NFO-251(AV10754): US Farm Report: The Broiler Producers Dilemma - Part 1

[music] hi everybody and welcome to us farm report this week a trip to two dairy farms near Jefferson City Missouri in the heartland of the USA and while we're touring dairy farms it is in order of course that our special studio guests on this week's show is Ed Graff who heads up the dairy commodity department at the national farmers organization at its pleasure to have you back with us again glad to be here Bill you know I think you will see as we watch the interview with the Oncing brothers at me to Missouri that they have this attitude toward dairy prices right now Ed as NFO members prices are better but they aren't good enough I think that indicates that progress has been made by an fo and more progress is in the offing I'd like for you to just tell us what kind of accomplishments you have made in price say through the past year I think if we take a look at this chart I can show you since the holding action and up till just last year really what's happened now this is drawn out and you see here from 1967 through 1969 notice what happened here from 1967 to 1968 in Wisconsin and Minnesota now this is important Wisconsin and Minnesota series price it's important because this price affects the price in all the federal orders throughout the entire United States I see so I wanted to go back to 67 and show what happened in 68 notice the little fluctuation in the price of the Wisconsin Minnesota Series price really not a great deal of increase that's right here is the supply of milk from January through the full year of 1967 when we come to 1968 in April the government increased the support price on the manufactured product so this again in turn affects the price of milk in all the federal orders and it did see what happened it went up but still outside of this one little spurt does all say it came back down again 1969 it went above the support price bean because you notice that held constant clear over until March of 1970 based on three point five butter fat milk but look what happened last year in 1969 now this arrow points to February February ninth to be exact and you notice at this point what was happening to the Wisconsin Minnesota series price it was increasing higher than they had ever seen it before it continued to increase right up till it got two three four dollars and sixty seven cents the hundreds notice how much higher that is than any place in here with their support price the same now let's look at the supply the peak was higher in 67 than in 68 and higher in 68 and in 69 but the important thing is that for the last five months of 69 the supply in here was greater than it was for those same months on these years and the price continued to go right up now remember this helped increase the price in all the federal marketing orders because they base their price on the Wisconsin Minnesota Series price now that in itself Bill gave an increase to all the farmers in all the federal order areas but that's not the total answer we did that through supply contract simply by creating competition in Wisconsin and Minnesota so I would say in the last year that's the biggest effect we've had and there's there's what it's how it happened why it happened supply contracts of the dairy farmers we talked to down in the Jefferson City area we're very pleased with the fact that a new transfer station had been just recently completed they're now do you have transfer stations all over the country Bill we will have if we don't have them now we've got them in several areas and I would think too that they'd be very pleased in it because again I'd like to explain how this will affect the price of milk now the supply contracts in Wisconsin and Minnesota affects the price all over the nation and with transfer stations all over the nation we will be able to affect the price to the handlers and to the producer by taking a supply of milk from that given area and not necessarily marketing it to a handler in the area but doing just the opposite move it to a handler way out of the area now Bill is something I'd like to explain very thoroughly on this it's been a known fact that the processing industry today or the people that market to melt through the cooperative's have taken the producers milk from the low priced areas and have marketed into high-priced areas but remember they never were organized like NFO where they could move the milk from a low priced area to a high priced area and at the same time move milk from the high priced area to another area so there there was a vacuum there so they didn't kill the price what's been happening before and I'll give you an example milk could be moved from Wisconsin to a southern state and let's say the price in Wisconsin would be four dollars and fifty cents the hundreds the milk in possibly a southern state would bring six dollars a hundred this milk could be marketed and probably was for five dollars and fifty cents in the southern state now do you see what that does is it immediately kills the price in the white bra in the high-priced area it will help in the low priced area but this is something you can't continue to do because at that point you're pitting farmer against farmers very true so with a national organization and the transfer stations we have been able to move milk now let me give you an example happening and what is happening the transfer station that you saw that milk was moving on to the Oklahoma and Texas market and at a price that it would not kill the price for the Texas and Oklahoma producers at the same time it would increase the price to the Missouri producers now Bill it isn't only because we negotiated for a higher price either we were doing it more efficiently the same thing that has been happening with cattle and hogs and grain we are eliminating some of the unnecessary costs that go with marketing and all farmers have to do is put that production together and they can find out they can do it and get more net dollars back to the producer Edie I know that we are already seeing big over-the-road dairy tank trucks carrying milk products to higher priced areas to carry out this marketing strategy will we be seeing more of this type of vehicle yes you'll be seeing more of these vehicles all over the United States these are carrying NFO milk nothing but NFO milk they're going to the higher priced areas and again creating the vacuum in the areas that we can fulfill or fill from another area and always keeping an upward pressure on the price that the producer will receive in just a moment we're going to be visiting those two dairy farms in Missouri we're going to see to some degree some of the investment that a dairy farmer must have today to be a grade A dairyman and to ply his trade now milk prices today and I think I'm right about this or about what they were to the farmer to the dairy farmer 20 years ago is that not correct that's correct now look what has happened dead in that dairyman's production costs through the past 20 years for