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Many dairy farmers in US bury battle axe

25 February 2020 - Jorine Cosse - 10 comments

President Trump's promises to 'his' agricultural sector have not stopped a large number of dairy farmers from giving up milking. Last week, the United States Department of Agriculture (USDA) released current figures on the number of registered dairy farms in the United States (US). This number showed a significant decrease over 2019.

A total of 3.281 American dairy farmers buried the hatchet. Family businesses in particular are no longer able to keep their heads above water. The financial pressure is too great. Where before 1970 there were still laws that curbed mass production, this is no longer the case. These laws ensured that sales were regulated per company, so that the farmer got a good price for his products.

That is no longer the case today. After 1970, the laws had to make way for new laws. In these laws, the aim was rather to produce as much as possible: 'Get big or get out'. As a result, agribusiness has gained the upper hand, which means that small (family) businesses are forced to strive for optimal production. This is often at the expense of financial resources, which means that many farmers have to give up their business.

There is no question of an increase
The number of registered dairy farmers now stands at 8,8 after the 34.187% decline. The percentage decline is an average across the US. Indeed, there are a large number of states that have experienced a much greater decline. For example, 23% of dairy farmers in West Virginia and 20% of dairy farmers in the states of Arkansas, Tennessee and South Carolina stopped. And this is just a small selection of the states where more than 10% of dairy farmers have stopped.

It is striking that there is not a single state where the number of dairy farmers has increased. However, there are 7 states, including Alaska, Colorado and Nevada, where the number of registered companies has remained stable. The outflow of dairy farmers affects the US milk production not by the way. It even showed slight growth figures for January. 

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Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.
Comments
10 comments
Agricola 25 February 2020
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/melk/ artikel/10885991/veel-melkveehouders-in-vs-begraven-schijnbijl]Many dairy farmers in the US buried battle axe[/url]
And vote massively for Trump
Drikus 25 February 2020
What does the Netherlands have in mind for the future . Is it possible to earn a living for a normal family business? If the next generation has to take over at this price of land and all the other things that come into play . can you still earn income? †
Ps 25 February 2020
Now that Ceta Canada New Zealand treaty is already in effect, only the first chamber is cheated, Dutch farmers are smoked out and out of it



ordinary farmer 25 February 2020
special because milk price in America has been 12 euro cents per liter in the past 40 months, only in talie is met
@ordinary farmer 26 February 2020
Isn't it 40 cents per US gallon? = 3,6 litres.
Ordinary farmer 26 February 2020
According to the international

milk price comparison of lto not

Was it even 46 euro cents in November
pear 26 February 2020
there is a big price difference in the us california and texas is quite low eg Florida and minasota where dr pol is it is quite high
is a gallon not 4.5 liters
peer 26 February 2020
sorry Imperial gallon in Canada and UK is rounded up to 4,54 liters
US gallon is 3,78 liters rounded
three gallon in the US is 4.4
ordinary farmer 26 February 2020
ah yes this already sounds more logical this means
that as a dairy farmer you are increasingly dependent on the dairy factory
to whom you supply milk and whether it can provide added value
and has thought about a product that is in demand
and product spread
Pipo 27 February 2020
Clinton might as well have screwed up
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