Follow us on...
Follow us on Twitter Follow us on Facebook Watch us on YouTube
Register
Results 1 to 15 of 15
  1. #1
    Atomic Punk
    Join Date
    01.29.02
    Age
    49
    Location
    somewhere over the rainbow
    Posts
    22,946
    Last Online

    12.11.17 @ 04:37 PM
    Likes
    842
    Liked 1,229 Times in 448 Posts

    Default Dairy farmers beign paid less now than 39 years ago for milk...

    BARNHART, Mo. – A collapse in milk prices has wiped away the profits of dairy farmers, driving many out of business while forcing others to slaughter their herds or dump milk on the ground in protest. But nine months after prices began tumbling on the farm, consumers aren't seeing the full benefits of the crash at the checkout counter.

    The average price for a gallon of milk at grocery stores last month is down just 19 percent from its peak of $3.83 in July. Farmers, on the other hand, got $1.04 a gallon in April — 35 percent less than they were paid last fall. This winter, wholesale prices were down as much as 45 percent.

    Price disparities are a fact of life both for farmers and anyone who shops at a supermarket, but the nature of milk — how it's stored, priced and sold around the world — makes the gap all the more dramatic. In fact, the price that farmers get has been wildly volatile for years, creating a succession of booms and busts felt from pastures to the grocery store.

    With each turn, proposals are floated to end the pricing seesaw, which at one extreme squeezes the profits of farmers and the other squeezes dairy processors. Any fix that boosts the price of milk runs the risk of bumping up how much consumers pay, too.

    Today, frustrations are spilling over as the price crash creates widely divergent fortunes within the milk industry, boosting profits for the middlemen like dairy processors while pushing farmers to the edge of bankruptcy.

    Darrell Kraus, a dairyman in Barnhart, spends almost as much today on hay and other supplies for his herd of 160 cows as he did a year ago, but he's getting paid less for a gallon of milk than his father in the 1970s. He blames middlemen who buy the milk from the dairies, process it and sell it to grocery stores at higher prices.

    "Somebody's getting a cut of this, but it's not the dairy farmer," he said. "It's sad, but they're going to see a lot of dairy farms go out of business."

    At a grocery store in Fayetteville, Ark., Katherine Thacker noticed how milk prices were slowly falling — but not as drastically as last year's price hikes. She was surprised to learn that the lower wholesale milk prices were being absorbed by dairy processors.

    "That's kind of criminal, isn't it?" she said.

    Milk processors and supermarkets see it differently.

    Last fall and summer, they swallowed losses because of high wholesale milk prices and government-mandated ceilings on what they can charge. They're now recouping some of what they lost and anticipating a rise in prices this winter, said Mike Nosewicz, vice president of dairy operations at Cincinnati-based Kroger Co., which operates its own dairy processing division and sells milk through 2,400 supermarkets.

    At the heart of the problem is the nature of milk. Unlike grain farmers who can hold out for better prices by storing crops in a silo, dairymen must sell raw milk to processors or else it spoils. And cows keep producing whether the economy's expanding or in recession.

    The price paid by processors to farmers is set by the U.S. Department of Agriculture based on commodity markets, which rise and fall with global demand. Some of the raw milk is processed into milk for stores as well as butter, yogurt and other products for U.S. consumption. The rest becomes powdered milk, cheese and whey for international and domestic markets.

    U.S. milk exports soared last year and demand grew in countries like China while supplies dropped from Europe and Australia. U.S dairy exports jumped to $3.82 billion, or 11 percent all milk production in 2008 according to the U.S. Dairy Export Council. Wholesale prices jumped.

    Dairies responded to the demand by increasing production.

    But once the global recession accelerated last fall, demand, particularly exports, fell off a cliff.

    U.S. farmers were suddenly faced with too much milk and too many cows. Wholesale prices crashed. Farmers found themselves spending more to maintain their herds than they were being paid for raw milk.

    "It's an inequity that cries out for attention, consideration and action," said Sen. Robert Casey, a Democrat from the dairy stronghold of Pennsylvania. Casey projects that 25 percent of his state's 7,400 dairy farms could disappear because of the crisis.

    Casey said most lawmakers are focused on short-term solutions — loans or subsidies — to help farmers bridge the period of depressed prices. But he said Congress should also explore why processors and retailers are keeping their prices high while wholesale prices collapse.

    Farmers also are lobbying for a bill that would change the USDA pricing system for milk so that wholesale prices reflect what they pay for feed, fuel and other supplies.

    If that happens, milk would be the only commodity of its kind to have a government-set price determined in part by the cost of production, said Scott Brown, dairy analyst at The University of Missouri's Food and Agricultural Policy Research Institute.

