PRINTER'S NO. 271
No. 33 Session of 1997
INTRODUCED BY BUNT, LLOYD, CAWLEY, KREBS, DeLUCA, STABACK,
ARGALL, WAUGH, GEORGE, FARGO, SAYLOR, GEIST, HERSHEY, STAIRS,
HALUSKA, FICHTER, FAIRCHILD, SATHER, GODSHALL, CLARK, REBER,
PESCI, CARONE, FEESE, CLYMER, ALLEN, MAJOR, BAKER, MIHALICH,
MAITLAND, YOUNGBLOOD, GRUITZA, HERMAN, LYNCH AND TRELLO,
FEBRUARY 5, 1997
REFERRED TO COMMITTEE ON INTERGOVERNMENTAL AFFAIRS,
FEBRUARY 5, 1997
A RESOLUTION
1 Requesting the United States Department of Agriculture to
2 initiate action to ensure a more stable and predictable Basic
3 Formula Price.
4 WHEREAS, The dairy industry in Pennsylvania represents the
5 largest segment of the agricultural economy, with 10,800 dairy
6 farms and over 640,000 cows producing over 10.6 billion pounds
7 of milk annually; and
8 WHEREAS, Sales of milk from Pennsylvania farms generate
9 nearly $1.5 billion in farm income; and
10 WHEREAS, The price Pennsylvania farmers receive for milk is
11 largely determined by United States Department of Agriculture
12 calculations of the Basic Formula Price; and
13 WHEREAS, In recent months the price of milk received by
14 farmers, based on this formula, has been extremely volatile,
15 culminating in an unprecedented drop of more than $4 dollars
16 per hundredweight in a period of four months; and
1 WHEREAS, These low and extremely unstable prices for milk are
2 severely detrimental to the ability of Pennsylvania dairy
3 farmers to maintain their profitability; and
4 WHEREAS, This has serious consequences for the future of
5 Pennsylvania's dairy industry and jeopardizes not only dairy
6 farmers but a multitude of support and marketing entities, as
7 well; therefore be it
8 RESOLVED, That the General Assembly request that the United
9 States Department of Agriculture immediately initiate all action
10 necessary to ensure a more stable and predictable Basic Formula
11 Price which more accurately reflects market conditions and
12 further request that such actions include a review of the
13 advisability of use of the National Cheese Exchange price in the
14 Basic Formula Price calculations; and be it further
15 RESOLVED, That a copy of this resolution be immediately
16 transmitted to the United States Secretary of Agriculture.
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