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It's easy to claim quality- we have 43 to 65 hp farm tractor models that prove it!

Next time you see a Case/David Brown tractor, give it a quality check. You will recognize supe- rior quality in a matter of minutes.

Note the heavy box section casting that sup- ports both engine and transmission. Others bolt the engine and transmission together—David Brown adds this husky main frame to deliver added rigidity and strength.

Compare transmissions. 12-speed synchro- mesh is standard equipment... with 9 usable field speeds under 7 mph. The option of Hydra- Shift in the Model 1212 provides 4 shift-on-the- go speeds in each of 3 forward ranges. Sample eithertransmission. Note the smooth shift action.

Climb up into the seat. Note the excellent seat suspension. It adjusts just as readily to a big man as a lean man.

Inspect the smooth, clean finish. You know it will be long-lived with a hand rubbed prime coat

the illustration at left: 1. (Upper left) ase/David Brown 43 pto hp diesel 885 2, pper right) 53 pto hp diesel 990 3, (Mid- le) David Brown tractors are an operating ivision of Case . . . sold and serviced by Our local Case dealer 4, (Lower left) 65 to hp diesel 1210 5, (Lower right) 58 pto P diesel 995

and baked enamel finish. Who else gives you this extra quality?

Note the ceramic coated muffler and the huskiness and adjustment range of the drawbar. Little things, yes... but further evidence of David Brown quality.

If you get the chance, quality check the David Brown engine under load. Note how it re- sponds immediately. And check official test fuel economy figures with your Case dealer. You’ll find proof of economy that will cut your fuel bills to the bone.

Case believes tractors in the 43 to 65 hp class can have quality comparable to the big ones ... and we’re doing something about it. J | Case Company, Racine Wisconsin 53404.

JI Case

A Tenneco Company

AR LL TR Tea ola ay tig ay to manage manure.

# protection. S provides positive containmentinagla fused-to-steel tank which

ights rust or corrosion. d contamination _ problems as we know them are ended.

Economy. Siurrystore . gw allows you to store ~ manure until the ideal _ application time. Result: ~ You replace high-priced commercial fertilizer and enjoy significant savings each year. rs



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High-efficiency | #2 pumping system ~ permits chopping solids and thoroughly mixing slurry in all kinds of weather.

The Siurrystore operating valve is 42 inches in diameter with safety (emergency) valve for quick shutoff. Provides

free flow and high volume Le : agitation. 8 ao tank over 13 a8 fm World’s leading ufeet high helps keep Ce ees B manufacturer B,_ Recirculating agitation odors checked. High, VATS YLU ae of automated = mixes and blends slurry smooth-sided tankreduces WARMER feeding systems tokeeptherightconsistency danger to children and CRSP aN 777 for use in liquid spreaders livestock.

or irrigation systems. 9 Land use. The compact &

The Siurrystore high Slurrystore tank does

a volume pump can be - not take up a large piece of adapted for use in filling valuable farm land as does

any spreader tank currently a lagoon. available. 1 Reception pit can be

Complete pressure a custom designed to # clean out of the meet the requirements of

Slurrystore tank is made possible through the use of the optional jetting kit adapter which allows the Slurrystore pump to be used like a high pressure hose.

the individual farm operator. Allows the operator to pump slurry into the storage tank when it doesn’t interfere with other chores or field work.

Models available for hog, beef and dairy operations. -

Build Your American Agriculturist


No.1 in Scandinavia

JANUARY 1975 Vol. 172, No. 1

As James = Hai ee eat eet Publisher GormlonaConKlinines (eens sn i WA ee Editor Albert ‘Hoeter,-3 fi. a Managing Editor Augusta Chapman __.. Home Editor Barbus worthiyc cern es Field Editor Mary Craig ......... Assistant to Editor Harold Hawley Contributing Editor Deb Res Hallimuewe eos V.P. Advertising Don Blauvelt Cae 8 Advertising Sales Richard Backer ...... Subscription Manager

American Agriculturist, Inc. Harold=;Hawley fo au Page President Charles Russell __....... Gordon: “Conklin econ ...... Secretary

Ae James Hallo oe i _Treasurer




What’s with NFO?