example some of the equipment that we'll be seeing in this film it's probably what doubled I would say that at least doubled I think more than that Bill I think more than doubled some of the some of the costs have more than doubled as you say and yet the dairyman today the farmer is getting exactly what he got 20 years ago what's happened to that milk at the retail level by the way well I think to put this in the correct perspective the producer is getting about what he got in 1948 that's 22 years ago at least now we're getting more than we got try six eight years ago so we've helped we have a long way to go the producers production costs have more than double Bill the price to the consumer has approximately doubled so you can certainly see that the unorganized farmer has been left out now we're making these strides in these gains and when you mentioned the tank trucks going all over the country I'm sure that farmers can realize the effect that this has when they realize this is all NFO milk and now the major handlers in Tennessee Ohio Pennsylvania Texas Michigan and Wisconsin are accepting this supply and looking for more from NFO you can see the stride we've made I think perhaps this next question you've already answered that this kind of thing can be repeated I think with some degree of efficiency what can the dairyman across the country do to better his plight to get his price no secret at all organize join the NFO put this block of milk together so the handlers the buyers have to come to the organized farmer and it takes a nationwide organized group that's why NFO is the successful organization that's why the progressive farmers are joining NFO it's that simple and I want you to enjoy with me and with our audience two or well three actually progressive NFO farmers dairymen in Missouri near Jefferson City at this time we will be visiting the dairy farms of John and Lauren Swansea and Victor Bremer now we're standing John and Lawrence in your milking parlor which is referred to as a pip type parlor obviously it's called a pit type parlor because we're sort of in a pit we're at a low level as compared with the the cows what's the advantage John and your opinion of the pit type of parlor Maya don't have stoop to see what you're doing you can wash the cows and then dry them and put you milking machine on and they don't see what you're doing rather than crawl around your knees and turn upside down just closer to you work aren't you early i imagine that after you would milk 70 cows or 75 as you fellas do and if you were on the same level with them stooping as you would have to do the old back would tell you something before the day was over [unclear] yes truly Lawrence the stalls here in your milking parlor are most interesting now these are designed and manufactured by serge are they nice right and what do they call these they call these the Sawtooth stalls and they're actually a herringbone with the sawtooth design it's the modified herringbone and by having the sawtooth type indentations along the edge here it allows you fellows to really get in right next to the cow and then do your work gets you closer to your business they don't have to reach this far that's right well now you fellas are milking 75 cows what kind of production do you get in a day out of these 75 approximately three hundred and fifty gallon a day three hundred and fifty gallons of milk a day yes now in terms of pounds we multiply that by 8.6 and we're not going to get into mathematics but you get a few pounds of milk here a day that's right and with the present situation in this part of Missouri with the recently open the milk collection point would you mention to our viewers exactly what happens to your milk production here and the other NFO dairy producers milk production yes it's picked up by a trucker at the farm every other day and it's transported to a collection point where it's then pumped over into tanker and transported directly into Oklahoma now at the present time you're shipping all of your production in fact all of the NFO production in this area is going to Oklahoma right now there has to be reason for that John and I guess the reason obviously is as a part of NFO's marketing concept by shipping there you fellas are getting more money for your product aren't you and hopefully it will eventually perhaps raise the price in this area which happens to be a little depressed at this time how much more money are you getting in mouse to about eleven cents 100 pounds now this is what a net to increase after you've paid everything else transportation and that's net yeah and so forth yeah well that's great now let's talk a minute here about the care that is given your product at the grade a level at which level you and Lawrence operate the milk is never touched by human hands no that's right it goes directly from the cow to a pipe line to the tank and tank truck then pumps eject out of the tank and not how in any way whatsoever outside of with equipment right now you are required to chill this Bill down to what degree Fahrenheit four degrees 40 or under what what is your average temperature here or you're about 34 34 degrees well you're a little close to freezing that's a cold milk a little bit colder yeah should be I guess well now what about the the tank truck that picks up your milk you transfer it from your 34 degree tank into an insulated truck what sort of a temperature rise occurs in say a period of 24 hours they tell me only about two degrees and that if even if the sun is shining brightly even the hottest day and so actually the the plan here certainly in no way impairs the the freshness of this milk it stays refrigerated actually yes how many acres of land are you fellas farming the Lawrence well we have a total of 700 it's not all in cultivation however but we have 700 do you have a part of it in pasture land yes a good deal of pasture land what is your biggest crop you're raising on your acreage corn and hay mostly are you able to raise here all of the crops you need to feed your herd or do you have to buy some feed we have to buy some corn but all they hay and the solids is raised here and what about your replacement calves are you raising your own yes we're all raised here yeah how long have you fellas been in the dairy business here all our lives yes what about your father before you all was he a farmer yes that's where we all started from he was in the milking business when we came along and in a small way of course I just progressed from there and 62 when John and I took the farm over and he retired well now is this the old home farm the cincher ons at the home place yesterday and are both of you married and raising your families here no I'm married my family John isn't married John's an old bachelor you know it might work out for him one of these days well now I want to ask you a couple of other things about your place here and the job that you fellas are doing first of all what what attracted you at the beginning to NFO John well you way back there when I first