With a warmer and drier December, there are many industries that get affected in a negative way but not all of them.

Frank Will, part owner of Mount Crawford Creamery said this winter has been very nice for dairy farmers. Currently Harrisonburg’s nearby station, Dale Enterprise, has measured a top 10 warmest December on record in 2021. Before the rain Wednesday night, Harrisonburg was on pace to have the 2nd driest December with only 0.09 inches of rain measured at Dale Enterprise.

Without the cold, farmers don’t have to spend more money on extra food for the cattle. The lack of cold, rainy or snowy days also does not disrupt production.

“Hopefully… I know we need some rain and hopefully we will get a little bit if it would just stay kind of mild all winter and this spring when we need the rain… next summer when we need the rain that’s when we need it like we didn’t get this summer,” said Will.

Our area has been in drought conditions since the summer. Will said that did not do any favors when growing crops. The weather now though is perfect for him as mild and dry days also make the jobs of dairy farmers much easier.

Source: whsv.com

Dairy workers were able to see $ 20 milk in 2022 | News

Source link Dairy workers were able to see $ 20 milk in 2022 | News

The gold standard around the world, U.S. dairy is poised to set new export records for 2021.

Corey Geiger, Holstein Association USA president, has seen firsthand how U.S. dairy products are welcomed in other countries, most recently traveling as part of the U.S. Dairy Export Council’s Farmer Trade Mission to Dubai.

Throughout his career in the dairy industry, Corey Geiger has been well-versed in international travel.

He’s crisscrossed the globe, sharing the positive message of U.S. dairy producers and their high-quality products.

“I’ve learned that consumers around the world crave dairy products. In travels in a country like Vietnam, when people get additional income, one of the first things they want to do is purchase wholesome dairy products so that their children have better life than they did. And people will work many days in a month just to pay for those things.”

In early November, he was part of a farmer trade mission with the U.S. Dairy Export Council to Dubai.

When standing in a grocery store looking at the wide variety of U.S. cheese and dairy products, it brings the entire picture into greater light.

“I think that’s important for all of us to remember at the grassroots level here…ultimately, we’re delivering a great service to our fellow men and women, our citizens of the United States and around the world.”

No matter where they call home, consumers love learning more about where their food comes from — and the families and individuals behind dairy products.

“The other thing I’ve learned as I visit with dairy farmers specifically, we have a great passion for our animals. We have a great passion for our families and most of the people that breed cows are multi-generation farms. There’s new people that are coming to our business too and bringing excitement and energy in, but we’re building on many traditions and using science to improve our farms, too. The more we can share that with consumers, the better off we will all be.”

As president of Holstein Association USA, Geiger believes the future of U.S. Registered Holsteins is very bright. Because of the high-quality product she provides and the elite genetics the breed contributes to the global dairy industry.

“We are in the information and data era here. And there is more known about the Holstein cow than any domestic animal on the planet. We can study that Holstein in all these different climates and find out how she performs here in the United States, but again, we have many great customers that are pursuing genetics from America, and so we can take her around the globe.”

You can learn more at Holsteinusa.com.

Source: kmaland.com

In early October, we finally got a glimpse into the Biden administration’s approach to trade when USTR Ambassador Katherine Tai outlined a “New Approach to the U.S.-China Trade Relationship.” Tai made clear the intention to maintain several policies from the previous administration, including keeping hold of tariffs and zeroing in on enforcement. The stated difference in the new approach is to simultaneously build out more collaborative efforts with our allies.

This all sounded fine. But when pressed on whether the U.S. will move toward engaging in comprehensive trade negotiations, whether through a China Phase 2 agreement or with other partners, disappointingly there was no firm commitment. This has been reiterated time and again through the administration’s actions with trading partners over the past several months. Most recently, the administration has been engaging with partners throughout the Indo-Pacific region, structuring what has been touted as an “economic framework.” While that might appear to be an approach to re-engage with our former Trans-Pacific Partnership partners, it has been made clear that the end goal is not a trade deal.

This is disheartening, to say the least, for the U.S. dairy industry and farmers like me who are hoping for sustainable farm businesses that survive and thrive long-term for our families. Engagement in the global market has long been recognized as key for the health and vitality of our industry and rural communities. According to the U.S. Department of Agriculture, each dollar of exports stimulates another $1.14 in economic activity. In 2020, Wisconsin alone exported more than $490 million worth of dairy products, contributing another $560 million in economic activity across the U.S.

But this isn’t just about dollars and cents. Good, comprehensive trade deals make markets fairer and more competitive. For U.S. dairy, this means ensuring that our partners don’t put in place restrictive barriers that reduce competition and aren’t based on science.

Ambassador Tai has also said that part of the administration’s new approach to trade would not be in the traditional sense, that is, not necessarily focused on market access. In the dairy industry, we understand fully the importance of taking new approaches; our product innovation has been a success story, particularly in the global marketplace. But, at the same time, the U.S. should not overlook what is currently working and consider how we can maintain momentum.

Greater market access for dairy exports means more to the industry now than ever. Exports are essential for balance of the U.S. milk supply and demand, growth of the industry and, at the end of the day, dairy farmers’ milk checks. The expanding global demand for dairy products, notably across Asia, makes an exports push even more opportune.

While we understand the administration’s focus remains on the domestic industry as we emerge from the pandemic — stating that the key to our global competitiveness begins at home — we must also recognize that new trade agreements can support those efforts. When done right, such agreements not only help open new markets for U.S. products, but they also create a business-friendly environment that attracts greater investment, fosters innovation and stimulates economic growth.

So as the Biden administration continues to engage in economic dialogue with our partners, it is the hope of our dairy farmers and processors — for the sake of the industry and rural America — that the administration embraces the value of expanding market access and finally begins real, good-faith negotiations.

Brody Stapel is a dairy farmer in Wisconsin and president of Edge Dairy Farmer Cooperative, which represents farmers throughout the Upper Midwest on federal dairy policy and is one of the top dairy co-ops in the country based on milk volume.

A Southern Tier farm that recently received an honorable mention for a top northeast dairy prize is using that money to help local students.

Stronghaven Farm received the Dairying for Tomorrow Award in October 2021 and then made a $500 donation to the Tioga Central School District to purchase portable milk coolers for students.

“We chose to donate the award to our local school because we want to make sure students have access to cold, fresh milk with all their meals,” said Matthew Strong. “We hope to develop life-long, loyal milk drinkers and that usually starts in school.”

The award recognized Stronghaven for its environmental stewardship in its efforts to protect local waterways including the Susquehanna River and Chesapeake Bay watershed.

“The district was so appreciative and so excited they were nominated by a local farmer to receive this funding,” said Broome Tioga BOCES Senior Food Service Director Annie Hudock.

The farm practices no-till farming, cover crop planting and tile drainage to reduce phosphorus runoff and minimize soil erosion. The Strong family has worked closely with the Tioga County Soil and Conservation District to implement techniques to protect waterways and helps to teach other farms their best practices.

“Our dairy farmers are dedicated to producing an affordable, safe and nutrient-rich product, while remaining committed to the care of their animals, their land, and to being a good neighbor to their local communities,” said Rick Naczi, CEO of American Dairy Association North East. “The Strongs epitomize the good work that all dairy farmers are doing.”

Source: binghamtonhomepage.com

The U.S. Department of Agriculture will begin issuing additional payments this week for dairy producers who enrolled in 2020 and 2021 coverage through the Dairy Margin Coverage (DMC). USDA’s Farm Service Agency (FSA) updated the feed cost calculation by using 100% premium alfalfa hay rather than 50% premium hay in determining the monthly margin, which means an additional $12,426,777 for dairy producers in New York.  Payments will be retroactive to Jan. 1, 2020. Dairy operations with 2020 and 2021 contracts will be paid automatically for the applicable months.

“Updating feed cost calculations for DMC to include premium hay will help producers to receive more payments,” FSA State Executive Director Jim Barber said. “This update builds on other efforts of the Biden-Harris Administration to improve DMC and other key USDA dairy programs.”

