Rushville Republican

Agriculture

October 11, 2012

Rising feed cost seen driving milk production down

CHICAGO — U.S. milk production is headed for the biggest contraction in 12 years as a drought-fueled surge in feed costs drives more cows to slaughter.

Output will drop 0.5 percent to 198.9 billion pounds (90.2 million metric tons) in 2013 as the herd shrinks to an eight- year low, the U.S. Department of Agriculture estimates. Milk futures rose 45 percent since mid-April and may advance at least another 18 percent to a record $25 per 100 pounds by June, said Shawn Hackett. The president of Boynton Beach, Fla.-based Hackett Financial Advisers Inc. correctly predicted the rally in March.

Dairies in California, the top milk-producing state, are filing for bankruptcy, and cows are being slaughtered at the fastest rate in more than a quarter century. Corn surged to a record in August as the USDA forecast the smallest crop in six years because of drought across the U.S. Global dairy prices tracked by the United Nations rose 6.9 percent last month, the most among the five food groups monitored, and that will probably mean record costs next year, Rabobank estimates.

"Farmers can't afford to buy as much grain and protein, and that affects milk production," said Bob Cropp, an economist at the University of Wisconsin in Madison who has been following the industry since 1966. "In California, there've been some foreclosures and some sell-off of cows quite heavily. You're going to see that in other parts of the country."

Class III milk, used to make cheese, jumped 22 percent to $21.10 on the Chicago Mercantile Exchange this year. That's more than 21 of the 24 commodities in the Standard & Poor's GSCI Spot Index, which rose 2.2 percent. The MSCI All-Country World Index of equities climbed 12 percent, and Treasuries returned 1.8 percent, a Bank of America Corp. index shows.

The global dairy market is facing a scarcity of supply in the next 12 months as output slows in the United States and Europe and demand keeps expanding, Rabobank said in a Sept. 27 report. Surplus milk available for shipment from the seven biggest exporting regions will decline for the first time in four years, and there is little excess inventory, the bank's team of 11 dairy analysts estimate.

Text Only
Agriculture
  • USDA reminds farmers of 2014 Farm Bill Conservation Compliance changes WASHINGTON - Agriculture Secretary Tom Vilsack today reminded producers that changes mandated through the 2014 Farm Bill require them to have on file a Highly Erodible Land Conservation and Wetland Conservation Certification (AD-1026). The Farm Bill

    July 25, 2014

  • Extension farm tour to feature organic vegetable production WEST LAFAYETTE - The organic vegetable production and fertility management practices at an Ohio farm will be showcased in a Purdue Extension tour of the operation near Cincinnati.The tour will be from 9 a.m. to noon Aug. 5 at EcOhio Farm, 2210 S. Mas

    July 18, 2014

  • ag-rv071814-soybean variety pic Gene discovery could lead to better soybean varieties for northern United States WEST LAFAYETTE – Researchers from Purdue University and the University of Nebraska-Lincoln have discovered a soybean gene whose mutation affects plant stem growth, a finding that could lead to the development of improved soybean cultivars for the nor

    July 18, 2014 1 Photo

  • U.S. farmers plant record soybean crop, less corn DES MOINES, Iowa (AP) — The nation’s farmers planted the largest soybean crop on record this year by devoting millions of acres of land to the crop that had been used for growing corn, the U.S. Department of Agriculture said Monday.Farmers planted 84

    July 3, 2014

  • Manure Management Field Day presents new technology NORTH MANCHESTER — The Wabash County Soil & Water Conservation District and the Conservation Cropping Systems Initiative will host a free Manure Management Field Day on July 29th at Brubaker Farms. The half-day program will address application techno

    July 3, 2014

  • Purdue, OSU assisting in ag meeting for Corn Belt farmers WEST LAFAYETTE — Purdue and Ohio State Universities are part of an organization that is sponsoring a meeting this summer to help Corn Belt farmers make their agricultural systems more resilient and sustainable.The Resilient Agriculture Conference Au

    June 27, 2014

  • Farm Credit supports Rushville City FD training efforts RUSHVILLE — Farm Credit Mid-America, an agricultural lending cooperative serving farmers, rural residents and agribusinesses throughout Indiana, Ohio, Kentucky and Tennessee, contributed $500 to the Rushville City Fire Department. The funds were used

    June 27, 2014

  • ag-rv062714-problem weeds pic Latest weed control advances in corn, cotton COLLEGE STATION — The latest strategies in managing problem weeds in corn and cotton were recently showcased at the 2014 Crop Tour at the Texas A&M University field laboratory near College Station that serves as a research and teaching platform for T

    June 27, 2014 1 Photo

  • Farm Credit salutes Rushville FFA graduating seniors RUSHVILLE — Farm Credit Mid-America, an agricultural lending cooperative serving farmers, rural residents and agribusinesses throughout Indiana, Ohio, Kentucky and Tennessee, contributed $500 to support the 2014 Rushville FFA banquet, themed “Legacy

    June 27, 2014

  • Purdue fruit, vegetable food safety course now offered online WEST LAFAYETTE - Purdue Extension is now offering in an online format a course covering food safety practices for fruit and vegetable growers.The course is based on a series of Good Agricultural Practices from A to Z workshops that were given in the

    June 20, 2014