity can accomplish when we OF MICHIGAN stick together against opposi- The annual meeting of the policyholders of. Farm Bureau Mutual Insurance Company. of Mfchi~an, a corporation, will be tion," he said, in reference to held at its Home Office, 7373West Saginaw, Lansing, Michigan his own state's organization, on Wednesday, February 28,1979, beginning at 1:30 p.m., for the and urged Michigan cattlemen following purposes: to vote for the Michigan Beef 1. To receive reports from officers and management. Industry Commission in the 2. To elect directors. upcoming March referendum. 3. To consider such other matters as may properly corne National paranoia is big' before the meeting. business, Barbara Keating, _ Attest: February 1,1979 W.S. WILKINSON Elton Smith president of Consumer Alert, Secretary President told the beef producers and Policyholders may obtain a copy of the Annual Report from any pointed out that $500 is paid County Farm Bureau Office or from the Home Office at Lan- annually per person for con- sing. sumer-oriented regulations 1919 enacted by Congress. Elton R. Smith President The consumer advocate urged the reversal-of growing .NOTICE OF ANNUAL MEETING ,\\ ' .. government intervention and regulations .. FARM BUREAU LIFE MICHIGAN INSURANCE COMPANY OF The annual meeting of the stockholders of Farm Bureau Life' t t' " In 1977 alone, Congress enacted 223 laws to protect us Insurance Company of Michigan, a corporation, will be held at \ its Home Office, 7373 West Saginaw, Lansing, Michigan, on Mllee Hayenga, l Operations Manager of the Michigan against ourselves,' Keating I said. "It makes yo~ wonder how we've come this far." Tuesday February Ti, 1979,beginning at 1:30 p.m., and for the following purposes: 1. To receive reports from officers and management. 2. To elect directors. ,'Consumers want to see Agricultural Services Association (MASA), manned an In- 3. To consider such other matters as may properly come formation booth at the Michigan Cattlemen's Association their choices expanded, not before the meeting. convention to tell the' crowds about MASA's new programs. edicted. by government," she Attest: February 1, 1979 . John Koster, Ottawa County, signs up for a drawing, the winner said, and emphasized the W.S. WILKINSON ELTON R. SMITH of which will receive a year's membership In MASA's In- need for further consumer Secretary President formation program., education groups. Policyholders may obtain a copy of the Annual Report from any County Farm Bureau Office or from the Home Office at Lan- sing. Ground Bee.f Popular NOTICE OF ANNUAL MEETING steers or heifers and COMMUNITY SERVICE INSURANCE COMPANY ridges are structurally deficient or functionally ob- solete, according to projections based on data in the National Bridge Inventory conducted by the Federal,Highway Administration. Michigan bridge deficiency is in the following two categories: a. "Major structural deficiency" by federal inspection standard: These bridges are inadequate to handle heavy trucks and buses that ply connecting roads. Most structural deficient bridges in the state were built prior to 1905 and were designed for less than 15 ton vehicles. Many are now posted for vehicle weight limits of between five and ten tons, as a safety precaution. FEBRUARY, 1979 FARM NEWS PAGE 23 FARM BUREAU MARKET PLACE SPECIAL RATE