Question for Dairy Farmers

David G · Feb 18, 2014

I read an article that milk had gone up 30 cents a gallon and is expected to go up another 60 cents. The reason given was that dairy herd size was reduced due to high feed costs, and increase consumption of cheese.

Any feedback from Dairy Farmers on here?

RLA · Feb 18, 2014

Milk might be going up, but my feeling is the
farmer will be the last one to see any extra
money....

Fordfarmer · Feb 18, 2014

That is true, to a point. Feed costs are up, and production is down (due to the cold - more calories used just to keep warm). Haven't heard lately if the national herd numbers are up, down, or steady.
I just got my milk check today - $21.38 per hundred weight, or roughly $1.78 per gallon. Hardly a $.60, or even $.30 per gallon increase.

DVF · Feb 18, 2014

rla, thats if we see any increase at all, lol. its unfortunate, but, most people in the United States especially folks in the big cities dont have any idea how the Dairy farmer gets paid. people see the price of milk in the store and think Diary farmers must be making ALOT of money. They have NO idea of the labor involved as well as the cost of producing milk, from the cost of grain etc..etc...the cost would not be that big a deal if Dairy Farmers were getting paid a fair price. the pricing system is broke and until it is fixed (dont think it will be in my life) nothing will change.

Tom in TN · Feb 18, 2014

Fordfarmer,

Please understand that I am not trying to stir up any kind of controversy, I don't want have any kind of political discussion, I'm just asking because I don't know the answer. I raise beef cattle but I've never raised dairy cattle.

When you mentioned that you received $21.38 per hundredweight for your milk, was that a payment from a private milk processor that you sell to, or was that somehow a payment from some government program? Was the government involved in any way in setting the price or establishing a minimum price for the milk?

Again, I'm not trying to create any controversy, I'd just like to be informed about that part of the farm industry.

Tom in TN

Massey farmer · Feb 18, 2014

Payment is from the co-op you have to belong to and pay dues to market and pick up your milk. No government payment there. Added bonuses for better quality, rbst free, etc. more money for higher protein and butterfat content of your milk. They automatically take out hauling cost, dues and other misc things and give you what's left. The closer to ports the more you get paid also.

Massey farmer · Feb 18, 2014

In ny, and proabably other places, if you make a certain level of quality milk per year they give you these metal sign to hang up in front of your farm.

gfs · Feb 18, 2014

Haven't sold milk in 10 years but here goes tom, milk is picked up at the farm and sold to a coop or independent bottler at a price per hundredweight. Most folks get a check twice a month once at the beginning and then midway thru, the first check was for just milk the second check was the settlement check where they deducted hauling, insurance, supplies and where quality premiums were added in. For easy numbers say you get a base of 15.00 then get a butterfat premium of .40 cents and a milk quality premium .25 so u get 15.65 then deduct you barn supplies and your hauling and your coop member or your assessment you probably see 14.70, now say u live in a certain area of the country then you could get more money because of the federal order. I don't know if it still works that way quit worrying about milk price when I sold the cows, oh and if milk drops for some "bizarre" reason the government says they will help u overcome their cheap pricing system by allotting what is call the lets make you feel alittle better about milking payment.

Donald Lehman · Feb 18, 2014

My son says the word from the co-op is that we are selling a huge amount of milk powder to China right now and the price is expected to stay up for about a year. The fly in the ointment is that China has been notorious for buying huge amounts for a while and then nothing for long periods of time. That's the story Jeff gets from the co-op anyway. As far as cow numbers I haven't seen anything on that recently. I do know most of the large producers in this area haven't added anything on at all this year. And there were an awful lot of producers in this area that just said the heck with it and sold out the last time the price fell through the floor. Jeff just got his check and he said the price was a bit over $24 this month. I just hope when the price does drop, it doesn't go down to that $16-$17 crap again.

JD John · Feb 18, 2014

I am not sure how to reply to this but can tell you it doesn't really have anything to do with high feed cost. We milk the cows, truck comes and picks up the milk, takes it to the processor, they "tell" us how much we get paid for it. It doesn't matter how much it cost us to produce a hundred pounds. The way the price is set is so confusing that I really don't think nobody fully under stands it. People hear the price of milk (or any other farm product) is going up and seem to think we are the ones making the money, we are the last ones to see any of that increase. I think the nation's herd size is down, along with production right now but with the price on the high side right now the big guy's will be adding cows by the 100s, so just wait and the price will go down.

Brown Swiss · Feb 18, 2014

That price is from the milk plant, the gov didn't step in until it hit under 16, that was the old farm bill, but that has ended and it is an insurance deal now, don't have the details yet!
On a personal note even with the higher price it is still hard to make a living,I have steers that I fatten out from the herd of dairy cows, with out the steers I don't think I would be milking yet!

Bob · Feb 18, 2014

NOT a problem!

While I fully admire dairy folks and hope they continue to make a decent living, having seen all the mishaps that happen and what gets into milk, YEEEECHH!

NONE of that stuff for me, so the retail price doesn't affect me at all, in the least!

Massey farmer · Feb 19, 2014

Basically your patting the dairyman on the back and slapping him in the face at the same time with that comment?

Bret4207 · Feb 19, 2014

(quoted from post at 14:02:02 02/18/14) Fordfarmer,

Please understand that I am not trying to stir up any kind of controversy, I don't want have any kind of political discussion, I'm just asking because I don't know the answer. I raise beef cattle but I've never raised dairy cattle.

When you mentioned that you received $21.38 per hundredweight for your milk, was that a payment from a private milk processor that you sell to, or was that somehow a payment from some government program? [b:9a81c0074f]Was the government involved in any way in setting the price or establishing a minimum price for the milk?[/b:9a81c0074f]

Again, I'm not trying to create any controversy, I'd just like to be informed about that part of the farm industry.

Tom in TN

The Federal Gov't has been controlling milk prices since the 1920's. The formula is based on milk hauled in cans by rail and is centered on Chicago IIRC. It's a farce. And the $21.38 is before trucking, co-op fees, feed, fuel, etc. It's the gross.

Alan K · Feb 19, 2014

I agree. Ive always found it funny that in most any other industry you can set the price what you want but in farming it is what they will give you.

Question for Dairy Farmers

David G

Well-known Member

RLA

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Fordfarmer

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DVF

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Tom in TN

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Massey farmer

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Massey farmer

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gfs

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Donald Lehman

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JD John

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Brown Swiss

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Bob

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Massey farmer

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Bret4207

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Alan K

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