Can This Radical Approach to Dairies Save US Farms?

[ez14.]

U.S. loses over 2,700 licensed dairy farms in 2018

The number of dairy farms in the U.S. has been sharply declining, and now a U.S. Department of Agriculture report has revealed by just how much. According to the data, the U.S. lost 2,731 (6.5%) licensed dairy farms from 2017 to 2018. The total number of dairy farms is now at 37,468.

The largest atrophy was seen in the Midwest and East.

USDA reported that milk production fell slightly below expectations in December, and dairy cow slaughter levels remain above year-ago levels. As such, the agency lowered its 2019 milk production forecast by 400 million lb. to 219.7 billion lb. Still, this was an increase of more than 2 billion lb. from 2018 production.

In 2018 the average Minnesota Dairy Farm income was $14,870 down from $47,800 five years ago. You have to go back to before 1995 to find the last year Mn Dairy Farm income was below $15,000.

Minnesota minimum wage $9.86 hr
40 hrs week x 52 weeks = 2,080 hrs
14,870 divided by 2,080 = $7.15 hr (plus no benefits)
48 hrs week = $5.95 hr

Yes sir, life is rough down on the farm.

What kinda dairy farmer only works 48 hours a week?


With that income I figure you'd be more around $4.08 hr

 

[Till-Hill]

U.S. loses over 2,700 licensed dairy farms in 2018

The number of dairy farms in the U.S. has been sharply declining, and now a U.S. Department of Agriculture report has revealed by just how much. According to the data, the U.S. lost 2,731 (6.5%) licensed dairy farms from 2017 to 2018. The total number of dairy farms is now at 37,468.

The largest atrophy was seen in the Midwest and East.

USDA reported that milk production fell slightly below expectations in December, and dairy cow slaughter levels remain above year-ago levels. As such, the agency lowered its 2019 milk production forecast by 400 million lb. to 219.7 billion lb. Still, this was an increase of more than 2 billion lb. from 2018 production.

In 2018 the average Minnesota Dairy Farm income was $14,870 down from $47,800 five years ago. You have to go back to before 1995 to find the last year Mn Dairy Farm income was below $15,000.

Minnesota minimum wage $9.86 hr
40 hrs week x 52 weeks = 2,080 hrs
14,870 divided by 2,080 = $7.15 hr (plus no benefits)
48 hrs week = $5.95 hr

Yes sir, life is rough down on the farm.

What kinda dairy farmer only works 48 hours a week?


With that income I figure you'd be more around $4.08 hr

Haha right, my boss is here 6 days a week 3am to 7pm. 16 x 6=96 + 6 hours on Sunday. Maybe 8 but we will call it 4 hours for even 100 work week.

100x52 =5200 hours $14,870/5200=$2.86/hour

As herdsman I'm pretty consistent every year at 2750-2850 hours, even my pay wouldn't break $6/hour for them figures.

Granted them guys paid down debt, added assets but in the end why are they still doing it. Job flipping burgers would make more, less stress, ect. Boss been in hospital 2-3 times this month. 70 years old first time besides a major back surgery he has been gone more than 2 days in 19 years I have been here.

 

[Stocker Steve]

Net income per labor hour is low for many beef producers too. So there is a lesson here. The killer is when you are leveraged with debt and your net worth is dropping year after year.
So we need a different business model. There was some action from young producers leasing empty dairy facilities a couple years ago, but not being able to get on the truck killed this. Not being able to get on the truck is a crude form of the proposed supply management approach, but I think the mega dairies are still expanding.
It is interesting that the jerk kneed solution for milk overproduction is not to export to Asia like many other surplus ag products. Why is that?

 

[greybeard]

The regulations are constantly getting harder and harder to comply with because we "have to protect all the imbeciles from something terrible happening to them" rather than anyone taking responsibility for themselves. Remember the "hot coffee" BS with Mcdonalds and the customer suing because they got burned by HOT COFFEE? There is no common sense anymore.

When FDA/USDA has to continually warn people NOT to eat raw poultry and other meat because of salmonella/e Coli risks, NOT to allow their children to hug and hold, or allow live poultry to give their kids "kisses" and people on the internet claim it's no more dangerous than eating anything else raw, it tells you something about the ignorance and stupidity of some of the "all natural" crowd.

 

[pdfangus]

The regulations are constantly getting harder and harder to comply with because we "have to protect all the imbeciles from something terrible happening to them" rather than anyone taking responsibility for themselves. Remember the "hot coffee" BS with Mcdonalds and the customer suing because they got burned by HOT COFFEE? There is no common sense anymore.

When FDA/USDA has to continually warn people NOT to eat raw poultry and other meat because of salmonella/e Coli risks, NOT to allow their children to hug and hold, or allow live poultry to give their kids "kisses" and people on the internet claim it's no more dangerous than eating anything else raw, it tells you something about the ignorance and stupidity of some of the "all natural" crowd.

my interpretation is that this protectionism is an extension of the freedom from religion doctrine that is being promulgated by the liberals and the government.....
It used to be that we let god sort out the stupid by allowing them to dispatch themselves....
Now the government must protect the ignorant and
the rest of us must pay for it....
As an example....mountain climbers who find themselves in dire straights upon some mountain must then be rescued by emergency people who are funded by one or more levels of government which is funded by taxpayers....
people who drive into flood waters....not those washed away by surprise flooding....but those who see the flooding and try to drive thru it anyway...
other hold my beer and watch this activites....
there should be a difference between true unanticipated danger or peril and self induced stupidity....the later should have to pay for their own rescue.....