Washington report 12 First class mail Pease Farmland taxes __. 18 What causes inflation ? 24

Farm news, notes, & nonsense 52

Reader service 53 National 4-H winners 54 FARMI Wi h

DAIRY & LIVESTOCK - VINC es e Tre Deiwies aims | OW aVailable in N.America

Doc Mettler comments 38

ANE WEA RA Illustrated iS our model JL30, one of the two | available. This is the most versatile forestry winch on the market. With its simple 3-point linkage attachment, and P.T.O. shaft to provide power to the winch drum, it is efficient on all tractors. Exerting a pull of 3 tons, the clutch automatically slips when the rated pull is reached, thus preventing damage to cable or winch. . . Farmi skidding winches are easy Serve popular pancakes 40 and safe to operate and their good design and

Early spring vacations 41 robust construction ensure almost unlimited life in Pattomis weno ee, fe aD continuous use to full capacity. For further

Neediewerk cathlog for 75 44 information and the name of your nearest Farmi Garden talk”. (6 ci 3 45 dealer, write—


Landisville, Pa.17538

Funk's is a Brand Name: Numbers Identify Varieties FUNK SEEDS INTERNATIONAL, INC. International Headquarters Bloomington, Iilinois 61701

The limitation of warranty

and remedy on the tag attached to each bag of Funk’s G-Hybrid sold is a part of

the terms of sale thereof.

Outlook for 1975 __. 14 Northeast farm experience 20 Dollar guide oo Seed for ’75 a 36


Grow these prize-winners 50 Distributor Hamilton Equipment Inc. P.O. Box 478, Ephrata, Penn. 17522

Cee NORMET INDUSTRIES CANADA LTD.. 370, DeWitt Buildi , Ithaca, N.Y. 14850. Phone ' 607/273-3507. Raeee Bateinen mail an 1015 Beaver Hall Hill, Montreal fs

Box 516, Ithaca, N.Y. 14850.


Subscription prices in U.S.: single copy $.40; 1 year, $4.00; 1% years, $5.00; 4 years, $10.00. All other countries 1 year $5.00. Second-class postage paid at Ithaca, N.Y. and at additional mailing offices.

POSTMASTER: If undeliverable, please send Form 3579 to American Agriculturist, P.O. Box 516, Ithaca, N.Y. 14850.


One man operation.

Holds feed waste to a mini- Advertising Representative, mum. Ag Group Twenty Inc.

5 ici 400 N. Michigan Ave. 420 Lexington Ave. me * : aq Low cost Efficient. Chicago, Ill. 60611 New York, N.Y. 10017 etre > Ze :

From field to feeding, the Reet Oca poe EL nL Dee eee


Tote-N-Feed is your hired

| \


| ey >, hand. OUR COVER =~ Fs, 7 A census of agriculture is done every five SIZES... LA

years, and 1975 is the year to obtain the figures on the 1974 calendar year. It will

be conducted by mail, with some follow-up 12008 To FROM 77 LBS.

mel a by enumerators. Fill it out... mail it in! : 3 PT. | 3 = TO ] TON JOSEPH SWANTAK, INC. we Bex By BY HRD SEEDER CO., INC.

Box 93, Delhi Stage eee. a1 TON ‘om A P.O.BOX 448 DEPT. 168 3 pT 3 BU. Oneonta, N.Y. 13820 ( STATE FARM MAGAZINES) Ba CAP p LOGANSPORT, IND. 46947 cCapacit Phone 607/432-0891 Seer oer eae z

American Agriculturist, January, 1975 5


Away back in 1922, proposed legislation en- titled the Capper-Volstead Act became law... authorizing farmers to form cooperatives to collectively market their products. A measure of immunity from anti-trust laws was a part of this legislation.

Across the years, farmers have found Capper- Volstead helpful in their attempts to develop bargaining power through collective action. Without it, they would lose much of the po- tential for joining together in unified marketing, and would return to being individually at the mercy of buyers representing corporations hav- ing far more economic power than that possessed by a single farm family. Many farm cooperatives also provide farmers collective bargaining. clout in purchasing farm supplies.

Now, more than half a century after the pas- sage of that historic law, it is under heavy pres- sure for modification or repeal. Some dairy co- operatives have recently tarnished the image of farm co-ops generally by illegal activities. As a result, a sort of open season on co-ops is being enjoyed by. their enemies.

Food has become the topic of the day, nation- ally and internationally. Amidst the heightened awareness of the crucial necessity of food, and its worldwide scarcity relative to a decade ago, some people suddenly perceive that farm co- operatives could provide powerful leverage in helping farmers achieve justice in the

marketplace. So the obvious thing to do, they argue, is to cripple the effectiveness of co-ops . . . so

that farmers will be even more divided (and easier to conquer) than is now the case. The first step . . . to knock out Capper-Volstead so each individual farmer will once more be fully prey to the inequities of a marketplace where there are many sellers and few buyers.

