Archive for South Dakota

Riverview Dairy’s Bold Expansion: The Future of Dairy Farming in Eastern North Dakota

Uncover the transformative potential of two sprawling dairy farms in eastern North Dakota, poised to reshape the state’s livestock sector. Could this monumental shift redefine the future of local agriculture?

North Dakota’s dairy industry horizon is set for a dramatic shift. Two major dairy farms planned for eastern North Dakota by Riverview Dairy, based in Morris, Minnesota, could quadruple the state’s dairy cow population. The proposed 25,000-cow farm in Traill County and 12,500-head farm in Richland County aim to rejuvenate the state’s declining animal agriculture sector. Currently, North Dakota has about 10,000 dairy cows across 24 farms. These projects represent a significant boost, promising new growth, employment opportunities, and technological advancements.

Revitalizing a Declining Dairy Sector: North Dakota’s Fight to Rebound Amid Regional Growth

North Dakota’s dairy industry has declined for decades, with only 10,000 dairy cows and 24 farms remaining. In contrast, South Dakota has seen a significant resurgence in dairy farming. Under former Governor Dennis Daugaard, South Dakota’s dairy cow population nearly doubled from 96,000 in 2000 to 187,000 in 2023, according to the U.S. Department of Agriculture. This comparison underscores North Dakota’s challenges in revitalizing its dairy sector while neighboring states advance in livestock industries.

Riverview Dairy’s Bold Expansion: Transforming the Dairy Landscape in Eastern North Dakota

Based in Morris, Minnesota, Riverview Dairy plans to build two large dairy farms in eastern North Dakota. The Traill County site southeast of Hillsboro will house 25,000 dairy cows and cost an estimated $180 million. The second farm, located north of Wahpeton in Richland County, will accommodate 12,500 cows at an estimated $90 million. The Traill County farm is expected to create around 100 jobs, while the Richland County site will generate 45 to 50 jobs, significantly boosting the local job market and community.

A New Dawn for Eastern North Dakota: Riverview Dairy’s Economic Promise 

The proposed dairy farms by Riverview Dairy signal a significant economic boost for eastern North Dakota, specifically in Traill and Richland counties. The 25,000-cow dairy farm in Traill County and the 12,500-head dairy in Richland County mark a transformative shift in the local economy. In Traill County, the new dairy is set to create about 100 jobs. At the same time, in Richland County, it will generate around 45 to 50 jobs, bringing economic stability and growth to these communities and fostering a sense of hope for the future. 

Jim Murphy of the Traill County Economic Development Commission called this development a “once-in-a-lifetime event for any community.” Local land renter Randy Paulsrud, initially concerned about losing farmland, now sees great potential in partnering with the dairy. “I’m on board with it,” Paulsrud stated, noting his eagerness to sell feed and buy manure for fertilizing nearby fields. His visit to Riverview’s existing dairy operations left a strong impression. “Oh man, it was clean,” he said, expressing his enthusiastic support for the project. 

The economic ripple effect of these dairy farms goes beyond just job creation. Increased demand for locally sourced feed ingredients like corn and alfalfa hay, along with byproducts from nearby ethanol and processing plants, promises to spur growth in auxiliary agricultural sectors. Riverview Dairy’s expansion could catalyze regional economic development, reaffirming North Dakota’s commitment to revitalizing its dairy industry.

Community Reactions: Balancing Optimism and Skepticism

The proposed mega-dairies have generated mixed reactions in eastern North Dakota. Leslie Viker, who is related to the landowners near Hillsboro, is optimistic. “I think this is going to be great,” she said, supporting the economic benefits. Conversely, Rep. Dawson Holle, a local farmer, is cautious. “I’m very concerned when it is a corporate farm that is coming in, not a family farm,” he stated, emphasizing worries about corporate agriculture overshadowing family farms. This division highlights the complex dynamics as residents weigh economic opportunities against traditional farming and local ecosystems. Some see a future full of promise, while others remain skeptical, balancing hope with caution.

