Margins best in decade?

According to CoBank’s The Quarterly, 2024 will likely end up being one of the top three years in history for milk prices. Grain prices are also at a five-year low. Economist Corey Geiger said a window has opened for dairy farmers to consider locking in positive margins based on the futures market. U.S. milk production is on track to be down for two consecutive years. If that trend continues, it would be the first time in 50 years that milk production has declined for back-to-back years. Beef-on-dairy calf prices remain strong, cutting into the supply of replacement heifers.

Expansion curtailed by outside influences

With avian influenza expanding in California, milk production may eventually be impacted. Shawn Hackett of Hackett Financial Advisors said dairy buyers are front-end loading their purchases because they are concerned about the future milk supply. “However, USDA (U.S. Department of Agriculture), as of the last production report, said that production grew slightly so there’s a disconnect between the fear in the market from avian flu and what USDA is reporting.” Hackett said it will also be difficult to grow the dairy industry due to the lack of dairy heifers. “What I see is probably one of the tightest, greatest shortages of dairy heifers we’ve ever seen, meaning that even if the dairyman decides he wants to go out and expand it doesn’t mean he can.”

Lame-duck session may deliver for agriculture

Once the votes are counted and the election is over, lawmakers will return to Washington, D.C., for a lame-duck session. The plate will be full for Congress, but Pro Farmer consultant Jim Wiesemeyer expects help to be on the way for farmers and ranchers. “We’re going to get a hurricane disaster bill and maybe even a farm financial transition payment,” Wiesemeyer told Red River Farm Network. “You’ll see financial assistance for the ag sector because it is hurting right now.” According to Wiesemeyer, the odds are rising for passage of a new farm bill this year. “Either Trump or Harris wants to have as much done in the lame-duck as it possibly can to hit the ground running in their new administration.”

Farm bill, financial assistance on wish list 

During a tour of Arkansas farms, Senate Agriculture Committee Ranking Member John Boozman said two things need to happen in the lame-duck session after the election. No. 1, Boozman said a new farm bill needs to be passed. Secondly, Boozman said farmers need an immediate financial assistance package.

Farm bill optimism fades 

Iowa Senator Chuck Grassley does not expect a new farm bill to pass during the lame-duck session. During an event in Des Moines, Grassley said Congress will only be in session for two weeks in November and three weeks in December and he doesn’t think there is enough time to complete the farm bill.

Dairy needs a strong safety net

While the year has been generally good for dairy producers, Associated Milk Producers Incorporated Chairman Dave Peterson stresses the importance of a farm bill, especially for the Dairy Margin Coverage plan. “We don’t want to forget that because of the year we’ve had. We might as well face it, two years ago, it kept a lot of farms in business.”

H-2A in the courts

Ag groups, including the American Farm Bureau Federation and National Potato Council, have filed a lawsuit against the labor department and its new H-2A rule. The rule, which was imposed in April, prevents employers from retaliating against H-2A visa holders who try to form or join a union. A court ruled this provision was unconstitutional in August, but did not issue a national injunction.

International Dairy Foods Association advances trade position

The International Dairy Foods Association submitted comments on the National Trade Estimate Report, which highlights U.S. concerns about foreign barriers to trade. IDFA concerns include new barriers related to provisional tariffs on U.S. milk powder exports to Colombia and the ongoing trade dispute with Canadian milk class policies. “The U.S. dairy sector needs a proactive trade agenda to expand access to global markets and remain competitive,” said Becky Rasdall, senior vice president of trade and workforce policy, IDFA.

National Cooperative Bank co-op 100 released 

CHS Inc. again leads the list of the 100 top cooperatives in the country. CHS had 2023 revenues of $45.6 billion. The National Cooperative Bank releases the Co-op 100 each year. Numerous dairy cooperatives are on the list, including Dairy Farmers of America at No. 2 with 2023 revenue of $21.7 billion. Land O’Lakes is ranked third. Illinois-based Prairie Farms Dairy is ranked 14th and California Dairies Inc. is 15th. The list also includes New Mexico-based Select Milk Producers Inc. at 18, Washington-based Darigold at 26, Foremost Farms at 37, Associated Milk Producers Incorporated at 43, Michigan Milk Producers Association at 58, Tillamook Creamery at 62, Maryland and Virginia Milk Producers Association at 64, Organic Valley at 65, Agri-Mark Inc./Cabot Creamery at 70, National Farmers at 83, First District Association at 86 and Bongard’s Creameries at 96.

Cheesemakers and Occupational Safety and Health Administration work together

The Wisconsin Cheese Makers Association and the Occupational Safety and Health Administration have signed an agreement to share information on safety laws, standards and OSHA initiatives and develop dairy-specific resources.

Dairy farmer appointed to natural resource board

Governor Tony Evers on Friday appointed Waupaca County dairy farmer Rachel Bouressa to the board of the Wisconsin Department of Natural Resources — the policy-making body for the state department of natural resources. Bouressa is a dairy farmer who is a member of the board for the Wisconsin Farm Bureau Federation, a member of the Wisconsin Farmers Union and a project coordinator for GrassWorks.

Harden, Freeman inducted into 4-H Hall of Fame 

Fifteen individuals were inducted into the National 4-H Hall of Fame this week. The honorees include Krysta Harden. Harden was the U.S. Department of Agriculture deputy secretary from 2013 to 2016 and now serves as the president and CEO of the U.S. Dairy Export Council. Freeman served as the Minnesota State 4-H director, retiring in 2018.

LaCount takes new Wisconsin Farm Bureau Federation role

Rachel LaCount is the new director of foundation and sustainability for the Wisconsin Farm Bureau Federation. She has been the WFBF director of sustainability communications and partnerships for the past three years.

Trivia challenge

Dairy Farmers of America is the largest dairy cooperative in the United States. That answers our last trivia question. For this week’s trivia, what blue cheese is named after a village in Italy where it was first produced? 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.