07/24/08 CWT buy out number five

The National Milk Producers Federation says that Cooperatives Working Together received 609 herd retirement bids from dairy farmers in 41 states. Spokesman Chris Galen says CWT will accept about one third of those. GALEN "We have tentatively accepted 209 bids in our current herd retirement program. That's going to result in retiring about 25 thousand cows representing 440 million pounds of milk." Galen says this round of milk reduction will help strengthen the farm level price for dairy producers who struggle with rising feed and energy costs. When they started the CWT buyout program five years ago gasoline was two dollars a gallon, fertilizer costs were lower and corn was two bucks a bushel. GALEN "For most producers who submit bids to CWT its not what the price of milk was last month or what they think the price of corn is going to be in the fall a lot of the decision that goes into this is based on longer term issues. Is there someone available to take over the farm? How long will my knees hold out so I can continue milking cows?" CWT has also accepted bids for 358 bred heifers, a new option this year that Galen says most chose not to exercise. Today's Idaho Ag News Bill Scott