Legislative Shifts: Governor Doug Burgum’s Vision for Modernizing Livestock Operations in North Dakota

Loosening restrictions on corporate farm ownership for livestock operations was a key objective for Governor Doug Burgum entering the 2023 legislative session. This shift aimed to attract significant outside capital for modern livestock operations, transforming the state’s agricultural policy. The legislation made it easier for large-scale operations to establish themselves in North Dakota. 

State Representative Mike Beltz, R-Hillsboro, supported this change, crediting it for drawing Riverview Dairy’s investments to Traill and Richland counties. The Legislature also passed a bill to enhance infrastructure projects supporting agribusiness development, presenting road and utility improvement opportunities around the new dairy sites. 

Agriculture Commissioner Doug Goehring mentioned that Riverview’s structure as a limited liability partnership would have allowed its operations even without the legislative changes. However, the new law showed the state’s readiness to welcome large livestock projects. Not all legislators favored it; concerns about corporate entities encroaching on family farms were raised. State Rep. Dawson Holle expressed unease about the rise of corporate farm structures over family-owned farms.

Environmental and Infrastructural Challenges: Can North Dakota Sustain the Demands of Mega-Dairies? 

The proposed expansion by Riverview Dairy has sparked discussions about North Dakota’s capability to manage these large-scale operations’ environmental and infrastructural demands. Todd Leake of Grand Forks County questions whether state regulators have the necessary resources to enforce environmental regulations for concentrated animal feeding operations. These concerns reflect broader anxieties about water usage and waste management. 

Amber Wood, executive director of the North Dakota Livestock Alliance, acknowledges the challenges but remains optimistic. She believes the dairy industry’s growth will concentrate along the I-29 corridor, where infrastructure for milk processing and livestock feed from local ethanol and processing plants is more accessible. 

Legislative actions aim to support these developments through road and utility improvements. For instance, the Traill County dairy will connect to North Dakota Highway 200, which recent legislative initiatives have facilitated. 

Environmental considerations also play a significant role. The Traill County site will need about 700,000 gallons of water daily, highlighting the necessity for sustainable resource management. Riverview Dairy plans to use advanced manure management systems, separating liquids for fertilizer and solids for bedding. This method minimizes environmental impact, but effective state oversight is crucial for compliance and ecosystem protection.

Riverview Dairy’s Innovative Operational Features: Climate-Controlled Barns, Efficient Milking, and Strategic Nutrition 

Riverview Dairy plans state-of-the-art features for their new farms. Martha Koehl explained that cows will live in climate-controlled barns, ensuring optimal conditions year-round. Milking machines will run 22 hours daily, with the remaining two hours for cleaning, maximizing productivity and hygiene standards. 

The cows’ nutrition will include corn and alfalfa hay, enhanced by beet pulp and soybean from local plants like the American Crystal Sugar beet plant in Hillsboro and new soybean crushing plants at Casselton and Jamestown. This supports local agribusiness and ensures a nutritious diet for the livestock. 

Innovative waste management will also be implemented. Liquid manure will be piped to fields as fertilizer, while solids will be dried and reused as animal bedding. This sustainable approach underscores Riverview Dairy’s commitment to environmental stewardship and operational efficiency in North Dakota.

Water Management and Sustainability: Riverview Dairy’s Closed-Loop System 

An essential resource for large dairies is water, which needs 28 to 30 gallons per cow daily, Koehl said. That amounts to around 700,000 gallons per day for the Traill County site and 350,000 gallons for the Richland site. 

Riverview Dairy employs a closed-loop system to enhance sustainability. Extracting water from manure solids reduces freshwater dependency and mitigates waste. The recovered liquid is used for irrigation, promoting water conservation, and boosting agricultural productivity. The dried manure solids serve as bedding material, minimizing waste and improving farm hygiene. 

Incorporating byproducts from local ethanol plants and sugar beet processing facilities into the cows’ diet underscores Riverview’s commitment to sustainability. These feeding practices utilize available agricultural byproducts, reducing reliance on traditional feed sources and fostering a circular economy in the region.

