Wednesday, December 30, 2009
Dairy Cows in Morning Fog - 12-30-09
Friday, December 18, 2009
You're kidding me, right?
Well the USDA finally determined how to divide the $290 million aid package to the country's dairymen. And again they used caps on the pounds of milk produced at 6 million pounds and a
payment of 32 cents per hundredweight for a maximum payment of $19,200.00 per dairy operation.
I hate the small dairy vs large dairy argument that always seems to divide our industry and does nothing to correct the real problem. Not enough money for milk to cover the costs of production, regardless of the size of the operation.
But it's programs like this that makes my blood boil at the unfairness of the USDA. If you're the right size dairyman (250 cows +/-), you're paid $19,200.00 to help the shortfall in milk prices for the past year. If you had 2,500 cows, you're paid $19,200.00, the same as the smaller dairy herd.
All dairymen (small and large) are losing a average of $100.00 per cow per month. So how does paying both the same money, fair and equal? Do you really think that the large dairy only lost money on the first 250 cows in the herd and were breaking even on the other 2,250 cows?
Yes, I know and understand that the dairy with 85 cows will only be paid $6,400.00 for their USDA share of the $290 million. But they are being paid for EVERY pound of milk they produced and were not capped on their production. The problem is that the large dairy herd is only being paid on 10% of their production.
What good is it to be helped with 32 cents per hwt after losing $5.00 per hwt for almost a year. I guess the USDA didn't want to announce a payment price of .032 cents per hwt for 100% of all milk produced. Although it would have been fair and equal to all dairymen for all their milk produced.
Quick and dirty the payments at 32 cents per hwt and 60,000 hwt cap are: (using 65 pounds per cow per day) the 85 cow dairy will be paid $6,453.20, the 250 cow dairy will be paid $18,980.00, and the 2,500 cow dairy will be paid $18,980. (remember the max payment is $19,200.00)
The large dairy has 29 times the loss of the 85 cow dairy, and 10 times the loss of the 250 cow dairy.
However, the 2,500 cow dairy only receives 2.9 times more money than the 85 cow dairy, and receives the same money as the 250 cow dairy.
Fair and equal treatment, YOU'RE KIDDING ME, RIGHT?
payment of 32 cents per hundredweight for a maximum payment of $19,200.00 per dairy operation.
I hate the small dairy vs large dairy argument that always seems to divide our industry and does nothing to correct the real problem. Not enough money for milk to cover the costs of production, regardless of the size of the operation.
But it's programs like this that makes my blood boil at the unfairness of the USDA. If you're the right size dairyman (250 cows +/-), you're paid $19,200.00 to help the shortfall in milk prices for the past year. If you had 2,500 cows, you're paid $19,200.00, the same as the smaller dairy herd.
All dairymen (small and large) are losing a average of $100.00 per cow per month. So how does paying both the same money, fair and equal? Do you really think that the large dairy only lost money on the first 250 cows in the herd and were breaking even on the other 2,250 cows?
Yes, I know and understand that the dairy with 85 cows will only be paid $6,400.00 for their USDA share of the $290 million. But they are being paid for EVERY pound of milk they produced and were not capped on their production. The problem is that the large dairy herd is only being paid on 10% of their production.
What good is it to be helped with 32 cents per hwt after losing $5.00 per hwt for almost a year. I guess the USDA didn't want to announce a payment price of .032 cents per hwt for 100% of all milk produced. Although it would have been fair and equal to all dairymen for all their milk produced.
Quick and dirty the payments at 32 cents per hwt and 60,000 hwt cap are: (using 65 pounds per cow per day) the 85 cow dairy will be paid $6,453.20, the 250 cow dairy will be paid $18,980.00, and the 2,500 cow dairy will be paid $18,980. (remember the max payment is $19,200.00)
The large dairy has 29 times the loss of the 85 cow dairy, and 10 times the loss of the 250 cow dairy.
However, the 2,500 cow dairy only receives 2.9 times more money than the 85 cow dairy, and receives the same money as the 250 cow dairy.
Fair and equal treatment, YOU'RE KIDDING ME, RIGHT?
Monday, December 7, 2009
December 2009 - Short Update
December 07, 2009 and October's MILC payment has hit the bank account. Have a little extra money now to pay for some whole cotton seed or alfalfa purchased earlier last month.
0.6003 cents per hundredweight for MILC payment looks awfully small compared to the $6.00 per hundredweight drop in price we've suffered for the past 11 months.
Good news, had a birthday 10 days ago, my older brother's birthday is six days away, Christmas is 18 days away, and finally the NEW YEAR is just 25 more days away. Finally we'll be able to put this horrible year behind us.
