Searching for answers

The current downturn in milk prices has experts scratching their head, looking for a reason. “I wish I were smart enough to explain the milk markets,” said Mick Homb, general manager, Farm First Dairy Cooperative. “It’s going to take somebody smarter than me to figure out why the milk (supply) is tight and the milk prices are so low.” With Class III milk below $17 per hundredweight for the foreseeable future, Homb said, “it is difficult for farmers who are not getting the price for their milk that I think they deserve.”

Lack of dairy data

The government shutdown has created a domino effect of challenges across the agriculture industry, and dairy is no exception. Chris Galen, senior vice president of member services and strategic initiatives with the National Milk Producers Federation, said the lack of federal dairy reports is impacting market transparency and overall dairy economics. “If this goes on for weeks, and we don’t have USDA (U.S. Department of Agriculture) data to look at, then the marketplace is going to be even more volatile because there won’t be any good information out there about supply and demand.”

Labor seen as dairy industry’s biggest issue

According to National Milk Producers Federation Chairman Randy Mooney, labor is the No. 1 challenge for the dairy industry. “We’ve got the H-2A visas that don’t really fit dairy because they’re seasonal workers,” Mooney said. “We’ve got now the Trump administration closing the border and the ICE (Immigration and Customs Enforcement) raids that we’re seeing around the country and I’m not speaking against any of that, but what we need as a U.S. dairy industry is we need some clear immigration policies.” Mooney, who is also chair of Dairy Farmers of America, will step down from his NMPF leadership role next month. In the Dairy Defined podcast, Mooney said it has been an honor to lead National Milk for the past 17 years. “I’m not leaving because I’m getting out of the industry; I’m going to stay as chairman of DFA, but it’s time for somebody different and somebody younger and new ideas.”

Farm aid package planned once government reopens

Once the government reopens, Agriculture Secretary Brooke Rollins said a farm assistance package will be created, using tariff revenues to compensate farmers. She said it is also important to eventually move away from the hamster wheel of farm bailout programs. “They don’t want these checks, they want to be able to sell their products,” Rollins said. “Every time I travel around the country, this is what I’m hearing.”

Government shutdown continues

The government shutdown in Washington shows little hope for a resolution. Policy Solutions President Jay Truitt said lawmakers are waiting for key events before taking further action. “Democrats are waiting to take any steps until after the No Kings protest; I think that does give us some timeframe after that. I don’t think this thing drags on much more.” Until lawmakers find common ground, several critical priorities remain stalled, including the ag package. ”We’re just at a standoff. While we may see the administration try to do something creative, honestly, that really almost never works out the way we think it’s going to.”

Farmers for Free Trade

Westby, Wisconsin, was a stop on the Farmers for Free Trade national tour. Farmers for Free Trade Executive Director Brian Kuehl said farmers were already dealing with inflation, high input costs and low commodity prices before the tariff strategy kicked in. When export markets disappear, Kuehl said it is very difficult to get them back.

White House has plan to reduce consumer beef prices

In the final minutes of a media briefing, President Trump said energy and food prices are coming down. The one exception has been beef prices. “I think we have a deal on beef that would bring the price of beef (down); that would be the one product that we would say is a little bit higher than we’d want it, maybe higher than we want it,” Trump said. “That’s going to be coming down pretty soon. We worked our magic.” Trump offered no details on how the government would intervene. There was recent speculation the USDA would pay farmers and ranchers to retain heifers, but Agriculture Secretary Brooke Rollins said that was not under consideration.

Farm expenses remain high

While most commodity prices are in the tank, a new report from the American Farm Bureau Federation outlines the expense side of the ledger. It says production expenses this year are forecast to be record high at $467 billion. That’s nearly $12 billion higher than one year ago. Cash rents and farmland values are at record highs. Fertilizers represent one of the single largest costs for row crop operations. Those prices are down from their peak in 2022, but well above pre-coronavirus pandemic levels. The report says big yields will not be enough to guarantee profitability this fall, especially with expenses holding firm.

Top 50 dairy co-op list updated

Dairy Farmers of America remains the largest dairy cooperative nationwide. Milk volume totaled 55.7 billion pounds, down 6 million pounds from 2024. According to the Hoard’s Dairyman list of the top 50 dairy co-ops, Edge Dairy Farm Cooperative moved up to the No. 2 spot. Edge Dairy has members in nine states, including Minnesota, Wisconsin and South Dakota. Midwest co-ops on the list include Land O’Lakes at No. 4, FarmFirst Dairy Cooperative at No. 7, Foremost Farms USDA at No. 8, and Associated Milk Producers Inc. at No. 10.

Fresh branding for Ellsworth Cooperative Creamery

Ellsworth Cooperative Creamery has rolled out new branding and packaging. The new look retains the co-op’s historical logo with a recognition of its Wisconsin roots and cooperative structure. Ellsworth Cooperative Creamery is celebrating its 115th anniversary and is recognized as the #1 retail brand of cheese curds nationwide.

Newton returns to AFBF

The American Farm Bureau Federation has announced Dr. John Newton’s return to the organization. Newton will serve as vice president of public policy and economic analysis. He previously served as Farm Bureau’s chief economist from 2018 to 2021. Newton also spent time as chief economist for the Senate Agriculture Committee, the National Milk Producers Federation and the past year as the executive head of Terrain. Newton succeeds Sam Kieffer, who was named the CEO of the National Association of Wheat Growers.

Romanski leads MASDA

Wisconsin Department of Agriculture, Trade and Consumer Protection Secretary Randy Romanski is now president of the Midwestern Association of State Departments of Agriculture. MASDA includes the state ag commissioners, secretaries and directors from Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Minnesota, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota and Wisconsin. Romanski will host the regional MASDA meeting in Madison next summer.

Trivia challenge

Johne’s disease is the chronic, contagious bacterial disease found in the intestinal tract of cattle. That answers our last trivia question. For this week’s trivia, what is the term for a Greek, brined, crumbly cheese? 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.