The Bottom Line

The proposed Riverview Dairy projects in eastern North Dakota signify a transformative moment for the state’s dairy industry. With an addition of 37,500 dairy cows, North Dakota’s dairy cow population could quadruple, promising job creation and economic growth. However, these benefits come with challenges. Environmental sustainability, water management, and stringent regulations are crucial hurdles. The balance between expanding corporate farming and preserving family-owned farms requires thoughtful community and legislative dialogue. North Dakota’s dairy future hinges on ambitious projects like Riverview Dairy and collective efforts to address these challenges. This moment calls for proactive engagement and a commitment to nurturing the dairy sector for future generations.

Key Takeaways:

  • Massive Expansion: Riverview Dairy plans to build two mega-dairies in eastern North Dakota, significantly increasing the state’s dairy cow population.
  • Job Creation: The projects are expected to generate approximately 145 to 150 jobs, bolstering local economies.
  • Economic Impact: Combined project investments are estimated at $270 million, indicating a substantial financial infusion into the region.
  • Community Reactions: Local residents express mixed feelings, balancing initial skepticism with optimism about economic benefits.
  • Legislative Support: Recent legislative changes facilitate outside investment in livestock operations, reflecting a shift in North Dakota’s agricultural policies.
  • Environmental Considerations: Concerns about the state’s ability to regulate large-scale animal feeding operations remain, highlighting the need for robust environmental oversight.
  • Sustainability Practices: Riverview Dairy’s operations include climate-controlled barns and innovative manure management systems, aimed at minimizing environmental impact.

Summary:

North Dakota’s dairy industry is set to undergo a significant transformation with two major farms planned by Riverview Dairy, based in Morris, Minnesota. The 25,000-cow farm in Traill County and the 12,500-head farm in Richland County aim to revive the state’s declining animal agriculture sector. Currently, North Dakota has about 10,000 dairy cows across 24 farms, but these projects represent a significant boost, promising new growth, employment opportunities, and technological advancements. The proposed farms will create around 100 jobs in Traill County, while the 12,500-head farm in Richland County will generate 45 to 50 jobs. Increased demand for locally sourced feed ingredients and byproducts from nearby ethanol and processing plants will spur growth in auxiliary agricultural sectors. Riverview Dairy’s expansion could catalyze regional economic development and reaffirm North Dakota’s commitment to revitalizing its dairy industry. Community reactions to the proposed mega-dairies have generated mixed reactions, with some optimistic about the economic benefits while others are cautious about corporate agriculture overshadowing family farms. Legislative actions aim to support these developments through road and utility improvements, and Riverview Dairy plans to use advanced manure management systems to minimize environmental impact.

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Dairy Cooperative Pushes for Timely Payment Rule in Farm Bill to Protect Farmers

Can timely milk payments protect dairy farmers? Discover why Edge Dairy Farmer Cooperative is pushing for new rules in the farm bill to safeguard their livelihoods.

Imagine the dedication of a dairy farmer, tending to a herd of cows before sunrise every day, regardless of the season. This commitment is not just a personal choice but a crucial part of maintaining the stability of the dairy industry. Dairy cooperatives play a significant role in this, providing regular payments and assisting farmers in selling their milk, thereby ensuring the industry’s stability.

Processors under the Federal Milk Marketing Orders (FMMO) must pay farmers at least twice a month. Still, not all milk is insured by the FMMO, which increases financial risk.

Tim Trotter of Edge Dairy Farmer Cooperative says, “The risk we have right now, especially in the upper Midwest, is there’s an increasing amount of milk deployed and not covered by the FMMO.”

The issue of timely payments is not just a financial concern but a matter of urgency. Farmers in Minnesota, Wisconsin, northern Iowa, northern Illinois, and eastern North and South Dakota areas, where most of the country’s milk is outside the marketing pool, live in financial instability without the legal mandate for timely payments. Immediate action is needed to address this pressing issue.

Delayed payments affect individual farmers and have a ripple effect on the community’s well-being and agricultural operations. To prevent such social and economic disruptions, the farm bill needs to clearly outline and enforce conditions regarding timely milk payments.

The Untold Challenges of Depooling: Navigating the Complexities of Federal Milk Marketing Orders (FMMOs) 

Federal Milk Marketing Orders (FMMOs) guarantee producers are paid fairly and help maintain steady milk prices. These rules help manage cash flow and financial stability by requiring milk processors to pay dairy farms at least twice a month.