More good news, our co-op announced it will pay $1.25 more in our next advance check coming December 24th. Now that's a Christmas present we can really use in these hard times.
Actually, it's our milk money anyway, we're just taking some from the final pay price and moving it back a few days. But, still it a sign that milk price has finally started to move up!
Break-even here we come!
Friday, November 27, 2009
Short Term Renewal
Finally finished all the requirements for a short term renewal (six months) of our dairy operating loan with the bank. Unfortunately it took two months to complete the paperwork and appraisals to finalize the loan.
The bank backdated the loan to Sept 30, 2009, so the maturity date is March 31, 2010. I tried to convince the bank the six months should start from the closing date of the loan, November 20th, 2009, but no dice. Bank said I rode for free for two months and would not adjust the maturity date.
Bank suggested that I continue to look for new financing sources during the next four months in case that milk prices don't improve enough to cash flow and generate profit for the business. Without profit the Bank said it would not be interested in renewal the operating loan.
Hoping and praying for the next four months. . .
The bank backdated the loan to Sept 30, 2009, so the maturity date is March 31, 2010. I tried to convince the bank the six months should start from the closing date of the loan, November 20th, 2009, but no dice. Bank said I rode for free for two months and would not adjust the maturity date.
Bank suggested that I continue to look for new financing sources during the next four months in case that milk prices don't improve enough to cash flow and generate profit for the business. Without profit the Bank said it would not be interested in renewal the operating loan.
Hoping and praying for the next four months. . .
Saturday, November 7, 2009
Still waiting for the higher milk prices
Saturday November 7th, 12:15pm and thinking about how slow this month seems to be moving along. Last month when by so fast it was amazing! Final milk check for October milk doesn't come another 10 days!
Have several suppliers asking for payment. I explain to them (again) that it's very difficult to pay 100% of current bills with just 60% of milk check. A few more dollars of the current bill moves into the 15-30 day, or 31-45 day, or 46-60 day, etc., etc., etc. column of the statement.
Trouble is that most of them quit shipping (or providing product) after 45 days past due. We really need a 90 day, same as cash arrangement with our suppliers, but I don't think they'll go for that deal.
Last month's $11.15 advance for October milk didn't go very far. Hoping that the final check will be higher than the advance. All the processors are reporting record profits. I would like to see break even milk prices before the year's end.
Cows are getting closer and closer to be 100% forage based ration. Grains and by-products are again climbing in price again. It seems that every little bit we get in the milk price increases the past month or two has been wiped out by the feed cost increases.
Have several suppliers asking for payment. I explain to them (again) that it's very difficult to pay 100% of current bills with just 60% of milk check. A few more dollars of the current bill moves into the 15-30 day, or 31-45 day, or 46-60 day, etc., etc., etc. column of the statement.
Trouble is that most of them quit shipping (or providing product) after 45 days past due. We really need a 90 day, same as cash arrangement with our suppliers, but I don't think they'll go for that deal.
Last month's $11.15 advance for October milk didn't go very far. Hoping that the final check will be higher than the advance. All the processors are reporting record profits. I would like to see break even milk prices before the year's end.
Cows are getting closer and closer to be 100% forage based ration. Grains and by-products are again climbing in price again. It seems that every little bit we get in the milk price increases the past month or two has been wiped out by the feed cost increases.
Monday, October 19, 2009
Light at the end of the tunnel?
It's been almost a month since my last posting. Not much has changed concerning milk pay prices, they're still too low, but moving up slowly. Received $11.40/cwt for September's milk, production costs are still in the $16.00+/cwt range.
It's taken several months since our loan matured (and funds not available) for us to work out a six month renewal loan. Hope to be signing documents next week for the new funds. Had to give a 2nd lien on property to secure the renewal. The song "Owe my soul to the company store" come to mind with this loan deal. Higher interest, lower credit limit, and a extra payment to the bank is in our future.
The number of cows going out of production in the latest CWT bid will be known in the next couple of weeks. Wonder if another 75,000 cows will be exiting the nation's herd? Another 350-400 dairy men and women will be calling it quits by year's end. Sad to see them go, but at least (hopefully) they will be able to save their families from financial ruin.
It's taken several months since our loan matured (and funds not available) for us to work out a six month renewal loan. Hope to be signing documents next week for the new funds. Had to give a 2nd lien on property to secure the renewal. The song "Owe my soul to the company store" come to mind with this loan deal. Higher interest, lower credit limit, and a extra payment to the bank is in our future.
The number of cows going out of production in the latest CWT bid will be known in the next couple of weeks. Wonder if another 75,000 cows will be exiting the nation's herd? Another 350-400 dairy men and women will be calling it quits by year's end. Sad to see them go, but at least (hopefully) they will be able to save their families from financial ruin.