In addition to updating the feed cost, USDA announced other dairy-related updates, including the start of the 2022 DMC signup as well as the new Supplemental DMC. Both will run from Dec. 13, 2021 to Feb. 18, 2022. DMC is an important safety-net program. So far in 2021, DMC payments have triggered for January through October for more than $1.0 billion.

More Information

To learn more or to participate in DMC, producers should contact their local USDA Service Center. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can also use the online dairy decision tool on  Service Center staff continue to work with agricultural producers via phone, email and other digital tools. Because of the pandemic, some USDA Service Centers are open to limited visitors. Producers should contact their Service Center to set up an in-person or phone appointment. Additionally, more information related to USDA’s response and relief for producers can be found at farmers.gov/coronavirus.

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

–USDA FSA New York

In an effort to keep her third-generation family farm in business one woman is starting a new journey in Union County.

The farm was started in 1955 by Jennifer Mapes grandfather, who passed the love of agriculture down to the next generation. In July Mapes Farm Fresh talked about they are keeping prices low for the consumer.

Now, we get a closer look at how milk is processed and bottled.

Source: pahomepage.com

Australian dairy products will enter the UK duty free under the FTA between Australia and United Kingdom finalised today.

In July, the cost of concentrated feed for dairy herds had shown a strong international rise. The concentrated mixture (corn plus soybean meal in the ratio of 70% and 30%) reached US$ 0.34 per kg in May, an increase of 51.4% compared to the 2018-2020 average.

Considering that corn and soybeans are commodities quoted in dollars, the current exchange rate for the US currency in Brazil does not alleviate the problem. The dollar came to be below R$5.00 in June, opening an interesting window for purchases, but it returned to its previous level, making inputs again more expensive. Data from the ICPLeite (Embrapa’s Milk Production Cost Index) show that in June the purchase and production of roughage presented a variation of 7% and concentrated feeding, 3.85%. Feeding the herd is more expensive this off season.

During the monthly meeting of the situation of the Milk Intelligence Center, Embrapa researchers and analysts at the institution were faced with the question: “When will the prices that integrate production costs start to fall?” The combination of rising agricultural commodities with the devaluation of the Real does not make this answer easy. ICPLeite posted a 39% increase in the last 12 months ending in June. The concentrate rose 68%.

“To aggravate the situation, the lack of rain in the Center-South region of the country compromised the production of off-season corn”, says the researcher at Embrapa, Glauco Carvalho. He expresses concern about the significant increase and says he does not see prospects for production costs to start falling.

In addition to the delay in planting the grain crop and the little rain, more recently, the rise in costs, in addition to putting pressure on the producer’s profit margins, harming milk production, increases the prices of dairy products, which naturally have higher prices in the off-season. On the wholesale market, UHT milk (from a box) was being sold in the first half of June at R$ 3.55. Mozzarella cheese was quoted at R$27.81.

“After prices registered an increase in wholesale, the market lost strength in recent days, but there is still support due to the off-season, which ends in August/September”, says the researcher.

In any case, the scenario is one of caution, due to uncertainties about demand and the tightening of producer and industry margins.

As for the producer, analyst Denis Rocha says that profit margins remain tight, but there was an improvement in the last month. In June, the producer received R$ 2.20 per liter of milk, with record of consecutive highs since April.

“This upward trend is explained by the lower availability of the product in the wholesale market, due to the off season, the high cost of production and the lower entry of milk via imports”, explains Rocha.

Regarding 2020, the analyst recalls, however, that in this period last year, the government paid a higher amount of emergency aid, due to the pandemic, which ended up increasing consumption and increasing the price of products, ensuring a better margin profit for the productive sector at that time. The current moment, according to Rocha, is more complex due to the high unemployment rates,

Carvalho is optimistic about the country’s macroeconomic scenario: “Investments in GDP in the first quarter came in good and household consumption is recovering.”

The researcher also claims that despite the poor performance in the labor market, performance indicators tend to be better in this second semester, causing a positive impact on the sector.

Researcher Kennya Siqueira finds that trade, in general, has improved, with household consumption returning to pre-pandemic levels.

There is still a very large repressed consumption, which commerce has been absorbing little by little. She still believes that the return of the movement in restaurants could contribute to the increase in dairy consumption.

Interview – Glauco Carvalho

After a year and a half of the pandemic, researcher Glauco Carvalho granted an interview to the Anuário Leite, from Embrapa Gado de Leite, in which he talks about the behavior of the sector in this period:

How do you evaluate the behavior of the dairy sector during this time of pandemic?

The industry as a whole did an excellent job during the pandemic, especially at the beginning, when everything was very new and unknown. There was no disruption in production or distribution. And the sector was quick to reallocate milk from dairy products with greater difficulty in sales to others with less logistical and distribution problems. In this way, the production chain managed to maintain the supply of milk and dairy products throughout the country, meeting the consumption needs of Brazilians.

Was there more impact on the milk production or consumption segment?

There was a growth in the sector as a whole. We grew in milk production and we grew in consumption. But as our trade balance was negative, that is, we imported more than we exported, I would say that the impact on consumption was greater. But in this case it was a positive impact. If we look at the production of formal milk, that is, with inspection, there was an increase of 2.1% last year. Availability, which is the volume absorbed internally in direct or indirect consumption, registered a growth of 2.8%. For this reason, I say that the impact on consumption was greater and greatly driven by the income effect that occurred in the population via Emergency Aid. But we also had new consumption habits that helped sales.

In the first year of the pandemic, there was growth in the sector, due to emergency aid. This year, the aid is less. Could the year 2021 close with an established crisis in the production chain, which will extend to 2022?

The milk chain is very resilient to crises and generally adjusts quickly. But the short-term scenario is not the best, for a number of factors. On the macroeconomic side, we have a high unemployment rate, a drop in income and rising inflation and interest rates. Furthermore, economic growth is forecast to be low, falling far short of global expansion. Specifically in relation to the sector, we are under enormous cost pressure and with difficulties in passing on prices to the final consumer due to the macroeconomic weakness itself. It is a very challenging environment and, yes, it can drag on beyond 2021, especially in terms of costs. Therefore, it is a year that suggests more conservative decisions. But we cannot forget that the economy is recovering, with positive effects on income and consumption over the next few months.

How do you explain the rise in milk production costs, which has dragged on since the beginning of the pandemic?

This increase is related to a set of factors, internal and external. Externally, we can highlight: the devaluation of the dollar against other currencies, which raised the prices of commodities in dollars; the strong growth in global consumption; Chinese corn imports, which used to be between 3 and 5 million tons/year, are now expected to exceed 25 million tons; the decline in global corn and soybean stocks, with a sharp drop in US stocks. Another factor, not much talked about, was the migration of hedge funds to the commodity markets. The funds have a historically high long position, which ends up putting more pressure on prices. But we had internal factors too. In addition to weather problems that affected planting and harvesting, there was a devaluation of the real, which has a strong impact on milk production costs. Anyway, the fact is that we have a firm demand for corn and soybeans and with highly capitalized producers, slowing sales.

In addition to commodity prices, what else has increased milk production costs?

The main increases were in the cost of concentrate, as mentioned above. But we are also seeing an increase in the cost of bulky food, with more expensive fuel, fertilizers and pesticides. These are inputs affected by the exchange rate, the price of oil, international maritime freight, and all these factors suggest an increase.

The exchange rate rise makes Brazilian milk cheaper compared to international prices. However, imports are on the rise. What is the role of the exchange rate in the current crisis?

In agribusiness, exchange devaluation is generally positive. But this when we think of agro-export chains such as soy, coffee, orange, etc. In the case of milk, despite the exchange rate holding imports, there is a direct effect on costs. In the second half of 2020, the exchange rate was not enough to hold imports. Higher domestic prices and the competitiveness of dairy products from Argentina and Uruguay greatly increased our imports. And this also occurred in early 2021, but with decreasing volumes. At the beginning of the year, we are seeing imports losing strength and exports growing. The rise of dairy products on the international market contributed to this movement.

With regard to the industry, what has been worried about dairy products?