And there are even farmers who aid and abet the attack on co-ops . . . little understanding the profound impact on every farmer’s market which has been made by cooperatives over the years. Why do they attack a concept that has served them? Mostly because they look to government as the economic salvation of farm- ers... naively trusting in collective action con- trolled by the voters (95 percent of which are non-farmers), rather than organizations con- trolled by farmers themselves.

Powerful forces are moving to undermine the future of farm cooperatives . . . farmers will do well to recognize and resist these forces.


The news announcer, his voice dripping with sarcasm, tells us that the profits of the ABC Oil Company rose 100 percent from the year before. What he neglects to say is that the company, with total assets of a billion dollars, showed a profit of one million dollars a year ago, and two million dollars this year ...a ter- ribly low return on the investment, but certainly a handsome increase in percentage!

Similarly, a farmer with a 100-cow herd could have a 200-percent increase in net in- come from one year to the next... rising from $1,000 to $3,000. This is a fantastic percentage increase, but still a woefully small return in reference to the total investment.

And the newspapers endlessly talk shortages of all kinds of materials... fertilizer, for in- stance. The uninitiated could well assume that




production is sharply down; after all, that’s the way shortages of buggy-whips came about. But the fact is that most of our shortages are in products actually increasing rapidly in supply ... but not fast enough to keep up with soaring demand.

Folks, even all the news that’s fit to print requires some analytical thinking if we're to arrive at the truth. Food prices are “high” in that they are more than most folks want to pay, but they’re still a bargain in terms of the hours the average person must work to earn enough to buy his groceries.


Sixty urban Chicago families became weekend farmers recently by spending Friday evening through the next Sunday morning actually living and working on area farms. In each case, entire city families . . . ranging in number from two to eight . . . stayed at the farm residence and learned firsthand about the problems and oppor- tunities of farming. A total of 32 different pro- fessions and occupations were represented.

Now I suspect that this city-farm swap will not convince even the city folks involved that “food is still a bargain,” but it will surely be a constructive exercise in creating better under- standing across line fences. For we live in a world where most non-farmers are so completely insulated from the realities of food production that they’re easily led to some very bad decisions concerning this crucially-important part of our national economy.


Some agribusinessmen are promoting the idea of a formal declaration of the first Monday nearest the first day of spring to be Agriculture Day. In 1975, this date falls on March 24.

Proposed as a day for Americans to express gratitude to farmers and agribusinessmen, Agri- culture Day hasn’t gotten very far yet in Con- gress. However, appropriate resolutions have been introduced, and sponsors are hopeful that agriculture may yet receive this token of the recognition it so richly deserves.


Over the years, I’ve learned to laugh a lot... there is no other way to preserve sanity in an uncertain and contradictory world. But it’s laughter with other folks... not at them.

Anyway, I find myself chuckling a bit many a morning when driving to work at my office in Ithaca, New York. Far above Cayuga’s waters, etched against the winter dawn, is the outline of buildings at Cornell University. Here is a great educational institution... and bastion of fervent ‘environmentalists and social reformers.

Here are offices of people who led the fight to shoot down a_ proposed nuclear-reactor generator because of potential thermal pollu- tion in Cayuga Lake. Students from these clois- tered halls have enthusiastically enlisted in innumerable causes that they think will save the world...from forcing the University to boycott any lettuce not blessed by Cesar Chavez, all the way to insisting upon coeducational dormitories.

But the irony is that a sooty cloud hangs over

the University’s heating plant each morning... from burning soft coal in furnaces without the expensive stack-cleaning devices long since installed by such environmentalist-scorned companies as New York State Electric and Gas. Specialists at the University spend endless numbers of dollars for wide-ranging activities oriented toward environmental improvement ... vigorously endorsing rigid enforcement of anti-pollution laws...except on their own campus. Students march for pot, but not for smoke.

The moral of the story, of course, is as old as mankind. We can all see the spot of dust in the other fellow’s eye, yet we remain oblivious to the railroad-tie in our own!

Lord, the world so badly needs to be reformed ... let it start with me.


Some oleomargarine prices have come up to butter prices in various areas of the country. All this has come about because of soaring demand for vegetable oils, and a slumping of butter prices.

