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DAIRY ST R “All dairy, all the time”™
Volume 20, No. 4
What factors impact hauling charges?
April 14, 2018
The Duke of dairy
USDA releases data for 2017 Upper Midwest rates By Krista Kuzma
krista.k@dairystar.com
ROSLYN, S.D. – After a talk with their milk cooperative eld representative, the Wasilk family is frustrated about milk hauling costs. The line item on their milk check will jump from under $1 per hundredweight to over $3 per hundredweight on May 1. That added in with the current milk price, plus lower premiums puts the family in a tough spot. “They have us in a bind,” said Wayne Wasilk, who farms in partnership with his son, Chad, milking 60 cows near Roslyn, S.D. “This could put us out of business.” Both of these numbers are on the high end of the spectrum according to data from the United States Department of Agriculture for milk hauling charges in the
upper Midwest marketing area. In 2017, hauling charges in the Midwest came out to an average of $0.20 per hundredweight. Corey Freije said that number can be deceiving. “The number that is typically billed to the dairy farmer is going to be a small number and it’s usually because the co-ops and the handlers are subsidizing it,” said Freije, an agricultural economist for USDA and the one who collected the milk hauling data. “Dairy farmers can look at their co-op and say they don’t want to pay any of the hauling. Then the co-op won’t charge them for the haul, but they may pay them (the dairy farmer) a lower gross in total.” The data is broken down into simple versus weighted averages
Turn to HAULING | Page 6
Milk price recovery could start in the fourth quarter Sharp analyzes dairy economy during CPDE seminar By Krista Kuzma
krista.k@dairystar.com
SIOUX FALLS, S.D. – Dairy producers along with others in the industry packed the room to standing room only at the “When Will It End? Examining the Dairy Downturn” seminar presented by Sarina Sharp on March 28 at the Central Plains Dairy Expo in Sioux Falls, S.D. “Better milk prices seem to be ahead. I want you to feel encouraged that we hit the low, and the worst is hopefully behind us,” said Sharp, dairy market analyst for Daily
JENNIFER COYNE/DAIRY STAR
Wes and Lawrence “Duke” Pennings milk 63 cows near Blomkest, Minn. At 86 years old, Duke conƟnues to manage and operate the farm with the help of his grandson.
Pennings continues dairying at 86 years old By Jennifer Coyne jenn@dairystar.com
Dairy Report. “I’m not projecting really high milk prices, but I am hopeful for better days ahead than the ones we just had.” Lower premiums are a big reason for the deteriorated dairy economy. “You’ve all seen your milk checks. You’ve all seen that happening. It’s a factor around the country,” she said. Lower premiums have been caused by a number of factors, including a glut of milk on the market and coops being forced to nd milk a home at a discounted rate. “That discount is being spread out over all the dairy producers in the co-op,” Sharp said. The increased amount of milk on the market also means
BLOMKEST, Minn. – If anyone best understands the tumultuous nature of the dairy industry, it is Lawrence “Duke” Pennings. After all, he has now lived through three uncertain times as a dairy farmer. From being a young child in charge of his late-father’s farm after the Great Depression, to establishing his own farm amidst the 1980s Farm Crisis and carrying it on through today’s difcult markets, Duke is a tenacious dairyman. “At times, it’s been hard to farm. But I stick with it for the love of it,” Duke said. Duke, 86, currently milks 63 cows with his grandson, Wes, near Blomkest, Minn. While Duke still retains many of the management decisions of the dairy, his 35-year-old grandson plays a pivotal role in the farm’s day-to-day responsibilities. Together, the family is out in the barn by 5 a.m. As Duke cleans the gutters and feeds a batch of TMR, Wes prepares the barn for milking, which begins at 6. The two continue to complete daily chores together until Wes retreats to the barn for evening milking.
Turn to MILK PRICE | Page 7
Turn to PENNINGS | Page 10
JENNIFER COYNE/DAIRY STAR
Wes Pennings prepares buckets of milk for the calves at his grandpa’s farm near Blomkest, Minn. Wes has been working for his grandpa since 2001 and has daily responsibiliƟes on the farm.