The big concern is the difficulty in increasing margins and adding value. As we have a very fragmented industry and no bargaining power with retailers, the sector ends up being pressured at certain times. The existence of low barriers to entry in the sector ends up generating this result of little market power. When the economy grows more sharply, this effect is mitigated, as there is an expansion of income and consumption. But when economic growth is low, problems get worse. Milk consumption has a strong relationship with income and Brazil stopped growing in 2014. As a result, we are practically stagnant in milk as well. And when you have sequential seizures the result is very dangerous. Brazil shrank in 2015 and 2016, then we had very low growth in the 2017-2019 period. In 2020 came the pandemic and more economic crisis. This undermines the investment capacity of companies in different sectors, affects employment, income, consumption and so on. In the first year of the pandemic, we had a strong fiscal contribution, which generated an important consumption of dairy products. But it is something that does not support itself and ends up increasing public indebtedness, which has other negative economic consequences, such as higher interest rates, for example.

There was an increase in milk consumption in the first year of the pandemic, how is the consumer behaving at the moment?

The situation in early 2021 is more complicated. Last year we had a large consumption of classes D/E with the release of Emergency Assistance. But we lost a good part of that portion of the population for lack of income. We started 2021 with timid growth in consumption, which is limiting more robust price increases and negatively putting pressure on profitability margins in the sector.

Would you consider that the dairy sector was the least affected by the pandemic within the agro?

I don’t see it. In the first year, the sector benefited from increased consumption and improved margins. But this did not hold up and by the end of 2020 the scenario had worsened. The fact is that the world is growing fast and the agro-export chains are taking advantage of the moment, with greater shipments of products and at higher prices. In other words, a perfect match. This is not the case with milk, which depends almost exclusively on domestic income to grow. We should have a bid adjustment to improve the current price condition.

What lessons can the dairy sector, inside and outside the farm, take from this very atypical period and what is the trend going forward?

I see that there are several lessons, such as the adaptation required by the pandemic, how to deal with uncertainties and how to deal with the expectation of bad news, the latter is very present in the daily life of the pandemic. In this sense, the greatest lessons learned are related to action and cooperation. Complaining doesn’t help at all, but acting does. And I see that the industry followed this line in the first year of the pandemic. We all face countless challenges and the important thing is to look for solutions to move forward and successfully. In the case of cooperation, looking for good partnerships in the business is essential to deal with the complexity of today’s world. And the pandemic showed that cooperation between individuals, companies and nations was the most powerful weapon in the search for solutions, like the Covid-19 vaccine. For the future, this cooperation will be essential in business to produce more efficiently, to make better purchases of inputs, to improve marketing and to add value. There are also trends related to food safety, health, the environment, social responsibility, all topics that need to be on the sector’s agenda.

With fewer people going to bars and restaurants, in your opinion, was the pandemic able to change dairy consumption habits?

Definitely yes. There was a substitution of food away from home for food at home, which boosted the demand for dairy products used in cooking. But the changes in habits didn’t just happen because of the lesser presence in bars and restaurants, but because of a series of changes that we experienced. With the pandemic, families favored spending on food. In addition, while a portion of the population gained income and spent more on food, others had increased savings due to savings in other expenses, such as travel and even bars and restaurants. These families ended up favoring a more elaborate and more pleasurable diet. Anyway, it has been a period with different consumption experiences. And I also see that the pandemic has accelerated some trends like online shopping. It is a form of commercialization that the dairy sector needs to explore more. There are other issues related to food safety and origin that are likely to gain traction in the coming years.

It is very likely that a new order will be established in Brazilian and world agriculture when our life returns to normal. What should we expect?

There is a growing demand for ESG (Environmental, Social, Governance) practices in the field. Society and investors are looking for a sustainable development model that considers these issues, that is, environmental protection, social responsibility and greater transparency. These are issues that gain weight in investor analysis, in global trade, and Brazil has enormous potential in this direction, with low-carbon agriculture and food production to supply a large part of the world’s population, without subsidy. This is the sign that we are seeing for the future. The agrifood chains move towards productivity gains for market segmentation and customization of consumption, and here we are talking about adding value to products. In the case of milk, how it is produced, and by whom, will gain more and more importance. As a result, there are demands for traceability, animal welfare, carbon footprint, waste and recycling, sustainability, local products, natural products, among other trends. Consumers seek this information and the industry can use it as an important source of value.

Source: thedairysite.com

U.S. Agriculture Secretary Tom Vilsack says more financial help is on the way for dairy farmers who have been hurt by years of low milk prices, the pandemic, and rising operating costs.

What’s more, Vilsack and U.S. Sen. Tammy Baldwin announced, the USDA is investing more than $114 million in infrastructure projects in rural Wisconsin, including millions for clean drinking water.

Thursday, Vilsack and Baldwin were set to visit a dairy farm in Cottage Grove, and the city of Bloomer, in Chippewa County, to help promote President Joe Biden’s $1.7 trillion Build Back Better plan that’s stalled in the Senate.

In a Journal Sentinel interview, Vilsack touted recent changes to the USDA’s Dairy Margin Coverage program that provides farmers with a kind of insurance policy when the national price of milk and the average cost of cattle feed become imbalanced. 

The signup period for the voluntary program ends Feb. 18, enabling farmers to get the safety-net coverage for another year, and in some cases, to receive retroactive payments.

The National Milk Producers Federation has projected more than $1 billion will be paid out to farmers under the program for 2021. In Wisconsin, it’s expected to be more than $248 million, or around $51,000 per farm enrolled in the program. 

Vilsack also pointed to another USDA effort, aimed at helping dairy farmers recover revenue lost during the early days of the pandemic, and he talked about the path forward. 

“After the first of the year, we’re going to continue to look for ways in which we can expand exports. We’ve knocked down barriers and tariffs in a number of places, and roughly 17% of all the dairy produced in this country is exported,” he said. “And we’re going to continue to look for new market opportunities …and ways in which using the purchasing power and procurement power of the USDA can create more market stability.”

Since 2000, Wisconsin has lost around 68% of its dairy farms, most of them small- and medium-sized operations that couldn’t withstand years of low milk prices, rising costs, and trouble finding hired help. Yet milk production has risen as the remaining farms have gotten larger or more efficient through improved cattle genetics and advances in technologies.

The Biden administration has claimed it’s transforming America’s food system to have a greater focus on more resilient local and regional food production, fairer markets for farmers, and new revenue streams through investments in clean energy.

“The challenge is to create a strong local and regional food system, markets that are specifically designed to allow local producers to be able to negotiate a price,” Vilsack said.

Some farmers say tweaking Dairy Margin Coverage and other programs isn’t enough. For years, they’ve asked the USDA to implement a milk supply management system, like what Canada has, to keep markets from being flooded with cheap milk. 

But the resulting higher prices would pose problems for consumers, according to Vilsack.

“Until somebody can figure out how you can have a supply management system that doesn’t result in significantly higher costs for a gallon of milk or a pound of cheese, which would hurt consumers and the industry, I think you’ve got a real challenge,” he said. 

Some farmers say the next federal Farm Bill, in 2023, could reform dairy markets in a way that creates more price stability for farmers. 

“Given the record amount of farm bankruptcies, the ongoing farm losses, and challenges that farmers have faced here in America’s Dairyland, it’s clear that we need to improve upon the last Farm Bill,” said Darin Von Ruden, president of Wisconsin Farmers Union, a group that represents mostly small and mid-size farms.

“Additionally, farmers — and all Americans — have been faced with the clear evidence of climate change, which is going to make the conservation component of the next Farm Bill critical,” Von Ruden said. 

However, USDA discussions on the comprehensive farm legislation won’t get under way until next year, according to Vilsack.

“We’re not in a position today to talk about what we think might be, or ought to be, included,” he said.

One problem in writing national dairy policy is there aren’t universal solutions.

“There’s a different type of dairy industry in Wisconsin compared to the dairy industry in California, which is different than the dairy industry in New Mexico, which is different than the dairy industry in Vermont. And so the challenge in terms of improving the system is basically trying to get a consensus,” Vilsack said.

Still, farmers need more than a “safety net” that may be dissolved in a few years, said Marin Bozic, an assistant professor of agricultural economics at University of Minnesota. 

