Tough 2017 For Dairy Farmers

Tough 2017 For Dairy Farmers

Rick Worthington
Rick Worthington
Guarded optimism was the common theme among industry experts regarding 2017 milk prices.

Early in the year, economists predicted that milk prices would rise, but oversupply, increased production and "baggage" from the previous two years tempered excitement over increased prices.

2017 has not been the best year for Dairy Farmers. Ag Banker Ed Coats explains.

"Milk prices typically a filed a 3 year cycle hitting a peak and then and then moderately dropping and then bottoming out in the third year we've kind of seen that that that 3 year cycle is kind of we've had 3 years of somewhat lower prices and likely another year in 2018 of relatively similar prices so that the volatility is while it's leveled off the the the it seems have settled at the bottom the smaller dairies see if they can find a niche similar to organic it's it's it's made it possible for them to kind of work through some of these valve tool prices the larger deer he's obviously trying to use lot of dollars borrow a lot of dollars but with those of Dairy it's about margin what what can I do with prices how can they can they reduce their expenses"

Higher milk prices are being compounded by a lack of available and experienced dairy workers.

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