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Not A-C but farming

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Alex09(WI) View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Alex09(WI) Quote  Post ReplyReply Direct Link To This Post Topic: Not A-C but farming
    Posted: 11 Apr 2019 at 10:00am
In case some of us are not aware what is going on with Dairy Farmers in Wisconsin and other parts of the U.S., here is an accurate video about what is happening on family dairy farms:

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Ky.Allis View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Ky.Allis Quote  Post ReplyReply Direct Link To This Post Posted: 11 Apr 2019 at 10:27am
So sad but the honest truth. Pretty much sums up farming. Personally I can't imagine why ANY young person would choose to farm.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote im4racin Quote  Post ReplyReply Direct Link To This Post Posted: 11 Apr 2019 at 11:55am
there is something seriously flawed in how landolakes handled the letter.  basically told there (LoL) that they don't need there supplier...or am I missing something?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote ebowman Quote  Post ReplyReply Direct Link To This Post Posted: 11 Apr 2019 at 12:45pm
WOW!!!
This one hits my buttons... 
I know there are alot of dairy farmers really struggling out there right now. For some reason they have received the shaft lately. Unfortunately it will only get worse. You see, as we "progress" by developing alternative "milk" sources we will continue to kill off the dairy man. The grain farmer is cushioned by the Government. Dairy is not receiving the help. 
This wouldn't be a big deal in a free market country, however the government controls the prices. The chemical companies are making record profits (except Monsanto!!-finally a victory) and have been bleeding the farmer out of profits for years. The milk companies are dropping farmers because they are choosing alternative ways to make money. 
Farming is shifting to really big farms (they receive the biggest discounts) and hobby farms (have a town job to pay bills) the middle guys will be gone in a few years. It is a very sad day to watch one not make it in what they desire to do. 
The only way I can see to make a change is to be able to control your own price point.
Here is how one dairy farm figured a way to make it, otherwise they too would be lookin g at the end. 
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Ted J View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Ted J Quote  Post ReplyReply Direct Link To This Post Posted: 11 Apr 2019 at 4:03pm
And yet Alex, all the dumb farmers around here keep electing Ron Kind.  A "poor farmer" from Coon Valley, got elected to the house DIRECTLY from college.  Has NEVER had a job in his life......got elected in 97 and ever since.....his worth??  Somewhere around $2.287,500.  A poor farmer from Coon Valley.
He's been promising since his FIRST election to do something about the price of milk.  He HAS,,,,,,,,he's TALKED IT TO DEATH!!  THAT'S ALL he's done for "America's Farmer".
There's a bar not too far from where he has his 'vacation home' ($$$ a cool one million).  If I ever saw him in that bar, I'd knock him right straight on his keister!  and tell him that fist was made from pulling teats for 30 years....