But “depooling” ruins this mechanism. Milk is taken from the controlled price pool depools, exempting it from the FMMO payment schedule. This might result in uneven and delayed payments, significantly affecting farmers in places where much milk is deployed.

Risk of Financial Instability for Dairy Farmers in Federal Order #30: The Urgency for Timely Payment Requirements

For farmers, particularly those under Federal Order #30 covering portions of Minnesota, Wisconsin, Iowa, Illinois, North Dakota, and South Dakota, the absence of prompt payment obligations for deployed milk exposes particular dangers. Although processors pay farmers twice a month under FMMOs, this regulation does not cover deployed milk, exposing producers to payment delays.

This financial volatility is problematic, given that 30% of the country’s milk comes outside the marketing pool and might cause cash flow problems. Delayed payments impede everyday spending, long-term sustainability, and farm upkeep.

Producing most of the deployed milk, farmers under Federal Order #30 need more with quick payment assurances. Legislative action mandating prompt payment for all milk might provide more security and assist in operational management and growth by farmers.

Advocating for Dairy Farmer Security: Why Timely Milk Payment is Crucial for Federal Order #30 Farmers

Under Tim Trotter’s direction, The Edge Dairy Farmer Cooperative seeks timely milk payments included in the farm bill. They contend this will financially safeguard dairy producers, particularly in milk deploying cases from Federal Milk Marketing Orders (FMMOs). Historically, processors have paid on time, but this is only assured with a legislative mandate. About thirty percent of the milk in the country is outside the marketing pool. Hence, prompt payment policies are significant for farmers—especially those under Federal Order #30—to minimize financial uncertainty.

Unbiased Milk Quality Assessments: The Imperative of Third-Party Verification Services for Accurate Component Testing

Verification services guarantee accurate and consistent milk component testing. These outside assessments validate the tools used to evaluate milk components like lactose, fat, and protein. This ensures exact measurements, which directly impact financial stability and payment computations. These services should be codified in the agriculture bill. It guarantees precise and objective quality tests for every dairy farmer, even those with deployed milk, safeguarding their income and encouraging industry openness.

The Bottom Line

Protecting dairy producers impacted by milk depooling depends on the farm bill, which includes prompt payment rules and verification tools. Verifying third-party milk quality and requiring processors to pay twice monthly helps lower financial risks and ensure correct pay. These steps support a consistent agricultural economy and guarantee the stability of the more significant dairy sector.

Key Takeaways:

  • Federal Milk Marketing Orders currently require processors to pay dairy farmers at least twice a month.
  • Farmers face a growing risk, particularly in the upper Midwest, as more milk is depooled and falls outside the protection of FMMOs.
  • Approximately 30% of the nation’s milk is outside the marketing pool, with many affected farmers in Federal Order #30 covering parts of the Midwest.
  • The cooperative seeks to ensure the payment requirement is legally mandated to guarantee its continuance.
  • Third-party verification services for component testing are also needed to ensure accurate milk checks, especially for depooled milk.

Summary:

Dairy farmers are vital to the dairy industry’s stability, providing regular payments and assisting in milk sales. However, not all milk is insured by the Federal Milk Marketing Orders (FMMO), leading to financial risk. Farmers in certain areas, such as Minnesota, Wisconsin, northern Iowa, northern Illinois, and eastern North and South Dakota, face financial instability without legal mandates for timely payments. Depooling disrupts the FMMO mechanism, causing uneven and delayed payments and impacting cash flow and farm upkeep. The Edge Dairy Farmer Cooperative advocates for timely milk payments in the farm bill to safeguard dairy producers, especially those under Federal Order #30. Codifying verification services in the agriculture bill would ensure accurate and consistent quality tests for every dairy farmer, safeguarding their income and encouraging industry openness. Protecting dairy producers impacted by milk depooling depends on the farm bill, which includes prompt payment rules and verification tools. Ensuring third-party milk quality and requiring processors to pay twice monthly can lower financial risks, support a consistent agricultural economy, and provide dairy sector stability.

