7 dollar a gallon milk: dairy cliff

[poptab]

Yes its the government massivley ****ing up the situation. The question is are they doing it because they are incompetent or something else.

I have my doubts as to their competence. They might just be extremely competent as well as extremely evil.

 

[Survivalcookie]

How many gallons of milk does someone go through that the price doubling makes or breaks your budget?

We can go through a whole gallon in one meal especially, if the kids have a couple of friends over.

 

[Survivalcookie]

If we were paying the true cost, milk would be lower priced. Government is price supporting milk. The impending price increase is due to a ridiculous government fallback that would make taxpayers bid UP the price.

Exactly....baby formula, went sky high when the WIC program started.

 

[wagyu52]

It is a cascading affect due to the lack of feed for this winter. A shortage caused by the drought and the Govt mandating that a percentage of corn be used for ethanol.

So now you have a shortage of feed corn and a mandate that steers feed used for our food animals to be used as a fuel.

There are already plenty of dairy farms for sale right now, if the propping up by the Govt with subsidies backfires and causes prices to double that will put even more under and that is a good thing. Then in a move to survive you can buy your milk local AND cheap.

It is always better to own the land the animals are standing on then the animals.

Farm commodity prices are not directly influenced by input prices. Farmers are price takers, milk and beef prices did not rise because of corn diverted to ethanol, the drought yes.
A cheap protein source for cattle is the byproduct of ethanol, distillers grain. Lack of forages, especially grass hay, caused many farmers to cull both dairy and beef cows (mothers) this summer. Milk prices are more rapidly effected than beef prices,(calf is 18-24 months from birth to market) the beef shortage has yet to hit the supermarket.
There is a massive explosion of dairy farms in west central Indiana, just drive up I 65 around ST RD 14. Every single new farm in this area is a transplant farm from somewhere else, California, Minnesota, Maine, Wisconsin and The Netherlands.

 

[Mr.Johnny]

I am also a Rice milk drinker. Thats all we have bought for years. But the price of rice milk is higher anyways.

 

[HavokCycle]

Farm commodity prices are not directly influenced by input prices. Farmers are price takers, milk and beef prices did not rise because of corn diverted to ethanol, the drought yes.
A cheap protein source for cattle is the byproduct of ethanol, distillers grain. Lack of forages, especially grass hay, caused many farmers to cull both dairy and beef cows (mothers) this summer. Milk prices are more rapidly effected than beef prices,(calf is 18-24 months from birth to market) the beef shortage has yet to hit the supermarket.
There is a massive explosion of dairy farms in west central Indiana, just drive up I 65 around ST RD 14. Every single new farm in this area is a transplant farm from somewhere else, California, Minnesota, Maine, Wisconsin and The Netherlands.

this years crop was sold way before we saw $8 corn tradings. im unsure if youre implying farmers are getting rich off the current exploited market.
farmers will NEVER see the profits from this inflated market. they'll pay the price first, this spring, from the inflation of production costs. of all the people that make money in putting food on your table, farmers will get ****ed in the ass in doing the most, more than you as the consumer.

 

[wagyu52]

this years crop was sold way before we saw $8 corn tradings. im unsure if youre implying farmers are getting rich off the current exploited market.
farmers will NEVER see the profits from this inflated market. they'll pay the price first, this spring, from the inflation of production costs. of all the people that make money in putting food on your table, farmers will get ****ed in the ass in doing the most, more than you as the consumer.

I am a farmer and know all to well what input costs are doing and have been, farmers need $8.00 corn just to survive. Inflation is alive and well in the agricultural industry.

 

[Zoub]

Farm commodity prices are not directly influenced by input prices. Farmers are price takers, milk and beef prices did not rise because of corn diverted to ethanol, the drought yes.
A cheap protein source for cattle is the byproduct of ethanol, distillers grain. Lack of forages, especially grass hay, caused many farmers to cull both dairy and beef cows (mothers) this summer. Milk prices are more rapidly effected than beef prices,(calf is 18-24 months from birth to market) the beef shortage has yet to hit the supermarket.
There is a massive explosion of dairy farms in west central Indiana, just drive up I 65 around ST RD 14. Every single new farm in this area is a transplant farm from somewhere else, California, Minnesota, Maine, Wisconsin and The Netherlands.

Great points but the circle continues on, more like a spiral, because we subsidize ethanol. So that cheap protein source is not so cheap in the big picture.

So when ethanol collapses, and it is already starting to fail in Indiana, what happens to the transplant farmers? I assume they moved to Indiana to be close to this cheap source? Is that correct? Plus Indiana just being a more business friendly environment.

