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1 ...>,„nrlKET ADMINISTRATOR'S 



BULLETIN 



OHIO VALLEY MARKETING AREA EASTERN OHIO 

FEDERAL ORDER NO. 33 




WESTERN PENNSYLVANIA MARKETING AREA 
FEDERAL ORDER NO. 36 



VOL. XVII - NO. I 



C. MACK ENDSLEY, Market Administrator JANUARY 19K6 



ISSUED FOR THE INFORMATION OF PRODUCERS WHO ARE NOT MEMBERS OF COOPERATIVE ASSOCIATIONS 



SELECTED DAIRY HERD BUY-OUT DETERMINATIONS ANNOUNCED* 

Some important details of the dairy herd buy-out program of the 1985 Farm Bill were announced on January 
13th by Secretary of Agriculture John R. Block in order to give dairy producers additional time to begin analyzing 
the program. 

Under the farm bill - the Food Security Act of 1985 - a participating dairy producer would terminate milk pro- 
duction and sell for slaughter or export all dairy cattle (cows, heifers, and calves) in which the producer has an 
interest, the Secretary emphasized. The new act requires the Secretary to implement a milk production termination 
program by April 1, 1986. 

"Although similar in some aspects, many provisions of the regulations being developed for this program will be 
quite different from the earlier milk diversion program," Secretary Block said. 

The Secretary said dairy producers interested in participating in the program will submit a cwt-for-milk bid based 
on their base period milk marketings. If the bid is accepted, the producer will be required to stay out of dairying 
for five years and not use or allow the use of his facilities for milk production for the same time period. 

To be eligible to bid, a producer at the time the bid is submitted must be actively engaged in the production and 
commercial marketing of milk. 

Secretary Block stressed that any change in the composition of the dairy herd of a producer may affect eligi- 
bility for the program. He also emphasized that additional program determination and implementing regulations 
will be announced at a later date. 

Block explained that as background for a bid, producers will be required to submit evidence of the size and 
composition of their dairy herds (cows, heifers, and calves) as of January 1 , 1985; and January 1 , 1986, and on the 
date that the bid is submitted. 

The producer must submit monthly records of his milk marketings from July 1984 through December 1985. A 
producer's base period will be the lesser of the milk marketings for the 12-month period beginning July 1984 or 
January 1985, Secretary Block continued. 

A producer may enter bids for one or more of the following time periods: 

April 1, 1986 - August 31, 1986 
September 1, 1986 - February 28, 1987 
March 1 , 1 987 - August 31,1 987 

The new status gives the Secretary the authority to accept or reject any or all bids. 

Successful bidders will be given the following options for receiving payments: 

1. Equal annual payments. 2. No payment for first year. Thereafter, the producer has the option of equal 
annual payments or a payment not to exceed 85 percent of the contract amount for the second year, with the 
remainder of the payment made equally in annual payments. 3. Payments in the first year not to exceed 80 
percent. Thereafter, the remainder will be paid in equal annual installments. 



SOURCE : Dairy Market News - January 17,1 986 



PAGE 2 



JANUARY, 1986 



COMPUTATION OF UNIFORM PRICE FOR DECEMBER 1985 
U WIDER FEDERAL ORDER 33 BASED ON HANDLERS' REPORTS TO MARKET ADMINISTRATOR 



OHIO VALLEY MILK MARKETING AREA 





PERCENT 


MILK 

POUNDS 


3.5% PRICE 
PER CWT. 


