That’s due to a concerning combination of potentially lower milk prices paired with higher input costs ahead, according to Tasha Bunting, Illinois Farm Bureau associate director of commodities and livestock programs who also serves as IMPA manager.
She outlined IMPA’s priorities for this year on Feb. 1 at the Illinois Dairy Summit in St. Rose.
“Milk prices throughout 2022 remained pretty strong but, from what we’re hearing, they probably won’t stay quite as strong in 2023,” Bunting said. “With rising input costs, feed costs and everything else associated with dairy production, we need to help farmers find ways to keep them profitable and in business.”
USDA’s world ag supply and demand estimates released last month project the all milk price could decline from an average of $25.55 per hundredweight in 2022 to $21.60 this year. The average price estimates in 2023 for Class III ($18.85) and Class IV milk ($19.25) are also down from last year.
“The Dairy Summit gives farmers ways (they can connect with industry experts and fellow farmers) so they can make changes that will directly impact the profitability on their farm,” Bunting said.
“We brought back a farmer panel (at the Feb. 1 event) to talk about how to implement cover crops either on the grain operation side or including the feeding operation for dairy cows.”
But, even after a good year in 2022, the number of dairy farms in the state continues to decline while the average age of dairy farmers in Illinois continues to creep higher, Bunting noted.
“We are still continuing to lose a number of dairy farms in Illinois,” the IMPA manager said. “The cow numbers remain relatively stable.”
USDA’s Jan. 30 cattle inventory report pegged the number of milk cows in Illinois at 79,000 as of Jan. 1, down two percent from last year.
Two other IMPA priorities this year revolve around policy.
“There could be a lot of different things impacting dairy producers from farm bill discussions to a dietary guidelines committee about to start meeting,” Bunting said. “It can really impact the way dairy is represented in a lot of our schools and institutional food programs.”
USDA dietary guidelines currently encourage most Americans to consume three servings of dairy per day. Dairy contains key nutrients including vitamin D, calcium and potassium.
“It seems there’s interest (from the new committee) in maintaining the dietary guidelines. It looks so far to be moving in a positive direction (for dairy),” Bunting said. “We want to make sure dairy stays on the table.”
Looking ahead, IMPA leaders and members will participate this spring in the Illinois Ag Legislative Day, during which they will share dairy facts and information with legislators. IMPA will also host its annual Dairy Tech Tour this summer, although the date and location are undetermined at this point.
This story was distributed through a cooperative project between Illinois Farm Bureau and the Illinois Press Association. For more food and farming news, visit FarmWeekNow.com.