“Farm Bills authorize dairy programs for five years. In deciding whether to come back to the family farm, young adults from dairy families must contemplate what is likely to happen over the next 40 years. That is eight Farm Bills,” Bozic said. 

The clean-water aspect of Vilsack and Baldwin’s trip to Bloomer is to highlght federal spending on replacing old lead pipes and upgrading wastewater treatment facilities.

The City of Bloomer, for example, will use $27.6 million in infrastructure money to eliminate toxic levels of lead in the water system for its 3,539 residents. The City of Waterloo, in Jefferson County, will use $21 million to upgrade an aging wastewater treatment system.

“Every Wisconsin community needs access to clean drinking water and an environment that’s free of toxic chemicals,” Baldwin said. 

Two independent analyses estimate the Build Back Better Act includes more than $2 trillion in spending and tax cuts. If all the temporary programs were made permanent, they could cost upwards of $5 trillion, according to estimates from budget watchdog groups.

Republicans have called it ineffective, runaway spending. 

“As the Biden administration fails to provide relief for farmers experiencing record-high inflation on heat, feed, and fertilizer, Tom Vilsack’s visit to tout Joe Biden’s costly policies will fail to win over rural Wisconsin families,” Republican National Committee spokeswoman Rachel Reisner said in a statement. 

Source: jsonline.com

“By the time we got up here, the building was fully engulfed. We’ve got a water hose there but you couldn’t even get close enough, the building was so hot,” Jones said.

Several fire departments responded, using around 5,000 gallons of water to put out the flames. The cause of the fire remains under investigation.

Nine young calves, all less than 10 days old, were inside the barn and couldn’t be saved.

“Thank goodness it didn’t spread to the next calf shed because it would have been some 40-some calves in that shed,” Jones said.

He said the response from friends and neighbors was immediate, with many asking how they could help and some even taking part in the clean-up.

“We live in an awfully good community. We’ve got really good neighbors and friends and yeah, it’s very heartwarming,” Jones said.

By Wednesday afternoon, work was already underway on a new barn as life on the farm doesn’t stop.

“Something like this is certainly heartbreaking, but you got to rebuild and move on because the cows aren’t going to stop calving,” Jones said.

Jones said that insurance will only cover about a third of the cost of replacing the barn and they are trying to cover the rest.

He added that because the fire was contained to just that building, the rest of their operations haven’t stopped, including at the creamery which is running at its normal hours.

Source: wtvr.com

For fourth-generation Oregon dairy farmer Derrick Josi, the best way to squelch anti-dairy misinformation is by sharing real-life facts about his life and business.

So, he wrote a book doing just that.

Josi is a popular farm social media influencer (TDF Honest Farming) who engages his 650,000 Facebook and 54,000 Instagram followers with the antics of “his girls” (500 Jersey cows). He also frequently counters what consumers might have heard about dairy farming. For example, this video shows how cows prefer to lay down in the dirt even when they have a lush, 30-acre grass pasture to choose from instead.

An Industry Worth Fighting For, his first book, expands on his social media focus, dispelling common dairy farming myths used to attack farmers and promote anti-dairy information.

Anti-dairy social media campaigns come at a time when U.S. dairy farmers are struggling to survive. As of February 2021, the U.S. has just 32,000 licensed dairy operations, according to the United States Department of Agriculture (USDA). More than half of U.S. dairy farms have gone out of business since 2003.

Meanwhile, organizations like People for the Ethical Treatment of Animals (PETA) and movie stars like Joaquin Phoenix, who spent his 2020 Academy Awards speech spouting anti-dairy misinformation, have been calling on Americans to give up dairy products — ostensibly because of alleged cow cruelty.

But while there have been rare cases of acknowledged animal abuse, those incidences are not the reality of dairy life, says Josi. In fact, he argues, the criticisms activists leverage against dairy farms are almost always based on not understanding dairy cow behavior, how dairy farms operate, or what dairy farmers are doing and why.

That’s the main reason  Josi decided to write the book.

“You always have the (anti-dairy activists) that come online and say, ‘Dairy farmers won’t even talk about this stuff because they don’t want the public to know,” Josi told the Daily Churn. “Oh yeah? Well, I published a book talking all about it.”

For instance, dairy farmers are often criticized for using artificial insemination (AI) instead of bulls to impregnate their cows. Activists even go so far as to accuse dairy farmers of raping their cows. Josi dispels that myth in his book, explaining how cattle estrus, breeding and AI works and why dairy farmers, like him, avail themselves of this strategy for impregnating their animals.

AI is much safer for cows than using bulls, Josi writes in his book. The cows don’t even notice while it’s being done.

Released on Amazon on Oct. 15, 2021, the book is already making a mark. It held the number one bestseller in the “Green Books” category for eight weeks and currently has a solid five-star rating with more than 170 reader reviews. Should other farmers tell their stories too?

Farmer influencers can change opinions

Fellow dairy farmers can use Josi’s book as a “guideline” to explain their own practices when communicating with consumers, Don Schindler, senior vice president for digital innovations at Dairy Marketing Inc (DMI), tells the Daily Churn.

Schindler, who trains dairy farmers how to use social media, says he recalls meeting Josi at a seminar he gave in 2016. Josi first began posting online soon after that day.

“Derrick was one of those guys that wouldn’t stop asking questions. And then when he did talk, he was very articulate and funny,” Schindler recalls. “And I thought, you know, if you can bottle this guy, he’ll run away with it. And he did.”

Many farmers are intimidated by the potential mob effect and harassment of online activists, so they don’t speak up about what they do, Schindler says. But the best thing farmers like Josi have going for them is their authenticity.

Farmers don’t need to show a sanitized version of their life to gain consumer understanding and even fans, Schindler says. “You just need to show them you love your lifestyle and that everything you’re doing, you’ve got them in mind.”

Posts by social media influencers like Josi can have a big impact on consumer choices. According to a 2020 survey by Matter Communications, 82% of consumers have “purchased, researched or considered purchasing a product or service after seeing friends, family or influencers post about it.”

Consumers are especially interested in posts about food and beverages (56%) as well as most likely to act upon a influencer post about food and beverages (51%) versus other content categories.

Josi believes he has such a large and loyal following because he is authentic. He says his audience doesn’t want to see pretty pictures that ignore issues or are “flat out fake.”

“I did a video the other day where my face was still clean, as pretty as it can be, but from the mid-waist down, I was covered in manure,” he laughs. “I said, social media versus real life.”

Schindler admits that not all farmers can tackle social media or write a book as well as Josi. It can be hard to respond to online acts without taking them personally, he adds. Not to mention that posting daily to keep social media algorithms featuring content can be a chore many farmers aren’t up for.

But the Oregon dairy farmer has carried on despite receiving multiple personal online attacks, including threats sent to his wife when pregnant with their youngest child. And now his large and loyal following are quick to defend him when critics find his site.

All of that is why Schindler would like to see the dairy sector put their support behind real dairy farmers like Josi, rather than generic advertising campaigns. Or, even worse, ignoring anti-dairy harassment altogether.

“It took a lot for Derrick to get out there and do what he’s done, and he takes a lot of hits on behalf of the (dairy) industry,” Schindler says. “I’d love to see more support for him.”

What’s next for Josi

Josi has big plans for expanding his voice with the public. This includes opening a potential visitor center on his farm — though that’s several years out yet.

First they have to upgrade their aging facilities, he says. His most recent online posts capture the work. Still, he is keeping his eye on the future. He has already designed public viewing areas into the new farm plans and shares excitement about eventually engaging more directly with the public.

Despite the critics, Josi is convinced that sharing his life and experiences as a dairy farmer is the best way he can help both his fellow dairy farmers and the overall collective.

“I don’t know that I’m pushing any message other than dairy farmers care about their animals and they’re not out there destroying the environment,” Josi says. “I’m doing that by just showing my life and showing what I’m doing as a dairy farmer without trying to lecture people. Educate them. They can see my life as a dairy farmer and draw their own conclusions.”

Source: darigold.com

Some 482 Vermont dairy farms will receive an extra $23 million in subsidies through a federal program next  year.

