2021 | July 30 GMP E Newsletter
Georgia Milk Producers Weekly Enews
From Progressive Dairy

Slightly lower overall feed costs were more than offset by a decline in milk prices, translating into June 2021 Dairy Margin Coverage (DMC) program indemnity payments that will be the second largest of the year.

The USDA released its latest Agricultural Prices report on July 30, including factors used to calculate monthly DMC margins and payments. Based on preliminary estimates by Progressive Dairy, the June DMC milk income over feed cost margin is $6.24 per hundredweight (cwt), 65 cents less than May, the second lowest of the year and the fifth straight month in which the margin was below $7 per cwt. Read more here>>>
EPA Announces Plans to Revert Back to Pre-Obama WOTUS Rule, Public Input Meetings Set for August
By Tyne Morgan, Ag Web

EPA announced the Biden administration is proceeding in its effort to craft a “durable definition” of Waters of the United States (WOTUS) on Friday, and EPA wants farmers and ranchers to provide input as the agency works to create the rule.

EPA says the agency is reverting to the WOTUS rule dating back to before the Obama administration changed the definition, which caused an uproar for agricultural groups who said the rule had expanded to create too loose of a definition. The pre-Obama era rule, which EPA says had been in place for decades, will be the basis of crafting the new rule. Along with the U.S. Army Corps of Engineers (USACE), EPA says the administration will get input from various stakeholders, including that from agriculture, and from there, it will propose revisions and changes to WOTUS. Read more here>>>
Producer Milk Pricing Fundamentals are Concerning.
From John Geuss, MilkPrice Blog

This post will update the status of the commodities that are used for or influence the pricing of producer milk. It will cover the following:

  • Cheese production and inventories are very important as they are key in determining the price of cheese and in turn, the Class I and Class III skim milk prices and the value of milk protein.
  • Butter production and inventories are very important as they are key in determining the value of butterfat in milk.
  • Nonfat Dry Milk (NDM) determines the Class II and the Class IV skim milk prices and half of the Class I skim price. The combined impact of NDM is very significant.
  • Dry Whey production and inventories are key in determining the value of dry whey and in turn, the price of "other solids" for Class III pricing.
  • Milk production is key to determining the future pricing of cheese and butter. When milk is plentiful, commodity inventories will swell, and prices will be lower. This post will start with the most recent data on milk production. The growth of milk production is a leading indicator of producer milk prices and currently it is the most troubling parameter for producer milk prices.

Milk production is reaching record levels. Chart I graphically shows the increase based on 12-month moving averages. While the 12-month moving averages are best for seeing long-term trends, the most recent monthly increases in milk production are indicators of how robust milk production is currently. For the last two months the increases vs. the prior year were 3.5 percent and 4.6 percent respectively. These increases are well above the needed supply of milk to match domestic consumption and exports. Excess milk is often used for cheese as the cheese can be stored for a longer time. This can inflate cheese inventories and lower prices. Read more here>>>
Got milk? Fluid milk volumes continue to decline, despite covid retail bump, but it’s not terminal, insists MilkPep
From Elaine Watson, Food-Navigator.com

The pandemic prompted the first positive growth in US retail volumes of fluid dairy milk for years (+2.1% in 2020). However, a corresponding drop in away-from-home consumption meant overall volumes were flat (-0.1%) in 2020 and are predicted to drop -4.5% to -5% in 2021, continuing a decades-long decline. Read more here>>>
Progressive Dairy Editor Dave Natzke

The USDA’s Agricultural Marketing Service has received a petition to amend the Federal Milk Marketing Order (FMMO) system. The request doesn’t, however, have to do with the “Class I mover” pricing formula generating so much discussion this year.

In the petition, Mark Lamers, president of Lamers Dairy Inc., Appleton, Wisconsin, requested that small Class I distributing plants (those with sales of under 3 million pounds of milk per month) be exempt from FMMO pooling obligations.

A similar exemption, approved in 2010, is already provided to producer-handlers with route sales of under 3 million pounds per month. Current FMMO regulations require all Class I distributing plants whose monthly route distributions sales are above 150,000 pounds to participate in the pool.

Lamers was supported in the request by several other smaller milk handlers, including Ronnybrook Farms, Ancramdale, New York; High Lawn Farms LLC, Lee, Massachusetts; Broadacre Dairies, Powel, Tennessee; Calders Brothers Dairy, Lincoln Park, Michigan; Snowville Creamery LLC, Pomeroy, Ohio; Farmers All Natural, Wellman, Iowa; and Toft Dairy Inc., Sandusky, Ohio. Read more here>>>
Scouting and Planning for Fall Armyworms
From UGA Forages
Do you have a plan for fall armyworms? There have been a few isolated cases in Georgia this past week so get your sweep nets ready and start scouting!
Dairy situation analysis: What’s up with milk
By Sherry Bunting, Farmshine, July 2021

Record high milk growth vs. record high losses, dissected

The dairy industry continues to wait for USDA to provide details on three areas of dairy assistance already approved by Congress or mentioned as “on the way” by Ag Secretary Tom Vilsack.

The fly in the ointment, however, is the record-high 2021 milk production (Table 1) and accelerated growth in cow numbers (Table 2) at a pace the recent USDA World Agriculture Supply and Demand Estimates (WASDE) expect to continue into 2022.

USDA is reportedly looking at production reports — up vs. a year ago by 1.9% in March, 3.5% in April, 4.6% in May — to determine how to assist without adding fuel to expansion that could threaten late 2021 milk prices in the face of rising feed costs and a worsening western drought. (The latter two challenges could temper those forecasts in future WASDEs. Read more here>>>
April 2021 Dairy Market Report

Positive aspects of the current U.S. dairy industry situation outlook include a 4.7 percent annual increase for total commercial use of milk in all products, domestic and export, during March–May, when measured on a milk equivalent of total solids basis. Of total use, domestic use was 1.9 percent higher, while exports grew by over 19 percent. Although many year-over-year comparisons are currently less informative than usual given last year’s pandemic, growth in total commercial use exceeded growth in both milk and milk solids production during the March–May period. That growth, plus the heat and drought situation in the western states, should start to improve milk prices and margins, although the current situation continues to reflect higher production earlier in the year. Read here>>>
Is Risk Management Worthwhile?
By Robin Schmahl, Dairy Herd Management

The past two weeks have not been positive for milk prices based on what has transpired in underlying cash prices. Weakness has turned price significantly lower once the spike high was set on July 14th after an emotional price increase in cash cheese ran its course. The result was that both barrel cheese and Class III futures moved to new lows. Now, it may take a monumental effort to move milk futures higher even if underlying cash increases for a few days or possibly even longer.

There has been the anticipation and still is that the heat and drought conditions that have been prevalent so far this growing year will have a significant impact on feed prices and thus on milk prices. Escalating feed prices could then have an impact on milk production as culling may increase which would reduce overall milk production and tighten milk supply. There is also the anticipation that demand for dairy products would continue to increase as restaurant traffic improves. There has also been the anticipation that strong exports of dairy products would limit inventory growth. All of these things are taking place, but so far have not had the impact on milk prices that have been anticipated. There still is a lot of time is which any, or all, of these might have an impact. However, continued strong milk production has been able to satisfy demand for both bottling and manufacturing.

The one thing we can be certain about and that is uncertainty. That is why it is important to implement a marketing program to protect milk prices against periods of lower prices. Yet, it seems difficult to many producers to utilize the tools available to accomplish that task. One of the recent tools that has been made available is Dairy Revenue Protection insurance. It is an insurance product that is similar to any other insurance that is purchased with the exception that it is purchased on a quarterly basis rather than on a yearly basis such as crop insurance. Read more here>>>
‘Climate neutrality is within reach for the US beef and dairy sectors’
By Jane Byrne, Feed Navigator

In a recently ran UN Food Systems Summit Independent Dialogue, UC Davis experts talked about how US beef and dairy sectors can be climate neutral. They said the question is: How soon? Read more here>>>
From Progressive Dairy

Dairy workers in Washington must receive overtime pay after working more than 40 hours in a work week under a new state law that took effect on July 25.

In a 2020 ruling in Martinez-Cuevas v. DeRuyter Brothers Dairy, the Washington State Supreme Court ruled for workers who challenged an ag worker overtime requirement exemption under the state's Minimum Wage Act. Following the ruling, the Washington State Legislature created a law removing the agricultural exemption.

Requirements for overtime pay for nondairy agricultural employees are phased in beginning on Jan. 1, 2022. Currently, agricultural workers, including piece-rate workers, must earn at least $13.69 an hour in 2021. Overtime pay must be at least 1.5 times the employee's regular rate of pay.
Other Stories to Check Out This Week >>>
GA Dairy Classifieds


Looking for calves for 200 head calf barn with auto feeders in Arcadia
FL: Please call Brian 863-444-0060

Delaval meters, Germania entrance and exit gates with tailboards and indexing tail, Muller plate cooler, receiving jar, filter housing and lowline stainless pipeline. Serious inquiries call 864-617-5911, Iris Barham
Expanding or looking for top quality herd replacement?
Available at all times: 
Fresh two and three year old's and total herds; Also springing heifers and heifers of all ages.  Service age bulls with top genetics available all year round. All different breeds and crossbreds also available. Last two loads of fresh two and three year olds Holsteins went on the trucks averaging 115 lbs and 112 lbs! One load to TN and the other to Wisconsin.
Les McCracken 
608-214-6484. Cell
608-879-2653. Fax

Seeking fulltime farm worker at heifer replacement farm in Eatonton, GA. If interested, please contact Mike Rainey at 706-473-0730.

Seeking Beef and dairy crossed bullcalves/heifers bottled or weaned. Please contact Victoria Rowland at 404-922-0938 or 423-946-5869

Will Raise Heifers for GA Dairy Farms: Hello we are located in Southern Illinois and have an abundance of pasture and cheap feed available looking to contract with a dairy to grow heifers for them, out location offers mild climate and we are just 558 miles from Montezuma Ga. Please contact 817-528-6645 very reasonable daily rates.

For Sale- DeLaval 84 Vacuum Pump on Stand, Oil Reclaimer, 10 HP- 3 Phase Electric Motor. New Bearings, New Oil Seal, New Belts. $2000
For more Information Call Tony Strickland , 229-254-6871; deepsouthai@gmail.com

For sale - Please contact Archie Felder for more information at 803-682-3426:
  • Dairy Tech Bay Pasturizer - $4,000
  • Tidenberg Hydraulic Hoof Table (like new) - $5,000
  • Claas Silage Choppers - 960 1875 cutterhead hours, 4WD, 600 orbis, HD300 PU - $180,000
  • Koomin John Deere Corn Header adapter for Claus Silage Chopper Used - $6,000
WANTED: Peter's Cattle Co. will buy any dairy, beef, and cross, bottle or weaned, bulls, heifers or free martins. Pick up weekly 7 days a week. Chris- 470-255-8515
Bull Calves WANTED:  Competitive pricing with 6 day a week pickup. Brandon Mason Cattle Company 912-632-4490

FOR SALE :  We have a continuous selection of fresh and springing heifers.   Call William at   (706) 768-2857  or visit our website at   crumpdairyreplacements.org