started up dollar days nobody jumps on the bandwagon and we got on the bandwagon back then and stayed right on your see and I think it's one of the thing that's gonna have to go over to make these farm prices come up where there oughta be you know how long have you been a member well if you were a dollar member you date back a few yeah that's how long time I presume that you took part in the great milk holding action of not so long as you say we did yes indeed what do you recall you were you getting for your milk at that time it was a ridiculously low price about four dollars and forty ents or something in that order and as I recall it was almost impossible before that action to get a voice with the people in Washington and the action accomplished what it was meant to accomplish I sure believe it did and lots other people say that now are you uh are you are you making it based on today's prices we have to do better can but we hope those prices come up more wouldn't hurt do you feel like your marginal now are you are you making a living at it yeah but you want a better living well and a better price for your product the man in the factory there he can strike for higher wages nobody can complain about it seems complain about it the American Way that's fair but when farmers lot people were touchy about this milk holding action given the laws then and all that stuff dumped milk but when the guy in the city doesn't work you don't care about that you know the milk holding action I think perhaps was the one single dramatic activity on the part of NFO that attracted perhaps more farmers to the organization than anything else they've ever done and since that time of course NFO has has certainly come up in the world in terms of membership in terms of general attitude on the part of farmers and urban dwellers all across the country it's a far different NFO today than it was back in what you refer to as the dollar days that's been not to change it made John in your opinion what's it going to take for the dairy farmer to get a fair price for his product at the marketplace and a full program of the thing that's going to do it if anything will how many dairy farmers do you have in this immediate area near Mita Oh about six seven or most of them members of NFO most of them yes how many dairy farmers in this area generally are are having their milk picked up by NFO and having it taken to the collection point I think all of them are NFO members all NFO members are participating in okay well that's fine that's the answer to it you know speaking of the marketplace it seems to me Lawrence when you go to the marketplace to buy some of the equipment that you need in order to operate your business you pay the price that the manufacturer asks instead of instead of going and saying well I'll give you X number of dollars for that tractor sure won't and speaking of that and tractors I noticed today around your place that you fellas have a terrific investment in rolling equipment you have five or six tractors a lot of heavy equipment out there what do you suppose it would cost you to replace that equipment today on today's market today's price is probably $80,000 or more uh-huh now let's have a little just informal appraisal time here of what you might have in your operation here in the way of an investment now we'll take that eighty thousand you have a herd of 75 purebred Holsteins and these cows are worth what kind of money today you have to pay anywhere from 400 to $1,000 for a good Holstein cow don't you that's right so what are they worth $40-50,000 yes and you have a calf herd coming up how many calves are you feeding right now there's about 59 they arranged from bred heifers on down to calves they're all ages well you've got some money there that's right now we haven't even touched your land value you have an excess of 700 acres of land you have many other things there buildings lots of things of worth so I'm guessing that perhaps you've got an investment here approaching $200,000 today's prices is probably right well Lawrence one item of equipment that you have here we haven't mentioned and it certainly is worth mentioning and that's your liquid manure system now it's my understanding that in your business in the dairy business the getting rid of manure is one of the really big problems and yet this liquid system seems to be a great one would you describe it for me well that's a it's a system of underground tanks where the manure is scraped into either every day or every other day and it's then after a period of time which we have capacity air for about two months mm-hmm it's pumped out and then put into a big tank on a spreader truck and then spread over the field over pasture and now south and so forth what kind of an investment do you have in that piece of equipment well that pump cost around $1,300 and the truck was a used truck and a tank run about another two thousand but it certainly did help you with an otherwise a very big job I try to say this this every day manure hauling through this bad weather and mud and so forth and with this system the manure is never touched there's never a contact okay and of course this is important that's right let me ask you a question that I asked John I'd like to get your opinion on this what do you think it's going to take Lawrence for the farmer today to go to the marketplace and instead of begging people to pay me whatever they want to for his product to go to the marketplace and state his price and get it a fair price for his commodities that means all farmers pulling together and joining NFO getting the job done that's a very much to the point and brief answer but most effective thank you very much Lawrence I've enjoyed visiting with you you're welcome and thank you John for having us farm report out to your farm today hope you come back some time thank you very much okay Victor Brimmer with his wife and nine children farms 329 acres three miles southeast of Jefferson City Missouri Victor is a grade a dairy farmer milking 40 cows and raising his own feed on his rolling hills acreage Victor's milk barn houses a pit type milking parlor where he milks four cows at storage bins on the Brimmer farm store corn barley and wheat Victor is especially proud of his automated feeding setup that makes bunk feeding a snap this silo is 20 by 60 and has a capacity of 540 tons Victor Brimmer is an NFO member of long standing his membership dating from NFO's early dollar days Edie I enjoyed meeting Lawrence and John Onsing and Victor Brimmer these people I think typifies of the progressive NFO dairy farmer and I am sure that you were delighted to hear their enthusiasm over their membership and affiliation with NFO I sure was Bill thank you very much for being my guest again glad to have been here so always a pleasure to see you Ed thank you very much my special guest today has been mr. Ed Graff who heads the dairy commodity department of NFO US farm report is seen each week at the same time on this station until we meet again so long everybody [music]