TOTAL 

VALUE 


Class 1 Producer Milk 


56.9 


150,976,528 


$12.91 


$19,491,069.76 


Class II Producer Milk 


12.3 


32,607,966 


11.18 


3,645,570.60 


Class III Producer Milk 


30.8 


81,715,809 


11.18 


9,135,827.45 


TOTAL PRODUCER MILK 


100.0 


265,300,303 




$32,272,467.81 


Value of Overage 








4,530.99 


Value of Inventory Adjustment 








( 61.34) 


Value of Other Source 








-0- 


Value of Class 1 Location Differentials 








2,872.76 


Value of Audit Adjustments 








6,681.95 


TOTAL POOL VALUE 








$32,286,492.17 


Value of Producer Location Differentials 








57,508.93 


y 2 Unobligated Balance in Producer Settlement Fund 








132,782.22 


PRODUCER MILK AND ADJUSTED VALUE 

Producer Settlement Fund Reserve 

UNIFORM PRICE FOR 3.5% MILK 

Uniform Price Subject to location Differentials 




265,300,303 


$12.241518 

0.041518 


$32,476,783.32 
( 110,146.35) 




265,300,303 


$12.20 


$32,366,636.97 



MARKET SUMMARY FOR DECEMBER 1985 



Gross Class I utilization aver- 
aged 4,981,796 pounds per day 
during December 1 985. On a daily 
basis this was a decrease of 2.2% 
from the previous month and 
3.0% more than December 1984. 

The December 1985 Class I 
utilization of producer milk 
totaled 150,976,528 pounds or 
56.9% of the reported producer 
receipts. This utilization percent- 
age is .9% less than last month 
and .4% less than December 
1984. 

The average butterfat test for 
gross Class I utilization was 
2.4% for December 1985. 

Receipts from 4,955 produc- 
ers by 39 pool handlers regulat- 
ed by Order No. 33 averaged 
8,558,074 pounds daily for 



December 1985. 

On a daily basis this was 
.9% less than last month and 
3.6% more than December 1984. 

Producers supplying the mar- 
ket decreased by 18 from the 
November 1985 total and de- 
creased by 281 from December 
1984. The daily average producer 
receipts per farm of 1,727 
pounds was 9 less than the prev- 
ious month. On a daily basis this 
is 149 pounds more than Dec- 
ember 1984. 

The December 1985 Class I 
price was $12.91 per hundred- 
weight for 3.5% milk delivered to 
pool plants in the Central Zone. 
This was 9 cents more than the 
November 1985 Class I price and 
$1.43 less than the December 



1984 price. Prices for Class I 
milk in parts of the marketing 
area other than the Central Zone 
reflect the specified location 
adjustment of minus 5 cents in 
the Northwestern Zone and plus 
5 cents in the Southeastern Zone. 

The Class II price for Decem- 
ber 1 985 was $11.81. This was 1 
cent less than the November 

1 985 Class 1 1 price and $1 .34 less 
than the December 1984 Class II 
price. 

The Class III price of $11.18 
for December 1985 was 1 cent 
less than the previous month 
and $1.34 less than the Decem- 
ber 1984 Class III price. 

The January 1986 Class I 
price will be $12.89 for 3.5% 
milk. 



JANUARY, 1986 



PAGE 3 



MARKET STATISTICS 

FEDERAL ORDER NO. 33 



DECEMBER 


1985 


NOVEMBER, 1985 


DECEMBER, 1984 


3.5% Milk B. 


F. Diff. 


3.5% Milk B.F.Diff. 3.5% Milk 


B. F. Diff. 


PRICE SUMMARY 












Producers' Uniform $12.20 


16.0cf 


$12.16* 16.0<zf 




$13.58* 


16.7tf 


Class 1 1 2.91 


16.0 


12.82* 16.0 




14.34* 


16.7 


Class II 11.18 


16.0 


11.19 16.0 




12.52 


16.7 


Class III 11-18 


16.0 


11.19 16.0 




12.52 


16.7 


*Central Zone. Southeastern Zone five cents more. Northwestern Zone five cents less. 












