“Oh my. Good Lord. Someone pour me up a double shot of whiskey.”

Those were not the exact words that my husband spewed when looking over the last milk check he opened up, but let me tell you he wasn’t thrilled.

My guess is neither were any of you.

Yes, we are keeping a close eye on milk futures that are showing a glimmer of hope, but let’s be honest, something has to give. When I look at the milk price history for our farm which dates back to 2010, I just shake my head. I’ve always said to be a dairy farmer you must be passionate or crazy.

A decade ago, in 2014, our milk check’s final pay (net) averaged $30.30 for the year. Last year, it was a mere $24.22. I just think of how much input prices have risen in the last decade and how much less milk is worth today.

Something must give.

We are shipping more than 3.5 million more pounds annually, but only netting a half million more. Then deduct all the expenses, well, you all get the drift.

Good lord. No wonder farms are selling out.

I used to believe that $20 milk is what it takes to rock and roll. To cover our expenses and to have some dollars left to make capital purchases. What is the new break-even cost? I know that drastically depends on many different variables, but I can guarantee that it’s not $20 any longer. Even with feed prices dropping year-over-year.

For us, adding that income line of beef-on-dairy certainly helps. To be truthful, a few years ago we took out our bull check income line. It seemed to not add up too much, after all, Jersey bull calves are not a high-dollar ticket item and could be categorized as miscellaneous income. We now have a waiting list for beef cross calves and as crazy as it sounds, we are getting $150 for our Jersey bull calves.

I don’t think we need a double shot of whiskey, but a deep conversation is needed to strategically figure out how to generate income away from milk because that might be what it takes to stay afloat and to get through 2024.

You can now read the most important #news on #eDairyNews #Whatsapp channels!!!

🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K