    "Anytime you put in place a policy that raises farm-level prices, those are going to get passed along to the consumer," he said.

    U.S. Secretary of Agriculture Tom Vilsack also said he is not eager to remake the USDA milk pricing program. Instead, he wants to see if a range of recent actions might buoy wholesale prices. USDA recently donated 500,000 pounds of excess powdered milk to needy countries to reduce U.S. supplies, and a new program will pay farmers to slaughter more than 100,000 dairy cows.

    Some farmers say faster action is needed. They're dumping their milk on the ground to draw attention to the crisis.

    Jan Morrow, a farmer in Cornell, Wis., dumped milk on May 4 to protest the lowest whosesale prices she's seen in 25 years of farming. If prices don't rise, she says she may have to sell her cows.

    Eddy Lekkerkerk, a 42-year-old dairy farmer outside Filer, Idaho, planned to participate in another milk dump on May 31. But he fears he may not be in business that long. For five months, he hasn't made payments on the roughly $800,000 he borrows annually to buy feed for his herd of 1,000 cattle. He said his bank is forcing him to sell his herd to pay his debt.

    He predicted many of his neighbors will have no choice but to follow him off the farm.

    "It's going to be ugly. This is historic stuff going on," he said. "The dairymen are nervous, and they are scared."
    "Watch what people are cynical about, and one can often discover what they lack.” -- Gen. George S. Patton

  2. #2
    Unchained Ellen83's Avatar
    Join Date
    11.02.07
    Age
    52
    Location
    God's Country, Maryland
    Posts
    547
    Favorite VH Album

    VH 1 & 2
    Favorite VH Song

    way too many.....
    Last Online

    10.06.13 @ 04:30 PM
    Likes
    0
    Liked 0 Times in 0 Posts

    Default

    No farms, no food.

    Support your local farmer, any way that you can.

    "All right, Wolf, which one do you want?"
    -DLR, 05/15/08, BALTIMORE, to me and my best friend


    But one night's all we're given,
    So, baby, leave me alone, or, baby, stay the night



    The Van Halen I grew up on showed up at the party, drank all your alcohol and fucked your girlfriend. The Sammy era seemed more like spending a Saturday night alone with your girlfriend telling her how much you love her. - Sickman, summing it all up for me!

  3. #3
    Eruption Naked Wake's Avatar
    Join Date
    01.26.09
    Location
    Oakland Ca
    Posts
    1,067
    Favorite VH Album

    Diver Down
    Favorite VH Song

    I'm the One
    Last Online

    12.11.17 @ 12:57 PM
    Likes
    89
    Liked 102 Times in 69 Posts

    Default

    Quote Originally Posted by Ellen83 View Post
    No farms, no food.

    Support your local farmer, any way that you can.
    agreed. Even though I don't like milk

  4. #4
    Sinner's Swing! csm5150's Avatar
    Join Date
    03.04.04
    Age
    46
    Location
    Louisiana
    Posts
    3,094
    Favorite VH Album

    5150
    Favorite VH Song

    Humans Being
    Last Online

    11.25.14 @ 09:53 PM
    Likes
    0
    Liked 0 Times in 0 Posts


    Premium Member

    Default

    Quote Originally Posted by Ellen83 View Post
    No farms, no food.

    Support your local farmer, any way that you can.
    Sad to say this is the norm for most ag products. Rice, which I am familiar with, has recently taken a turn for the better due to crop problems in other areas of the world. About 5 years ago the price was at it was in th 50's while all the other prices (gas, fertilizers, etc) were at their present levels. To make matters worse, Bush decided he wanted to cut subsidies by half when they were needed most.
    LSU Tigers 2003 & 2007 National Champs
    Detroit Pistons 2004 NBA Champs

    If looks could kill, I'd stare at everybody!

  5. #5
    Gird your loins Daisy Hill's Avatar
    Join Date
    04.17.08
    Age
    57
    Location
    Goose Poop, Ohio
    Posts
    13,057
    Favorite VH Album

    Fair Warning
    Favorite VH Song

    Panama
    Last Online

    12.14.17 @ 08:59 AM
    Likes
    1,811
    Liked 2,238 Times in 1,356 Posts

    Default

    My father's first job was driving one of those trucks to dairy farms to haul milk.

    My great grandparents were farmers and orchard men

    But my Dad always told us the the hardest working people he ever met where the small dairy farmers on his route.

