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Sunnyside, WA | Milk processors don't care what the milk price is as long as they can make a profit. I am not looking to the milk processors to help me in any way to make money on my dairy.
I hope milk prices stay somewhat flat as it will take out more cows to beef and set us up for a stable year of milk prices.
I must not know what I am doing, but my breakeven is right at $17. Was $16.70, but with a $.30/cwt assessment from our coop to cover their losses on Class IV milk, I now have a $17 breakeven.
Most of my forages are locked in on price for next year. Some corn silage still unpriced, I don't know where corn is going, but $.85/cwt change in breakeven on milk with every change in corn of $1/bushel is pretty close. I was figuring closer to $.90/cwt
Red ink in dairy started in the West in January 2012. This corn price/drought will only speed up the process. I was never hoping for $3 corn, but did buy some at $5.01. I really thought we might see $4.50 corn, not $6.50 | |
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milk prices
