New plants, new problems: expansion pressures market

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California milk production has slipped, but other states are seeing expansion. “Those states that run from I-29 through the Texas Panhandle, we’re continuing to see some ongoing growth there as new plants come online,” said Ever.Ag principal Mike North. In North’s view, this national trend will impact the dairy markets. “As we talk about cheese production, the number of new facilities that are coming online right now is such that by the end of the year we’re going to have 360 million pounds of cheese that do not have a home,” he said. Domestic or foreign demand will need to grow significantly to get ahead of that supply curve. The demand outlook is complicated by the current tariff strategy.

 

Supply, demand report released

According to the April U.S. Department of Agriculture’s World Agricultural Supply and Demand Report, the forecast for 2025 milk production was increased to nearly 227 billion pounds. That’s due to a slightly higher milk output on a per-cow basis and a larger milk herd. The forecast for exports was raised due to higher butter shipments. Imports are expected to decline in response to the new tariffs. Class III milk prices are lower, with lower price expectations for cheese and whey.

 

Senators press U.S. trade office on impact of tariffs on farmers

Minnesota Sen. Amy Klobuchar and 18 of her colleagues have sent a letter to U.S. Trade Representative Jamieson Greer, seeking information on the administration’s tariff agenda. The lawmakers want to determine if an analysis was done to consider the tariffs’ impact on agriculture. “Are you looking at just what the president wants to do that day, or are you actually looking at how this affects farmers?” Klobuchar said. In the first Trump administration, farmers received market transition payments to offset the losses from the trade war with China. In an interview with the Red River Farm Network, Klobuchar said she’ll advocate for that assistance, but that doesn’t solve the problem. “The last time I checked, our farmers wanted trade, not aid and this idea that we’re just going to throw a bunch of money at it when we could allow them to be expanding markets,” said Klobuchar. “To me, the long-term solution is expanding markets.”

 

Glessing urges action on farm bill

Minnesota Farm Bureau President Dan Glessing is calling for swift passage of a modernized farm bill, arguing that outdated safety net programs leave farmers vulnerable to economic stress. “If we would have passed the farm bill with updated numbers to reflect the inflationary or the input pricing increases that we’ve seen in farming, would we have needed that economic assistance?” he said. “I would tend to think not.” Glessing also raised concerns over trade instability, citing worries related to U.S.-Mexico-Canada Agreement renegotiations and tariff uncertainty. “A good fair trade deal is kind of the goal of it, but it’s going to cost us because we put a lot of inputs into our farms and ranches.”

 

County government office closures proposed

A government executive is reporting that the Trump administration is planning significant cuts at the USDA, including office closures at the county level. The publication got access to documents from the Office of Management and Budget for the 2026 fiscal year.  In the document, OMB orders USDA to develop plans to consolidate county-based Farm Service Agency, Natural Resources Conservation Service and Rural Development offices. Budget savings would also be made by reductions in research funding, the elimination of the McGovern-Dole and Food for Peace grant programs and many rural infrastructure programs for waste treatment, drinking water and electric power. An OMB spokesperson said no final decisions have been made.

 

Minnesota farm groups seek to intervene in water litigation

The Minnesota Center for Environmental Advocacy, Minnesota Trout Unlimited and the Minnesota Well Owners Organization are suing the Minnesota Pollution Control Agency and the Minnesota Department of Agriculture. They claim these state agencies have not done enough to protect ground and surface water in the Karst and Central Sands regions. A coalition of nine mainstream farm groups is seeking to intervene in this lawsuit to support MPCA and the agriculture department. The groups in the farm coalition represent the dairy, corn, soybean, wheat, pork, beef, turkey and sugarbeet trade associations and Farm Bureau.

 

Rollins, Thompson tour Pennsylvania dairy farm

Agriculture Secretary Brooke Rollins and House Agriculture Committee Chair Glenn “GT” Thompson toured a Pennsylvania dairy farm Tuesday. Rollins told reporters the administration’s tariff policy is “disruptive,” but she believes it will be a short-term adjustment. Rollins said she hopes it won’t be necessary, but President Trump is ready to provide financial assistance to farmers if they are hurt by the trade situation.

 

Driving dairy demand

The Midwest Dairy annual report highlights how the dairy checkoff built trust with consumers, increased dairy sales, invested in research and developed dairy leaders. The report cites Midwest Dairy’s partnership with three major pizza chains this past year: Marco’s Pizza, Pizza Ranch and Godfathers. The cheese promotions drove an additional 3.4 million pounds of milk sales.

 

Bongards announces patronage, dividend payments

At its annual membership meeting, Bongards Creameries reported 2024 earnings of $75 million on sales of $931 million. Patronage earnings of $62.6 million resulted in a 20% cash payment to members of $.676/hundredweight. Also paid to members were dividends from a New Market Tax Credit of $.125/hundredweight.  It was also announced that Bongards will revolve 2014 equity in the amount of $4.5 million and members will receive those checks before Aug. 1, 2025.  Bongards’ members also heard updates on the performance of plant operations, investments in plant equipment, sales and future opportunities for their co-op.

 

Dairy export excellence recognized

The U.S. Dairy Export Council has announced the winners of its Excellence in Exports Awards. Actus Nutrition, which was formerly known as Milk Specialties Global, was recognized for introducing U.S. caseins and caseinates to the global market. David Ahlem of Hilmar Cheese Company was honored for developing innovations in dairy exports.

 

Star finalists named

The finalists for the Minnesota FFA star awards have been announced. Chris Schafer of Grand Rapids and Marin Knott of Tracy Area FFA are finalists for the star in agri-science. The star in agribusiness finalists are Adreanna Kaas of Milaca, Ole Rogness of Litchfield, Jilian Schoenfeld of Russell-Tyler-Ruthon and Eden Messerli of Gibbon Fairfax Winthrop. The students in the running for the star in production placement are Sarah Arends of Ada-Borum-West, Derik Johnson of Willmar, Samantha Henning of Jackson County Central and William Bastian of Gibbon-Fairfax-Winthrop. The Minnesota FFA Convention will be April 27-28 in the Twin Cities.

 

Trivia challenge

The loose flap of skin on the underside of the dairy cow’s neck is known as a dewlap. That answers our last trivia question. For this week’s trivia, what is the brand behind the iconic blue siloes that dot the countryside? 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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