“The feed cost calculation has long been too low, failing to accurately account for the costs incurred by dairy farmers in Vermont and the Northeast in particular,” said U.S. Sen. Patrick Leahy, D-Vt., who chairs the Appropriations Committee, in a press release. “This change will benefit farmers now and in the future at a time when input costs continue to increase at the farm level.

“I applaud Secretary (of Agriculture Tom) Vilsack for working quickly to improve the safety net and provide much-needed relief to producers in Vermont and across the country.”

The Dairy Margin Coverage program is a safety net for small dairy farms, farms that produce less than 5 million pounds of milk per year — generally, farms that have about 200 cows or less. About 73 percent of Vermont dairy farms enroll in the program, and Vermont farms receive an average of $47,500 from the program.

Among them is Liberty Hill Farm in Rochester, where Beth Kennett, her husband and her son milk 112 Holsteins. Kennett said the pandemic has caused milk prices to fall. 

“There was a huge drop in milk price last year with all of the schools, restaurants and institutions closed and export closed,” Kennett said. “So the Dairy Margin Coverage program was extremely important.” 

Kennett and her family grow their own hay, but machinery, fuel and labor factor into how much it costs to make that hay.

“We have not been able to cover our costs of production for several years,” Kennett said. “The changes to this program will certainly help us work towards covering the rising input costs.”

Because of a change in how cattle feed costs are calculated, Vermont farmers will also be eligible for an additional $3.1 million in retroactive payments for 2020 and 2021. 

Leahy, who is also the most senior member of the Agriculture Committee, has been pushing for the changes.

In addition to changing the way it calculates farmers’ costs for cattle feed, the U.S. Department of Agriculture is allowing farmers to get reimbursed for increased milk production since 2014. 

Leahy helped establish the Dairy Margin Coverage program in the 2018 Farm Bill. It works like crop insurance, providing free catastrophic coverage to farmers as well as additional coverage farmers pay for, based on their farm’s production history. It allows farmers to insure against rises in feed costs, falls in milk prices, or both.

How it works at the Corse farm

Leon Corse, who raises cows with his daughter on the Corse Farm Dairy in Whitingham, said they paid around $1,200 in premiums for this year’s coverage, the highest they could buy. The insurance paid off more than $20,000 because the difference between the nationally calculated cost of conventional feed and the national price of conventional milk was smaller than what they had insured for. 

The Corses insured against the difference between the national price of conventional milk and the national price of conventional feed dropping below $9.50 for every 100 pounds of milk. Because the difference in price dropped below $9.50 most months, they were able to collect insurance. 

Because the Corse farm is organic, they are getting a little more for milk than it costs them, but the cost of organic grain and fuel are increasing.

“A farmer is the only business person in society that buys all of his inputs at retail and sells what he has to sell at wholesale,” Corse said. 

The Corses have worked their farm since 1868. They ship milk to Organic Valley. They milk about 50 cows and raise all of their 40 or so young cows. They have been rotationally grazing since the 1960s, which means that they move their cows to new grass every 12 hours. Their grass is organic perennial native mix from permanent sod.

“We haven’t had a plow in the ground for 40 years,” said Corse’s daughter, Abbie Corse. “We’re trying to manage for, pardon the pun, whatever organically grows. We’re at 2,000 feet, so nothing grows here well except for cows and grass.”

The USDA has calculated a cost of feed based on a mix of corn, soybean meal and alfalfa hay. Until 2019, the Agriculture Department used the price of conventional alfalfa hay to calculate feed costs. In 2019, it switched to using a mix of the price of conventional alfalfa and premium alfalfa to calculate feed costs. This did not accurately reflect the real cost of feed so, from now on, the cost will be calculated using only the price of premium alfalfa.

“A big shout out to Senator Leahy for getting those changes implemented,” Kennett said. “Those are significant changes.”

Farmers can figure out how much insurance coverage would cost for their dairy operation by using this tool from dairymarkets.org.

Clarification: All dairy farms can buy dairy margin coverage, but the insurance premiums go up after the first 5 million pounds of milk produced each year. 

Source: vtdigger.org

Welcomed changes made to Dairy Margin Coverage and additional assistance offered through supplemental assistance.

USDA announced in June its plans to provide $580 million for the Supplemental Dairy Margin Coverage program, which targets small and medium farms. In its latest announcement, USDA outlined the rules to implement the new Supplemental DMC program, which was established by the Consolidated Appropriations Act of 2021. In doing so, USDA also announced the start of the signup period for the DMC program as well as beneficial changes to the DMC feed cost formula.

This signup period – which runs from Dec. 13, 2021 to Feb. 18, 2022 – enables producers to get coverage through this important safety-net program for another year as well as get additional assistance through the new Supplemental DMC.

The Supplemental DMC program will make additional payments to small and medium-sized dairy farms whose DMC production history is below five million pounds, but whose actual production has modestly increased since 2014. Eligible farmers will be paid on 75% of the difference between their 2019 actual milk production and their DMC production history. Producers must be enrolled in the DMC program to receive Supplemental DMC payments for a given year.

“Dairy Margin Coverage is a critical safety-net for producers, and catastrophic coverage is free. These DMC updates build on other efforts of the Biden-Harris Administration to improve DMC and other key USDA dairy programs,” says Under Secretary for Farm Production and Conservation Robert Bonnie. “We encourage dairy producers to make use of the support provided by enrolling in supplemental coverage and enroll in DMC for the 2022 program year.”

Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Participating dairy operations with supplemental production may receive retroactive supplemental payments for 2021 in addition to payments based on their established production history.

“The supplemental program has been long-anticipated and we are grateful not only to Secretary Vilsack and the staff at USDA, but also to the members of Congress who championed this effort and brought it to fruition,” says Steve Etka, spokesperson for the Midwest Dairy Coalition. “Expansion of this safety net program will ensure it can bring much-needed help to dairy farm families.”
 
Updates to the DMC program have long been supported by the Coalition, which worked to gain support of key members of Congress and worked closely with USDA in moving the measure forward.

Rep. Angie Craig, D-Minn., was part of the group of congressional members pushing for help. “We are encouraged by the Biden administration’s announcement, which heeds our call to extend financial relief to the small and medium-sized dairy producers who are in greatest need of support at this time,” Craig says.

Garrett Luthens, a Hutchinson, Minnesota dairy farmer and chairman of the Minnesota Milk Policy Committee, says dairy farmers were affected in many different ways throughout the pandemic.

“Minnesota dairy farmers are thankful for the programs that became available. But those dairy farmers with under 200 cows who added family members or partners since 2014 were left behind,” Luthens says. “We fought for and thank Congress for finally making this right through the Dairy Margin Coverage Supplemental program. Our beginning and family dairy farms should not be at a disadvantage when it comes to risk management programs.”

Signups begin December 13

After making any revisions to 2021 DMC contracts for Supplemental DMC, producers can sign up for 2022 coverage. DMC provides eligible dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed falls below a certain level. So far in 2021, DMC payments have triggered for January through October for more than $1.0 billion.

“Signing up for DMC, which offers cost-effective margin protection for small and medium-sized producers as well as inexpensive catastrophic coverage for larger dairies, is a no-brainer for 2022, especially considering the improvements we fought for in Congress and advocated for at USDA,” says Jim Mulhern, president and CEO of the National Milk Producers Federation. “This year has illustrated just how valuable this program is for those producers that can take advantage of it, and DMC will once again be an essential part of many farmers’ risk management in the coming year.”

For DMC enrollment, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms and pay the $100 administrative fee. The fee is waived for farmers who are considered limited resource, beginning, socially disadvantaged, or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.

Updates to feed costs

USDA is also changing the DMC feed cost formula to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay. FSA will calculate payments using 100% premium alfalfa hay rather than 50%.

Etka says the Midwest Dairy Coalition supports the changes to the DMC feed cost formula which will help DMC payments to better reflect actual dairy producer expenses.

While DMC in 2022 will fully incorporate the premium-quality alfalfa price into the DMC feed cost formula, an improvement from the current structure that uses a 50-50 blend between the premium-quality price and the regular price, USDA will make retroactive payments to producers to January 2020.