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U.S. Milk Production Dips Slightly in May 2024, While South Dakota Surges with 10% Increase

Explore the factors behind the slight decline in U.S. milk production for May 2024 and delve into the remarkable 10% increase in South Dakota’s output. What allowed this state to defy the national trend? Continue reading to uncover the details.

The most recent USDA data presents a complex picture for May 2024. Though down 0.7% from May 2023, South Dakota stood out as total U.S. milk output marginally dropped to 18.9 billion pounds. Here, milk output jumped by a startling 10%.

“The 24 central dairy-producing states provided 18.9 billion pounds of milk in May 2024, a little drop. Still, the USDA’s National Agricultural Statistics Service notes that South Dakota’s dairy producers enjoyed an impressive 10% gain.

This opposite tendency draws attention to regional agricultural dynamics and clarifies the changes in U.S. dairy output.

USDA June 2024 Report: Nuanced Shifts and Subtle Declines in U.S. Dairy Production

CategoryMay 2023May 2024Percentage Change
Total Milk Production (billion pounds)19.919.7-0.9%
Production per Cow (pounds)2,1252,122-0.14%
Number of Milk Cows (million head)8.9428.89-0.58%
Total Milk Production in South Dakota (million pounds)38242010%
Number of Milk Cows in South Dakota (thousand head)1932129.84%
Production per Cow in South Dakota (pounds)1,9791,9800.05%

According to the USDA’s National Agricultural Statistics Service, the 24 central dairy-producing states produced 18.9 billion pounds of milk in May 2024, declining 0.7% from May 2023. This drop reflects cow numbers and production efficiency changes, highlighting continuous difficulties in the dairy industry.

The revised April output was 18.3 billion pounds. In May 2024, the average cow output was 2,122 pounds—three pounds less than in May 2023. Milk cows numbered 8.89 million, 52,000 less than in May 2023 but 5,000 more than in April 2024. These changes show how the sector responds to environmental and financial demands.

Monthly Dynamics: Analyzing the Increase from April to May 2024 in U.S. Milk Production

MonthMilk Production (billion pounds)
January 202418.1
February 202417.8
March 202418.5
April 202418.3
May 202418.9
June 2024 (estimated)19.0

Generally speaking, milk output rose significantly in May 2024 compared to April 2024. While May’s production increased to 18.9 billion pounds—a notable monthly increase—April’s production reached 18.3 billion pounds. The 5,000 growth in milk cow numbers—which reached 8.89 million head in May—helps to explain this rise in some measure. Still, in May, productivity per cow averaged 2,122 pounds, a little down from last year. This dynamic draws attention to the difficulty of controlling the production and efficiency of dairy herds.

Unpacking Per-Cow Production Dynamics: May 2024 Average Output Dips Slightly

MonthMilk Output per Cow (pounds)
December 20232,100
January 20242,105
February 20242,112
March 20242,115
April 20242,122
May 20242,122

The average milk output per cow in May 2024 dropped somewhat from May 2023, at 2,122 pounds. Though minor, this decline might point to more significant patterns in the dairy sector. Factors can include variations in herd health, feed quality, or cow management practices. Furthermore, the industry’s shift towards more environmentally friendly methods might influence efficiency.

Strategic Herd Adjustments: Tracking Notable Changes in Milk Cow Numbers 

MonthMilk Cows (in millions)
December 20238.90
January 20248.85
February 20248.87
March 20248.89
April 20248.88
May 20248.89

This trend reflects more significant changes in the U.S. dairy sector, as modern dairy operations have concentrated output in certain states. Since 2008, these states have had a slower increase in cow numbers; nonetheless, by 2020, they will have exceeded conventional dairy states. The industry’s emphasis on maximizing herd efficiency and output is a calculated reaction to changing environmental and financial constraints in dairy production, reassuring the audience about the industry’s adaptability.

