Paying for the privilege of milking cows

The more things change, the more they stay the same. Sadly, dairy farmers feel like they are living a flashback to 2016. Through September this year, the average Class III price plus the Federal Order 33 Producer Price Differential (the Statistical Uniform Price or SUP) is $15.03 per hundredweight (cwt.), which is exactly the average for all of 2016.Last year, 2017, provided a small measure of relief, with the SUP averaging $16.57.How much are you paying for the privilege of milking cows?Sadly, more cows and more milk in domestic and foreign markets, as well as a relatively strong dollar and uncertain policy, have wreaked havoc on milk markets. Controlling expenses continues to be an important factor in the search for short- and long-term profitability of dairy farms. The challenge continues to be controlling costs without negatively affecting production, reproduction, growth, animal and personnel welfare. With that in mind, regular review of overall costs is in order.