Monday, September 21, 2009
Milk Prices and the start of Fall Weather
Been real busy the past month trying to make ends meet and get our operating note renewed with the bank. I think we're close to coming to agreement on additional collateral the bank is requesting to continue our loan. Higher interest fees and reduced line of credit will be included in this six month renewal. We need to see increased milk prices in the next few months to show that we're heading back into (at least) break even territory.
Another CWT program probably will not be seen this year. Maybe before spring flush hits the industry in March and April there might be a need. It all depends how many dairies make it to year end. Four more hard months to go.
Have already seen some fellow board members drop out of business in the last CWT program. Don't know how many more will leave the business by the end of the year. If we all (and I mean ALL) remaining dairymen reduce production 5% to 10% and keep the production down, we will ALL see better milk prices in the near future.
No adding cows if the price climbs, control the production to meet only 98% of the need. If 2% overproduction caused our price to drop $6.00/cwt, then 2% underproduction should increase our price $6.00/cwt. I don't mean going from $10.00/cwt to $16.00/cwt to get back where we were. I'm talking about milk selling for $22.00/cwt and staying there for several years to come. We all need the milk price to stay high in-order to recover from the massive losses suffered this past year.
Another CWT program probably will not be seen this year. Maybe before spring flush hits the industry in March and April there might be a need. It all depends how many dairies make it to year end. Four more hard months to go.
Have already seen some fellow board members drop out of business in the last CWT program. Don't know how many more will leave the business by the end of the year. If we all (and I mean ALL) remaining dairymen reduce production 5% to 10% and keep the production down, we will ALL see better milk prices in the near future.
No adding cows if the price climbs, control the production to meet only 98% of the need. If 2% overproduction caused our price to drop $6.00/cwt, then 2% underproduction should increase our price $6.00/cwt. I don't mean going from $10.00/cwt to $16.00/cwt to get back where we were. I'm talking about milk selling for $22.00/cwt and staying there for several years to come. We all need the milk price to stay high in-order to recover from the massive losses suffered this past year.
Monday, August 24, 2009
Hopefully the last low milk price
Just received the August advance for milk sold for the first 15 days of August. Another miserably low price of $9.97/cwt. Another record breaking low milk price for 2009. Hopefully the final milk check for August (not paid until September 17th) will be better.
Friday, August 7, 2009
AUGUST 2008 vs AUGUST 2009
Comparing August 2008 against August 2009 is a little disheartening. Aug 08 pay price was $16.03/cwt. It looks like Aug 09's pay price will be around $10.00/cwt. 40 percent LESS money and costs of production are still very high. Plus the Federal minimum wage increased 70 cents! A increase of 10% to my labor costs. The Fed's sets our pay price low and the Fed's increase our costs at every opportunity without any concern for our survival.
Since the decline in milk pay prices over the past 10 months we have to tighten our belts. This included changing from 3x milking to 2x milking. This removed eight employees from the milking barns. Other changes were in our rolled corn use. Last year we could afford to add fat to the rolled corn in the TMR. No fat added this year to the rolled corn because of the increased cost of both corn and fat in the ration. Result, cow are down seven pounds in milk production compared to last year.
So 2x vs 3x milking and no added fat in rolled corn has reduced our income 70 cents per cow per day for August 2009. Hopefully the cows and milk price will rebound later this month. It's only the first week of August, the next three weeks might be better.
Since the decline in milk pay prices over the past 10 months we have to tighten our belts. This included changing from 3x milking to 2x milking. This removed eight employees from the milking barns. Other changes were in our rolled corn use. Last year we could afford to add fat to the rolled corn in the TMR. No fat added this year to the rolled corn because of the increased cost of both corn and fat in the ration. Result, cow are down seven pounds in milk production compared to last year.
So 2x vs 3x milking and no added fat in rolled corn has reduced our income 70 cents per cow per day for August 2009. Hopefully the cows and milk price will rebound later this month. It's only the first week of August, the next three weeks might be better.
Monday, July 27, 2009
Waiting for the Milk Check
July 27th and I'm counting the days until the next milk check hit the bank account. Only 21 more days to wait. I really don't care much for the current system of paydays.
We received our first check in July on the 15th. This was final payment for milk sold for June. Then on July 24th we received our advance check for milk sold from July 1st through July 15th. A miserable $9.97 per hundredweight of milk sold. About $6.50/hwt BELOW break even costs for producing the milk.