DECEMBER 


NOVEMBER 




DECEMBER 






1985 


1985 




1984 


PRODUCER MILK CLASSIFICATION 












TOTAL PRODUCER MILK 




265,300,303 


258,948,687 




256,059,001 


Percent Class 1 




56.9 


57.8 




57.3 


Percent Class II 




12.3 


13.5 




10.9 


Percent Class III 




30.8 


28.7 




31.8 


UTILIZATION SUMMARY 












CLASS 1 PRODUCER MILK 




150,976,528 


149,641,866 




146,634,546 


Opening Inventory 




-0- 


21,044 




21,898 


Other Source - Unregulated 




-0- 


-0- 




2,600 


Other Source - Other Order 




3,454,1 16 


3,188,072 




3,267,774 


Overage 




5,041 


-0- 




-0- 


TOTAL CLASS 1 




154,435,685 


152,850,982 




149,926,818 


CLASS II PRODUCER MILK 




32,607,966 


35,014,957 




27,967,862 


Opening Inventory 




689,338 


310,824 




851,924 


Other Source - Unregulated 




2,462,007 


2,083,016 




2,291,387 


Other Source - Other Order 




402,576 


216,613 




-0- 


Overage 




4,745 


-0- 




-0- 


TOTAL CLASS II 




36,166,632 


37,625,410 




31,111,173 


CLASS III PRODUCER MILK 




81,715,809 


74,291,864 




81,456,593 


Opening Inventory 




19,481,761 


20,225,954 




16,822,725 


Other Source - Unregulated 




18,206,757 


12,030,358 




15,826,945 


Other Source - Other Order 




11,503,720 


5,262,931 




6,835,934 


Overage 




29,880 


8,802 




6,898 


TOTAL CLASS III 




130,937,927 


111,819,909 




120,949,095 


TOTAL RECEIPTS AND UTILIZATION 




321,540,244 


302,296,301 




301,987,086 


PRODUCTION SUMMARY 












Percent Butterfat - Producer Milk 




3.89 


3.78 




3.85 


Number Producer Farms 




4,955 


4,973 




5,236 


Daily Average Production per Farm 




1,727 


1,736 




1,578 


Daily Average Producer Milk 




8,558,074 


8,631,623 




8,259,968 


Daily Average Producer - Class 1 




4,870,211 


4,988,062 




4,730,147 


Percent Producer Milk to Class 1 




175.7 


173.0 




174.6 


Percent Gross Class 1 to Producer Class 1 




102.3 


102.1 




102.2 


Number of Reporting Flandlers 




39 


39 




41 


Value of Producer Milk at Test 




$33,958,976 


$32,608,643 




$36,241,274 


Income per Farm (Monthly Average) 




$6,853 


$6,557 




$6,922 



Ohio Valley Marketing Area 
5950 Sharon Woods Blvd., Columbus, Ohio 
MAILING ADDRESS 
P. O. Box 29226, Columbus, Ohio 43229 
AREA CODE: 614 
TELEPHONE: 891-1851 



OHIO VALLEY MARKETING AREA 



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5 



PAGE 6 



JANUARY, 1986 



COMPUTATION OF UNIFORM PRICE FOR DECEMBER 1985 
UNDER FEDERAL ORDER 36 BASED ON HANDLERS' REPORTS TO MARKET ADMINISTRATOR 

EASTERN OHIO - WESTERN PENNSYLVANIA MARKETING AREA 





PERCENT 


MILK 

POUNDS 


3.5% PRICE 
PER CWT. 


TOTAL 

VALUE 


Class 1 Producer Milk 


52.9 


171,934,472 


$13.06 


$22,454,642.04 


Class 1 1 Producer Milk 


6.0 


19,696,431 


11.18 


2,202,060.99 


Class 1 1 1 Producer Milk 


41.1 


133,550,040 


11.18 


14,930,894.47 


TOTAL PRODUCER MILK 


100.0 


325,180,943 




$39,587,597.50 


Value of Overage 








6,501.59 


Value of Beginning Inventory and OS Charges 








21.14 


Value of Handler Location Adjustments 








76,606.68 


TOTAL POOL VALUE 








$39,670,726.91 


Net Producer Zone and Plant Location Adjustments 








( 110,188.59) 


y 2 Unobligated Balance in Producer Settlement Fund 








174,722.10 


PRODUCER MILK AND ADJUSTED VALUE 

Producer Settlement Fund Reserve 

UNIFORM PRICE FOR 3.5% MILK - ZONE 




325,180,943 


$12.2194 

.0494 


$39,735,260.42 
( 160,739.67) 




