Agriculture News
2018 First Quarter Farm Economy Conditions in the Midwest
Illinois Farm Policy News | Posted on May 15, 2018David Oppedahl, a Senior Business Economist at the Chicago Fed, explained in The AgLetter that, “Agricultural land values for the Seventh Federal Reserve District showed signs of stabilizing in the first quarter of 2018, as farmland values were unchanged from a year ago. On average, ‘good’ farmland values in the first quarter of 2018 rose 1 percent from the fourth quarter of 2017, according to the survey responses of 181 District agricultural bankers.” “Additionally, cash rental rates for District farmland decreased again in 2018; however, their year-over-year decline of 5 percent was smaller than the decline recorded for 2017.”The Fed report explained that, “District agricultural credit conditions tightened further during the first quarter of 2018. Once more, repayment rates for non-real-estate farm loans were down from a year ago, and renewals and extensions of these loans were up from a year earlier…Average nominal and real interest rates on farm loans increased in the first quarter of 2018 from the previous quarter.
Dairy farmers form cooperative to generate more ways to bring milk to market
High Plains Journal | Posted on May 15, 2018In reaction to changing market conditions, a group of dairy farmers, who have previously marketed their milk independently, have formed Appalachian Dairy Farmers Cooperative and expect to begin operations on June 1. The new organization has entered into an agreement with Piedmont Milk Sales, LLC to market the cooperative’s members’ milk and manage its day-to-day business under the direction of the cooperative’s Board of Directors. “This new structure became necessary because of the current imbalance between the milk supply and the demand for milk, which has driven milk prices received by dairy farmers to levels that are below the cost of production,” said Gary MacGibbon, Appalachian Dairy Farmers Cooperative Board President. “Events over the past few months in the dairy industry have shown just how vulnerable dairy farmers are to changing market conditions. While formation of this new cooperative will not improve prices received by dairy farmers for their milk, it will help members of ADFC retain markets for their milk.”
Canada:Antibiotic rules usher in new vet drug era
Producer.com | Posted on May 15, 2018As of Dec. 1, veterinary prescriptions will be required for antibiotics for Canadian livestock. The new federal legislation means big changes and covers everything from beef to bees. It could mean added costs for producers, who must also develop a working relationship with a veterinarian.“Producers are going to have to work with a vet. That is going to be a cost change for them,” said Dr. Keith Lehman, Alberta’s provincial veterinarian.The new rules require the removal of growth promotion claims for antimicrobials used in animal feed. Drugs such as tetracycline and penicillin will no longer be available over the counter.
Optimism wanes in farm country, survey finds
Capital Press | Posted on May 15, 2018Producer optimism about the agricultural economy is at its lowest level since the 2016 elections, dropping for the second consecutive month in April. Concerns over trade disruptions and the future of U.S. agricultural exports are fueling the downturn in producer sentiment, according to economists at Purdue University who survey 400 producers nationwide each month.The needle of optimism on current and future economic conditions fell 10 points in April in the Purdue University/CME Group Ag Barometer after dropping 5 points in March.
Organic Trade Association blasts USDA withdrawal of organic animal welfare rule
Organic Trade Association | Posted on May 15, 2018The Organic Trade Association on Monday strongly condemned the U.S. Department of Agriculture (USDA) for its withdrawal of the Organic Livestock and Poultry Practices regulation, saying the Department had – without regard for public comment and without respect for legal authorities -- irresponsibly thwarted a fully vetted regulation overwhelmingly supported by the organic industry and the public.The association said it is intensifying its efforts in the courts to resolve the issue, and that it will be immediately amending its official complaint against USDA to challenge the Department’s latest attempt to kill the rule. The Organic Trade Association noted that last week it requested that oral arguments now be heard on its lawsuit against USDA over the Department’s failure to put into effect the new organic livestock standards.This most recent egregious attempt by the Department to ignore the will of the organic industry and consumers does not halt our judicial review, but, in fact, furthers our resolve,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association. “USDA’s unconscionable action does not deter us. USDA is hoping this issue will go away, but this latest action by USDA will only invigorate and solidify more support for this regulation.”
