Tag Archives: Money

The Minnesota Milk Producers Association introduced its Dairy CORE Program, which stands for Coronavirus Recovery. They say the program will get right to the heart of the industry’s biggest challenge, which is dairy farmers need cash to continue their operations.

Some members of the dairy industry recently proposed to temporarily alter the Federal Milk Marketing Order System. The Minnesota farmers point out that everyone in the industry wants higher milk prices, but arbitrarily bumping prices to a made-up number could cause more harm than good. The people who buy milk at the processing plant, as well as at the store, may decide they no longer need to buy it.

They also point out that while raising the Class 1 milk price would benefit dairies with Class 1 milk, the farms without milk in the Class 1 category would get left behind. Important parts of their CORE Program include distributing Coronavirus Food Assistance Program payments as quickly as possible. They want the Federal Milk Marketing Orders to stay where they are.

They’re also calling for raising or eliminating the cap on direct payments. They say the current payment caps are out of touch with the risk undertaken by even the smallest of dairy operations.

An analysis released by the National Corn Growers Association shows cash corn prices have declined by 16 percent on average. Several regions are experiencing declines of more than 20 percent, since March 1, as a result of the COVID-19 pandemic.

The analysis projects a $50 per acre revenue decline for the 2019 corn crop. NCGA commissioned the economic analysis, conducted by Dr. Gary Schnitkey of the University of Illinois, to better understand the economic impact of the global pandemic on the corn industry. Schnitkey writes in the study, “Corn will be one of the most impacted crops as its two largest uses – livestock feed and ethanol – are under pressure.” NCGA will use the data to create solutions to help corn farmers and their customers recover.

The analysis was based on cash corn prices as of mid-April and estimated losses would likely increase through the rest of the marketing year. Further analysis is already underway for the 2020 crop year, with losses anticipated to be higher than those in 2019.