Dairy farmers face problems for '03
Dairy farmers will face problems during 2003 due to dismal milk prices and continued increases in production costs, Purdue University researchers said.
"Milk prices have been at low levels for almost a whole year," university dairy specialist Mike Schutz said. "It doesn't look like there will be any relief until late this summer. Some dairy producers will have to evaluate their operations and determine if they should stay or if they should look elsewhere."
Officials with the West Lafayette, Ind.-based university said overproduction of dairy products during 2002 is responsible for the decline in this year's prices.
"Dairy really suffered from major increases in production in 2002," said agricultural economist Chris Hurt. "That production wasn't consumed because of weaker demand.
"This built up dairy product inventories," Hurt said. "As a result of those inventories, we're going to see substantial price depression for milk during 2003."
Agriculture Department officials have said they would expect a slight price hike during the summer for Class III milk, which is used for cheese. Other milk prices are expected to remain low throughout the year.
Schutz said that predicted prices are not high enough to cover production costs on some farms, which may result in some dairy farmers -- those with between 200 and 400 cows -- having to get out of the business altogether.
Farms with smaller herds will benefit from new program payments called for under the new farm bill. Larger farms can spread their production costs over more cows, and often have substantial credit with local banks so as to be able to manage through tough times.
Officials said many dairy farmers will have to evaluate their operations and determine if their strengths make it worthwhile for them to remain in business.
Wis. tries to promote dairy w/ cash cows
When Chicago put "Cows on Parade" with scores of colorful and fanciful reproductions of the beasts, everyone laughed and said, "What a great idea."
Now, the Wisconsin Milk Marketing Board is taking the idea one step farther. It has a couple of "cows" mounted on flatbed trucks touring the state. These "cows" are "dressed" in reproductions of $1,000 bills. The idea is to carry the message: "Wisconsin's state capital -- Milk means $18.5 billion a year to Wisconsin."
But the primary purpose of what the dairy editor of Wisconsin's weekly farm newspaper, Agri-View, calls "this mooooving BILL board" is to educate the fourth-graders in the public schools being visited on their 12-week trip.
The board has several more billboard trucks in the works, some aimed at city consumers beyond school age. One, for example, is to show the skyline of Milwaukee with a big dairy barn in the middle.
(by E.W. Kieckhefer)
Feds to fund wastewater projects
The Agriculture Department will provide $3.2 million in grants and loans for Minnesota to help pay for water and wastewater facility construction and repair projects.
Money is to support projects in Franklin and Revere, with officials saying the projects will boost local economic growth and job creation, while also eliminating environmental and health concerns.
Agriculture Secretary Ann Veneman said the projects, "will help rural families in Minnesota develop and build water and wastewater projects to meet the needs of the communities."
Australia drought to be worst in years
The Australian Bureau of Agricultural and Resource Economics said this year's drought is causing the current growing season to be one of the worst years ever for grain farmers.
Officials said cotton lint production will be at 262,000 tons, or about one-third of last year's total. Rice projection will be about one-quarter of last year's, while sorghum production will be about a third.
Wheat, barley, canola and lupins also are down significantly from last year. Bureau Director Brian Fisher said pre-sowing rains were "disappointing" and hot dry conditions continuing into this month are devastating to crops.
Farmland to sell fertilizer assets
Kansas City, Mo.-based Farmland Industries will sell its nitrogen fertilizer assets to Koch Nitrogen Co., based in Wichita, Kan.
One agreement includes selected Farmland domestic fertilizer assets, while the other, Farmland's share of Farmland MissChem Ltd., owns an ammonia plant in Trinidad and Tobago.
The sale price is $270 million. It includes about $190 million cash for the facilities and Koch Nitrogen's assumption of $79.1 million of Farmland debts.
Grains futures mixed on CBOT
Grain futures were mixed at the close Tuesday on the Chicago Board of Trade.
Traders reacted negatively to forecasts for wet weather conditions throughout the Midwest that could boost the size of corn and wheat crops, pressuring all commodities. Soybean prices were tempered by word of a recent purchase of U.S. soybeans by China.
The prices:
Soybeans: Mar 5.74 up 1, May 5.73 1/2 up 1/2, Jul 5.71 1/4 up 1/2, Aug 5.62 1/2 up 1/2.
Corn: Mar 2.38 1/4 off 2, May 2.41 1/4 off 2 1/4, Jul 2.43 1/4 off 2 1/4, Sep 2.42 3/4 off 1 1/2.
Wheat: Mar 3.35 1/2 up 1 1/4, May 3.32 1/2 up 1/4, Jul 3.21 1/4 off 1 1/4, Sep 3.25 off 1 1/2.
Oats: Mar 2.10 1/4 off 3/4, May 1.97 up 1/4, Jul 1.85 1/2 up 1/4, Sep 1.69 1/4 off 1/4.