Subtle Shifts in May 2024: Total U.S. Milk Production Declines Amid Evolving Industry Challenges

MonthTotal U.S. Milk Production (Billion Pounds)Percentage Change from Previous Year
May 202319.9
June 202319.5-0.4%
July 202319.3-0.5%
August 202319.2-0.5%
September 202319.0-0.7%
October 202318.9-0.5%
November 202318.8-0.5%
December 202318.7-0.5%
January 202419.0-0.2%
February 202418.9+0.1%
March 202419.1+0.1%
April 202418.3-0.5%
May 202419.7-0.9%

With a 0.9% drop from May 2023, the total U.S. milk output in May 2024 was 19.7 billion pounds. This decline reflects a subtle change in the dairy sector that mirrors more general trends in strategic herd management and efficiency improvements. The decline may indicate labor limits, financial concerns, and environmental factors, even if farm management and genetics have improved. The U.S. dairy sector has to negotiate this complexity to be sustainable and competitive in a demanding market.

South Dakota’s Dairy Sector Defies National Trends with Remarkable 10% Surge in May 2024 Production.

StateMay 2024 Production (million pounds)Change from May 2023 (%)
California3,400-0.5
Wisconsin2,600+1.0
Idaho1,425+0.7
Texas1,300-1.2
New York1,200-0.3
South Dakota420+10.0
New Mexico370-2.1
Pennsylvania840-0.4
Minnesota825-0.6
Michigan910+0.2

With a 10% rise from May 2023, South Dakota’s fantastic milk production explosion contrasts with the general U.S. trend and results in a total output of 420 million pounds for May 2024. Strategic herd increases and improved dairy farm management techniques account for this development. With a 19,000 year-over-year average rise in milk cow count, the state reached 212,000. This points to a conscious attempt at industrial scale-up. Driven by improved nutrition and modern breeding, per-cow productivity has increased, enhancing production despite industry problems. One extreme outlier in South Dakota is its dairy industry, which uses creative management and effective resource allocation.

With cows averaging 1,980 pounds—an increase from May 2023—the average output per cow in South Dakota for May 2024 showed remarkable efficiency. This growth shows improved feed quality and efficient farm management, proving South Dakota’s dedication to maximizing dairy operations through calculated innovations and financial support. Though nationwide decreases, South Dakota’s strategy offers a dairy-producing solid model.

The Bottom Line

The USDA’s National Agricultural Statistics Service noted a 0.9% drop in total U.S. milk output from the previous year in May 2024. Nevertheless, South Dakota defied this trend with a 10% increase in production. The state accomplished this by increasing the number of milk cows and raising output per cow.

These opposing patterns draw attention to local differences in the dairy business. While South Dakota’s development shows good localized tactics and investments, the national fall may result from industry pressures and agricultural consolidations. With focused improvements, certain areas may continue flourishing while others see continuous decreases. These trends highlight the requirement of flexible, regionally relevant strategies to guarantee success in the American dairy industry.

The different patterns in national and South Dakota milk output provide critical new perspectives on the sector’s changing possibilities and problems, thereby pointing to a complicated and sophisticated future for dairy output in America.

Key Takeaways:

  • Total U.S. milk production in May 2024 slightly decreased by 0.7% compared to May 2023.
  • Production per cow in May 2024 averaged 2,122 pounds, marginally dropping by 3 pounds from the previous year.
  • The number of milk cows in the U.S. was 8.89 million in May 2024, reflecting a reduction of 52,000 cows compared to May 2023.
  • Despite the national decline, South Dakota’s milk production in May 2024 soared by 10%, totaling 420 million pounds.
  • The average number of milk cows in South Dakota increased by 19,000 from May 2023, with production per cow averaging 1,980 pounds.
  • April 2024’s revised milk production was recorded at 18.3 billion pounds, indicating a consistent production trend.

Summary:

The USDA’s National Agricultural Statistics Service reported a 0.7% drop in total U.S. milk output in May 2024, with South Dakota showing a 10% increase in production. This contrasts with the general U.S. trend, which saw a 0.7% drop. However, South Dakota’s dairy producers experienced a 10% gain, highlighting regional agricultural dynamics and changes in U.S. dairy output. The average cow output in May 2024 was 2,122 pounds, three pounds less than in May 2023. Milk cows numbered 8.89 million, 52,000 less than in May 2023 but 5,000 more than in April 2024. South Dakota’s dairy sector defied national trends with a 10% increase in production, attributed to strategic herd increases and improved farm management techniques. The report underscores the need for flexible, regionally relevant strategies to ensure success in the American dairy industry.

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