By August 17th we'll receive our final payment for July's milk. And so it goes, month after month. It would really help cash flow if we could received payment every 10 days for our milk sold. It's really hard to go three weeks without any money coming in.
Most of our creditors want their money every two weeks for products delivered to the dairy.
We received our first check in July on the 15th. This was final payment for milk sold for June. Then on July 24th we received our advance check for milk sold from July 1st through July 15th. A miserable $9.97 per hundredweight of milk sold. About $6.50/hwt BELOW break even costs for producing the milk.
By August 17th we'll receive our final payment for July's milk. And so it goes, month after month. It would really help cash flow if we could received payment every 10 days for our milk sold. It's really hard to go three weeks without any money coming in.
Most of our creditors want their money every two weeks for products delivered to the dairy.
Monday, July 13, 2009
Wednesday, June 17, 2009
Milk Checks still too small
It's the middle of the month and just received the May final milk check, $9.30 net after coop deduct. That enough to cover all expenses, again.
Last week was DPNM Dairy Days in Ruidoso, NM. Not much good news there either, but at least I got to see some interesting things at the trade show booths.
Maybe $16/cwt milk by Sept 2009, and maybe $18/cwt milk by Now 2010. Let's hope they're wrong and the milk price improves sooner and higher the projected.
Last week was DPNM Dairy Days in Ruidoso, NM. Not much good news there either, but at least I got to see some interesting things at the trade show booths.
Maybe $16/cwt milk by Sept 2009, and maybe $18/cwt milk by Now 2010. Let's hope they're wrong and the milk price improves sooner and higher the projected.
Saturday, June 6, 2009
Simple Update
Wow, it's been three weeks since my last post. It's been real busy around the dairy the past few weeks. Selling low production cows for the beef market and looking for money to make ends meet has taken up most of my time.
Milk futures keep crashing down, CWT herd retirement moving along slowly. No national or regional milk reduction plan in place to help supply vs demand.
I guess everyone is in shock (co-op's too) and there's no movement to speak of, now what will happen. Wait and See is going to be ugly, ugly, ugly and not the answer we all need to survive.
Going to dairy meetings next week, hope to see and hear some good news. At least I'll see other dairymen and women from our great State of New Mexico.
Milk futures keep crashing down, CWT herd retirement moving along slowly. No national or regional milk reduction plan in place to help supply vs demand.
I guess everyone is in shock (co-op's too) and there's no movement to speak of, now what will happen. Wait and See is going to be ugly, ugly, ugly and not the answer we all need to survive.
Going to dairy meetings next week, hope to see and hear some good news. At least I'll see other dairymen and women from our great State of New Mexico.
Friday, May 15, 2009
CWT Results - NOT ENOUGH COWS
We all know now the CWT results for the current program. 103,000 +/- cows and 1,000 heifers. Around 1% of the national herd being removed, not enough cows!
Depending on the money spent on these cows (I'm guessing $92,700,000) that leaves $107,300,000 left for the next bid period. At $900/cow that would remove 119,222 more cows.
This would take care of the $200,000,000 secured for CWT buyout bids earlier this year. Not enough cows to help "bounce back" the milk price. Sadly, it means some more dairymen & women will have to get out of the dairy business. As I have said before, we all need to reduce our herds by 5% to get our milk price back up to break even and maybe make a little profit.
97 degrees and 13% humidity in southern NM, Dona Ana County.
Depending on the money spent on these cows (I'm guessing $92,700,000) that leaves $107,300,000 left for the next bid period. At $900/cow that would remove 119,222 more cows.
This would take care of the $200,000,000 secured for CWT buyout bids earlier this year. Not enough cows to help "bounce back" the milk price. Sadly, it means some more dairymen & women will have to get out of the dairy business. As I have said before, we all need to reduce our herds by 5% to get our milk price back up to break even and maybe make a little profit.
97 degrees and 13% humidity in southern NM, Dona Ana County.
Saturday, May 9, 2009
Waiting for CWT announcement
We'll see very soon (maybe two weeks) the number of bids submitted to the CWT for herd reduction. We all need to tighten the number of cows we ALL have on our dairies. If we all remove the bottom 5% of the herd (1 cow for the 20 cow dairy, 5 cows for the 100 cow dairy, etc) milk prices will improve for everyone. This reduction should be done regardless of the number of cows removed by the CWT. These cows should be removed in addition to the CWT cows removed.
Have I repeated myself enough? Excess and low preforming cows need to be removed ASAP! I know that as soon as our milk prices approach breakeven levels, processors, consumers, and maybe the government will scream bloody murder about the price of milk. They never came to our aid during these past six months when our milk checks were 40% to 50% BELOW breakeven.