Source: Feedstuffs

The aim is to connect consumers with farmers

Canadian Minister of Agriculture Marie-Claude Bibeau announced $8 million in funding and the launch of the AgriCommunication Initiative last week. Funding under the initiative will contribute to projects that better connect Canadians with Canada’s farmers.

The initiative has two streams: The first aims to help Canadians better understand how their food is produced, and the second will focus on increasing the sector’s understanding of consumer preferences and expectations.

Agriculture and Agri-Food Canada (AAFC) will provide up to $8 million over three years to support projects that promote consumer awareness of the strengths of Canada’s agriculture sector. Projects will also help enhance Canadians’ trust in sustainability, animal care, and efforts to reduce food waste.

“Farmers and food business workers across Canada work hard to provide sustainable, high quality, nutritious food here at home, and around the world,” said Bibeau. “Consumers have a growing interest in learning more about where homegrown agricultural products come from and how they’re made. This initiative will develop more connections between the agriculture and agri-food industry and Canadians, which will increase appreciation and pride in our farmers and food businesses.”

The initiative is part and package of a greater vision established under the Food Policy for Canada. The policy aims to ensure all Canadians have sufficient access to safe, nutritious and culturally diverse food. It also supports work on food fraud, food labelling, and food loss and waste, among other initiatives.

Source: thedairysite.com

85.2% of farmer members voted in favour of the proposal

Fonterra said on Thursday its new capital structure has been approved by its farmer shareholders, reported Reuters.

The new capital structure will allow new farmers to enter the co-operative more easily as part of the strategy to claw back domestic market share.

The New Zealand-based dairy exporter, owned by its 10,000 farmer shareholders, said 85.2% of the votes cast came in favour of the proposal which will limit non-farmer investment in the Fonterra Shareholders Fund to protect farmer ownership and control.

“Changing our capital structure is the most important decision we as farmers have made in almost a decade,” Chairman Peter McBride said in a statement.

It had first proposed the new shareholding structure in May, and had outlined a range of changes including reducing the minimum supply requirement for farmer owners to gain entry into the co-operative.

The company said it was working with the government for the restructure, and aims to implement it as soon as possible from the beginning of next season.

The current cap on the Fonterra Shareholders Fund will remain as a part of the new shareholding structure, Fonterra said.

Source: Reuters

Dairy farmers in California, the nation’s top milk producer, face pressure from rising costs, increasingly complex environmental regulations and a quest for water—challenges all magnified by a historic drought. For some, the challenges are existential.

In the north coast, home to the state’s small, organic dairy farms, shrunken reservoirs and shriveled pastures pushed some farmers to the brink earlier this year. In the San Joaquin Valley—a vast agricultural region in the center of the state where 90% of California’s milk is produced—farmers are paying more for cow feed and water, driving up the cost of producing a gallon of milk.

California’s milk production, combined with dairy processing, brings more than $20 billion annually to the state economy. Dairy is the top farm industry by revenue in California, the nation’s biggest agricultural state.

Growing challenges have spurred a shift in the past decade, prompting some California dairy farmers to move, shut down, or turn to growing crops. Recurring droughts are now intensifying their struggles, boosting milk sheds further east and threatening the state’s dairy-capital status, according to farmers, agricultural economists and industry groups.

California is expecting a dry winter, which would further strain existing shortages. The state said Wednesday that for the first time, it might not have enough reserves to distribute water to local districts, which handle flows to homes, businesses and farms.

Mike Monteiro, 58, a third-generation dairy farmer, spent the spring waiting for rain. Little came, signaling a second season of drought and dashing hopes that water would flow like it usually does, from reservoirs to his fields and barns in central California.

He turned to water below ground, switching on the pumps in his wells. Within months, they were delivering just half their normal volume. One well began pumping sand.

By summer, Mr. Monteiro called it quits on two of his three dairies, located in Tulare County, America’s largest dairy county. “If we stay dry, these older facilities will have to get shut down in the next three years,” he said.

Similar decisions are playing out across California as back-to-back droughts in the state force farmers to make choices about where—or whether—they will be able to continue raising the crops or livestock that make up a pillar of the region’s economy.

Dairy farms are huge consumers of water. A lactating cow drinks as much as 50 gallons of water a day, and much more is used to grow crops to feed herds.

In the San Joaquin Valley, dairy farmers short on water this year have fallowed land devoted to feed crops such as corn and alfalfa, or pulled back on irrigation, hurting yields.

To fill the gap, they and others have had to purchase feed from surrounding counties and states, in a year when costs have soared. Prices for corn and soybeans from the Midwest are sharply higher due to tight supplies. Western drought compounded the problem, denting harvests and pushing up prices for feed products from alfalfa to almond hulls.

Rising feed bills and other costs prompted Frank Mendonsa, a second-generation dairy farmer in Tulare County, to borrow against a parcel of farmland he owns. To reduce expenses, he is sending more young animals to slaughter that would become dairy cows when bred. That limits the amount of feed he needs by restricting his herd’s ability to grow, he said.

“We’re getting weekly fliers of sellouts,” said Mr. Mendonsa, referring to estate and livestock sales held by farmers leaving the business. “I need the price of feed to turn around or I’ll be another person with his name on a flier.”

Mr. Mendonsa said rising costs for feed, water and labor have accelerated plans to consolidate his family’s multiple dairies and ultimately milk fewer cows. This year is shaping up to be his second-leanest ever, and he worries next year could be worse if coming months don’t bring more snow and rain.

“We’re scared to death we’ll have one more dry year,” Mr. Mendonsa said.

California’s dairy industry expanded rapidly from the 1980s through most of the 2000s, a period dubbed “the white wave.” Dairy farmers moved to central California, building operations that were larger and more efficient than those in most other states.

Milk production surged, crowning California as the nation’s top milk producer in the early 1990s, around the time a San Francisco-based agency created the ubiquitous “Got Milk?” advertising campaign for the California Milk Processor Board.

Growth in California’s milk output slowed after 2008, however, as supply restrictions, rising costs for feed and labor and tighter environmental regulations made dairy farming in the state more challenging, according to farmers and industry groups.

Production costs for California dairies vary annually, largely in line with swings in feed prices, the top expense for farmers. Animal feed represents more than 60% of total costs this year, compared to 48% in 2010, according to Mary Ledman, a global dairy strategist at Dutch lender Rabobank. Costs for hired labor, the second-largest expense, have swelled 20% over the same period.

Following surplus production in 2008, California dairy cooperatives implemented supply restrictions that limited growth in milk production. Compliance with local air and water quality regulations, plus state labor and greenhouse gas rules have boosted both costs and complexity for dairy farms over time, according to Daniel Sumner, an agricultural economist at University of California, Davis. He said environmental regulations have also raised costs for local processors, limiting the prices they offer dairies for raw milk.

Dairy farmers throughout the state have sold herds or relocated, or morphed into almond or pistachio growers as prices boomed.

Milk production increases in 25 other states outpaced that of California over the past decade, according to U.S. Department of Agriculture data. From 2010 to 2020, California’s output grew by 2% while Colorado’s rose 83% and Texas’ grew 68%.

In the first 10 months of this year, California’s milk production grew 1% compared with the same period in 2020, according to USDA. Texas saw a 5% increase, while South Dakota’s output jumped 15%. Overall, U.S. milk production grew 2%.

Large dairy processors are investing further east. U.S. milk production has gradually shifted from the nation’s coasts to its midsection as consumers eat more dairy in the form of cheese, which doesn’t require processing near major cities because it is less perishable and more easily shipped than fluid milk, according to Ben Laine, a Rabobank dairy analyst.

This year alone, at least four processors unveiled plans for new dairy plants or expansions in the Midwest and Plains. California-based Hilmar Cheese Co., one of the biggest U.S. cheese producers, is building a new cheese and whey-processing plant in Kansas. Two other plants are planned for Texas.

Nationwide, the U.S. dairy herd is contracting after farmers expanded last year, buoyed by new milk-processing capacity, strong demand during the pandemic and federal relief payments. As of Jan. 1, the U.S. herd had grown to 9.4 million milk cows, its largest in 26 years, though that number has fallen in recent months.

