Slumping dairy prices during an economic slowdown have led one of New York's senators to call for federal assistance. Several area dairy farmers said Monday they welcomed the support.
Sen. Charles Schumer, D-N.Y., has joined other senators in asking the Department of Agriculture to address the recent "price collapse" with regard to how farmers are paid.
The price for 100 pounds of Boston Class I milk for February was $13.97. It was $18.99 in January, with the prices actually received by farmers being several dollars less. The price was at $24.23 in July.
Farmers are being helped by the national Milk Income Loss Contract, which pays them 45 percent of the difference when the price falls below $16.94 a hundredweight. Payments are capped at 2.95 million pounds of milk.
In a letter to Department of Agriculture Secretary Tom Vilsack, Schumer and others asked him to take several steps, including additional purchases of milk powder through the Commodity Credit Corporation and restoration of a program to promote dairy exports.
"Everything is appreciated," said Otego dairy farmer Tony Ellis. "At least (Schumer) is trying. Anything that can be done to help soon would be appreciated."
He and his wife, Marie, milk a mixed herd of about 42. They both have second jobs in order to help make ends meet, he said.
"I'm just squeaking by right now," with the cost of production at about $17.50 to $18 a
hundredweight, he said. "It doesn't look too promising if prices keep going down."
Bloomville dairy farmer Barbara Hanselman said that without some kind of pricing help, many people will be exiting the business. The farm has 60 milking cows, including Holstein and Brown Swiss.
The problem stems from an excess of production compared to demand, she said.
But until something changes, "it will be a rough time," with farmers having to rely on borrowing to make ends meet, she said. Those without equity will have few options, she said.
"Something has to change," agreed Cornell Cooperative Extension of Delaware County educator Mariane Kiraly, and what Schumer is promoting would help.
A worldwide reduction in consumption is one of the factors causing the drop. Although there will be a "fair" amount of farmers leaving the business, others will find a way to work within the prices, she said.
Schenevus dairy farmer John Sears said he was unsure how much longer he could hold on under the current situation. He milks about 45 Holsteins. When prices were up, other expenses, including oil, fertilizer and feed "ate that up," he said.
The initiatives proposed by Schumer might help, but Sears said there has to be a restructuring of prices to more accurately reflect the costs of production in each region. The formula for setting the price is so complicated, he added, it's hard to understand.
With federal MILC sign-ups under way, the price collapse has caused the pace to pick up, said Otsego County Farm Service Agency executive director Bill Gibson. If farmers want to be eligible for February support payments, expected to range between $1.50 and $2 per hundredweight, they can do so through the end of the month.