These have been the worse six months I can remember in the 43 years I've been dairying in New Mexico. We have always worked with low milk prices compared to the East. Always working with blend prices made up of 1/3 Class I, 1/3 Class III, and 1/3 Class II & IV.
Weather update, touched 100 degrees yesterday with 25% humidity. Right now at 08:20 am it's
75 degrees and 43% humidity. No rain either for the past six months, but our monsoon season is coming up in July.
Have I repeated myself enough? Excess and low preforming cows need to be removed ASAP! I know that as soon as our milk prices approach breakeven levels, processors, consumers, and maybe the government will scream bloody murder about the price of milk. They never came to our aid during these past six months when our milk checks were 40% to 50% BELOW breakeven.
These have been the worse six months I can remember in the 43 years I've been dairying in New Mexico. We have always worked with low milk prices compared to the East. Always working with blend prices made up of 1/3 Class I, 1/3 Class III, and 1/3 Class II & IV.
Weather update, touched 100 degrees yesterday with 25% humidity. Right now at 08:20 am it's
75 degrees and 43% humidity. No rain either for the past six months, but our monsoon season is coming up in July.
Monday, May 4, 2009
Dairy Issues
Well it's May 4th already and still working on the monthly reports. Banker will be here on Thursday to see my business plan for the next six months. happy-happy-joy-joy
It still looks bad for milk prices for the next two months. Let's see how many dairy farmers decided to bid the CWT program. Need to see at least 100,000 cows going to permanent retirement for any hope for the future.
We'll see if milk prices will jump up as fast as they fell at the end of 2008. Been managing the cows extra hard the past two months. Culled open low producers and problem cows. Milk production is holding fast, proof that cutting out losers only helps the business.
It still looks bad for milk prices for the next two months. Let's see how many dairy farmers decided to bid the CWT program. Need to see at least 100,000 cows going to permanent retirement for any hope for the future.
We'll see if milk prices will jump up as fast as they fell at the end of 2008. Been managing the cows extra hard the past two months. Culled open low producers and problem cows. Milk production is holding fast, proof that cutting out losers only helps the business.
Sunday, April 26, 2009
Business Plan for Banker
Been working on and off on business plan for banker this past week. Not enough hours in the day to work on this and get it done. Pretty worn out by the time I get home and it's bedtime by 9 pm or 10pm. Should be working on it instead of blogging, but it's stress relief to write about it.
Every dairy farmer out there knows there's not enough milk money to pay all the bills. So the exercise for the business plan is to show how I can reduce those losses. Number 1: pay me more for my milk! We all know that's not happening any time soon. A few States out there (Vermont, Maine, and Arkansas) are working on programs to help the dairy farmers. But let's get real, 50 cents to a dollar help is worthless when you're talking about $6.00/cwt losses. Our Co-Op (DFA) is going to send us 3 cents/cwt patronage advance. wheeeeee!
Weather report. 72 degrees and breezy with chance of 30 mph plus winds for later in the day.
Every dairy farmer out there knows there's not enough milk money to pay all the bills. So the exercise for the business plan is to show how I can reduce those losses. Number 1: pay me more for my milk! We all know that's not happening any time soon. A few States out there (Vermont, Maine, and Arkansas) are working on programs to help the dairy farmers. But let's get real, 50 cents to a dollar help is worthless when you're talking about $6.00/cwt losses. Our Co-Op (DFA) is going to send us 3 cents/cwt patronage advance. wheeeeee!
Weather report. 72 degrees and breezy with chance of 30 mph plus winds for later in the day.
Thursday, April 23, 2009
Another Week Gone!
Didn't realize it's been a week already since the last posting. Where did the time go? It's a very warm 88 degrees at 04:51 pm with a nice breeze. Waiting for the advance check to hit the bank tonight, let's see if there's any improvement in our pay prices. Shouldn't hold my breath, we're paid on the "lower of" Class III or Class IV announced price by the FMMO.
It's really evident now more than ever that this "milk pricing system" is broke, broke, broke! Can't believe that we're not moving faster to remedy this system. More and more dairymen being forced out of business. Can't wait for the public outcry about milk prices when this turns around by year end and price go up and up for the remaining surviving dairymen.
Well, that's today rant for now.
It's really evident now more than ever that this "milk pricing system" is broke, broke, broke! Can't believe that we're not moving faster to remedy this system. More and more dairymen being forced out of business. Can't wait for the public outcry about milk prices when this turns around by year end and price go up and up for the remaining surviving dairymen.
Well, that's today rant for now.
Thursday, April 16, 2009
Long Long Week
It's 06:00 pm on Thursday and I'm still in the office. It's been this since last Friday and it's getting old, very old. Hopefully one or two more days of this will be enough to catch up on all the work.
