Cull cow market helps offset $15 milk

Profit margins are being squeezed as dairy farmers go into a new year. “It’s a tough market when you’re dealing with $15 or $16 milk,” said Dan Glessing, president, Minnesota Farm Bureau Federation. “Typically, your breakeven on milk is in that $20 to $21 (per hundred-weight) range, according to farm business management people I’ve talked with, so that’s a wide spread.” Glessing operates a dairy farm near Waverly, Minnesota. “That beef price we’re enjoying as well, with our cull cows as well as selling those calves, is helping to keep those dairies going.”

Bipartisan coalition wants Canada to deliver on its promises

Over 70 members of Congress have sent a bipartisan letter to U.S. Trade Representative Jamieson Greer, stating that the 2026 review of the U.S.-Mexico-Canada Agreement is a priority for the dairy industry. The letter said the review “represents a critical opportunity to deliver to American dairy farmers, producers and exporters the access to the Canadian market that was originally promised when the agreement entered into force over five years ago.” The law-makers said it is time to close the loopholes and hold Canada accountable to its USMCA commitments.

Dairy represented in USMCA hearing

During a 3-day hearing on the USMCA, National Milk Producers Federation/U.S. Dairy Export Council Executive Vice President of Trade Policy and Global Affairs Shawna Morris asked for more stringent dairy trade enforcement. Morris said Canada continues to manipulate its tariff-rate quota system and undermine U.S. market access. Regarding Mexico, Morris urged the Trump administration to protect common cheese names, such as Parmesan and provolone, in America’s largest dairy market.

Conner: U.S. no longer seen as a reliable supplier

U.S. trade policy has been somewhat chaotic with the on-again, off-again tariffs. The Red River Farm Network asked the outgoing president and CEO of the National Federation of Farmer Cooperatives, Chuck Conner, what that means for the U.S.’s reputation as a reliable supplier. “I don’t think our worldwide reputation is very good right now, honestly,” said Conner. “I think the world is seeing a lot of mixed signals coming from the United States government right now. I can say that, as someone who is sort of at the end of their career and (is) a little more forthright than would otherwise be the case, I think clearly a lot of buyers around the globe are wondering if they can really rely upon the United States going forward.” Conner served as deputy agriculture secretary from 2005 to 2009. When Agriculture Secretary Mike Johanns resigned, Conner was the acting secretary until President Bush’s nominee, former North Dakota Governor Ed Schafer, was confirmed. Conner has led the NFCF for the past 17 years.

Supply, demand numbers updated

In the latest U.S. Department of Agriculture supply and demand report, the 2025 milk production forecast was left unchanged at 231.4 billion pounds. The estimate for 2026 milk output declined slightly to just over 234 billion pounds. Exports for 2025 rose, with U.S. butter and cheese markets remaining price competitive in global markets. 2026 exports are projected to decline due to less global demand for butter.

Dairy checkoff focused on immediate results

According to Dairy Management Inc. President/CEO Barbara O’Brien, the dairy checkoff is increasingly conscious about listening to farmer input regarding the dairy checkoff investment. “Farmers have been clear: They want to see short-term returns,” said O’Brien. “Sixty-five to-75% of an annual budget is focused on short-term, in-year results, where we are driving immediate sales through partnerships, e-commerce campaigns, where we can hold up direct sales impact.”

Farm mediation cases up over last year

During the summer, the number of mediation cases in Minnesota was four or five times higher than one year earlier. Agriculture Commissioner Thom Petersen says mediation notices are twice as high as they were in 2024; “Which is still twice as much, but it wasn’t four times as much, so I’m hoping it’s quieting down a little bit,” Petersen said. “For a lot of farmers, it’s difficult right now to put pen to paper as they’re meeting with those bankers. I think people can go through another year for some of those folks, but we just can’t have this go on too much longer.”

$4 million available for beginning farmer program

The Minnesota Department of Agriculture Rural Finance Authority will begin accepting applications for the 2026 beginning farmer tax credit Jan. 1. The annual program provides financial incentives for asset owners who rent or sell farmland, equipment, livestock or other agricultural assets to beginning farmers. The state has $4 million available for the year, and funds are awarded on a first-come, first-served basis. Beginning farmers may also qualify for tuition reimbursement for farm business management programs, up to $1,500 per year for three years. The MDA will host an informational webinar Dec. 22.

Minnesota enviros adopt litigation strategy

In the state of Minnesota, environmental activist groups have put farmers in the cross-hairs with litigation. Lobbyist Bruce Kleven said these groups are asking the courts to compel state agencies to act. “We’ve seen it in three areas: We’ve seen it on nitrates in the water, we’ve seen it on treated seed and we’re likely to see it on drainage,” Kleven said. “It’s under the Environmental Rights Act, and the guts of the claim are that the state isn’t doing enough, so these environmental groups are asking courts to force them to do what they want.” Kleven said agriculture groups have intervened in these cases, so they will be at the table as these cases move forward.

Keys to join IDFA staff in January

Fountain, Minnesota, native Chelsie Keys has been named the senior vice president of government relations for the International Dairy Foods Association. Keys succeeds Dave Carlin, who announced his retirement earlier this year. For the past 10 years, Keys has been on the policy staff for the Senate Agriculture Committee. “I want to thank Chairman (John) Boozman and Chairman (Pat) Roberts before him for the opportunity to serve in leadership roles on the Senate Agriculture Committee,” Keys said. “Working for the committee has been the honor of my life.”

Longtime DFA leader passes

Funeral services will be held Dec. 27 for Gary Hanman. Hanman, 91, helped establish Dairy Farmers of America in 1998, bringing together four dairy cooperatives into a single entity and growing it into the nation’s largest dairy co-op. Hanman served as DFA’s first president and CEO and served until his retirement in 2005.

Trivia challenge

The American tradition of leaving milk and cookies for Santa on Christmas Eve began during the Great Depression in the 1930s. That answers our last trivia question. For this week’s trivia, what is the oldest cow in recorded history? 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.