Edited by Ted J - 11 Apr 2019 at 4:04pm
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Alex09(WI) View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Alex09(WI) Quote  Post ReplyReply Direct Link To This Post Posted: 11 Apr 2019 at 8:11pm
Yeah, something needs to be done. In my opinion, somethning like price breaks on feed, seed, fertilizer, electric when milk is below say... $20/hundred, or instead a government mandated minimum price for milk calculated by factoring in the total cost of running a farm at any given time. 
But the back of my mind is thinking this is what a free-market system does... all dependent on supply and demand. If farmers could set their prices that they sell milk for, just like a mechanic shop sets their labor rate at say... $50 per hour, they will set their price so they make a profit.
My neighbor (150 cows) that I used to work for part time and my friend (40 cows) whose 8550 I posted about 2 years ago are both trying to survive this drop in milk price.
www.awtractor.com
A&W TRACTOR 920-598-1287
KEEPING ALLIS-CHALMERS IN THE FIELDS THROUGH THE 21ST CENTURY
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Red Bank Quote  Post ReplyReply Direct Link To This Post Posted: 11 Apr 2019 at 11:01pm
This is something that has been bothering me for a while. I hate the idea of mega farms and think from a strategic point of view we are safer and more secure with the family farm versus the corporate conglomerate. Also feel that farms need to be scattered all around the country in case of any kind of natural or terrorist outbreaks that could threaten the food supply. I worked on a diary farm while I was in college. Took my daughter by there last summer an interstate runs through the middle of it and the operation has been scuttled. No sign of Farmer John I hope the state paid him well enough. My neighbor runs the last remaining diary farm in my county and it sucks to see what all he is going through but just like the above link he is thinking outside the box and starting to do direct marketing of his milk and doing his own beef brand. I have tried to steer my daughter towards farming but she is not into it so can I blame her. It’s always been a side job for me and I don’t know what it would take to do it full time. But as in the video above it’s a shame things have gotten to this point. I remember the first Farm Aid concert and hate that they still have those.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote Calvin Schmidt Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 7:06am
I'm a bit hesitant to get into this conversation as a Canadian. I am not a dairy farmer but made a living in silo construction with dairy farmers as our main customer until I sold the farm silo business 25 years ago.  The US dairy situation is very sad indeed. The reality is that it is caused by over supply. The American Dream becomes a Night Mare! We are not having the same problem in Canada due to Supply Management. The perception in the US is that Supply management is run by the government. IT IS NOT. More then 60 years ago Canadian dairy was facing the same issues. The farmers lobbied government for the right to create a marketing board to control farm production and negotiate prices with the processors. It works. The retail prices of milk in the stores is very similar to US retail prices. Production quotas were given to farmers at the time and over time through supply and demand between farmers production quota gained a value. At least once a year the Milk Marketing board looks at cost of production on farms and negotiates prices with processors. Dairy farmers only milk income is from the market place with NO subsidies or government bail outs. In other countries where supply management was scraped, retail milk prices have not fallen and farmers are in the same boat as the US dairy farmers. Canada does not export dairy products and has high tariffs on imports. Trade agreements are constantly trying to chip away at supply management because foreign countries are looking export their over production to Canada. Yes dairy farmers are also getting larger and more efficient here because there is constant pressure to keep prices low. Over 70% of the new barns are installing robot milkers. Canadian dairy farmers are very very efficient. President Trump was beating the drum is Wisconsin about how unfair Canada was to US dairy. The truth was that the Wisconsin milk product that was coming into Canada was not covered by supply management and was coming in duty free. The Canadian processors gave the main supplier in Wisconsin a years notice that they were going to change their source to Canadian suppliers but the processor only gave their farmers one month notice because they thought they could find a new market somewhere else but found that it was already over supplied.  The is a lot of fake news out there.         
Nothing is impossible if it is properly financed
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Gary Burnett Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 7:27am
Originally posted by Alex09(WI) Alex09(WI) wrote:

Yeah, something needs to be done. In my opinion, somethning like price breaks on feed, seed, fertilizer, electric when milk is below say... $20/hundred, or instead a government mandated minimum price for milk calculated by factoring in the total cost of running a farm at any given time. 
But the back of my mind is thinking this is what a free-market system does... all dependent on supply and demand. If farmers could set their prices that they sell milk for, just like a mechanic shop sets their labor rate at say... $50 per hour, they will set their price so they make a profit.
My neighbor (150 cows) that I used to work for part time and my friend (40 cows) whose 8550 I posted about 2 years ago are both trying to survive this drop in milk price.


Farmers can set any price they want on what they produce and sell,but just like a shop that charges $100 hr when everyone else charge $50 they won't get much business.It all gets back to supply and demand.Two things now working consumption of dairy products is down and the really large mega dairies can produce milk cheaper than smaller dairies.Basic economics the more efficient operations will win out over the
less efficient when demand shrinks.Thats the way our system works and it happens in just about all businesses sooner or later.No system or enterprise is forever,times change and businesses have to change or go under.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Gary Burnett Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 7:38am
Originally posted by Calvin Schmidt Calvin Schmidt wrote:

I'm a bit hesitant to get into this conversation as a Canadian. I am not a dairy farmer but made a living in silo construction with dairy farmers as our main customer until I sold the farm silo business 25 years ago.  The US dairy situation is very sad indeed. The reality is that it is caused by over supply. The American Dream becomes a Night Mare! We are not having the same problem in Canada due to Supply Management. The perception in the US is that Supply management is run by the government. IT IS NOT. More then 60 years ago Canadian dairy was facing the same issues. The farmers lobbied government for the right to create a marketing board to control farm production and negotiate prices with the processors. It works. The retail prices of milk in the stores is very similar to US retail prices. Production quotas were given to farmers at the time and over time through supply and demand between farmers production quota gained a value. At least once a year the Milk Marketing board looks at cost of production on farms and negotiates prices with processors. Dairy farmers only milk income is from the market place with NO subsidies or government bail outs. In other countries where supply management was scraped, retail milk prices have not fallen and farmers are in the same boat as the US dairy farmers. Canada does not export dairy products and has high tariffs on imports. Trade agreements are constantly trying to chip away at supply management because foreign countries are looking export their over production to Canada. Yes dairy farmers are also getting larger and more efficient here because there is constant pressure to keep prices low. Over 70% of the new barns are installing robot milkers. Canadian dairy farmers are very very efficient. President Trump was beating the drum is Wisconsin about how unfair Canada was to US dairy. The truth was that the Wisconsin milk product that was coming into Canada was not covered by supply management and was coming in duty free. The Canadian processors gave the main supplier in Wisconsin a years notice that they were going to change their source to Canadian suppliers but the processor only gave their farmers one month notice because they thought they could find a new market somewhere else but found that it was already over supplied.  The is a lot of fake news out there.         

No subsidies in Canada with dairy? The Canadian consumer subsidizes the dairy system every time they buy any diary product.As far as the trade situation Canada charges around a 70% import duty on US dairy products but expects the US not to charge for their imports to the USA on other things.Not a fair deal at all for the USA so something is going to have to
change on that end of things.Fair Trade is not having one sided trade with one country charging high tariffs and the other charging almost none.Surprising Canadian consumers have put up with the system that gouges them on dairy products as long as they have and even more surprising is that US politicians have allowed this situation to go on as long as it has.
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Calvin Schmidt View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Calvin Schmidt Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 8:00am
Gary, When was the last time you were in Canada and checked retail milk prices?
I was in Florida in Feb and did some checking. Milk without the BST (?) injection converted to Canadian dollars was the same. Canada imports approx 2.5 x as much US dairy product as we export back to the US.  There is a lot of fake news out there to make Canada look bad. 
Nothing is impossible if it is properly financed
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Gary Burnett Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 8:08am
Originally posted by Calvin Schmidt Calvin Schmidt wrote:

Gary, When was the last time you were in Canada and checked retail milk prices?
I was in Florida in Feb and did some checking. Milk without the BST (?) injection converted to Canadian dollars was the same. Canada imports approx 2.5 x as much US dairy product as we export back to the US.  There is a lot of fake news out there to make Canada look bad. 


In that case Canada needs to drop the high tariffs and everything will work out fine for
both sides.Why would anyone in the USA want to import Canadian diary products that are priced higher than what we can buy here?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Calvin Schmidt Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 8:30am
Proves trade works and our prices are not higher.  There is a lot BS being spread to get rural votes. Wisconsin produces more milk than all of Canada so if Canada shut down our dairy and imported US milk that still would not solve the over production problem. Why are Canadian dairy leaders being invited to speak about our system to Wisconsin farmers ? Secretly they would like a Canadian system so they could make a decent living.
In my own business changes happen all the time. When I started my own silo business in 1968 there were 1986 new concrete silos built in Ontario that year. Declined to about 200 when I sold in 1994 and got into commercial grain silo construction. Today maybe 25 new concrete silos per year. We now have the ability to construct a concrete grain silo up to 100' diameter. Last year we constructed an 86' diameter. Each 4' pour held the same capacity as a 20' x 74' silo. Talk about change!   We can't keep doing the same old -same old. 
Nothing is impossible if it is properly financed
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Stan R Quote  Post ReplyReply Direct Link To This Post Posted: 12 Apr 2019 at 4:05pm
I sympathize but it is all about supply and demand---->

**Beverage choices we had

-1960's:
coffee
tea
milk
soda (just a few types like coke, pepsi, orange, ginger ale)

-2000's:
coffee
tea
milk
soda now loads of diet types and many more flavors
power drinks
almond milk
soy milk
bottled water
iced coffee, etc etc etc....

**Milk production (kg/yr- multiply by 2.2 to get lbs)


Milk production per cow over the past 100 years

Solution: reduce supply and/or increase demand.

Also, it appears the younger generation are not the milk drinkers of my generation.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Calvin Schmidt Quote  Post ReplyReply Direct Link To This Post Posted: 13 Apr 2019 at 6:26am
Stan, you are absolutely right. It is economics 101. Too much supply- price goes down until the over supply corrects itself or demand increases. This usually means that the high cost small producers are the first to go. This applies to every business. Look at the auto industry or crop prices etc.etc.  
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