Dairy farms are especially feeling the pinch after back-to-back-to-back years of low milk prices. Data shows 2018 may have been the worst year since the 1980s.
“It’s a 365-day job,” said Charles Krause, of Krause Holstein’s in Buffalo.
Krause’s family has been farming in Wright County for 150 years. He calls the past few years challenging.
“We’re in a period of three years, three consecutive years of below cost of production prices. So one year is not bad, two years – well we made it through that one. Now here’s another one,” Krause said.
U of M researchers found in 2018 the median dairy farm earned less than $15,000, down from $43,000 in 2017.
Krause says most dairy farmers have taken out operational loans to get by. Tariffs from China and Mexico hit the industry hard. Plus, he explains, there’s more supply than demand.
“I think some people are just saying enough is enough,” Krause said.
About 10 percent of dairy farms in Minnesota shut down last year. The Minnesota Milk Producers Association says farms are at risk again this year, so they’re looking to the legislature for help.
“We’re looking for $30 to $40 million one time. We have a farm bill program that if farmers sign up for it should get them through the next five years,” said Lucas Sjostrom, Minnesota Milk’s executive director.
Sjostrom said dairy farmers need a short-term solution to stay afloat.
“We’re in a position to grow. We’re in a position to supply markets, but if we can’t get through the next 12 months individual farms aren’t going to be able to retain that,” Sjostrom said.
While consumers may see lower prices on store shelves for milk or cheese, a vital part of the state’s economy is suffering, and that could have a ripple effect
“When those cows go away, that economic impact that goes to the local feed store, the local veterinarian, the suppliers of products we use every day – that goes away, too,” Krause said.
Prices in the beef and pork industry are also down, according to researchers. Crop farmers saw a slight increase but still saw historically low earnings.
