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DAIRY ST R “All dairy, all the time”™
Volume 21, No. 5
April 27, 2019
The fate of a family farm
Another generation not guaranteed for sesquicentennial dairy By Jennifer Coyne jenn@dairystar.com
JENNIFER COYNE/DAIRY STAR
Dan MaƩer looks out of his milkhouse towards his dairy farm April 18 near Delano, Minn. The past few years have been the most challenging in all of MaƩer’s years dairy farming.
DELANO, Minn. – As a third-generation dairy farmer, Dan Matter takes pride in what his ancestors established and what he has been able to carry on. But in the same breath, he does not know how much longer he can maintain the family’s farm. “I’m sorry … it’s not my fault,” said Dan, holding back tears. “My forefathers established this farm in 1856. I think about them and keep hope I can continue for them.” Dan milks 65 cows with his son, Paul Matter, in Wright County near Delano, Minn. Like many smaller dairy farmers, the Matters have faced nancial hardship in the bleak dairy economy. Without sacricing milk production, the Matters have found few ways to increase their prot margin. They raise all of their youngstock and grow crops for feed on 400 tillable acres. Dan also nishes out steers, while Paul and his wife, Aumori, harvest maple syrup. The father-son pair operates the dairy farm without additional labor. Turn to MATTERS | Page 6
Hedging milk: The A path towards price stabilization risk of futures to long term capture protability Short, solutions presented By Jennifer Coyne jenn@dairystar.com
WILLMAR, Minn. – Selling milk is a volatile business, but dairy farmers have the means to try to create a more stable market. “As dairy farmers, we have to capitalize on opportunity when we can and diversify to protect risk and make a prot,” Kindra Carlson said. For 19 years, Carlson and her family have sold as much as 75% of their milk using futures and options contracts. The Carlsons also lock in feed prices for their dairy farm near Willmar, Minn. Contracting milk products on the Chicago Mercantile Exchange rst became a risk management strategy in the late 1990s. As the industry evolved and continues doing so, farmers have placed a greater emphasis on this avenue of selling dairy commodities. If the farm produces 200,000 pounds of milk a month or more, they may enter into a contract with a broker to trade on the CME. These parameters are Turn to CONTRACTING | Page 5
at roadshow
By Jennifer Coyne jenn@dairystar.com
GREENWALD, Minn. – Two years ago, the Wisconsin Farmers Union began campaigning to rebuild a dairy industry that can support families and rural communities in a movement known as the Dairy Together coalition. The group spoke with Minnesota dairy farmers as part of their Roadshow series April 16 in Greenwald, Minn. The event, co-hosted by the Minnesota Farmers Union, presented three solutions to stabilize milk prices for dairy farmers. JENNIFER COYNE/DAIRY STAR “This isn’t a new problem. If we do nothing, the handwriting is on the Richard Levins explains the Family Dairy Farm Relief Act during the wall,” Darin Von Ruden said. “We Dairy Together Roadshow April 16 in Greenwald, Minn. The roadshow was an opportunity for dairy farmers to learn about three poTurn to ROADSHOW | Page 7 tenƟal soluƟons to stabilize milk prices.