California’s dairy industry remains significant. Milk production in the state still outstrips that in Wisconsin, the next-largest state, by a long shot. Economists say California’s industry benefits from advantages, such as proximity to U.S. ports, which give farmers a leg up in export markets that are a growing source of demand for dairy products.

Droughts are part of a natural cycle of water. But the drought currently gripping the Western U.S. has climate scientists concerned that the cycle may be shifting. This has major implications for farmers and the communities they surround. Photo illustration: Carter McCall/WSJ

“California has led the nation in dairy production for decades, and even as they adapt to climate and other challenges, dairy farmers are well-positioned to maintain their industry leadership,” said a spokesman for California’s department of food and agriculture.

He said the state’s dairy producers meet the highest environmental and labor standards in the country and have taken measures to reduce water usage per unit of milk and cut greenhouse-gas emissions using technology such as dairy digesters, which turn cow manure into electricity or vehicle fuel.

California Dairies Inc., a major cooperative, recently announced plans to build a new plant for processing ultrahigh temperature and extended shelf-life milk, some of which don’t require refrigeration. The premium products, popular in Europe and elsewhere, will offer farmer members a higher return for their milk, said Rob Vandenheuvel, a senior vice president at the co-op.

“California dairy farmers are resilient,” he said. He added that impacts of the drought vary by region and many more dairies will struggle if dry weather continues next year.

Farmers’ investments in technology tied to milking barns, animal genetics, nutrition and comforts, such as fans and misters to keep animals cool, mean California’s cows are growing more productive over time, said Rabobank’s Ms. Ledman, suggesting milk output may hold steady even if cow numbers decline.

California dairy farmers have historically seen lower production costs than those in Midwestern states, though that advantage has narrowed in recent years, Ms. Ledman said.

Currently, milk prices are on the rise, helping offset farmers’ costs. Still, many in California are expected to break even or see a loss this year, according to dairy brokers and strategists.

Mr. Monteiro and his brother, who milk 7,000 cows across three facilities, started talking about closing their two older dairies during California’s last drought, which ended just four years before the latest one began. The dairies worked, but only while water was available and affordable.

He said that after learning from local officials this spring that he would get none of his allotted water from reservoirs due to the drought, he turned on the pumps in his wells, each of which can pull 1,200 gallons of water from the ground a minute. Farmers all around him did the same, he said, overwhelming the region’s underground aquifer, and slashing his water yields.

In June, his main well malfunctioned. Desperate for water, he drew up plans to punch five new 700-foot holes in the ground, each with a price tag of $300,000. But well drillers and repairmen were busy, and a monthslong wait left him without enough water to irrigate 400 acres of corn and alfalfa.

He shelled out $1 million to buy feed from other farmers. His family operation can handle the expense, he said, because it is diversified. Still, with costs that high, his two older, less-efficient dairies don’t pencil out.

Closing those facilities will reduce his herd by more than 40%, Mr. Monteiro said, and roughly half the cows will likely be sold to farmers out of state.

“When you take an industry and you rob it of its profits there’s nothing else you can do,” Mr. Monteiro said, referring to dairy farmers’ escalating costs. “The only thing you can do is cease and desist.”

Prices California dairy farmers receive are set by a federal milk-pricing system and influenced by global markets and cooperatives that buy their milk.

Before the pandemic, a supply glut and trade conflicts had weighed on milk prices. Coronavirus threw dairy markets into a tailspin early last year, though a recovery in prices and profits ultimately drove U.S. farmers to bulk up their herds.

Like other California dairy farmers, Mr. Monteiro has begun shifting some of his acreage into almonds and pistachios. Those are thirsty crops, also threatened by drought, but he said they typically bring more profit per-acre than a gallon of milk.

New restrictions on groundwater pumping are helping fuel this shift, farmers say, and will further reduce feed supplies in California as calculations about returns per acre-foot of water—enough to cover an acre of land one foot deep—favor commodities such as fruit and nuts over cow feed, such as alfalfa.

Nate Donnay, a dairy economist with StoneX Group Inc., a financial services firm, said water in California will increasingly flow to the most profitable agricultural commodities, which likely won’t include dairy.

“We can make milk in a lot of other parts of the country, but we can’t make almonds in Wisconsin,” he said, referring to almonds’ need for a climate marked by mild winters.

Livestock auctioneers in the state say they are busier than in recent years, as more ranchers and dairy farmers sell herds and retire. Some dairy farmers with reliable access to surface water are cashing out, selling their farms for huge sums as growers of crops such as nuts scramble for land in more water-secure regions, said Nick Martella, owner of AM Livestock Auction. Some with poor water access have seen the value of their land sink in the past two years, farmers say.

David Lemstra said he realized a decade ago that dairy farming in California would be an uphill battle, due in part to water. He relocated last year to South Dakota, where he sells milk from his 4,000 cows to a newly-expanded cheese plant.

South Dakota isn’t immune to dry weather. As of late November, drought was afflicting 55% of the state, according to the U.S. Drought Monitor. But in California, Mr. Lemstra believes, water shortages are too often the result of decisions made by government officials. “South Dakota can be dry, but when it’s dry it’s between myself and God,” he said.

Mr. Lemstra said he is starting to see familiar faces as more herd advisers such as nutritionists commute from California to South Dakota to consult for dairies there. “In the 1970s, California had cheap land, cheap feed, cheap labor and cheap water,” he said. “It doesn’t have those anymore.”

Source: The Wall Street Journal

The hype couldn’t last forever.

Over time, promotional flim-flam gets found out, and investors and the public learn that The Next Big Thing isn’t what it was cracked up to be. But the process would move more quickly – and less painfully – if consumers held a clearer understanding of true food “innovation” and better tools for identifying what a food is and what it isn’t. The sooner the puff-up-and-bust cycle is recognized, the more consumer dollars will be better directed toward more nourishing products – the ones that will survive the ups-and-downs of food fads and cash grabs.

John Esh like so many other small dairy farmers had to make a change if he wanted to keep the family farm. He knew he needed to find a niche market; “that is where we started with the cheese.” Esh said, “Cheese is something that I have loved since I was a small child. My mother would always talk about how I loved a good sharp cheddar. So, we were looking at what can we make that is special, starting with a good quality milk, and cheese is what came to mind and that is how we got started.”

Esh shared that in the beginning he partnered with a cheese maker from Lancaster. It was in these early years mentored by this experienced cheese maker that Esh learned the art and chemistry of making cheese. It took about six years for the business to really begin to develop a name and experience growth but through that process Goot Essa cheese was born.

As Goot Essa began to grow some restaurant owners had started reaching out to Esh asking him to build a cave so that he could supply them with local made European style cheese rather than the restaurants having to import them. “So we thought let’s see what it would involve to build a cave, and lo and behold we built a cave and it worked,” Esh said.

“We started out as a co-op with some other members but then we had a couple hurdles, and they lost the interest, but we still maintain the cooperative structure mentality.” Esh is the sole proprietor but added, “We cooperatively work with four other farms to purchase their milk. My wife and I and our family provide all the cow’s milk from our farm, and we purchase milk from the three Amish sheep farms and one goat farm that we work with.”

The desire to create a variety of cheese came from the interest of the restaurants and wineries to be able to offer unique and delicious cheese boards to their customers. “We have 19 different cheeses, and they are all different from each other. The goat and the sheep do offer some complexity in ways that we cannot get from the cow.”

Goot Essa is set apart by two things, “The cave and the European style cheeses, most of the Pennsylvania cheese makers are not making European style cheeses. The European style with the natural rind is quite unique.” The other thing that sets them apart Esh shared is the amount of variety, “the things we hear quite a bit when I am at restaurants is that they did not expect to find this amount of cheese from one source.”