TO FARM BUREAU MEMBERS: One free 25 word ad per month per mem- deadline: 13th of Month. Mail classified ads to: Michigan Farm News,P.O. Box 30960,Lansing, Mi. bership, additional words, 10 cents each. Figures such as 12 or 512.50 count as one word NON- 41909Publisher reserves right to reject any advertising copy submitted. MEMBE R advertisers: 15 cents per word one edition, two or more editions, 10 cents per word. COpy FARM EQUIPMENT LIVESTOCK LIVESTOCK MISCELLANEOUS REAL ESTATE NEW FORD TRACTOR MOTOR, 5000 FOR SALE: YORKSHIRE & .sPOTTED TRAVEL AGRIGROUPS ABROAD. Visit WANTED- Beef, Horse, Hog, Fruit, SocI, series, complete with gel'\erator and starter - servlceage boars and open gilts top OF INTEREST apple, peach, pear, grape growers. See Dairy Farms, prefer milk parlor setup, 120 processing of procluce. Enjoy vacation. to 3.000 acres north of Port Huron, Lapeer, - ready to run. Brighton .. (313) 229-2277, 778D Challis, (2-lf-18f) bloodlines registered tested at MSU test statIon. stock. Richard CoolV 'h mile east All TO WOMEN business tour in beautiful Alps. Switzerland, Owosso to Thumb areas. Write or call farm Mulllk~, M-AJ. Phone (517) 6-49-8988. (11-ft. Italy, Austria, with St. Gothard Pass, Milan, broker at United Farm Agency,. 17604 M-2A, FOR SALE - 1070 Case w-cab & heat, 12 speed power shift, 18.Ax38 tires, dual remote 25f) WHAT? ME Verona, Venice, days, departing and quaint Innsbruck. July 7, 1979. Contact Gordon 13 Caro, Mict). 48723, phone (517) 673,6888. (2'6t- 25f16p) hydraulics, excellent condition. cab, air' & heat, dual 2O.8x38 tires, power 1570 Case w- FEEDER PIGS - Produced MAKE SAUSAGE Schlubatis, 5t-25f-21p) Route 3, Coldwater, MI 49036. (l. PEACH FARM -- 35 acres in Watervliet shift, radio, full set of front weights, remote hydraulics u "A real dual strong and sold by members of the WHY I' NOT? '1 I' ~ • I ';1 FISH FOR POND STOCKING -- Hybrid Sun Township. Write: First class site, north Solid M. Spread, HarHord'49057. slope. ~r workhorse." 21-1/2 ft. Case K-23 series MACMA Feeder Pig Division. . CURING an ilfuslTaled 227 page book written by a Fish. Catfish, also Rainbow Trout. Sprir.g phone Solid.M.Chateau $152.000.00 firm. (616) 424-3752. (3-ft.2Sf) hydraulic fOlding Wing disk with 22" blades. sausage maker for home use. over 100 recipes Valley Trout Farm. Dexter, Michigan. Tractor Land Sale~, 7235 - 1st St., Eau Claire, Available biweekly in large FREE supply catalog has book price. equipment. Phone (313) 426,4772. (5.ft-19f) WANTED: ACREAGE 60-200 gOOd, level, MI A9111, (616) 6041-6911. (2'2t-62b) uniform lots, weighing 40-60#. cures. casings ete Write R Kutas Co. Dept 63. 1067 Grant. Buffalo. NY 14207 (2-4t-p) tillable in Cass County. Have qualified PAX AND IDEAL, specializing in farrowing Contact Bill Haas, 517-323- FARM POST, Rustic rail fencing, cedar buyer. Call: Cheryl (616) 279,9516 Lammon crates, livestock feeders, gates and lumber, cedar log cabin timbers, shakes. Realty, Inc. (2.lt.18p) waterers, parts and service from Kevin 7000, Ext. 707. (2-lt-28b) AFRICAN VIOLETS: Fresh cut leaves and Ivan Malnar, Wholesale Cedar Post Yar. RR Jacobs, Gregory, MI (517) 851-743A or (517) starter plants. Descriptive price list 35 No.2, Rapid River, Michigan, 49878. Phone WANTED: GOOD HOME 4 or 5 bedroom on 851-8927. (2-ft-23t) cents. Gails Violets, Rt. 4. St. Johns, MI (906) 474-9172. (12- tf-2Sf) 5 acres. Near Three Rivers, MI. Have DUROC & LANDRACE BOARS & GILn. 48879. (5-tf-19f) qualified buyer. Call: Cheryl (616) 279-9516. Also crossbred gilts. John Swearingen, ~.; USED STORAGE TANKS, up to 20,000 gal. Prattville Road, Pittsford. MI 49271. Phone Lammon Realty. Inc. (2-1t.2Ap) BOOK JUSTICE THROUGH Call (616) 780-35JA or 780-2292. (2-2t-11t) FUNDRAISING ••• BIG PROFITSIII (517) 567.8975. (3-tf-19f) RESTITUTION •• (Let criminals pay instead Clubs, schools, churches, Individuals. No WOULD LIKE TO RENT pasture or farm in 2500 GAL. Stainless Tank with insulated of taxpayers) 54.25 pIUs 5.30 postage. from , investment. No selling. Free information. Lansing, DeWitt, St. Johns or any other area- jacket & carbon ste~1 shell. F.D.A. ap-- QUARTER HORSES - Disposition for 4.H, DUDLEY COMPANY, Box 7911, Gleason, R. Campbell, P.O. Box 44.4, Waterford, Michigan 48095. (6-tf-24f) close to DeWitt. Need to take from 20,30 proved. Call (616) 780-2292. (2-2t'15f) ability for cattle, conformation for show. Tennessee 38229. (l-2t-19p) Reasonable prices. Customer satisfaction a head. F~ter's Angus Farm, DeWitt, MI FOR SALE: Potato Digger, $75.00, bulb priority. Visitors welcome. Walton Farms. DON'T DIE WITHOUT A WILL: Send today (517) 669.9960. (2-3t-31b) trays (500) (2'x2'x6"" wooden sides, Rosebush. Phone517.4J)-.292S: (3-ft-24t) SAUSAGEMAKERS, GREAT! GERMAN fo, attorney's booklet "What everyone galvanized wire bottoms. Could be uSed for RECIPES. No nitratesl Frankfurthers, should know about wills". 4 will forms. $3.00. WE HAVE SEVERAL FARMS in Lenawee plants, 69c each. Utica, MI phone (313) 781- Summer, Bologna, Headcheese, Venison & K. BOiieau, Kingston. MI48741. (2.ft.2Sf) and Hillsdale counties ranging in size from 5 MILKING SHORTHORNS • Young bul:'5, 9289. - (2-lt-2Af) Pork sausage!$1.oo Hamilton's, Box 652-131, to 147 acres. Call for information. State Wide yearlings and calves for sale. Write or visit Real Estate (517) 265.7560. (2-lt-25t) New Ulm, Minn. 56073. (2-lt-20p) Stanley M. Powell and Family, Ingleside EXPLOSIVES MADE EASILY, cheaply FOR' SALE: Alternator: Ag-Tronic PTO Farm. R.R. 2. Box 238, Ionia, Mich. 48846. from farm fertilizer, Blast dugouts, stumps, FOR SALE: 237 acre farm. 160 tillable, ~ driven alternator, 12,000 watts. new $850.00. (6.ft-25t) SEWING SUPPLIES, PEARL SNAP rocks. Instructions $2.25, DeFost, Box 995, timber, 3 bedroom remodeled house. 2Ox24 Phone (51.7) 8A3"6576, Mayville, MI 4874.4. (2- FASTENERS - 142 Colors and Styles. Free Prince Albert, Sask., CANADA. S6V 2P3. (2. PUREB~ED YORKSHIRE BOARS and attached garage, large tool shed, oood .to' )' 2t-16f) Catalog. Bee Lee Company, Box 2OS58-MF, It.2Op) gilts for sale. Big useful pigs. Raymond 60' dairy barn, 10x35 silo. Ideal set up for Dallas, Texas 75220. (l-121-19p) dairy or beef farming. Oceana Co., Hesperia FOR SALE: John Bean 2 row' potato har- Graham & Sons. 52A0 Jones R9ad, North vester, Meyer potato sprayer, 4S In- Branch, MJ 48A61. Phone (313) 688-2165. (11- AVOID THE MIDDLEMAN and save. Farm area. Terms. Call (616185-1-7752 after March ternational A row potato plant,er. 16 ft. Kelly 12t-23f) post and rustic rail fencing. I van R. Malnar, 15th. Rudy Messner. Broker. (2.6t.25f9p) belt conveyer, Phone (517) 697-3..cA2.(2-lt-25t) MISCELLANEOUS Wholesale Cedar Post Yard. Route 3, t