I have worked on a Dairy farm and in a Meat Department so I have seen both as well. Both are over regulated by Govt.

PS Former Pioneer Panther here, I know 14 & 65 well

 

[Zoub]

If I were going to make money off the land in the coming decade or two I would do these things:

No livestock except for personal consumption.

Not grow corn, except for my own livestock.

Grow things the Chinese like.

Grow things that go into vices and addictions, like beer and wine.

Of course I say this having made these decisions already. My own opinion is no one gets screwed like the corn farmer. He sees very little of the profits generated from the sector for which he is the foundation.

 

[draftyranger]

They dont have to ban guns! After the taxes and inflation, I will be to broke to buy or shoot any guns! I used to eat alot of cereal because it is cheap! Not any more!!!

 

[bsoberg]

If we dont buy it they will have a bigger problem at $7.00 a gal they can keep it hope they can pay there bank with milk.

 

[ViperJock]

Well, I was at the store tonight and milk was still $3.50 a gallon so I bought 600 of them and put them out in the snow to keep them cool. In a week, I'm gonna sell them at $7 WOOOT! OK, J/K but seriously, if my wife had let me....

 

[THard6]

I'm sure it is. But I pay that whether I buy milk or not. If the free market were allowed to work, those who use milk would be made to pay the cost of producing it.



I don't drink a gallon of milk in a year. I rarely eat cereal. A gallon of milk usually goes bad in my house before its gone. Even a gallon a day at an increased cost of $4 per gallon is under $30 a week. Water is free.

i believe you most likely pay a water bill...

 

[hornadylnl]

i believe you most likely pay a water bill...

Not unless the nearest municipality 5 miles away has trenched a water main out here.

 

[THard6]

Not unless the nearest municipality 5 miles away has trenched a water main out here.

i guess i didn't take into consideration you living in the sticks! but you catch my drift. NOTHING in the world is free. someone dug the well you get your drinking water from and it most likely wasn't free

 

[hornadylnl]

i guess i didn't take into consideration you living in the sticks! but you catch my drift. NOTHING in the world is free. someone dug the well you get your drinking water from and it most likely wasn't free

The electricity to pump it isn't free either. But I'm certainly not paying $7 a gallon to drink it. It just amazes me that people will spend large amounts of money on things they don't need and then think the world is going to end when necessities go up a nickel. One poster stated they drink a gallon a day. That's $210 a month at $7 a gallon. I spend roughly that for 2 iPhones an directv. People ***** about $3 gas and walk into the gas station to pay a buck or more for a bottle of water. People paid over $10 for a beer at the Super Bowl. But when necessities go up, something must be done to stop it.

 

[THard6]

The electricity to pump it isn't free either. But I'm certainly not paying $7 a gallon to drink it. It just amazes me that people will spend large amounts of money on things they don't need and then think the world is going to end when necessities go up a nickel. One poster stated they drink a gallon a day. That's $210 a month at $7 a gallon. I spend roughly that for 2 iPhones an directv. People ***** about $3 gas and walk into the gas station to pay a buck or more for a bottle of water. People paid over $10 for a beer at the Super Bowl. But when necessities go up, something must be done to stop it.

+1

 

[eldirector]

Well, we go through about 1.5 - 2 gallons of milk a week around here. A gallon of whole for my little girl, and a gallon of 2% for my wife. I can't drink the stuff.

$4 won't break me, but it will have to come from somewhere. Like most others, we'll take a little more from column A to fund column B. Long way to go until the "breaking" point, but food and energy cost increases aren't unnoticed.

 

[PeaShooter]

I easily go through a gallon a day. It is my soda, setting aside cooking, cereals etc.

If i drank that much, no one would be able to live in the same neighborhood with me. (lactose intolerant)

 

[CarmelHP]

The electricity to pump it isn't free either. But I'm certainly not paying $7 a gallon to drink it. It just amazes me that people will spend large amounts of money on things they don't need and then think the world is going to end when necessities go up a nickel. One poster stated they drink a gallon a day. That's $210 a month at $7 a gallon. I spend roughly that for 2 iPhones an directv. People ***** about $3 gas and walk into the gas station to pay a buck or more for a bottle of water. People paid over $10 for a beer at the Super Bowl. But when necessities go up, something must be done to stop it.

You do realize that this is a completely government induced market distortion, don't you? The federal government will force taxpayers to be bid up the price of dairy products for a double whammy to those same taxpayers/consumers. Damn right something should be done about it.