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| I got a phone call at 1 am. the heater in the milk barn wasn't working right. So I went up and turned power/gas off till morning. I can't even remember when I installed it last maybe 12-15 years? So I picked up milk check and opened it and also opened the letter showing milk prices for FO Pacific Northwest and Arizona from USDA for November milk.
So it shows FO 124 Northwest at $19.98, and Arizona at $20.67 for class III milk. We have no Federal milk order here in Idaho/Utah. So the question I have is it was talked of dairies in Idaho hurting milk prices in eastern states in a earlier post. Well ok, so now I look at my milk check and my processor's blend price is $20.72. They have always paid over the stated FO prices in FO 124 and FO 131. But with my premiums for not using BST and other quality I got $22.58 for November. So if we still have a over supply of milk, then why am I getting these prices? I'm sure you guys back east are getting more than me, but I've never looked lately. I'm thinking this is the highest milk price I've ever had if I can recall. I'm sure it's short lived. With the price of hay and other inputs, it's still darn hard to make it work. I've only had about three months of milk price to break even on feed costs alone on $200 hay.
So if there is such a over supply of milk, then why are they building so many new processing plants? Surely if they are losing money and can't sell product why build plants? It just goes to show you how political it is, and darn hard to get anything changed.
I guess I better try to get to bed, got a list of things to repair today.
Edited by Russ In Idaho 12/16/2012 07:15
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Couldn't go back to sleep, questions on milk pricing......
