Salute to Idaho Agriculture: low dairy prices cause problems for farmers

TWIN FALLS, Idaho (KMVT/KSVT) — Idaho is consistently among the top three producers of dairy products in the entire United States, but this summer near record low prices is the biggest problem for farmers.

Last year’s record high prices fetched $27-28 dollars per 100 pounds of milk, but this year’s number is a total turnaround. Prices are down to $14-15 dollars for the same 100 pounds, and dairy farmers typically need around $21 to break even. This year farm prices are approaching their lowest totals ever.

“This is an extreme dip for dairy, and the worst one in my memory was 2009. Unless things turn around the second half of the year this could be one of the worst years in Idaho dairy industry history,” said Sean Ellis, a Public Information Officer for the Idaho Farm Bureau Federation.

Idaho’s dairy production expenses and total supply have remained similar to last year’s state record. But decreased demand has made this a tough summer for farmers and has forced many of them to dip into equity to stay afloat.

If these prices stay where they are this year, it is estimated roughly ten percent of Idaho’s dairy farms will be unable to sustain business and close.

Unfortunately, with dairy being such a global market there is not much that can be done except wait for the demand to go back up, something that can impact more than just farmers.

“Idaho’s dairy industry is centered in the Magic Valley. The dairy industry has a massive impact on Idaho agriculture, but it also has a massive impact on the state’s overall economy. So, what’s not good for dairy will unfortunately not be good for Idaho overall,” Ellis said.

Be sure to keep in mind that the prices being referred are farm prices, not what you would see in the supermarket. However, with dairy so greatly influencing Idaho’s economy the effects this underwhelming year will have remains to be seen.

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