Next week will include a visit to the Doctor for a checkup, one district meeting for the southwest area of Dairy Producers of New Mexico, and a DPNM Board of Directors meeting in Ruidoso, NM. Thanks goodness they are all on different days so I sort of relax.
Just answered a quick question about pounds of milk shipped daily and pounds of feed fed to the cows. Milk shipped 172,000 +/- pounds per day and 169,000 +/- pounds of feed fed. Trouble is that I'm paid .093 cents per pound for milk, but feed costs .105 cents per pound. Looking at what I just wrote, and I can't think of what else to say about the situation of milk price vs feed costs.
Quick weather update, 60 degrees and windy, makes for a cool afternoon for southern New Mexico.
Next week will include a visit to the Doctor for a checkup, one district meeting for the southwest area of Dairy Producers of New Mexico, and a DPNM Board of Directors meeting in Ruidoso, NM. Thanks goodness they are all on different days so I sort of relax.
Just answered a quick question about pounds of milk shipped daily and pounds of feed fed to the cows. Milk shipped 172,000 +/- pounds per day and 169,000 +/- pounds of feed fed. Trouble is that I'm paid .093 cents per pound for milk, but feed costs .105 cents per pound. Looking at what I just wrote, and I can't think of what else to say about the situation of milk price vs feed costs.
Quick weather update, 60 degrees and windy, makes for a cool afternoon for southern New Mexico.
Tuesday, April 14, 2009
Looking for Milk Check
Tuesday morning started cloudy and breezy with current temp of 60 degrees. Just checked to see if milk check posted to the checking account, no deposit made by DFA. I guess it will post tonight for tomorrow's work.
This milk income problem grows slowly every day, payments getting behind 30, 60, and some 90 days now. Most of all our suppliers are being very understanding, and are working with us for payments due them. Paying extra interest charges to some, and making minimum payments plus interest to others.
Very hard to pay 100% of the bills with 60% of the milk money needed to break even over the past four months. Eighteen more days for the CWT bid period, closes on May 1st, 2009. It looks like it will be a bloodbath for at least 200,000 cows and maybe 400 dairymen and dairywomen. It's really a shame for just 3% overproduction of total milk needed for the U.S. consumers.
This milk income problem grows slowly every day, payments getting behind 30, 60, and some 90 days now. Most of all our suppliers are being very understanding, and are working with us for payments due them. Paying extra interest charges to some, and making minimum payments plus interest to others.
Very hard to pay 100% of the bills with 60% of the milk money needed to break even over the past four months. Eighteen more days for the CWT bid period, closes on May 1st, 2009. It looks like it will be a bloodbath for at least 200,000 cows and maybe 400 dairymen and dairywomen. It's really a shame for just 3% overproduction of total milk needed for the U.S. consumers.
Saturday, April 11, 2009
Easter Weekend
A cool and windy Saturday with slight chance for rain. Perfect day to stay indoors.
Milk price situation hasn't improved much over the past couple of months. Two more weeks to bid the latest CWT program before the May 1st cutoff date. Really can't come up with any words to describe the tension in waiting to see how many dairymen go out on this round of bids.
This price roller coaster of ups and downs has changed this time with a terrible crash in this down cycle. We will all have to pick up the pieces and rebuild before any chance of riding the next up cycle, and for sure there will be alot less riders.
Enough doom and gloom, Happy Easter and keep all your family and friends in your prayers.
Milk price situation hasn't improved much over the past couple of months. Two more weeks to bid the latest CWT program before the May 1st cutoff date. Really can't come up with any words to describe the tension in waiting to see how many dairymen go out on this round of bids.
This price roller coaster of ups and downs has changed this time with a terrible crash in this down cycle. We will all have to pick up the pieces and rebuild before any chance of riding the next up cycle, and for sure there will be alot less riders.
Enough doom and gloom, Happy Easter and keep all your family and friends in your prayers.
Tuesday, April 7, 2009
BACK ON THE BLOG - ME TOO!
Just read Will Gilmer's blog (http://gilmerdairy.blogspot.com/) and had to laugh a little about the past hectic days he's had lately. I've had the same problem of keeping up with daily postings too.
It's 68 degrees here in Southern New Mexico with the spring wind blowing and a chance of rain also in the next few days. Will be out of town Wednesday and Thursday to attend a DairyMAX board meeting in Grand Prairie, TX to review program reports and updates. For more information on what DairyMAX does in promotion for the NM, TX, OK, and KS areas, go to www.dairymax.org
Next week we'll do a weight day to check production per cow and see how many losers are in the herd. Times are very tough these days and we can't afford to hold cows that don't pay their way.