325,180,943 


$12.17 


$39,574,520.75 



"Plus 5 cents, Zone 2; Plus 8 cents. Zone 3; and Plus 10 cents for Zone 4; 
and less location adjustment for mileage at plants outside marketing area. 



MARKET SUMMARY FOR DECEMBER 1985 



Gross Class I utilization aver- 
aged 5,546,484 pounds per day 
during December 1985. On a 
daily basis this was a decrease 
of 6.2% from the previous month 
and 0.7% less than December 
1984. 

The December 1985 Class I 
utilization of producer milk 
totaled 171,934,472 pounds or 
52.9% of the reported producer 
receipts. This utilization percen- 
tage is 4.5% less than last month 
and 5.5% less than December 
1984. 

The average butterfat test for 
gross Class I utilization was 
2.5% for December 1985. 

Receipts from 6,122 produc- 
ers by 38 pool handlers regulat- 
ed by Order No. 36 averaged 
10,489,708 pounds daily for 



December 1 985. 

On a daily basis this was 
1.9% more than last month 
and 9.8% more than December 
1984. 

Producers supplying the mar- 
ket increased by 7 from the 
November 1985 total and de- 
creased by 8 from December 
1984. The daily average producer 
receipts per farm of 1,713 
pounds was 30 more than the 
previous month. On a daily basis 
this is 154 pounds more than 
December 1 984. 

The December 1985 Class I 
price was $13.06 per hundred- 
weight for 3.5% milk delivered to 
pool plants in Zone 1. This was 
9 cents more than the November 
1985 Class I price and $1.43 less 
than the December 1984 price. 



Prices for Class I milk in parts of 
the marketing area other than 
Zone 1 reflect the specified loca- 
tion adjustment of plus 5 cents 
in Zone 2, plus 8 cents in Zone 
3, and plus 10 cents in Zone 4. 

The Class II price for Decem- 
ber 1985 was $11.18. This 
was 1 cent less than the Novem- 
ber 1985 Class II price and 
$1.34 less than the December 
1 984 Class 1 1 price. 

The Class III price of $11.18 
for December 1985 was 1 cent 
less than the previous month 
and $1.34 less than the Decem- 
ber 1 984 Class 1 1 1 price. 

The January 1986 Class I 
price will be $13.04 for 3.5% 
milk in Zone 1. Milk pooled in 
other Zones will have the usual 
adjustments. 



JANUARY, 1986 



PAGE 7 



MARKET STATISTICS 

FEDERAL ORDER NO. 36 



DECEMBER, 1985 


NOVEMBER, 1985 


DECEMBER, 1984 


3.5% Milk B. F. Diff. 


3.5% M ilk B. F. D 


ff. 3. 


5% M ilk 


B. F. Diff. 


PRICE SUMMARY 










Producers' Uniform $12.17 1 6 .Ocf 


$12.21* 16.0 i 




$13.66* 


16.7c! 


Class 1 13.06* 16.0 


12.97* 16.0 




14.49* 


16 7 


Class II H-18 16.0 


11.19 16.0 




12.52 


16 7 


Class III H-18 16.0 


11.19 16.0 




12.52 


16 7 


*Zone 1 . Zone 2 plus 5 cents. Zone 3 plus 8 cents. Zone 4 plus 10 cents. 












