Milk Checks & Misc.

This morning started out with another bull calf.  We had hopes of a couple more special cows passing their drug tests but in the chaos of getting out of here today we forgot the samples.  Oops : (   Today was another day of appointments in town and a "farmer date".

Yesterday was milk check day.  Our price is based off the class III milk price but this is the check in which we get paid for the balance we have coming for our January milk.  Every load of milk that leaves our farm is tested for drug residues, butterfat, protein, solids and somatic cell count.  Twice a month a random sample is also checked for bacteria's that monitor our sanitation process for prepping cows before milking and our pipeline washing system.  We are paid based on pounds of butterfat, protein and solids.  At times there has been a deduction for solids depending on what the markets are for this product.  If our somatic cell count goes too high there is a deduction for that but there is also opportunity for premiums if we keep it low.  This check also includes bonuses based on volume, quality, zone differential and our sanitation reports.  Since this all varies from month to month, the easiest comparison is the class III base.  This month that base price is $13.48.  That translates into $1.16 per gallon.  Premiums add approximately $ .50 to that.  Within the last 15 years the highest price was in 2008 at $19.32 and the lowest was in 2003 at $9.78.  In 1996, the first year in this history it was $12.73.  I will post this information monthly.  The price volatility in recent years has caused tremendous financial losses, the worst being in 2009 when the prices were as low as $9.31 while the costs for fuel, seed and feed skyrocketed.

With our warm weather the fields are really starting to come out of the snow.  This will be helpful since the barns and yards are thawing and we can spread manure directly where it needs to go.  As small as we are, we are firstly caretakers of animals that provide our living.  In doing that we are agronomists that grow crops as feed and are responsible for the soils and fertility that make that happen.  We are also environmentalists, always aware that this is our land.  Our water source is in the center of it.  We are constantly aware of the issues of run off, chemical use and soil erosion.  Balancing all this with weather, limited labor and growing seasons can be a challenge.  Every year is different because the weather is unpredictable and for some odd reason we go into every spring with an optimism for a new year.