Remember how oleo advertisers used to gibe at butter as “the high-priced spread’? Serves em right to have to take a dose of their own medicine!


I have in my office a thick document en- titled “Final Report, the Bio-Gas Project.” The jillions of figures contained therein boil down to the fact that making methane from dairy manure is not economically sound as an energy source. According to the report, the bio-gas method costs $2.08 to produce the energy equivalent of a gallon of gasoline . . . under the best conditions. Under less favorable conditions, the cost shoots up to $36.50!

Recycling manure to the land and back through crops remains the most economical way to handle what were once referred to as “ani- mal wastes.” Rising fertilizer costs have gotten rid of that term .. . how can anything that will replace expensive fertilizer be called a waste product?

Well, it was fun to dream of profitably con- verting the brown mass to gas, but let's get back to reality and spread it on the fields!


If you think American farmers get a bit ram: bunctious protesting low profit levels, you should see how the French tillers of the soil get attention! Last fall, a number of them piled straw bales on highways, blocked roads with tractors, and spread manure up and down streets.

Somehow, I question the wisdom of these tactics . . . as I do the livestock “kill-ins” we’ve been having lately in the United States . . . but frustrated farmers have to do something to get attention.

Are there better ways?


There was a struggling little church in an Arkansas hamlet where some agitation arose to buy a new chandelier. The board of deacons held a meeting to discuss it, and the first two deacons spoke in favor of it.

The third deacon stood up and said, “I'm agin this here proposal for three reasons. In the first place, there ain’t nobody here knows how to spell the word, so we couldn't order one.

“In the second place, even if we happened to get one, there is nobody in the congregation that knows how to play it. And in the third place, if the church has any extra money to spend, I think they ought to buy a new lighting fixture!”

American Agriculturist, January, I 975


x ee a a, z ings 5a . nef tes aa 7

Foreground: Mrs. Edgar Scott, farm manager; Henry Zajac, Agway Enterprise Salesman; Background, with “Ardrossan G.L.R. Classtop”: Chet Billhime, foreman; Ed Mimnah, cropsman; and Robert Moore, herdsman.

“We know we can depend on the Agway people”

Mrs. Edgar Scott, Manager, Ardrossan Farms

Tradition-steeped Ardrossan Farms, of her family. But the guiding hand picture-book corn.” Montgomery County, Pais home to today is definitely hers. Fo balanceall this envray 2p eres one of the country’s top Ayrshire er, ei Both she and her team of specialists of alfalfa are grown and harvested herds with about 100 milking. Under ; ; : rely heavily on the knowledge and annually under the Agway Queen’s Mrs. Scott’s stewardship, average eee oe Dai Fi re Hed Peden hee echo aiehethan advice of Agway Dairy Enterprise Men program. First cutting is ensile P Salesman Henry Zajac. ““On Henry’s and the later ones baled.

14,000 pounds of milk and 600 pounds of butterfat. In 1974, the individual top producer has achieved a record of 23,000 pounds of milk and 1,000 pounds of fat.

advice, we’ve put most of 135 acres of corn into Agway 834X and Agway 840,” says Chet Billhime, foreman, “and as far as I’m concerned, it’s

A new barn, milkhouse, feed room and silo were constructed and equipped by Agway. Feed, fertilizer, seed, twine, chemicals and petroleum

Mrs. Scott attributes much of her also come from the cooperative.

success to the inspiration of her late parents, Colonel and Mrs. Robert L. Montgomery, and to the loyal support

“But quality products are not the only reasons we buy from Agway,” Billhime said. ‘’The big reason is the quality

of service. I know I can trust Henry not to push something just to make a sale. He keeps us updated on every- thing that is new... drops in frequently with good, sound advice that makes us money... you can’t buy service like that from just anybody.”

If that’s the kind of service you want, call Agway and get in touch with an

Chet Billhime checks Enterprise Salesman.

“‘nicture book’’ corn, Agway 834X 1964-1974 with Henry Zajac.

Farm Enterprise Service AGWAY

What’s with NFO?

While they grabbed the American consumer’s attention with calf-kills this past fall, the National Farmers Organization also launched a drive to gain some notice from Northeast farmers as well. The timing was per-

fect, what with dairymen ... partic- ularly in areas where times get roughest quickest... fast running

out of patience with the economic status quo.