    Dad would get there at the butt crack of dawn, and these farmers had already put in hours upon hours of physical labor.

    and their day was just started.

    hard for a small farmer in one of the livestock businesses to take a day off let alone go on a vacation....those cows have to be milked no matter what

    that's one of the reasons why so much is going to the corporate farms....hard to find anyone willing to work that hard and take the financial risks they do for such little relative compensation

    you have to arm because it' in your blood, cause it isn' always in your bank

  6. #6
    Atomic Punk Wruff_ajax's Avatar
    Join Date
    03.15.03
    Location
    US of America
    Posts
    8,888
    Favorite VH Album

    =VH= II
    Last Online

    12.14.17 @ 09:07 AM
    Likes
    744
    Liked 791 Times in 380 Posts


    Premium Member

    Default Government Subsidized Ethanol Euphoria to blame?

    Ethanol production, worldwide demand sends prices for dairy goods soaring
    Dairy market forecasters are warning that consumers can expect a sharp increase in dairy prices this summer. By June, the milk futures market predicts, the price paid to farmers will have increased 50 percent this year — driven by higher costs of transporting milk to market and increased demand for corn to produce ethanol.

    higher gasoline prices have increased the costs of moving milk from farm to market, and corn — the primary feed for dairy cattle — is being gobbled up by producers of the fuel-additive ethanol. The USDA projects that 3.2 billion bushels of this year’s corn crop will be used to make ethanol, a 52 percent increase over 2006.
    http://www.msnbc.msn.com/id/18946296//

    Not to mention what it costs US tax payers to subsidize ethanol production in the first place. The costs run across the board, from taxation to the store shelf.
    As posted in the "Ethanol Scam" thread.

    Just what are the subsidies costing the U.S. taxpayer?
    In 2006, the feds paid ethanol blenders $2.5 billion and ethanol corn farmers $0.9 billion. The U.S. paid an extra $3.6 billion at the pump. Total was $2.21 extra per gallon of gasoline replaced. Of all that, $5.4 billion went for windfall profits creating what USDA’s chief economist called “ethanol euphoria”.

    Also, subsidized corn results in higher prices for meat, milk and eggs because about 70 percent of corn grain is fed to livestock and poultry in the United States. Increasing ethanol production will further inflate corn prices. According to this study by Cornell university: “In addition to paying tax dollars for ethanol subsidies, consumers will be paying significantly higher food prices in the marketplace”. Well, no doubt all of us are paying more for our food this year.
    http://chemicallygreen.com/truth-abo...nol-subsidies/
    _-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_

  7. #7
    Atomic Punk
    Join Date
    06.15.06
    Location
    Houston, TX
    Posts
    13,741
    Favorite VH Album

    VHIII/WACF/OU51BALUCK
    Last Online

    07.24.11 @ 04:36 PM
    Likes
    0
    Liked 1 Time in 1 Post

    Default

    many many people said that this obession with ethanol was going to cause a very negative ripple effect across every industry while having little to no impact on the price of gasoline.

    That has happened.
    Stay out of it, dude.


    I am Van Halen.

  8. #8
    Future's in the past....
    Join Date
    03.03.08
    Age
    51
    Location
    Somewhere between here and there
    Posts
    13,090
    Favorite VH Album

    WACF, FW, DD
    Favorite VH Song

    At the moment, Little Guitars
    Last Online

    11.03.17 @ 01:35 PM
    Likes
    0
    Liked 3 Times in 3 Posts

    Default

    Not to be a smartass, but I want to know one thing, when milk was getting close to $5 a gallon last year, how much were the dairy farmers making?
    11/05/78 Hollywood Sportatorium
    12/10/82 Hollywood Sportatorium
    01/20/84 Hollywood Sportatorium
    01/21/84 Hollywood Sportatorium
    02/16/08 Jacksonville Veterans Memorial Arena

    [SIGPIC][/SIGPIC]

    I've got dreams in hidden places and extra smiles for when I'm blue.

  9. #9
    Atomic Punk
    Join Date
    06.15.06
    Location
    Houston, TX
    Posts
    13,741
    Favorite VH Album

    VHIII/WACF/OU51BALUCK
    Last Online

    07.24.11 @ 04:36 PM
    Likes
    0
    Liked 1 Time in 1 Post

    Default

    Quote Originally Posted by VanHalenRules View Post
    Not to be a smartass, but I want to know one thing, when milk was getting close to $5 a gallon last year, how much were the dairy farmers making?
    i don't know much about the dairy farming industry but I'd bet they didn't get as much as the brand names, refining plants and distribution companies...
    Stay out of it, dude.


    I am Van Halen.

