The dairy industry is tough enough, what with regulated prices, inconsistent with inflation, and tight regulations that threaten to get even tighter. Now that recession has caused prices to tank (yet not costs) and demand to weaken, many dairy farmers are reconsidering their business model. Getting out of the dairy industry is just as tough as staying in. Prices for dairy cows have dropped and the appeal of a dairy operation, well, it’s just not there.

 The message from the USDA, however, is a good one. Dairy farmers are about to get a healthy dose of relief thanks to the government agency. USDA Secretary Tom Vilsack announced recently a revenue increase for dairy farmers that would fill their pockets with $243 million, thanks to an amendment to the Agriculture Appropriations bill, which increased the budget of the Farm Service Agency.

Between now and October 2009, price increases across the board will go a long way to alleviating the strain on dairy farmers to keep their businesses running at any kind of profit. Increases announced were as follows: nonfat dry milk – 92 cents per pound (from 80 cents); cheddar blocks – $1.31 per pound (from ($1.13); cheddar barrels, $1.28 per pound (from $1.10).

 Moreover, the USDA is reactivating its Dairy Export Incentive Program, intended to assist U.S.-based dairy exporters in meeting global pricing demands.

This comes at a time when farmers are facing increased feed costs and decreased market pricing. Government programs such as the Milk Income Loss Contract (MILC) do help to stave off some market losses, but often the changes do not reflect the true picture of what dairy farmers are facing.

If you’re dairy operation isn’t netting the intended results, or if you simply want to explore ways to increase your business success, consider having a risk assessment done, including a look at your operations and your insurance coverage. It’s a good way to identify any areas of improvement, which in this market is never a bad idea.

Watch the video related to dairy farms

In 1941 a young immigrant from Germany, named Bill Straus, started a small dairy farm along the shores of Tomales Bay, CA with only 23 cows. Today, the Straus Family Creamery name has grown to include organic milk, yogurt, ice cream and butter. The family remains involved in the everyday business and is committed to environmental stewardship. To find out more go to www.strausfamilycreamery.com … straus family creamery greenhouse gases dairy cows environment organic milk yogurt ice cream butter …

Help answer the question about dairy farms

By "end up being killed," I mean killed at birth (male chicks, bull calves), sent for veal slaughter, or shot when no longer lactating.

I imagine this is only the case on small, independent farms. However, I have noticed a lot of farms and sanctuaries for "rescued" farm animals.

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Watch the video related to organic dairy

Straus Family Creamery was the first organic dairy west of the Mississippi. For over 65 years they’ve called the shores of Tomales Bay, CA their home. Their small herd of organic dairy cows are milked 3 times a day, which reduces the stress on the cows and keeps them happy! For more information go to www.strausfamilycreamery.com

Help answer the question about organic dairy

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