In a series of meetings featuring such thought-provoking speakers as

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NFO national director Kenton Bailey of Farmington, Maine, healthy farmer turnouts indicated that many dis- enchanted farmers were at least game to listen to the organization's oui of action. In Allegany County on New York’s Souther Tier, for example, NFO membership jumped from one to dozens in less than a month.

What is their plan of action? Basically, it is nothing short of an ultimatum from the food producer to the food buyer... “either buy my product at cost of production plus a reasonable profit, or you don't buy it at all.” Dubbing this approach “collective bargaining,’ NFO of- ficials explain that through their nationwide “collection, dispatch and delivery system” they can name


their own price by choosing their markets and moving products hun- dreds of miles if necessary. The NFO claims that their action caused the

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plete accounting information system which in- cludes service by a trained Farm Credit rep- resentative in your local area. He can help you with tax planning and reporting, provide con- tinuous financial information, monthly ircome and expense statements, reports on special segments of your business, cash flow analysis, depreciation schedules, and a broad range of other information. He’ll help you understand your figures and show you how to use them to

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upward movement of the Minnesota- Wisconsin series last year.

The officials point out that even if you join, you don't have to send your milk through NFO channels, and in fact, many members don’t. If members in an area do manage to assemble a large block of production, they can begin utilizing the NFO channels. One big inducement for producers to join has been NFO’s highly-successful “cattle price lift” which bypasses the auction stables, selling directly to meat packers. Dairyman Chy Haberfield, Scio, New York, says he gains about $30 a head over market price for cull cows sent in this manner.

Besides selling their plan of action at the recent round of meetings, the NFO speakers severely criticized the institutions they contend are re- sponsible for steadily eroding the farmer's control over his destiny. At a well-attended meeting in Wells- ville, New York, Bailey labeled the federal reserve system as a “bunch of moneychangers who print bogus paper money.” He says farmers are being forced to borrow their way out of cost-price squeezes at a rate which will soon “allow the money- changers to take over what we call the family farm.”

It is the corporate-controlled entity that the NFO views with the utmost rancor...mass media, cor- porate farms (which they say threaten to take over agriculture), and a host of other institutions. Farm coopera- tives are looked upon with similar sentiments. If it isn’t farmer-owned and farmer-financed, says NFO, then it has sold out to the money- changers.

While NFO spokesmen singe one institution after another with scathing attacks, offering what has been called a reactionary economic policy, they do offer an alternative to the co- operative effort. This amounts to a labor union of farmers...so much so that collective bargaining truly represents their means of gaining what they're after. Do the coal miners promote coal while accepting less-than-cost-of-production prices? This is essentially the NFO alterna- tive ...sell at your price or strike.

NFO recently survived a round of litigation at the hands of the Secur- ities and Exchange Commission over member-financing of the organiza- tion. By its own admission, NFO is dirt-poor financially. But this does not seem to dampen the fervor with which organization faithfuls fight for the cause...and while things couldn’t be much worse for some Northeast dairy co-ops, they're get- ting better for Northeast factions of the National Farmers Organization.

American Agriculturist, January, 1975

Inventions of the year

Our January 1974 issue carried a brief item about “Zapper,” a micro- wave device whose “death ray” kills weeds, grasses and soil organisms, thereby leaving the soil virtually pest-free and boosting crop yields considerably.

Now it turns out that Zapper is one of the 100 top technical “prod- ucts of the year” for 1974, cited by Industrial Research Magazine in its 12th annual award competition to recognize the most significant scien- tific and technological developments ...the ones that are most apt, in one way or another, to become a part of our daily lives.

Zapper is now being tested on a limited commercial basis, and the developers (Oceanography Interna- tional Corporation, College Station, Texas 77480) hope it will be on the market in 1975.

Another I-R selection, also men- tioned in AMERICAN AGRICULTURIST a few months ago, is a different approach to weed control. This one is a “safener” known as Antidote R-25788...a simple chemical



Conference The ninth annual New York State Processing Vegetable Con- ference, covering topics of interest to both growers and processors, will be held February 18, 19 and 20 at the Hilton Inn on the Campus in Rochester, New York.

Crop sessions will deal with snap beans, red beets, peas, sweet corn, carrots and cabbage. An evening program is also planned. Representa- tives from the New York Vegetable Growers Association and the Associ- ated NYS Food Processors are in- volved in planning and conducting the conference, which is sponsored by Cooperative Extension and Cor- nell University.