“I find peoples favorite cheeses varies quite a bit with location. Geographically the urban areas here in the East Coast will tend to gravitate towards the soft bloomy rind goat cheese, the Marn Vom Berge. The more rural areas of Central PA tend to like the sharp cheddar and the goat gouda. The goat gouda is a bit of a stretch for some because they have not had a goat cheese before. But this one is quite mild and yet it has a level of complexity.” Esh added, “The Der Mutterschaf, is also a milder sheep milk cheese, has an excellent texture, and it does have a nice tang. There is in my opinion still too many folks here in the central PA area who have never tried sheep milk or goat milk cheeses and may be pleasantly surprised if they would choose to try some.”

Over the last 20 years Goot Essa has grown into a well-known name, “The growth came gradually and with time. Last year during the pandemic the 70 restaurants that we had been working with dried up to five almost over night with the shutdowns. We are now only back to about 17, but it is still slow. That was a slam that really hit us hard.”

The one thing that sustained Goot Essa during the pandemic was their gift assortments. Esh said, “The gift assortment market grew dramatically for us last December. That along with the wineries doing well made up for the loss we had with the restaurants.”

After visiting this farm touring the cheese caves and enjoying a tasting that was offered this cheese will always be on the list of essential grocery items. The attention to detail and passion this family has for cheese making was inspiring and a joy to experience.

With Christmas around the corner Goot Essa is depending on the gift basket sales again to help them navigate the losses still being experienced from the pandemic. Shopping local and supporting local makes a tremendous difference in the success of our local farms and food suppliers. “We are really hoping that people find us and see that this is really a product that they would like to share with their loved ones.” Esh said.

For anyone interested in visiting the store for a tasting to experience the wonderful world of cheese that they have to offer, Goot Essa is located at 351 Wise Road, Howard, Pa.

For more information about upcoming events and locations where Goot Essa products can be purchased or to purchase gift boxes, visit the website (https://gootessacheese.com), Facebook or find them on Instagram.

Source: lewistownsentinel.com

B.C. dairy farmers are working against time to get milk to processors to meet market demand following the catastrophic flooding that washed out portions of the highway to the coast.

With intermediate road closures, dairy farmers in the Okanagan have nowhere to send their milk to be processed, and as a result, have to dump some of the product.

“Farmers are reimbursed through a national pooling system, but it’s not easy watching your milk go down the drain,” chair of the B.C. dairy association Holger Schwichtenberg said. “It all depends on Highway 3 and 7 being open for the milk trucks to get from the interior to the processing plants around Vancouver. We’re completely dependent on that one road.”

There are smaller milk processing plants in the Interior, including Blackwell Dairy Farm in Kamloops that have taken on the extra workload to help farmers get their milk processed.

“When we were impacted, we took in other farmers’ milk, and overnight we became a community processing plant,” Laura Hunter from Blackwell said. “Our regular processing was about 20,000 litres a week, the week the roads got washed out, we processed 100,000 a week.”

For Blackwell to process the extra product, Hunter gathered more employees overnight and asked staff to work longer hours.

“The amount of work that our staff has done in the last two weeks has been unbelievable how we’ve filled in the gap,” Hunter said. “This is nothing compared to what they are going through in Abbotsford, those farmers are working so hard.”

Hunter is extremely proud of the work done to have the Blackwell processing plant, and for the ability to help neighbouring farmers.

“We’ve been told fluid milk isn’t important, to be bigger you have to do everything, we don’t believe in centralization, we believe in local, and we’ve always been here for the community,” Hunter said. “We’re here, and we’re proud of the job that we’ve been able to do this past week.”

There’s still plenty of uncertainty among Okanagan dairy producers.

“Now it’s up and down, it’s a guessing game right now for what the orders will look like,” Hunter said.

While the unexpected workload increase has created challenges for Blackwell, they have not had to dump their product. However, farmers in the interior haven’t been as lucky.

“Smaller processors in the Okanagan are OK, but most of the milk in B.C. is processed in the lower mainland,” Schwichtenberg said. “When highways are closed there’s no way of getting the milk to the Lower Mainland, so one of the avenues is to ship some of the milk east to processors in Alberta. They are working hard to get the milk to the processors, nobody likes seeing the milk go down the drain.”

Henry Bremer, owner of Cliffview Dairy near Enderby, took his turn dumping milk last weekend.

“Most farmers had to dump their milk over the weekend. They were just getting to about 90% of the milk getting picked up, then we had the fresh wave of rain and road closures on Friday, and they are just picking up the milk in the area now,” Bremer said.

The product that is dumped is put into a manure pit and will be used as fertilizer next spring.

Historically, every area of the province had milk processing plants, however, as farms got bigger, the plants became centralized. Milk now goes between Alberta and the Lower Mainland, Bremer said.

“We don’t have enough processors in the area, we have smaller processors that take about 15% of our milk, and 85% has to go further. When the flood hit and cut everything off, I dumped for one day, a few farmers had to dump a little more,” he said.

Although some milk did go to the east, there were limits on how much product processors could take.

“They will only take milk if there’s a market for it. It’s turning the supply chain around, that’s what makes it so hard for everyone,” Bremer said. “Milk is a very perishable product, and there’s extra attention on the milk industry, because the product is so nutritious, and it can go bad quickly. It’s a very limited timeline to get it to the plant and get it processed.”

Kathy Wikkerink, co-owner of Grassroots farm near Salmon Arm, has only been impacted by shipping product to the coast.

“It’s so complex, and manpower… I’m having a hard time managing with our little hiccups, if we added more where would we store it? There are so many logistic issues,” Wikkerink said.

“For me, the biggest take home is everybody is getting bigger and bigger and it’s slapping us in the face,” Wikkerink said. “Milk is a local product. When the stores were empty because there was no milk, that was a lie, there was milk, all the farms here had milk, but our industry is set up in such a way that a person doesn’t have access to the food until it’s processed, then they can get it back.”

Source: infotel.ca

Kiwi dairy farmers hit a new high for milk production last season with fewer cows, showing that a focus on breeding higher performing cows is paying off.  

The annual New Zealand Dairy Statistics report, released today by DairyNZ and Livestock Improvement Corporation (LIC), shows that total milk volume, total milksolids and per cow production were the highest on record in the 2020-21 season.

New Zealand has 4.9 million milking cows – down from 4.92 million the previous season, and they produced 1.95 billion kilograms of milksolids.

DairyNZ Chief Executive Dr Tim Mackle says it is great to see a continuation of the “more milk from fewer cows” trend because it shows a continuing focus on milking better cows and farming even more sustainably.

“Farmers are focused on developing more productive and efficient cows and farming systems, with a lighter environmental footprint. They want to retain our unique pasture-based farming system and remain world leading.”

Favourable weather conditions also contributed to good grass growth, while higher milk prices meant many farmers extended their milking season in 2020/21.

The percentage of cows mated to artificial breeding rose to 71.3 per cent (up from 70.8 per cent in 2019/20), and the number of cows herd tested is the highest on record (3.735 million cows, or 76.2 per cent of the national herd). Herd testing enables farmers to monitor and improve the quality and productivity of their herds.

LIC Acting Chief Executive David Hazlehurst says the greater uptake of herd improvement services demonstrates farmers’ intent and focus on producing the most sustainable and efficient animals.

“Mating season has always been an important time to get cows in-calf but now with a focus on cow quality over quantity, more farmers are investing in premium genetics to help ensure their next generation of replacements are more efficient than the last.”

Hazlehurst says young, genomically-selected bulls and sexed semen, which generates female replacements from top cows, are examples of the high-impact tools farmers are adopting to increase the rate of genetic gain in their herds.

“It’s really pleasing to see these stats provide farmers with reassurance that the tools they’re investing in to increase their herd’s production efficiency and reduce their farm’s environmental footprint are working. Increasing milksolids with a reduced cow population is an achievement the whole sector should be proud of.”

Dr Tim Mackle says that dairy plays a really key role in New Zealand as the sector employs around 50,000 Kiwis and was estimated to contribute over $37 million to the economy in 2020/21.

“The latest Dairy Statistics report shows that despite a range of challenges such as the COVID-19 pandemic and staff shortages, farmers are working hard to keep milk production flowing, and this benefits every Kiwi.”

Download theNew Zealand Dairy Statistics 2020-21 report here.

Source: scoop.co.nz