Print
A A A |

 
 
Common Ground
Farm Credit Services of America Blog

Why Dairy Producers are Feeling Financial Pain

by FCSAmerica Staff Reports | Apr 20, 2018

Dairy operators haven’t always been so challenged by $13 milk. In the past, a dairy’s price pain would be eased by $3.75 corn and sub-$400 soymeal. Not today, says Sarina Sharp, a market analyst for the “Daily Dairy Report” and a Farm Credit-sponsored presenter at the recent Central Plains Dairy Expo.

Too many other factors are squeezing margins and reducing operators’ equity cushion, said Sharp, who manages risk for feed, milk and beef for her family’s Michigan dairy operation. Costs such as environmental compliance, hauling, healthcare and labor are rising as incomes are taking a hit from lower calf prices, a weaker cull cows market, no MILC payments and more.

Costs are expected to continue to increase, Sharp said. But there could be good news on the income side, with the worst of the price slump likely behind dairy operators.

Sharp discusses the economic factors and their impact on dairy operations in this video.

Comment

  1. RadEditor - HTML WYSIWYG Editor. MS Word-like content editing experience thanks to a rich set of formatting tools, dropdowns, dialogs, system modules and built-in spell-check.
    RadEditor's components - toolbar, content area, modes and modules
       
    Toolbar's wrapper 
     
    Content area wrapper
    RadEditor's bottom area: Design, Html and Preview modes, Statistics module and resize handle.
    It contains RadEditor's Modes/views (HTML, Design and Preview), Statistics and Resizer
    Editor Mode buttonsStatistics moduleEditor resizer
      
    RadEditor's Modules - special tools used to provide extra information such as Tag Inspector, Real Time HTML Viewer, Tag Properties and other.
       
  2. Comments are moderated and reviewed before they are posted on the site. View our terms of use.

Browse by Tag