May 2004

Pennsylvania Small Business Advantage Grants applications available. Small Business Advantage is a new grant program providing a 50% matching grant, up to a maximum of $7,500, to enable a Pennsylvania small business to adopt or acquire energy efficient or pollution prevention equipment or processes that can help to increase profitability. Any Pennsylvania small business may apply. Applications for the Small Business Advantage grant program are being accepted through June 30, 2005. For information and application, click on Small Business Advantage.

Business Savvy Farmers: Getting a grasp on milk production costs is the ‘Dairy Outlook’ feature in Farming (May ’04). A recent agricultural business management course taught by University of Vermont Extension specialists focused on calculating cost of production of milk on the farm. “By looking at all the variables that make up cost of production, including feed prices and equipment, farmers can calculate how much it costs them to produce a hundred-weight . . . the break-even price. Using these figures, they can determine what changes need to be made in the farm operation for more effective cost management. Even getting a few extra pounds of milk per cow per day will help lower the break-even price. Tied in with understanding cost of production comes the ability to separate out farm expenses and family cost of living. Many farmers find this difficult because the farm and family expenses are drawn from the same checkbook, so they don’t really know if the farm is supporting itself. . . a lot of farmers vastly underestimate their cost of living, which according to the Northeast Dairy Farm Summary averages $35,000 to $39,000 a year for a farm family of four in the Northeast.”

The Sun’s Dangerous Side. “The sun’s invisible ultraviolet rays can be extremely dangerous to the skin,” reminds Farming (May ’04). “Agricultural workers are prime candidates for skin cancer because they are outdoors and are exposed to the sun daily. Skin is a prime site where cancer can develop. . . . Estimates from the American Cancer Society find 600,000 cases of skin cancer occurring every year in the United States, with some 8,200 ending in death. . . . Melanoma is different from other skin cancers because it has a tendency to spread to other parts of the body. Once it reaches vital organs, melanoma is difficult to treat, and can be lethal . . . People who work outdoors are exposed to the sun on a daily basis. It is essential that these people be aware of skin cancer’s warning signals and get into the habit of doing regular, monthly self-examinations. . . . Look for any unusual skin condition, especially changes in the size or color of a mole, pigmented growth or spot. . . . Also, a change in sensation, such as itchiness, tenderness or pain, is important. If any of these warning signs exist, consult your physician. Early detection is critical.”

Health Insurance, a Must for Farmers reminds Lawrence County, PA Cooperative Extension Farm Management News (May ’04). “Many farmers simply say they can’t afford it. The fact is, however, that farmers can not afford to be without health insurance.” The article points out that while most farmers would not go without automobile insurance or comprehensive liability insurance or property insurance on valuable farm buildings, machinery and livestock, the thought process is often different when it comes to health insurance. “The farming business is known as one of the most dangerous of occupations with many opportunities for serious injuries – the type that cost huge sums to rehabilitate. . . . Without health insurance, your assets, including the farm, would be at risk. This not only can be financially devastating to the injured person, but also to all family members and family partners in the business.” Read the entire newsletter at http://beaver.extension.psu.edu/Agriculture/newsletters/FrmMgmt0504.pdf.

‘Obie’ Award established in memory of Obie Snyder. Farmshine (May ’04) reports, “The ‘Obie’ will be given annually, beginning this year, . . . to an individual in the dairy industry whose ideals and standards best mirror those of Obie Snyder. . . . to recognize the person who most exemplifies Obie Snider’s commitment to quality, excellence, professionalism, compassion and integrity, while at the same time preserving the memory of the man who did so much for Pennsylvania’s agriculture community.” Comments, questions, and contributions towards creation of the award may be directed to Samuel E. Hayes, Jr., Chairmen, Obie Snider Memorial Project, 839 Benner Pike, State College, PA 16801.

Milk Prices To Moderate in 2005 (Source: Livestock, Dairy, and Poultry Outlook, USDA Economic Research Service, May ’04) “Milk production in 2005 is projected to rise 1 to 2 percent from 2004 on a daily average basis. Farm milk prices are expected to average $13-$14 per hundredweight (cwt) in 2005, down sharply from this year but considerably higher than the low prices of 2002 and 2003. . . . With milk production likely to stay below a year earlier through most of 2004, the key to how long dairy prices stay high will be the strength of demand recovery. Restaurant demand came back in the first quarter after more than 2 years of sluggishness, joining the earlier recovery in retail and (to a lesser extent) food processor use. Cheese demand was so brisk that cheese production not only pulled very large amounts of milk from other uses, but also apparently used so much nonfat dry milk in the vats that the seemingly endless surplus of skim solids virtually disappeared. The core question for dairy markets in the coming months is how much of the recent cheese movement has actually been eaten. In extreme markets, buyers are understandably more concerned with what might happen than what is most likely to occur. Precautionary buying for future needs can easily push prices beyond sustainable levels. If declines in milk production start to ease as expected, dairy product prices probably will start to slip this summer. Even so, farm milk prices probably will be a record in 2004, up as much as $4 per cwt from 2003.” Links to all Livestock, Dairy, and Poultry Outlook publications are available by clicking on http://www.ers.usda.gov/Publications/LDP/.

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