Yesterday, I had the opportunity to meet with over nearly 50 people on a family farm south of Montgomery. These family farmers expressed real concerns about staying in business and their ability to make a living as dairy farmers. They are typical of the more than 60,000 dairy farms in the United States that have been cutting costs, selling off their cows, or leaving the dairy business altogether as milk prices plummet while dairy farm operating costs remain uncomfortably high.
Representative Laura Brod, myself, and a representative from Congressman John Kline’s office listened to the concerns of area farmers as they asked what could be done at both federal and state levels. The problem certainly stretches beyond the state borders. Nationwide, milk prices are down more than 50 percent from last summer after hitting all-time highs in 2007 and notching the second highest prices on record in 2008.
Analysts expect milk prices to remain depressed through at least the first half of the year, and prices later this year may only be high enough to cover production costs. Several farmers on hand described the problem in simple terms – too much milk and not enough demand for it. While suggestions ranged from: cutting production to federal or state intervention in milk pricing, all agreed that the issue needs to be addressed and the sooner the better. The family farm is just as important to our economy as the businesses on Main Street or the factory in town. They are all vital to each other’s success.
I intend to dig into this issue and will be listening to our rural community as they offer input and suggestions to addressing a real crisis. Our family farms in Minnesota and across the United States deserve our attention.