Dairy Farmers Forced to Fight As Prices Struggle

For Johnson County, Ind. farmer Joe Kelsay, it’s not just another day on the farm. He’s continuing to pump milk while a cloud of uncertainty hangs over his farm. As a fifth-generation dairy farmer, his job just became even more difficult. He was notified in February from Dean Foods that he has 90 days to find a new home for his milk. Kelsay is one of 27 producers in Indiana and more than 80 reported across the country who received the same notice from Dean Foods. “We're caught at a time when there's just too much milk,” Mike North, president of Commodity Risk Management Group, explained to U.S. Farm Report. “There’s more than what the market can bear at this moment.” “This isn't just a Walmart issue, this isn't just a Deans issue, this is an industry wide experience where processors are overwhelmed by milk supply,” said North.Kelsay says that’s not stopping him from continuing to fight the challenges, searching for a new buyer; however, the reality is some producers may not find a new home.“In some situations, some dairy producers are going to have to sell not only their herd, but considering selling machinery, equipment, selling real estate as well, just to be able to cover their debts,” said Lange.