The Wisconsin Department of Agriculture, Trade and Consumer Protection has released the results of its annual dairy producer survey. Ninety-nine percent of the responding dairy farms are family owned and more than 80% expect to still be in dairy farming in five years. Over half of the respondents have identified a successor to take over the farm. The leading challenges cited in the survey were regulation, the balancing of milk supply and demand, aging facilities and an inability to find labor. DATCP sent the survey to 5,400 dairy farms and 30% of those farms responded.
Seasonal strength in Class III milk
Despite a recent drop-off in cheese markets, the Class III milk market has been very resilient. At World Dairy Expo, Ever.Ag Principal Mike North credited seasonal tendencies. “We’ve got lower components as we’ve come through the summer. Production has been lower because the cows just aren’t there. We’ve been stressed with some of this bird flu in key geographies around the United States and, by the way, now, we sent a bunch of kids back to school sucking milk back into the bottling realm, college kids back to their pizza diet and football launching at the same time.” North said that is why milk prices typically have these peaks in late September into early November. In the past, $20-plus milk prices would have a dramatic impact on production. Strong beef prices, an absence of heifers and an aging cow herd have changed that scenario during the current cycle.
Strong cheese demand
After tough times in the dairy sector, Associated Milk Producers Inc. Vice President of Marketing Sarah Schmidt said this year has been a good change. Demand is strong for all product segments. “This year it seems like cheese was put on promotion more at retail grocery stores. More consumers were grabbing that two-for-$5 deal and it’s really showing up in our milk price.” Schmidt also noted increased exports of U.S. dairy products because of a downturn in supply in other major dairy-producing countries.
The Voice of Milk
A new collaboration is in place for three Midwest dairy organizations. The Minnesota Milk Producers Association, Dairy Business Association and Edge Dairy Farmer Cooperative will work together on dairy policy issues. The collaboration is being branded as the “Voice of Milk.” The umbrella brand represents dairy farmers in nine states including Minnesota and South Dakota.
Election year impacts
The lame-duck session after the election is bound to be busy, making it more difficult to pass a farm bill. Jim Callan, president, James Callan Associates, believes House and Senate Agriculture Committee leadership sincerely want a new farm bill. The election also has ramifications. “Some folks think if Vice President (Kamala) Harris is elected, Democrats will want to wait until next year,” Callan said. “If President (Donald) Trump is elected again, Democrats may have a desire to pass the farm bill this year. Politics aside, folks want to get it done by the end of this year. Democrats and Republicans, that’s the desire.”
Incentives proposed to move away from large-scale animal agriculture
A group of East Coast Democratic lawmakers has introduced legislation that would pay large-scale livestock farms to transition into specialty crop production or pasture-based livestock operations. New Jersey Senator Cory Booker, North Carolina Representative Alma Adams and Massachusetts Representative Jim McGovern want to use existing funds from the Inflation Reduction Act for this proposal. Climate-smart agriculture policies supported by the environment and animal welfare sectors are the foundation of this bill.
Vilsack makes announcement during World Dairy Expo
Agriculture Secretary Tom Vilsack announced $11 million in funding for the Dairy Business Innovation Initiatives grant program. This effort supports small and medium-sized dairy operations in the development, production, marketing and distribution of dairy products. The Dairy Business Innovation Alliance in Wisconsin will receive $3.45 million for grants and technical assistance to expand market opportunities and support value-added dairy product innovation. This year’s funding was also awarded to initiatives in California, Tennessee and Vermont.
Relief for organic dairies
The U.S. Department of Agriculture is making $58 million available to organic dairy farmers to help offset market volatility, transportation costs and an unstable feed supply. Organic dairy farmers will be able to apply for this assistance through the Farm Service Agency.
Settlement made over manure contamination
A settlement has been made between a Merrill dairy farm and the state of Wisconsin. In 2021, a leaky valve on a manure storage facility on Morning View Dairy Farm contaminated a nearby creek. The farm will pay $70,000 due to a fish kill related to the contamination.
Deere and DeLaval partner on dairy data platform
John Deere and DeLaval have launched a new digital platform called the Milk Sustainability Center. Dairy farmers will be able to track data from their crops and dairy herds in one system. In the future, this program will allow farmers to benchmark nutrient efficiency and a reduction in carbon dioxide emissions. The Milk Sustainability Center is now available to a small group of dairy farmers in the U.S., Netherlands and Germany with plans to expand to other countries.
OptiHarv launched at World Dairy Expo
During World Dairy Expo, Renovo Seed introduced a new forage mix called OptiHarv. The mix is a blend of millets, peas, beans, barley and brassicas and produces more tonnage for baleage, haylage or grazing. The Brookings-based Renovo Seed said OptiHarv is designed for cattle producers looking for a high-quality feed, such as dairy farmers.
National Association of State Departments of Agriculture tribute honors Northey
The National Association of State Departments of Agriculture honored former USDA Undersecretary Bill Northey with its Ambassador’s Circle Award. Northey also served as Iowa’s secretary of agriculture from 2007 to 2018. The award will now be known as the Bill Northey Legacy Award. Northey passed away this past February.
Ruak takes new role
Mark Ruak is the new faculty director for the Dairy Innovation Hub. Ruak is an extension specialist with the University of Wisconsin-Madison and a faculty advisor for the Discovery Farms program. Ruark has been a member of the Dairy Innovation Hub steering committee since its inception in 2019.
Trivia challenge
The colored shavings on the Coliseum floor of this year’s World Dairy Expo were pink. That answers our last trivia question. For this week’s trivia, what is the largest dairy cooperative in the United States? We’ll have the answer in our next edition of the Dairy Star.
Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.
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