DECEMBER 


NOVEMBER 




DECEMBER 




1985 


1985 




1984 


PRODUCER MILK CLASSIFICATION 










TOTAL PRODUCER MILK 


325,180,943 


308,777,126 




296,205,099 


Percent Class 1 


52.9 


57.4 




58.4 


Percent Class II 


6.0 


7.2 




6.0 


Percent Class III 


41.1 


35.4 




35.6 


UTILIZATION SUMMARY 










CLASS 1 PRODUCER MILK 


171,934,472 


177,253,869 




173,073,069 


Other Source - Dairy Products 


-0- 


-0- 




-0- 


Other Source and Beg. Inv. - Fluid 


6,527 


93,754 




24,758 


Overage 


-0- 


-0- 




-0- 


TOTAL CLASS 1 


171,940,999 


177,347,623 




173,097,827 


CLASS II PRODUCER MILK 


19,696,431 


22,260,635 




17,741,648 


Other Source - Dairy Products 


1,811,511 


1,619,562 




1,436,644 


Other Source and Beg. Inv. - Fluid 


1,491,646 


1,447,944 




1.428,225 


Overage 


1,244 


-0- 




-0- 


TOTAL CLASS II 


23,000,832 


25,328,141 




20,606,517 


CLASS III PRODUCER MILK 


133,550,040 


109,262,622 




105,390,382 


Other Source - Dairy Products 


1,988,424 


1,177,525 




3,088,450 


Other Source and Beg. Inv. - Fluid 


30,548,481 


30,706,049 




19,058,843 


Overage 


5,021 


2,289 




29,585 


TOTAL CLASS III 


166,091,966 


141,148,485 




127,567,260 


TOTAL RECEIPTS AND UTILIZATION 


361,033,797 


343,824,249 




321,271,604 


PRODUCTION SUMMARY 










Percent Butterfat - Producer Milk 


3.85 


3.79 




3.80 


Number Producer Farms 


6,122 


6,1 15 




6,130 


Daily Average Production per Farm 


1,713 


1,683 




1,559 


Daily Average Producer Milk 


10,489,708 


10,292,571 




9,555,003 


Daily Average Producer - Class 1 


5,546,273 


5,908,462 




5,583,002 


Percent Producer Milk to Class 1 


189.1 


174.2 




171.1 


Percent Gross Class 1 to Producer Class 1 


100.0 


100.1 




100.0 


Number of Reporting Handlers 


38 


37 




40 


Value of Producer Milk at Test 


$41,507,195 


$39,255,349 




$42,056,701 


Income per Farm (Monthly Average) 


$6,780 


$6,420 




$6,861 



Eastern Ohio-Western Pennsylvania Marketing Area 
7851 Freeway Circle, Middleburg Heights, Ohio 
MAILING ADDRESS 
P. O. Box 30128, Cleveland, Ohio 44130 
AREA CODE: 216 
TELEPHONE: 826-3220 




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THREE FEDERAL ORDER 36 EMPLOYEES RETIRE 




Pictured left to right are Richard J. Stephens, Joseph E. Galinis, and Herbert A. Uhrich. 



Three employees from Federal Order 36 retired January 3, 1986 after a combined total of 98 years of service 
and dedication. The three employees include: Richard J. Stephens, Joseph E. Galinis, and Herbert A. Uhrich. 

Richard J. Stephens has been the Assistant Market Administrator the past 3 years. Richard has been a valuable 
asset in the management and workings of the Market Administrator's office during his 33 years of service. Mr. 
Stephens had also worked in federal order markets in Mississippi and Texas before coming to Cleveland in 1973. 

Joseph E. Galinis, Administrative Officer, has retired after 34 years of eligble service. In his many years of 
employment Joe has served as an auditor, been involved in pooling and statistics, and during the past several years 
has been responsible for producer data and payrolls. 

Herbert A. Uhrich, Milk Sampler - Tester, has been an invaluable resource for gathering milk samples and infor- 
mation concerning the dairy industry. Herb has 31 years of eligible service. 

These three employees have truly been dedicated through the years, and their knowledge and experience as well 
as their friendship will be deeply missed.