Well, that's it's for me, I'm going back to Will's website and check out the edopt-a-cow link.
It's 68 degrees here in Southern New Mexico with the spring wind blowing and a chance of rain also in the next few days. Will be out of town Wednesday and Thursday to attend a DairyMAX board meeting in Grand Prairie, TX to review program reports and updates. For more information on what DairyMAX does in promotion for the NM, TX, OK, and KS areas, go to www.dairymax.org
Next week we'll do a weight day to check production per cow and see how many losers are in the herd. Times are very tough these days and we can't afford to hold cows that don't pay their way.
Well, that's it's for me, I'm going back to Will's website and check out the edopt-a-cow link.
Monday, March 30, 2009
Another Month Done
Tomorrow's the last day of March, spring winds are doing their job in the Mesilla Valley in NM. Blowing 30 mph with gusts to 60 mph. Cows are miserable and milk production is down. Cows that don't eat, don't milk. Still having some cool mornings, currently it's 65 degrees at 10:45 am.
Good news? Maybe, government going to release 200 million pounds of NFMP, to help the poor, school lunches, WIC, and etc. Sounds like a lot of milk powder, but consider this. If 50 million people receive this NFMP it's only 4 pounds per person. Not sure on the amount of powder to water to make a gallon, but lets say it's 1 pound powder to make one gallon of milk, that's enough milk for maybe two weeks for a family of four.
I guess it's better than nothing for now, I guess this could fall in my "too little, too late" comments from a few days ago.
Good news? Maybe, government going to release 200 million pounds of NFMP, to help the poor, school lunches, WIC, and etc. Sounds like a lot of milk powder, but consider this. If 50 million people receive this NFMP it's only 4 pounds per person. Not sure on the amount of powder to water to make a gallon, but lets say it's 1 pound powder to make one gallon of milk, that's enough milk for maybe two weeks for a family of four.
I guess it's better than nothing for now, I guess this could fall in my "too little, too late" comments from a few days ago.
Wednesday, March 25, 2009
The Public vs the Farmers
Just read the article Will Gilmer posted from USA Today and the comments posted.
http://www.usatoday.com/money/industries/food/2009-03-24-dairy-farms_N.htm?loc=interstitialskip
It's amazes me that most people expect 2% of the population (farmers, all types) to provide food and fiber to the rest of the nation at breakeven prices or below without complaint. Most people work for businesses and never have to meet any business expense. They want their check and vacation time and nothing else.
They say "if you can't make a profit as a farmer, why do you stay in that business?" It's not the same as working for a business and changing jobs whenever you feel like it. Believe it or not, American's enjoy the cheapest and safest food in the world.
One comment from oldnavy1 shows that a little knowledge is dangerous and can be misleading.
"This article is misleading in that it does not account for Class I milk prices, which represent the bulk of what is sold by the farmers."
While this might be true for dairy farmers in the east and/or near large population areas, the average for the nation is 33% Class I, 33% Class III, and the remaining 34% split between Class II and Class IV sales.
I'll wrap this up now with the current weather here, 75 degrees and windy.
http://www.usatoday.com/money/industries/food/2009-03-24-dairy-farms_N.htm?loc=interstitialskip
It's amazes me that most people expect 2% of the population (farmers, all types) to provide food and fiber to the rest of the nation at breakeven prices or below without complaint. Most people work for businesses and never have to meet any business expense. They want their check and vacation time and nothing else.
They say "if you can't make a profit as a farmer, why do you stay in that business?" It's not the same as working for a business and changing jobs whenever you feel like it. Believe it or not, American's enjoy the cheapest and safest food in the world.
One comment from oldnavy1 shows that a little knowledge is dangerous and can be misleading.
"This article is misleading in that it does not account for Class I milk prices, which represent the bulk of what is sold by the farmers."
While this might be true for dairy farmers in the east and/or near large population areas, the average for the nation is 33% Class I, 33% Class III, and the remaining 34% split between Class II and Class IV sales.
I'll wrap this up now with the current weather here, 75 degrees and windy.
Monday, March 23, 2009
Too little, too late
Just read the Arkansas story on milk price aid to the remaining 140 dairies (down from 2,000 dairies in 1985) I'm afraid it might be too little, too late. The aid might start in July, that's still four months away! All dairy farmers have already lost money for the past three month (at all time record milk price drop) and for them to hang on four more months will be a incredible effort.
Anyway, here in southern NM on the first Monday after Spring will be WINDY! Winds will gust to 40 to 50 mph today. Just what the cows need to enjoy their day. Production will suffer, but maybe that will help the "overproduction" and increase our pay prices.
