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!
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