For further information, write: Robert Becker, Hedrick Hall, NYS Agricultural Experiment Station, Geneva, New York 14456.

Back to School After October 21, 1976, anyone using “restricted” pes- ticides . . . and this will include most vegetable and fruit growers . . . must be certified in order to use these pesticides. An applicator will have to successfully complete a training course that will familiarize him with potential toxicity of the materials, how to protect the environment, and ways to minimize exposure to people.

Zaps Aphids USDA entomologists are experimenting with a fungus that attacks aphids. Called Enthomo- phthora, it produces thread-like stalks that spread through the insects’ bodies and destroys them.

Another in a growing list of bio- logical pesticides, “Entho” is com- patible with at least two chemical

fungicides. American Agriculturist, January, 1975

which, when added in small quan-

tities to conventional weed killers, makes them safer to use on “touchy” crops, such as corn. Developer was Stauffer Chemical Company, West- port, Connecticut 06880.

L-R’s 1974 choices ranged from a highly scientific method of applying the techniques of nuclear physics in researching the cause of sickle cell anemia, to a skull cap contain- ing circulating water to cool the body. In addition to the two pre- viously mentioned, here are some

Holding the line on production costs means getting your feeding ie

program in balance.

Here’s how to go about it.

Start with a forage test.

The only way you can hope to balance out your feeding program is first to find out how much energy and protein your cows are getting from homegrown grains and forages. So a forage test is a must. Once you have the results, your Agway man will arrange for a free Total Dairy Ration (TDR) Profile.


Agway TDR Profile .. . A $15 value

Together with the results of your forage test, free


to fine-tuning your dairy feeding program


award-winning products with pos- sible agricultural use:

Raindrop Spray Nozzle Model 33874, which produces a_hollow- cone spray comprising such large droplets that most will not drift to contaminate areas where they are not wanted. Principal application is in the aerial spraying of agricultural or industrial pesticides. From Dela- van Manufacturing Company Spray Products Division, West Des Moines, Iowa 50265.

A fast-setting concrete that achieves an excellent bond with existing concrete, from Republic Steel Corporation, P.O. Box 6778, Cleveland, Ohio 44101.

The first commercially-available solar energy collector, from PPG industries, One Gateway Center,

Pittsburgh, Pennsylvania 15222.

New York, California and Massa- chusetts provided 37 of the 1974 I-R 100 winners. In fact, over the 12 years of the competition, these three states have dominated in num- ber of winners. To develop all of the 1974 winning products cost in the neighborhood of $58 million. Average development cost per prod- uct was $718,000 (1970 average was $461,000).

If you think you might like to buy one of each of the 61 winning prod- ucts for which the price is available, prepare to shell out $6,869,399! Or maybe you'd like to select just one on the list, and invest in a chemical to treat pine trees so as to increase the production of turpentine. It only costs about 5.5 cents per pound!

TDR Profile spells out your most economical feeding options. Makes it easy for you and your Enterprise man to determine the least-cost way to fully utilize the energy and protein in your homegrown feedstuffs.

It also lets you take full advantage of the one line of feedstuffs that meshes with your homegrown feeds . . . Ratio: Right® Dairy Rations.

Ratio: Right® feeds . . . key to a balanced feeding program

One of the Ratio: Right formulas will fit into your basic program to balance out the energy and protein in the feedstuffs you now have in storage and assure the right milk-making intake for your herd. With Ratio: Right feeds, nothing is wasted. You buy only that energy and protein you can’t grow yourself.

Along with a fine-tuned feeding program, there are other proven ways to cut costs. Close culling and group feeding, for instance, help you use feed more efficiently. A herd average of 14,000 pounds or more—a realistic goal—puts extra money into your pocket. And by sharp management, you control wasteful expenses that can really hurt.

Call Agway now and get in touch with an Enterprise Salesman. He can show you how to put these profit-guarding practices to work.


spo tid

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There are Seedway Dealers from PENNSYLVANIA to MAINE to supply your needs for all of hada Field Seeds.

a at= Me a edule) Quality Seeds Hall, New York 14463

xy) perSoft


-s oR Meee

| Inflations


bin Wii saospuaslaocininrtititon oy iy sibleiis sessed msec tt


r hi to 2 okae airect poe 3 4 4 MEDIUM-BORE FOR OAS MERE RT A: REGULAR SURGE SHELLS $1.20 ea. famous for eliminating ‘‘drop-offs”’ (Quantity) 2 NARROW-BORE FOR SURGE VACUUM SAVER SHELLS. 1.20 ea. _—___— has three take-up rings (Quantity) 3 NARROW-BORE FOR REGULAR SURGE SHELLS 1.20 ea.

milks splendidly, saves cost of narrow-bore shells (Quantity)


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CF Send free catalog of Maes inflations for al/ makes of milkers,

plus other Maes quality products for dairy and farm.

