Smaller profits predicted for dairy in 2011; important deadline for conservation programs
Washington Ag Today March 2, 2011 Even with huge increases in feed costs and energy expenses; Hoskins: “2011 could be a successful year for many U.S. dairy producers.” That was USDA dairy analyst Rodger Hoskins speaking at the department’s Outlook Forum. He said that while many dairy operators will be successful this year they are also going to see net incomes squeezed. Hoskins forecasted much higher milk prices, the all-milk price could average over $18 a hundredweight compared to about 16.30 last year. However, you have the feed costs going up to what he called exceptional levels. So; Hoskins: “It is unlikely that the increase in milk prices will fully offset the increase in feed costs.” So net income for milk producers will fall by about 13 percent this year. Hoskins: “But despite the decline the forecast net cash income for dairy farmers, if realized, would be the third highest since 1996.” High enough to have dairy producers bringing more cows into production this year producing about two percent more milk. The Washington state office of the Natural Resources Conservation Service says this Friday, March 4th is the cut-off date to receive funding under several USDA conservation programs. They include the Sage Grouse, Wildfire, CRP Take-out and organic initiatives and the Farm and Ranch Land Protection Program and the Wetland and Grassland Reserve programs. I’m Bob Hoff and that’s Washington Ag Today on Northwest Aginfo Net. ?
