2021 | Oct 1 Enewsletter
Georgia Milk Producers Weekly Enews
By Progressive Dairy Editor Dave Natzke

The Dairy Margin Coverage (DMC) program set three new records in August: (1) the highest total monthly average feed costs; (2) the smallest average milk income over feed cost margin; and (3) the largest indemnity payments for any month in the history of the dairy safety net program.

The USDA released its latest Ag Prices report on Sept. 30, including factors used to calculate monthly DMC margins and payments. Milk prices moved to a five-month low, while hay and corn prices continued to rise. The USDA’s Farm Service Agency (FSA) put the August DMC margin at $5.25 per hundredweight (cwt), 43 cents less than July 2021 and the smallest margin in the history of either DMC or its predecessor, the Margin Protection Program for Dairy (MPP-Dairy). It marked the seventh straight month in which the DMC milk income margin was below $7 per cwt.

The August payments are on one-twelfth of a dairy operation’s covered annual production history, and DMC payments are subject to a 5.7% sequestration deduction in 2021.

Average milk price dips lower
The August 2021 announced U.S. average milk price fell 20 cents from July to $17.70 per cwt. August milk prices were lower than the month before in 20 of 24 major dairy states (Table 2), with largest declines in Florida, Iowa and Ohio. Idaho and New York posted small increases, with average prices in Arizona and Illinois unchanged. New Mexico had the lowest average milk price in August at $15.50 per cwt. Florida producers were again the price leaders at $21.50 per cwt.

Compared to a year earlier, the U.S. average milk price was down 90 cents per per cwt, with prices down $2 or more in Iowa, Minnesota, South Dakota, Utah and Wisconsin.
New USDA initiative to help farmers address climate change
By Jacqui Fatka, Feedstuffs

Secretary Tom Vilsack outlined key steps to assist U.S. farmers and consumers with current challenges while charting a course toward a long-term, climate-smart future for all of agriculture, in a speech at Colorado State University on Sept. 29. Vilsack announced a new initiative to finance the deployment of climate-smart farming and forestry practices to aid in the marketing of climate-smart agricultural commodities.

Vilsack says USDA is investing in a series of pilot projects, as part of the “Climate-Smart Agriculture and Forestry Partnership Initiative,” which will provide incentives to implement climate smart conservation practices on working lands and to quantify and monitor the carbon and greenhouse gas benefits associated with those practices. The pilots could rely on the Commodity Credit Corporation’s specific power to aid in expansion or development of new and additional markets.

Vilsack says the initiative is “not a carbon bank or a carbon market” although it will be used to empower farmers, ranchers to producers to produce climate-smart commodities and expand on existing conservation practices that advance desired environmental goals.

The new initiative will support pilots that create new market opportunities for commodities produced using climate-smart practices and position U.S. farmers, ranchers and forest landowners as leaders in addressing climate change, says Vilsack. “The pilots will invest in the science, monitoring and verification to measure the benefits of these climate smart practices.” Read more here>>>
The Margin Squeeze: Plan Now for Higher Input Costs in 2022
By Clinton Griffiths, Agweb.com

Inflation set up shop in consumer’s homes during 2021, siphoning funds quietly out of the backdoor. In July, the Labor Department’s Consumer Price Index found costs for apples and milk rose 6% versus the past year. Meat prices were up nearly 11%.

Analysts say farmers can expect the same type of price increases and pressures for crop inputs in 2022. 

“There’s an availability issue, which is going to continue into 2022,” says Samuel Taylor, executive director for RaboResearch. 

Leaders the world’s largest input companies report material and freight costs continue to be high and farmers should expect prices to be up in 2022. Read more here>>>
From Progressive Dairy

The Federal Milk Marketing Order (FMMO) advanced Class I base price moved off a five-month low for October. At $17.08 per cwt, it’s up 49 cents from September 2021 and $1.88 more than October 2020.

Through the first 10 months of the year, the 2021 Class I base price average is $16.48 per cwt compared to $16.50 per cwt in 2020 and $16.64 in 2019.

Looking at calculations to set the Class I base price, the spread between the skim milk pricing factors for Class III ($9.90) and Class IV ($9.93) prices was just 3 cents. The current price formula using the “average of plus 74 cents“ resulted in the Class I price being 73 cents per cwt more than the previous "higher of" price formula, according to National All-Jersey.
Tom Gallagher to step down as CEO of DMI
From Dairy Foods

Dairy Management Inc. (DMI), the Rosemont, Ill.-based dairy checkoff program that drives trust and sales of dairy products on behalf of America’s 31,000 dairy farm families and importers, announced that Tom Gallagher decided to conclude his 30-year tenure as CEO to devote more time to teaching and other opportunities. The board of directors named Barbara O’Brien, DMI president and CEO of the Innovation Center for U.S. Dairy, the next CEO.