Anyway, here in southern NM on the first Monday after Spring will be WINDY! Winds will gust to 40 to 50 mph today. Just what the cows need to enjoy their day. Production will suffer, but maybe that will help the "overproduction" and increase our pay prices.
Saturday, March 21, 2009
DMI Eastern Forum
Just returned from the lovely Orlando International Airport Hyatt where I attended the Eastern Forum Conference held by DMI. One attendee commented that the view from the hotel's lobby overlooking the food court and airline gates "it looks like the movie "The Terminal" which starred Tom Hanks."
Even though every dairy farmer there had stories of not enough money coming in to cover expenses on the farm for the third straight month, there was good new in the promotion efforts
underway by all the S/R's and DMI. Everyone there wants to remain in the business they love, but realize that some will fail, and cows will be sold off to reduce the overall cow numbers in the nation.
Even though every dairy farmer there had stories of not enough money coming in to cover expenses on the farm for the third straight month, there was good new in the promotion efforts
underway by all the S/R's and DMI. Everyone there wants to remain in the business they love, but realize that some will fail, and cows will be sold off to reduce the overall cow numbers in the nation.
Monday, March 16, 2009
Waiting for Milk Check
Another cool morning (37 degrees) but it's 47 degrees now at 09:30am, waiting for a high of 70.
Speaking of waiting, looking for direct deposit of February final milk check to hit account sometime tonight or tomorrow morning.
Downloaded copies of checks from co-op website and faxed to FSA office to start MILC calculations for February payment. This will be the first and last MILC check for the year, bummer.
Will be traveling Wednesday to Orlando, FL airport for DMI forum meeting, will return Friday night. Will have to work all day Saturday (instead of half day) to catch up on the week's work.
Speaking of waiting, looking for direct deposit of February final milk check to hit account sometime tonight or tomorrow morning.
Downloaded copies of checks from co-op website and faxed to FSA office to start MILC calculations for February payment. This will be the first and last MILC check for the year, bummer.
Will be traveling Wednesday to Orlando, FL airport for DMI forum meeting, will return Friday night. Will have to work all day Saturday (instead of half day) to catch up on the week's work.
Saturday, March 14, 2009
March 14, 2009
February's pay price was $9.64 per hundredweight, barely 55% of production costs! This truly is the worst! I'm at a lost for words to say more. Now I need to wait for my MLIC payment to be processed. Picked February just because it's the shortest month.
Windy day again and very cool, 1pm and it's only 60 degrees, cows are really enjoying the cool dry weather.
Windy day again and very cool, 1pm and it's only 60 degrees, cows are really enjoying the cool dry weather.
Thursday, March 12, 2009
March 12, 2009
Very cold this morning, 35 degrees, but expect a high of 63 degrees. This is after last week's beautiful weather where we broke record high temperatures for March.
Still no relief in sight for on farm milk prices, hard to pay 100% of the bills when dairymen are receiving 50% of milk income needed to break even.
Finished weight day yesterday, ran the list of cows below 35 pounds of milk and at least 100 days in milk. Going to have to cull any cow that's not pulling her weight and covering feed costs.
Still no relief in sight for on farm milk prices, hard to pay 100% of the bills when dairymen are receiving 50% of milk income needed to break even.
Finished weight day yesterday, ran the list of cows below 35 pounds of milk and at least 100 days in milk. Going to have to cull any cow that's not pulling her weight and covering feed costs.
Wednesday, March 11, 2009
March 11, 2009
Had slight rains this week, .05 (trace) on Monday & Tuesday for a whopping total of 0.10 rain for the year to date. Weight day testers here today (03-11-09) for the monthly check of milk production per cow. Going to take a hard look at the underachievers in the herd and send them packing to someplace else.
Saturday, March 7, 2009
March 07, 2009
Windy sunny day here in Southern Dona County, NM. Morning temp is already at 70 degrees.
Need to read and study other blogs and get some idea how I what to do my blog. I usually have no problem talking too much, but writing things down really slows me down, too thoughtful I guess.
Need to read and study other blogs and get some idea how I what to do my blog. I usually have no problem talking too much, but writing things down really slows me down, too thoughtful I guess.
March 07, 2009
Windy sunny day here in Southern Dona County, NM. Morning temp is already at 70 degrees.
Need to read and study other blogs and get some idea how I what to do my blog. I usually have no problem talking too much, but writing things down really slows me down, too thoughtful I guess.
Need to read and study other blogs and get some idea how I what to do my blog. I usually have no problem talking too much, but writing things down really slows me down, too thoughtful I guess.
Subscribe to:
Posts (Atom)