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Dire Dairy: Farmers Hit Hard
The recession is affecting all of us. But dairy farmers could be getting hit the hardest. Many may soon be forced to shut down. Reporter: Chris PapstEmail Address: cpapst@nbc15.com |
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POSTED: Friday, August 28 at 4:00 p.m.
"We can't just lock the door and walk away because we are dealing with animals," said Darrell Myers.
The Myers' family has milked cattle on their land for four generations. Since 1924, Maple Leaf Farms has been a staple of the landscape north of Loganville.
"Milk sales allow us to pay our bills," he said.
But, the plummeting price of that milk now threatens to change that landscape not only here in south-central Wisconsin, but all around the country.
One year ago the cost of milk was $20 per one-hundred pounds. Now that price is less than $10. Which means Maple Leaf Farms is losing $7000 a month.
"It's getting tougher everyday. We go talk to the banker every once in a while and ask for a little more money, but until prices come up we are going to try to hang on as long as we can."
To make ends meet Myers is forced to cut cost.
"We are not going to town. We are not going to Farm and Fleet. We are not going to the car dealer or the truck dealer."
He would sell assets, but with the recession, what he has isn't worth enough. The local market just won't pay a decent price.
But it's not just the local market that determines the price of milk and the equipment involved in the trade. There are national and international influences that greatly affect local farms.
Export markets, especially to China have dried up. And at the same time American trade agreements have us importing dairy products, which is flooding the market with supply and driving down prices.
"I'd like to hang on until an upswing," added Myers. "This farm is my retirement. If the value of this farm is half of what I was expecting it to be, my retirement is going to be half the value."
There is no way of knowing when dairy prices will again rise, but Myers said he has spoken to experts who say it may not be until next summer.
Latest Comments
Its like everything else its always the little guy who gets screwed over when the big guy with money can buy his way out of his probs. I tell ya 1 thing just because a guy has 40 or so dairy cattle can put out a better product because for the most part they dont pump thier animals full of junk like the big guys do(500 animals) just to up their production, but it doesnt always guarantee the big guy has a better product
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