Disappointing year for dairy farmers Page 8 • Dairy Star • Saturday, December 26, 2015
National Milk Producers Federation president and CEO Jim Mulhern describes 2015 as a disappointing year for dairy farmers. After record dairy income in 2014, milk production increased this past year and dairy exports declined. “Between China and Russia alone, we lost over 20 billion pounds of imports and that backs up onto the world market.” Domestic consumption of milk and dairy products has been strong, up approximately 4 percent this past year. That growth was not enough to offset the weak exports. “We now produce 30 billion pounds more milk in the U.S. than we consume domestically and if we don’t export that product, it backs up into the U.S. market and drives prices down.” For 2016, Mulhern remains optimistic about domestic demand, but voices caution about the world dairy market. Dairy industry buffered by four years of good prices The milk check is lower than what many dairy farmers would like to see, but the industry is still in good nancial condition. AgStar Financial Services vice president of agribusiness capital Greg Steele said equity was built up during the recent past. “Four years of Class III milk at $17 or better really helped position the industry to have a good capital base going into these low prices and tight margins.” Steele said the Upper Midwest also enjoyed a fabulous crop year with large quantities of quality forages. Wisconsin milk production rises in November In the 23 major dairy states, November milk production totaled 15.6 billion pounds. That is up 0.6 percent from November 2014. The number of milk cows in those key dairy states was 8.6 million head, unchanged from October, but up 37,000 head from last year. In Wisconsin, milk production increased 4.3
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percent. At the same time, California milk output declined 4.4 percent.
USDA updates milk production forecast According to USDA’s supply/demand reports, the country’s milk production forecast for 2015 and 2016 has been reduced from last month. During that time, milk production on a per-cow basis declined. Butter prices remained stronger than expected into early December, prompting an increase in the price forecast for butter. Cheese prices are down slightly with large domestic supplies. Class III milk prices were left unchanged for 2015 and 2016. Year-end legislation will benet dairy farmers The omnibus spending bill that moved through Congress in the nal days of the session included numerous policy riders. One of those issues was the repeal of the U.S. country of origin labeling law. National Milk Producers Federation senior vice president of communications Chris Galen sees that as a win. “This should hopefully prevent any retaliatory tariffs on dairy exports to Canada and Mexico, and we needed to adjust the COOL legislation to make sure that was cut off at the pass and we’re thankful that happened.” Congress has also included a tax extenders bill. That legislation includes the permanent extension of the Section 179 tax credit for capital equipment purchases, including things like equipment or tractors. “They’ve been doing that piecemeal for the last few years, but now they’ve made that permanent and that will help with the stepped up depreciation of those major investments.” WOTUS promotion deemed illegal The Environmental Protection Agency apparently broke the law with a social media and grassroots lob-
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bying campaign to promote its Waters of the United States rule. The U.S. Government Accountability Ofce has made that assessment. With this new information, American Farm Bureau Federation president Bob Stallman said EPA “orchestrated this matter in a biased fashion.” Ag Insider Fewer dairy herds According the Wisconsin agriculture department, the state has 9,711 dairy herds. That total is for the rst week in December and is down nearly 400 herds from the same time one year ago. Clark County has the largest number of dairy herds in Wisconsin with 877. Eighty-seven percent of the dairy herds in Wisconsin are Grade A certied.
By Don Wick Columnist
Soymilk case dismissed A class action lawsuit that alleged the term ‘soymilk’ was misleading for consumers has been thrown out of court. A federal judge in California dismissed the case, saying it is not reasonable to believe a consumer would mistake soymilk or almond milk for dairy milk. Ben & Jerry’s makes animal welfare announcement The famous ice cream brand, Ben & Jerry’s, has announced its milk suppliers will observe a ban on tail docking by the end of 2016. The move was praised by the Humane Society of the United States. HSUS also touted the four new non-dairy vegan desserts produced by Ben & Jerry’s. The non-dairy line-up uses almond milk. Ag Day at the Capitol scheduled Wisconsin’s annual Ag Day at the Capitol will be held Jan. 27. With this event, farmers throughout the state travel to Madison to learn about state issues and lobby state legislators. A variety of farm groups sponsor this event including the Dairy Business Association, Professional Dairy Producers of Wisconsin and the Wisconsin Farm Bureau. Dow and DuPont to merge The Dow Chemical Company and DuPont Company have agreed to merge. Shareholders of Dow will get one share in the new company called DowDuPont for each Dow share, while DuPont shareholders will get 1.282 shares for each DuPont share. Dow and DuPont expect the merger to be completed by the second half of 2016 and be followed by a three-way breakup of the combined company. One of which will be focused on agriculture. The combined company may Turn to AG INSIDER | Page 9
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From Our Side Of The Fence
Dairy Star • Saturday, December 26, 2015 • Page 15
What was the highlight of the year on your farm?
George Polzin Caddott, Wis. Chippewa County 95 cows
John Lehmann La Crescent, Minn. Houston County 90 cows
Ramona and Bob Wippler Parkers Prairie, Minn. Ottertail County 43 cows
Stewart Bartz Downing, Wis. Dunn County 40 cows
What will you remember most about 2015? It was the best non-irrigated hay year I have ever had. We didn’t have to irrigate at all, which is somewhat unusual. The prices of everything were down so much this year, too, with the depressed market. It was a mild year, so it was an easy year to milk cows and was easy on the cows.
What will you remember most about 2015? I got married in April. My wife, Angela, grew up on a farm. We met through a seed dealer.
What will you remember most about 2015? Bob: That I’m getting old really fast. I can’t move fast enough to get the work done. I will remember the nice new seeding of alfalfa we had. Also, the long dry spring we had allowing me to get the manure hauled, eldwork done and make swamp hay for bedding since it was dry enough. Another thing I will remember about this year was that we started out with a high bacteria count in our milk, but after spending some money and doing some xes, it dropped. Ramona: Never getting the work done in a timely manner.
What will you remember most about 2015? I will mostly remember the high beef prices.
What was the highlight of the year for you – in both farming and family? We are expecting our rst grandchild in a few days. Our daughter is an ag teacher in St. Peter, Minn., and her dairy judging team will be going to Scotland next year. That is exciting because I was her judging coach for a number of years. Our son is nishing graduate work and has accepted a position as an applied economics professor at the University of Minnesota. As for the farm, we had a good crop year and sold a lot of bulls. It was a good year with the beef prices where they were. We sold bulls all over the United States this year, although it is a lot slower now. Describe a challenge you overcame in the past year. Every farmer has had nancial challenges this year. Keeping up and getting crops in the ground with production expenses was a challenge. I worry about beginning farmers who are probably feeling a pinch this year. Describe some of your favorite traditions for the Christmas season. Gathering with our family and friends and sitting down to a large dinner. My parents have been married for 70 years, and we gather at their farm. Additionally, every year I send out a book of Christmas poems that I write myself. I started doing that right after my wife and I got married. Describe your perfect Christmas gathering. Having everyone happy and healthy at my mother’s house. My sister lives far away and isn’t always able to make it back for the holidays, so to have her home and all be gathered together will be wonderful. Tell us about your family farm. I am the fourth generation on the farm since it started in 1900. We have a typical family farm. We milk 95 red and white Holsteins, which we have been doing since the early 1970s – making us one of the rst red and white Holstein herds in the country. We sell breeding stock all the way from Lake Superior down to the panhandle of Texas. We farm 600
What was the highlight of the year for you – in both farming and family? On the farm, a highlight was the good crop year. We also went to World Dairy Expo for the rst time. There was a lot to see. I also bought the farm from my parents. For family, the highlight has been being able to spend time with my wife. When we were dating, we saw each other about once a month. We didn’t live close, so it was hard to get away. Describe a challenge you overcame in the past year. We haven’t had too many challenges, but it’s always difcult when employees don’t show up for their shift. The milk price could be better. It’s also been an adjustment being married and living with someone. Describe some of your favorite traditions for the Christmas season. We don’t have too many traditions other than getting together to spend time with family. We gather on Christmas Eve at my sister’s house to open presents and eat. We usually have ham, and this year I asked my wife to make cheeseburger soup. It’s really good. Christmas will be a little different this year since I’m married. Angela’s family lives two and a half hours away. Describe your perfect Christmas gathering. The perfect gathering includes spending time with my family, opening gifts, hanging out with my nephews and enjoying the day while trying not to worry about the farm. Tell us about your family farm. I am the fourth generation on my family’s farm. It has been in our family for 111 years. I bought the farm from my parents, David and Sandy, this year. My dad still helps me along with my brother, Gordon, who works for me full time and my brother, Alan, who lls in when we need him. We have 580 acres with 233 acres that are tillable.
acres owned and approximately 200 rented. We have hosted 17 foreign exchange students from all over the world whom we continue to keep in contact with.
What was the highlight of the year for you – in both farming and family? Bob: I wake up each day willing to do it all over again. Ramona: Having daughters do awesome things, including nearly graduating from med school, traveling to other countries and states, and running for Miss Parkers Prairie. Describe a challenge you overcame in the past year. Bob: I had three farm accidents in the last ve months. Another would be getting the jobs done without my hired help. I also got the fence working right. Ramona: Always being behind on the work that needs to get done, caring for Dad with his declining health and now putting him in a care center. Describe some of your favorite traditions for the Christmas season. Bob: My favorites are when Ramona makes fruit cake, oyster stew and homemade eggnog. I also like visiting family. Ramona: Singing in the church choir, attending Christmas concerts with the children and the church programs, and putting up the tree.
What was the highlight of the year for you – in both farming and family? Surviving the rst year of owning cows. We bought them on Jan. 1 from my dad. I think that’s a highlight in both my personal and professional life. Describe a challenge you overcame in the past year. Finding compensation cash ow with how low the milk prices were. We are no stranger to the uctuation in the market, but the difference this year is substantial. Knowing what we can live without, and what we can do to keep cash ow. Describe some of your favorite traditions for the Christmas season. Every year, we visit both grandparents, and the whole family celebrates Christmas together. Describe your perfect Christmas gathering. Having the whole family together to eat a whole lot of food. Also, every year except last year, the pipes have frozen in the barn on Christmas. The perfect Christmas, for me, would have owing water, too. Otherwise, family, food and a big warm house. Tell us about your family farm. I own 40 cows with my wife. She teaches in Prairie Farm. We have 220 acres that are either owned or rented. Dad is still involved with feeding calves and cleaning the barn. I am the second generation on this farm. Our family also runs a retail cheese store off of the house.
Describe your perfect Christmas gathering. Bob: Visiting my in-laws and hosting Christmas Eve while eating new sausage. Ramona: Having all of the family home and having fun together. Tell us about your family farm. We rotationally graze 40 cows from May until November. But this year, we went until December. The herd consists mostly of Holsteins and Milking Shorthorn, Jersey or Brown Swiss crosses. We sell our milk to First District. We also raise a few turkeys, broiler chickens and laying hens. We have 340 acres and raise corn for corn silage and alfalfa. We also have ve children – Marie, Robert, Edmund, Katherine and Eliza-
beth. Marie is attending med school at the University of Minnesota. Robert makes the best pizza at Rhombus Guys in Grand Forks, N.D., and is learning to brew beer at a local brewery. Edmund works at Len Druskin in Minneapolis, Katherine is a senior at the University of Minnesota and Elizabeth is a senior at Parkers Prairie High School.