  10. #10
    Sinner's Swing! csm5150's Avatar
    Join Date
    03.04.04
    Age
    46
    Location
    Louisiana
    Posts
    3,094
    Favorite VH Album

    5150
    Favorite VH Song

    Humans Being
    Last Online

    11.25.14 @ 09:53 PM
    Likes
    0
    Liked 0 Times in 0 Posts


    Premium Member

    Default

    Quote Originally Posted by Ellen83 View Post
    No farms, no food.

    Support your local farmer, any way that you can.
    Sadly most persons don't have this view. I can recall getting in several debates w/persons on here who referred to subsidies as "corporate welfare" and then began spouting what they had seen on 20/20 and assumed it applied to my situation as well.
    LSU Tigers 2003 & 2007 National Champs
    Detroit Pistons 2004 NBA Champs

    If looks could kill, I'd stare at everybody!

  11. #11
    Atomic Punk
    Join Date
    01.29.02
    Age
    49
    Location
    somewhere over the rainbow
    Posts
    22,946
    Last Online

    12.11.17 @ 04:37 PM
    Likes
    842
    Liked 1,229 Times in 448 Posts

    Default

    Quote Originally Posted by VanHalenRules View Post
    Not to be a smartass, but I want to know one thing, when milk was getting close to $5 a gallon last year, how much were the dairy farmers making?
    It appears money paid to dairy farmers is controlled by the Gov't...

    Because dairy farmers' incomes are shaped by federal mandates that set prices for the milk they sell, they are unable to pass much of that burden along to the co-ops and grocery stores that buy their products. Yet once milk and other dairy products make it to shelves, there is no government cap on what consumers are charged.

    When milk was cheaper, farmers received a larger share — often half — of the retail price. Now, the federal formula provides many farmers just one-third of the retail price, and the profitability equation has grown harder to solve.

    HOW MILK PRICES WORK

    Dairy farmers cannot pass along any increase in operating costs. When milk is loaded onto the truck at the farm, the farmer does not know what price will be received for that milk until the payment arrives the following month.

    The price that farmers receive is based on a federal formula derived from the price of four globally traded dairy commodities — butter, dry milk powder, whey powder (a byproduct of cheese-making) and cheddar cheese.

    Then a value is added based on the amount of protein, butterfat and solids in each individual farm's milk.

    These two values are added together, along with any quality premiums the farm may qualify for, and lastly, transportation costs are deducted.

    The final number is called the "mailbox price," or the price that the farmer actually receives.


    http://www.ajc.com/business/content/...ry_prices.html
    "Watch what people are cynical about, and one can often discover what they lack.” -- Gen. George S. Patton

  12. #12
    Unchained Ellen83's Avatar
    Join Date
    11.02.07
    Age
    52
    Location
    God's Country, Maryland
    Posts
    547
    Favorite VH Album

    VH 1 & 2
    Favorite VH Song

    way too many.....
    Last Online

    10.06.13 @ 04:30 PM
    Likes
    0
    Liked 0 Times in 0 Posts

    Default

    Quote Originally Posted by VanHalenRules View Post
    Not to be a smartass, but I want to know one thing, when milk was getting close to $5 a gallon last year, how much were the dairy farmers making?
    You aren't being a smartass, it's a valid question. Most people do indeed assume that the higher prices mean more money for the farmers. Unfortunately, this is not the case.

    I think they were getting around (don't quote me) $12 -$14 per cwt (hundred weight), now it's around $10-$11 cwt.

    The government does control the price, and they get the bulk of the profit. The dairy farmer does not make gobs of money, by any means. The better price per cwt was mainly due to demand (people, even tho riled at the $5 per gallon price, must have milk), and this was for a very brief period of time. Say, maybe 3-4 months. Been dropping ever since.

    The government haveth, the government taketh away.

    "All right, Wolf, which one do you want?"
    -DLR, 05/15/08, BALTIMORE, to me and my best friend


    But one night's all we're given,
    So, baby, leave me alone, or, baby, stay the night



    The Van Halen I grew up on showed up at the party, drank all your alcohol and fucked your girlfriend. The Sammy era seemed more like spending a Saturday night alone with your girlfriend telling her how much you love her. - Sickman, summing it all up for me!

  13. #13
    Atomic Punk
    Join Date
    01.29.02
    Age
    49
    Location
    somewhere over the rainbow
    Posts
    22,946
    Last Online

    12.11.17 @ 04:37 PM
    Likes
    842
    Liked 1,229 Times in 448 Posts

    Default

    Franklin, Conn. — Farmers turned out Wednesday to urge their congressman to help stem a fall in milk prices that’s pushing some local producers to the brink of closing.

