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Indiana Dairy Producers E-Newsletter
October 9, 2021 
 Issue 158
Our Vision: To Make Indiana the most desirable state in which to produce milk.

Mission Statement
To promote a profitable, positive, professional image of
dairy producers while providing educational opportunities
for the interchange of ideas and to speak as a proactive voice
for Indiana dairy producers.   
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In This Issue

2022 IDP Scholarship

Milk Formula Options

Drug Residue Prevention

Feed Ingredients Update

Dairy Price Trend Overview


I am so glad I live in a world where there are Octobers.” L.M. Montgomery so beautifully expressed how many farmers feel about the autumn season. Busy…yes, but this is the season we reap what we sowed and do it in the magnificent beauty of October. We certainly are blessed!!!!
In this newsletter, we have included articles from feed pricing to milk pricing. In spite of the business of the season, we must keep our eye on markets and the opportunities that they may offer. We also included some good, practical reminders on milk residue compliance. Indiana dairy producers do an amazing job producing high-quality, safe and nutritious milk but that only happens with a constant commitment on the farm. I hope this article will add something to your efforts.
Finally, I ran across an excellent article summarizing the 2018 Class 1 formula change and proposals for improvement. It is estimated that this new class 1 formula cost dairy producers 750 million dollars in 2020. IDP has been engaged with elected officials advocating for changes which would protect fairness in milk pricing. 
The losses of 2020 are unacceptable and the industry is united in this belief. Something must be done to protect and preserve fair pricing. 
I know 2021 has been a difficult year but do your best to see the beauty of the season. This is the season we focus on gratitude for our greatest blessings of the year. You have many…be sure to see them and give thanks!!! 

Steve Obert
Executive Director
Calendar of Events

Upcoming Events

17th: Partners in Success Luncheon
17th: IDP Board Meeting

12th: IDP Board Meeting

8th, 9th, 10th: Regional Meetings

IDP is now taking applications for our 2022 scholarship! Click HERE to learn more.

A Guide to Class I Milk Formula Options

Since the 2018 farm bill, the price for Class I milk, i.e., milk used to produce beverage milk products, has been calculated using the simple average of advanced Class III (cheese) and Class IV (milk powders) skim milk prices plus 74 cents.

Read more
Dr. Debbie Boyd, DVM
No dairy farmer wants to get the call that a drug residue has been detected in the milk sample from his/her farm, and the entire tanker truck of milk has been dumped at the farm’s expense. These calls do occur, but thankfully not very often. In 2015, 17 milk drug residues were detected in Indiana out of over 56,000 tests. In 2020, that number was only seven. However, the goal is for Indiana to be drug residue free.
Preventing drug residues in milk is a daily activity as milk is tested for antibiotics every time it is collected from the farm. Every tanker truck of raw milk is tested at the processing plant before it can be unloaded. If a tanker truck tests positive, the individual farm samples that were collected by the milk truck driver are tested to determine which farm was the source of the drug residue. In addition to these daily tests, farms are also required to submit monthly quality tests to a laboratory where milk is tested for antibiotics in addition to somatic cells and bacteria. These monthly quality tests are done four out of every six months or at least eight times a year.  About 25% of positive milk drug residues come from... Read more HERE
Michelle Robinson, Zeeland Farm Services

Harvest time and the baseball world series come into play this time of year; and many think this is a good time to lock in their feed ingredient needs. Often times this holds true. We are seeing good pressure on the corn and soy futures markets, creating some opportunities to get started to contract some tonnage.
The basis levels are good this time of year, and usually creep up from here, so at least get your tons on basis if you think the CME Futures are not quite at the bottom, or do half priced and half on basis is a good risk management idea. The weather has been above average on temps, however, changes will come, which start to play with the markets.
Soybean meal is in good supply as the oil market demand is strong this year as other oils in the world are not. Futures are lower, finally approaching the $325 avg futures for clock buying; its come down a lot since the highs of $404 back in May. Basis levels are good as harvest gets in full swing. Have your target price and tons ready on basis, to lock in the futures price as it hits.
Soybean hulls also are now in good supply and contracts are offered. With fiber tight in the northern plains and west, there is pressure to stay at current levels in the $160 avg for clock. Read more HERE
As we round out 2021 and head into 2022, let’s take a high-level look at the drivers behind the record volatility we have seen in milk prices and what dairy producers need to prepare for as we move forward. Setting the Stage Since the end of 2020, milk prices have been testing and, in some cases, breaking wide and long-held ranges. For instance, second month Class III milk price (which is generally used to express milk price trading ranges) has been moving largely between 16.00 and 19.50. While Class IV milk was stuck in a trading range between about 13.00 and 14.50 for the second half of 2020, it broke out to the topside of that range in March 2021. Presently, the Class IV market is between 13.00 and 17.35, testing the top end of a larger trading range dating back to late 2014. Read more HERE
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Silver Sponsors
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Individual membership in the Indiana Dairy Producers is $50. Encourage your dairy farming friends to join IDP! Also, any individual who is not a dairy producer but would still like to support IDP can join as an associate member. Download a membership/associate brochure here.  
We appreciate our industry supporters. They make it possible for IDP to support the dairy industry in many ways. If your company is interested in finding ways to join IDP, download an information sheet here.

Visit Our Bronze Sponsors 
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IDP Corporate Sponsors

There is a growing list of companies that recognize IDP's value to Indiana's dairy industry. Please visit our list of companies that have become Corporate Sponsors for only $100. If you know of a company that may have an interest in supporting IDP at some level, please download a brochure here.
Contact Chris Moore
For free insurance consultation and quotes on your farm and agribusiness Insurance needs! IDP members receive an exclusive discount on SECURA Insurance.

Chris Moore

Contact IDP
Indiana Dairy Producers
7826 S 550 E
Fort Branch, IN 47648
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Indiana Grazing &
NRCS Website
Calf Notes and Links
Check out the resources available to you on the 
Purdue University Dairy Extension site: Topics on nutrition, business management, animal health and many more topics related to our dairy industry and animal care