Dairy Farmers Look For Lifelines In Flooded Market
WEKU | Posted on May 15, 2018LaRue County, Kentucky, dairy farmer Gary Rock sits in his milking parlor, overlooking what is left of his 95 cow operation. “Three hundred years of history is something that a lot of people in our country cannot even talk about,” Rock said.That’s how long the farm has been in his family. While the land has turned out tobacco, soybeans and other crops over the years, since 1980 dairy has nourished the family in and out of tragedy.“In 2013, we had an F2 tornado that totally destroyed all the facilities here except the one we are sitting in, which is the milk parlor itself,” Rock said. If that had been lost, he said, he would not have rebuilt. Now, the farm looks to weather its greatest storm yet: a disastrous drop in revenue.“To give you an illustration, the same farm on the same number of cows is selling a $170,000 less of product in value,” Rock explained. “So, try to comprehend having to cut your pay scale in half and see what you’ve got to do to survive.”
On The Brink: Low milk prices closing a lot of local dairy farms
Dayton Daily News | Posted on May 15, 2018Low milk prices are increasingly forcing small Ohio dairy farmers out of business and third- or fourth-generation family farms are in danger of closing down. Prolonged low prices for milk have left farmers in the region and around the country feeling squeezed. In the past decade, there has been a 33 percent decrease in Ohio dairy farms. And in the past year, the number of farms have dropped from 2,405 to 2,237, according to the Ohio Department of Agriculture.
East Tennessee dairy farmers milk every option to stay in business after Dean Foods ends contract
Knox News | Posted on May 15, 2018Fewer than 20 days remain until Dean Foods terminates its contract with dairy farmer Caleb Watson and his 221 milk cows. The countdown, if nothing else, has become easier to compute; the days can be tallied on fingers and toes now. Watson and 10 other East Tennessee farmers were given a 90-day, out-of-the-blue notice. Time is up May 31.The company cited an overabundance of milk in the market as reason for the cuts. Dean Foods subsidiary companies include Purity, Mayfield Dairy, Land O’Lakes, Dairy Pure, TruMoo and many other regional and national brands. Dean Foods isn’t the only operation dropping farmers, Tennessee Farm Bureau Federation president and former dairy farmer from Washington County, Jeff Aiken, said.State projections show a likely 20 percent drop in dairy farms across the state by the end of the year, he said. That figure, more than anything else, highlights the crisis, he said. One such opportunity for a number of farmers in East Tennessee has come from the newly-formed Appalachian Dairy Farmers Cooperative. The co-op is run by a board of directors but has entered into an agreement with Piedmont Milk Sales LLC out of Blountville, Tennessee to produce the milk.The co-op bought the farmers something they didn’t have -- time.The setup allows the 120 members, many of whom were Piedmont farmers to begin with, to continue to farm and get paid, even though it’s below the federal minimum. Piedmont continues to produce the milk and the farmers continue to have a place to send it. Even at a reduced rate, it’s better than going out of business. Costs are spread around the members.The group took on five former Dean Foods producers, four from Tennessee and one from North Carolina. The five were all previous Piedmont producers or were on Piedmont’s waiting list.
Animal rights group attacks HSUS
Watt Ag Net | Posted on May 15, 2018he Humane Farming Association (HFA) is forming a campaign committee to oppose a controversial ballot initiative that would repeal and replace California's current hen housing law. Voters in California approved a ballot measure known as Proposition 2, which requires that all eggs produced in the state be laid by hens that have adequate room to stand up, sit down, turn around and extend their limbs without touching another bird or the sides of the cage. Similar requirements were established for pigs and calves used in pork and veal production.Now, HSUS is promoting measure that would replace the hen housing provisions of Prop 2 with the guidelines of the United Egg Producers. "The inescapable reality is that, had Prop 2 actually accomplished what HSUS promised, California would be cage free at this very moment," noted Miller. "Rather than correcting its historic failure, HSUS is now misusing our state's ballot measure process with a whole new set of false promises."More than 125,000 people have already signed an online petition opposing the initiative. And HFA's eye-opening animated short, "California's Caged Chickens Say No," has already garnered over 12 million views on YouTube and social media.
Volatile dairy markets leaves farmers in lurch
The Daily Yonder | Posted on May 15, 2018American dairy farmers are being squeezed by a triple-headed monster of overproduction, decreased milk consumption and increased consolidation among processors. “Farmers are caught in a Catch-22 game of margins and a worldwide glut of overproduction and over-saturated inventories of dairy products,” said Julie Walker, who works with Ag Central Farmers Cooperative in Eastern Tennessee. “Each individual farm is trying to generate enough money to keep bills paid from milk sales at a wholesale price level,” Walker said. “To have enough total money to pay bills, they must sell as many pounds as possible. When they produce those pounds of milk, they keep contributing to the world overproduction.”