    “This turnout speaks volume,” U.S. Rep. Joe Courtney, D-2nd District, told an audience of about 50 at Franklin’s Cushman Farms. “Clearly a lot more needs to be done. The situation is dire.”

    Courtney didn’t offer any policy initiatives, saying he came to Cushman, one of Connecticut’s largest dairy farms with 850 cows, mostly to listen. He said attention to milk prices at the state and federal levels is as great as he’s ever seen it.

    Jim Smith, part-owner of Cushman, said he is only getting $1.10 per gallon of milk produced while costs are $1.90. He blames the global recession that started last year.

    Subsidiary issues, such as an increase in the cost of corn used to feed cows and the planned Aug. 1 closing of Cargill Inc.’s Franklin animal feed production center, are exacerbating the situation, said Bill Peracchio, chairman of an industry association called Very Alive.

    “Everything is intertwined,” he said.

    Dairy farmers don’t set the price of their product, the U.S. government tries to do that. The price cycle is familiar to most farmers, with many Wednesday calling for lengthy stabilization.

    “We’re in a short-term crisis, but we need a long-term solution,” said Robin Chesmer, co-owner of Graywall Farms in Lebanon, which milks 400 head.

    The dairy industry makes a $1 billion annual contribution to Connecticut’s economy, providing as many as 5,000 jobs and performing an important open-space function, said Peter Orr, co-owner of Fort Hill Farms in Thompson, which has 200 cows.

    “As a green industry, we certainly qualify,” he said.

    Courtney sent a letter to U.S. Secretary of Agriculture Tom Vilsack, which helped prompt a 200-million-pound government transfer of milk and other dairy products to domestic feeding programs. The move was designed to boost prices, although Smith said his business hasn’t seen any impact so far.

    With an eye toward the future, Woodstock’s Fairvue Farms, owned by Peter and Diane Miller, joined Cushman, Fort Hill, Graywall and two others to create The Farmer’s Cow LLC production company five years ago. Farmers are hoping lawmakers rally in the same spirit.

    Courtney seems to be moving in that direction, citing plans for a “farm summit” this summer.

    “We need a focused, united effort,” he said.
    "Watch what people are cynical about, and one can often discover what they lack.” -- Gen. George S. Patton

  14. #14
    Future's in the past....
    Join Date
    03.03.08
    Age
    51
    Location
    Somewhere between here and there
    Posts
    13,090
    Favorite VH Album

    WACF, FW, DD
    Favorite VH Song

    At the moment, Little Guitars
    Last Online

    11.03.17 @ 01:35 PM
    Likes
    0
    Liked 3 Times in 3 Posts

    Default

    Thank you to both voivod and Ellen for the explanations. This seems like pretty much the raw deal that the veggie farmers (Primarily potatoes and cabbage, but corn as well now because of this 'bio-fuel deal) around here get. Hell, a few years back, the farmers let a lot of their cabbage rot in the fields, as it wasn't worth picking it.
    11/05/78 Hollywood Sportatorium
    12/10/82 Hollywood Sportatorium
    01/20/84 Hollywood Sportatorium
    01/21/84 Hollywood Sportatorium
    02/16/08 Jacksonville Veterans Memorial Arena

    [SIGPIC][/SIGPIC]

    I've got dreams in hidden places and extra smiles for when I'm blue.

  15. #15
    Atomic Punk
    Join Date
    06.15.06
    Location
    Houston, TX
    Posts
    13,741
    Favorite VH Album

    VHIII/WACF/OU51BALUCK
    Last Online

    07.24.11 @ 04:36 PM
    Likes
    0
    Liked 1 Time in 1 Post

    Default

    is it true that every month tons of grain and thousands of gallons of milk are destroyed in order to artificially control the supply so that prices can be fixed?
    Stay out of it, dude.


    I am Van Halen.

 

 

Similar Threads

  1. Dairy of the Dead- New Romero film
    By Onirb in forum VH Fans Meeting Place (Non-Music)
    Replies: 14
    Last Post: 01.18.08, 12:07 AM
  2. US Farmers Show Grass Makes Better Ethanol than Corn
    By voivod in forum VH Fans Meeting Place (Non-Music)
    Replies: 31
    Last Post: 01.10.08, 12:58 PM
  3. Help CA farmers
    By janthraxx in forum VH Fans Meeting Place (Non-Music)
    Replies: 1
    Last Post: 09.07.07, 10:58 PM
  4. Got Milk Ad?
    By Otis5150 in forum Main VH Discussion
    Replies: 43
    Last Post: 11.24.06, 05:43 PM
  5. the milk ad
    By BigB in forum Main VH Discussion
    Replies: 6
    Last Post: 11.04.02, 08:42 AM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •