Georgia Milk Producers Weekly Enews |
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From Progressive Dairy Editor Dave Natzke
For many Americans, work and social activities are returning to some form of pre-COVID-19 normal. So is milk marketing through the Federal Milk Marketing Order (FMMO) system. Here’s Progressive Dairy’s monthly attempt to navigate through the numbers to see how “normal” might appear on your milk check.
Uniform prices and PPDs
FMMO administrators reported July 2021 uniform milk prices, producer price differentials (PPDs) and milk pooling data during the week of Aug. 13. As they were in June, July baseline PPDs in all applicable FMMOs were again positive. One the other hand, uniform or “blend” prices at standardized test moved lower in all 11 FMMOs.
With Class I, Class III and Class IV milk prices down from June, July uniform or “blend” prices were down 36-64 cents per hundredweight (cwt) across all 11 FMMOs. The high was $21.98 per cwt in Florida FMMO #6; lows of under $17 per cwt were in four FMMOs (Table 1). Read more here>>>
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Dairy Margin Coverage Payments Triggered for Seventh Consecutive Month
From Daniel Munch
Associate Economist, American Farm Bureau Federation
The Farm Service Agency reports more than 18,900 operations or 75% of all dairy farms with established production history are enrolled in the Dairy Margin Coverage program for the 2021 calendar year (enrollment closed Dec. 11, 2020). This is a 50% increase from 2020 when just over 50% of all dairy operations were enrolled. Part of this increase is due to the extreme price volatility experienced as a result of COVID-19 pandemic induced market fluctuations that pushed many to enroll in an attempt to manage future risk exposure. Recent news of a seventh consecutive month of payouts has many producers grateful for their enrollment decision.
The Dairy Margin Coverage program (DMC) exists to provide a level of risk protection to dairy producers under low margin conditions when milk prices are low and or feed costs, on average, are high. This voluntary program provides payments when the calculated national margin falls below a producer’s selected coverage trigger. The margin is the difference between the average price of feedstuffs (the price of hay, corn, and soybean meal) and the national all-milk price. Read more here>>>
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Southern border tour reveals heartbreaking situation
By Jacqui Fatka, Feedstuffs
Farm Bureau presidents hear firsthand concerns of farmers being threatened by human smugglers who abandon people, steal vehicles and vandalize property.
Earlier this summer all 50 state farm bureaus signed onto a letter urging the Biden administration to address the surge of undocumented immigrants entering the United States. In an effort to see firsthand the impact on farmers, American Farm Bureau Federation Zippy Duvall spent several days visiting with farmers and legislators in the area discussing the impacts on an influx of individuals crossing the border that is putting farmers in the crosshairs.
“We’ve seen how serious this situation is for farmers. It’s heartbreaking,” shares Duvall.
The tour started in McAllen, Texas then to Mission, Del Rio and on to Las Cruces, New Mexico and Deming, N.M. Duvall also hosted a roundtable with farmers and ranchers from both New Mexico and Arizona in Lordsburg, New Mexico.
“They’ve experienced people coming across for decades, but never at the levels seen today,” Duvall adds. These farmers and ranchers are worried about their safety, security of their property and farm machinery and equipment as some have had their homes looted, fences torn down numerous times in a day and water sources tampered with and compromised, he continues.
Russel Boening, president of the Texas Farm Bureau, notes that farmers in McAllen and then upriver to Del Rio face different issues caused by the same problem. In McAllen, family units and unaccompanied minors are turning themselves into border agents seeking asylum. Border agents are overwhelmed with the paperwork and struggle to offer basic services for their needs. Read more here>>>
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DON’T FEAR RISK MANAGEMENT, TAKE OPPORTUNITIES
By Nicole Heslip, Brownfiled Ag News
A dairy risk advisor says farmers should be taking advantage of opportunities to protect risk on both milk and feed cost sides of their balance sheets.
Kyle Schrad with StoneX says the more prices move, the more opportunity there is to reduce risk through trading.
“People think about trading, using forward contracts, using futures and options, using even insurance tools like the government offers, and they think, ‘I’m speculating,’” he says. In reality, Schrad says if dairies don’t have some type of forward sale on their milk, the farm is 100 percent speculating. Read more here>>>
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What’s in the infrastructure plan for rural America?
Jacqui Fatka, Feedstuffs
The U.S. Senate’s passage of the more than 2,700-page Infrastructure Investment and Jobs Act offers many important provisions that those in rural America were seeking. The bill provides $548 billion in additional spending. When combined with existing baseline infrastructure spending, total funding for infrastructure will be approximately $944 billion over five years and $1.2 trillion over eight years.
The House has already passed its own version of an infrastructure bill - the INVEST In America Act, also in H.R. 3684, which the Senate replaced with this plan. The House could take up the Senate’s version, but it’s unlikely given House Transportation and Infrastructure Chairman Peter DeFazio, D-Ore., concerns with missing provisions after he spent months on his own plan.
The Infrastructure Investment and Jobs Act represents a highlight reel of the Senate’s bipartisan work. It includes several bills that have already won bipartisan action in the Senate, including a must-pass highway bill to extend programs set to expire this fall.
