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    A Life Cycle In Dairy

    Years ago my father told me that farmers were special people, I understood that being the first to rise and last to retire while accounting for detail throughout the night was more of an obligation than an effort, and I understood these people were driven by instinct and not compelled by duty.
Today, with full plates before us, we have an opinion about what others should do, or should have done to improve economics in the rural community across America. Farmers assume a great deal of responsibility through an investment of time and capital, they assume a great deal of liability which often proves uncomfortable to those involved and ultimately recognizes the nature of an individual known to us as the farmer.
    I have watched dairy policy in this country spin out of control and result in prolonged periods of dismal economics, it has tempered the life of farm families for well over 50 years; I have yet to understand why our lessons in history have to be recounted through repetitive practice, really, it seems redundant and irresponsible. Economics for the dairy farmer over those many years have resulted in a continued loss of prime agricultural land to other forms of development, we have witnessed a decline in economics and diversity in rural America, national policy which relies on a farmer to work for less than nothing while his counterparts post a profit is recognized I am hopeful that before it's too late farmers will demonstrate enough influence over national policy to recognize and correct a system which has continued to prove itself to be a detriment to the producer sector. Typically, national policy relies on expert testimony, it recognizes those with a thumb print as most credible; a good practice except when we become so bold as to ignore the knowledge, talent and instinctive nature of those who feed us.
     Now, we come to the matter of identifying problems within the industry itself and reconciling our differences in order to move forward in a more productive manner. The dairy producer lacks effective tools designed to control over production as markets begin to recede, the signal to the farm is produce more milk in order to maintain cash flow, and when the market improves, the signal is to produce more milk to make up for losses during the downturn ; the cycle however is repetitive and subsequently increases volatility.
     Rather than utilize a management tool which recognizes oversupply, the U.S. Dairy industry relies on export markets to balance it's supply with demand, when markets recede a continued high level of production builds inventory and deteriorates pricing.
     International Dairy Foods Association ( IDFA ) represents the processor sector of the dairy industry and encourages market over supply to ensure a depressed milk price ( raising the price of milk by $ 1 per hundredweight is an increased expense of $ 1.8 billion per year to processors ) , if market over supply isn't responsive enough, diluting the market with imported milk or milk products helps to assure an ample supply of cheap milk. The deceptive practice of importing a dairy product into this country which has been either altered or disguised in order to avoid import tariff regulation and tax, also goes unaccounted toward it's intended use as a result of accepted practice. Imported milk products and or ingredients which displace our domestic supply come at an expense to U.S. Dairy producers, this is particularly disturbing when imports are held to a lower quality standard than domestic products. The question of milk quality is another issue which has not been properly addressed, product certified at a plant as Grade A does not mean quality at the farm was acceptable, it implies that it was but that is not necessarily the case, milk identified as substandard due to bacteria counts, antibiotics, or other quality problems can be co mingled with a larger volume of acceptable quality milk in order to meet the required standard. In light of quality standards, import regulations, and observing generally accepted rules of fair practice, all outward appearances would suggest American dairy farmers appear to be at a disadvantage in the marketplace.