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northeastern Ohio | I would certainly love to have a crystal ball and predict the future....
I would not count on $25 milk anytime soon. Class 3 CME futures are running $12 to $14 for the next six months. I suspect that they will stay in that range for the next couple of years. The economy needs to improve to see consumption and exports increase.
Feed prices have not dropped a lot yet in my area. Hay prices have slipped a little due to the decline in the horse market, but dairy quality hay is still bringing a premium. Soybean meal is still at $400/ton. Corn price is about half of where it was last year and that will definately help those who are buying (we grow our own, so input cost needs to come down some more to see some relief).
I think dairying will be start to be profitable again after harvest if you take advantage of the low harvest prices to purchase your feed. Soybean meal is $100/ton cheaper after October 1st at our local mill. Corn is 30 cents a bushel cheaper in December than it is now. It may get even cheaper if harvest goes well....
Lock in feed cheap, lock in milk high, and enjoy the good life of dairy farming!!! :) | |
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Starting a Dairy