DMI said Gallagher and O’Brien will work on a transition plan, and Gallagher has committed his support through the transition timeframe. O’Brien’s knowledge and experience with the dairy industry provide a seamless transition and a steady continuation of the checkoff’s value to dairy farmers.

“I am proud of the success of the checkoff during the past 30 years and the steady foundation it created for future impact, and I am leaving with complete confidence that Barb will continue to drive this success forward in new ways,” Gallagher said. “My work for America’s dairy farmers will always be the highlight of my career.” Read more here>>>

Dairy Market Report - September 2021
Georgia Milk Producers

In this issue:
  • Commercial Use of Dairy Products
  • Dairy Trade
  • Milk Production
  • Dairy Products
  • Milk and Feed Prices

Register Today for the 2021 Georgia Ag Labor Forum
You don't want to miss this outstanding lineup of ag labor experts!
UGA Tifton Campus Conference Center 
Tifton, Georgia 
Tuesday, Nov. 9 - Wednesday, Nov. 10
This year the Georgia Ag Labor Relations Forum will be in person in Tifton, Georgia November 9-10. Hear advice from industry experts to help you comply with labor regulations and get updates about OSHA and DOL in this new COVID world. 

This event is suited for all owners, operators, office managers, personnel managers and service providers for the produce, nursery, landscape, dairy, cotton, and any other agricultural professional dealing with agricultural labor relations. 
Register by October 8 and save $25 on your registration!
Early Bird Price: $225
US-style dairy free-stall barns are making their way to Australia
ABC Rural / By Eden Hynninen

You would typically see cows out in paddocks grazing pastures on traditional dairy farms — but not on Dehne Vinnicombe's property.

The Central Victorian farmer has built a free-stall barn, a permanent structure where more than 700 cows are housed and fed, a system often seen in the United States.

The Calivil farmer has also introduced a closed-loop system that cleans wastewater and even recycles manure as beds for the cows.

"I went to America and had a look at some systems over there. In California, this is what they're all based on," Mr Vinnicombe said.

"The cows are in sections: fresh cows, pregnant cows, and then we flush the lanes three or four times a day. Read more here>>>
USDA Proposes to Reapportion Membership for the National Dairy Promotion and Research Board

The USDA is seeking comments about a proposed rule to amend the makeup of the National Dairy Promotion and Research Board. The proposal would modify the number of Dairy Board members in two of the board’s 12 geographic regions. If adopted, the proposal will increase Region 8 (Idaho) representation from two members to three members and will decrease Region 10 (Alabama, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee and Virginia) representation from two members to one member. The total number of domestic Dairy Board members will remain the same at 36 and the number of regions will remain the same at 12.

The Dairy Promotion and Research Order requires the Dairy Board to review the geographic distribution of milk production volume throughout the United States at least every five years but no more than every three years and, if warranted, to recommend to the Secretary a reapportionment of the regions in order to better reflect the geographic distribution of milk production volume in the United States.

The Dairy Board was established under the Dairy Production Stabilization Act of 1983, as amended, to develop and administer a coordinated program of promotion, research, and nutrition education. The 37-member Dairy Board (36 domestic members and one importer member) is authorized to design programs to strengthen the dairy industry’s position in domestic and foreign markets. The program is financed by a mandatory 15-cent per hundredweight assessment on all milk marketed commercially and a 7.5-cent per hundredweight assessment on milk, or equivalent thereof, on dairy products imported into the United States.

The proposed rule for this action was published in the Federal Register on September 21, 2021. Written comments must be received by October 21, 2021. Comments may be submitted through the Federal e-rulemaking portal at www.regulations.gov or emailed to Whitney.Rick@usda.gov. Comments should include the document number AMS-DA-20-0060 as well as the date and Federal Register page number of the proposed rule. All comments submitted in response to this proposed rule will be included in the record and will be made available to the public.
Other Stories to Check Out This Week >>>
GA Dairy Classifieds


Wednesday October 6, 2021 
12-1 PM ET

Bid Online or On The Phone 

270 AI Bred & Sired Holstein Springers- The Last Of The Herd !

Auction Coordinator:
Clay Papoi 517-526-1917

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