The bill incorporates the Surface Transportation Reauthorization Act of 2021, which passed the Senate Committee on Environment and Public Works unanimously, and the Surface Transportation Investment Act, passed by the Senate Committee on Commerce, Science, and Transportation with bipartisan support. It also includes the Senate-passed Drinking Water and Wastewater Infrastructure Act and the Energy Infrastructure Act, which received bipartisan support in the Senate Committee on Energy and Natural Resources. Read more here>>>
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From Progressive Dairy Editor Dave Natzke
The USDA’s latest World Ag Supply and Demand Estimates (WASDE) report, released Aug. 12, reduced 2021 and 2022 milk production forecasts slightly on expectations of lower cow numbers going forward. Price projections were also reduced for both years due to larger supplies and weakening demand.
For 2021, the USDA forecasts milk production at 228.1 billion pounds, down 100 million pounds from last month’s estimate. If realized, 2021 production would be up about 2.2% from 2020.
For 2021, cheese, butter, nonfat dry milk (NDM) and whey price forecasts were all lowered from last month. As a result, projected 2021 Class III and Class IV prices were lowered to $16.55 and $15.15 per hundredweight (cwt), respectively. The 2021 all-milk price forecast was cut 35 cents from last month to $17.95 per cwt, down 29 cents from the 2020 average of $18.24 per cwt.
In the USDA’s look ahead to 2022, milk production was forecast at 231.2 billion pounds, down 400 million pounds from last month. If realized, 2022 production would be up about 1.4% from the 2021 forecast.
For 2022, price forecasts for cheese and butter were again lowered, but price forecasts for NDM and whey were little changed. With lower cheese and butter prices, the annual average Class III ($16.15 per cwt) and Class IV ($15.30 per cwt) price forecasts were reduced from last month, and the projected all-milk price was cut 65 cents to $17.85 per cwt. Read more here>>>
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Breeding dairy cows to help reach net zero
From The Dairy Site
Two new genetic indexes to help farmers breed more environmentally friendly cows will be launched in August by AHDB Dairy.
The first, EnviroCow, reflects the important role genetics and breeding play in improving the environmental efficiency of milk production.
Incorporating cow lifespan, milk production, fertility and the new Feed Advantage index, EnviroCow is one of the first genetic indexes in the world to focus solely on breeding cows for their environmental credentials.
Marco Winters, Head Of Animal Genetics for AHDB said: “The environmental focus of EnviroCow reflects the important role cattle breeding can play in helping the farming industry reach its goal of net zero greenhouse gas (GHG) emissions.”
EnviroCow will be expressed on a scale of about -3 to +3, where the highest positive figures are achieved by bulls which transmit the best environmental credentials to their daughters. These will be cows which are predicted to create the least GHG emissions in their lifetimes for each kilogram of solids-corrected milk they produce. Read more here>>>
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Other Stories to Check Out This Week >>> |
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TO ADVERTISE: EMAIL AD AND CONTACT INFORMATION TO FARRAH NEWBERRY at gamilkproducers@gmail.com
Looking for calves for 200 head calf barn with auto feeders in Arcadia
FL: Please call Brian 863-444-0060
Delaval meters, Germania entrance and exit gates with tailboards and indexing tail, Muller plate cooler, receiving jar, filter housing and lowline stainless pipeline. Serious inquiries call 864-617-5911, Iris Barham
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Expanding or looking for top quality herd replacement?
Available at all times:
Fresh two and three year old's and total herds; Also springing heifers and heifers of all ages. Service age bulls with top genetics available all year round. All different breeds and crossbreds also available. Last two loads of fresh two and three year olds Holsteins went on the trucks averaging 115 lbs and 112 lbs! One load to TN and the other to Wisconsin.
Contact:
Les McCracken
608-214-6484. Cell
608-879-2653. Fax
Seeking fulltime farm worker at heifer replacement farm in Eatonton, GA. If interested, please contact Mike Rainey at 706-473-0730.
Seeking Beef and dairy crossed bullcalves/heifers bottled or weaned. Please contact Victoria Rowland at 404-922-0938 or 423-946-5869
Will Raise Heifers for GA Dairy Farms: Hello we are located in Southern Illinois and have an abundance of pasture and cheap feed available looking to contract with a dairy to grow heifers for them, out location offers mild climate and we are just 558 miles from Montezuma Ga. Please contact 817-528-6645 very reasonable daily rates.
For Sale- DeLaval 84 Vacuum Pump on Stand, Oil Reclaimer, 10 HP- 3 Phase Electric Motor. New Bearings, New Oil Seal, New Belts. $2000
For sale - Please contact Archie Felder for more information at 803-682-3426:
- Dairy Tech Bay Pasturizer - $4,000
- Tidenberg Hydraulic Hoof Table (like new) - $5,000
- Claas Silage Choppers - 960 1875 cutterhead hours, 4WD, 600 orbis, HD300 PU - $180,000
- Koomin John Deere Corn Header adapter for Claus Silage Chopper Used - $6,000
WANTED: Peter's Cattle Co. will buy any dairy, beef, and cross, bottle or weaned, bulls, heifers or free martins. Pick up weekly 7 days a week. Chris- 470-255-8515
Bull Calves WANTED: Competitive pricing with 6 day a week pickup. Brandon Mason Cattle Company 912-632-4490
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