[_] Send me the name of Maes dealer in my county. SINCE THE THIRTIES .


RFD or Box City

County State LAD a ee ee MAIL TO: MAES, INC., Dept. AA-15, Holland, Michigan 49423

aot oN i i

The Dairylea dilemma

by Gordon Conklin

Dairymen listening carefully at Dairylea’s last annual meeting in October heard hints of what was to come. Treasurer Eugene Vandenbord reported to members, and included this comment, “There can be no more years in which, for whatever reasons, we conclude our financial accounting in the red. We cannot sustain an acceptable reputation with financial institutions unless we under- take whatever financial steps are necessary to protect members assets.”

And _ executive vice president David Greenawalt commented in his annual report to the delegates, “Dairylea is at a critical crossroads, and its membership must determine what direction to take. Failure to revise the capital structure will, of necessity, result in a retrenchment of operations within Dairylea, which, in turn, will destroy its capability to adequately protect and serve its members. The alternative, the only alternative, is to revise the capital structure and provide the financing necessary for Dairylea to achieve its goal —to maximize the financial return to its farmer members.”


But listeners then had no idea that the Dairylea directors would

.reacting to pressure from the Bank for Cooperatives at Springfield, Massachusetts... assess each pro- ducer 93 cents per hundredweight on seven months’ milk production! The initial reaction was rage on the part of many members.

What brought Dairylea to the point where it owes $18 million, and is in danger of collapse unless it adopts stern measures? Its prob- lems come in two categories... in- ternal and external.

Internal problems listed by Green- awalt after taking over as chief operating officer a little more than a year ago include:

—a poor organizational structure

excessive overhead costs

—lack of product pricing and

margin control

—lack of a profit-motivation atti-

tude among directors and execu- tives

—unacceptable levels of product


For years, observers outside Dairy- lea have criticized the organization because some officers and directors have traditionally spent so much time making operating decisions. Bluntly speaking, a farmer may be entirely competent managing a sizable dairy farm...but he may be out of his depth trying to manage a big cor- poration. “Directors should decide policy, but professionals should manage the company,’ say most business advisers.

It was product shrinkage that was partly responsible for creating the pressure leading to using reconsti- tuted milk in “splicing out” the

Class I milk supply in some Dairy- lea plants. Each plant manager must account for every pound of milk coming into his plant, and every pound of milk-equivalent going out. Some slippage is expected, but if it becomes excessive, then the plant

manager must correct it or face being fired. Unfortunately, some managers

apparently met the problem by using milk reconstituted from milk powder and water for illegally mak- ing up part of the shrinkage... and the penalties eventually levied by New York State are history. But product shrinkage remained a prob- lem...although a diminishing one

.even after the disclosures of

illegal activity. Damaging

Probably the most damaging single internal problem involved the Whit- ing fiasco... which accounts for at least half of Dairylea’s $18-million tidal wave of red ink. The financially- troubled company was picked up by Dairylea with the hope that it could provide a major entry into New England retail milk markets.

But the move proved to be a disas- trous miscalculation on the part of Dairylea directors and management

.a terribly costly lesson in the realities of labor-union power and milk-marketing hazards.

Tuming to external problems, a number rear their ugly heads. They all boil down to one basic fact... Dairylea, along with most other dairy co-ops in the Northeast, has for years paid farmers more for milk than the cooperative can realize in the marketplace...creating a case of steady financial hemorrhage. Sure, milk or fluid consumption will usually pay its way... but “surplus” milk manufactured into butter and milk powder is an albatross around the neck of its manufacturer.

In the trade, there’s a term called ‘“make-allowance” that has to do with the amount a milk processor is paid from the total “pool” for making butter or powder. The USDA has a formula for figuring this allow- ance ... and processors complain that the figure to which it sugars off is unrealistically low. So Uncle Sam forces Dairylea to pay a certain price for Class II milk...then sets the make-allowance at a low figure... and breaks the open-market price of the product with imported butter