Small Town News

Local dairymen share conversation about current dairy industry troubles

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There is a problem in the Midwest. The same problem extends to both coasts, but has hit this region especially hard. The accused source of the problem also says "moo."

Be it noted that bovine should not be blamed for the current dairy industry predicament. They are just the unfortunate and visible victims of an economy that has also thrown dairy farmers into an ocean of trouble.

Do what's needed

"You try to tread water as best you can, " shared Dean Wissing, owner of a dairy operation southwest of Preston. Wissing has been milking cows since grade school and comes from a dairying family that extends back to the 1920s.

"You just pay your necessary bills and leave it at that, " included Bob Sebastian, who is three years removed from leaving the milking business.

Wissing added, "New purchases have to be put on the back burner most of the time. You just try to maintain what you have."

Fellow dairyman David Scheevel concurred, "Watching expenses and extending the life of your machinery is especially important right now."

Scheevel lives and operates practically down the road from Wissing and has been doing so since 1993. Sebastian also lives in the vicinity and still raises calves and maintains a herd of steers. His perspective casts a reflection on what his still-milking counterparts have in their future.

Wissing and Scheevel can recall good days and bad days alike. It just so happens the past year and a half have been relatively worse than most. The problem can be explained by an application of simple supply and demand. The population of the Midwest demands a certain amount of milk products at any given time. The dairies of the Midwest produce the milk to supply this demand.

Supply running high

Currently, the supply of milk greatly exceeds that of the demand for milk products. The surplus causes milk prices to go down. The effect of low prices has an often times confusing effect on the dairy industry.

In California, wherever you find a cow, you usually find hundreds more. As Sebastian related, "The dairy industry seems to becoming based more on the large operation."

The large size of the farms in the Southwest has an inverse drawback attached to their huge potential. When demand goes down, these large dairies find themselves producing a surplus that eventually hurts them in the pock-etbook. They still make money, but the money per cow coming in is severely lower.

This hinders their ability to expand and as Wissing stated, "To run an efficient dairy means that you have to keep expanding over time."

Smaller-sized dairies, which are sometimes strapped to expand anyway, usually run into excessive debt causing lenders to foreclose on the farmers. However, this train of thought can be turned on its head.

"Fewer farms are exiting the market now then what people think, " said Wissing. "Many people realize that the market is bound to get better and that their investments are worth staying in."

Staying afloat

Wissing also went on to say the diversification of a farm could save it. In other words, if you have investments in pigs, crops, turkeys, or other farm animals, you are more likely to survive.

Scheevel, who is the chairman of the Foremost Farms Board of Directors and is a member of the National Milk Producers Federal Board, also sees the benefits of staying tight. He said, "The dairy industry is a multibillion dollar industry that everybody depends on. The prices go up. The prices go down."

The fact the business cycle is a given in any market should make dairy farmers feel a bit better. These two both have optimistic premonitions.

"Technology is making dairying an easier business to get into, what with robotic milkers, " said Scheevel. "Co-ops are benefiting and have greater potential to benefit producers all over the nation."

According to Wissing, the Midwest has great feed sources and the technology being developed will cause the industry to react positively. Some people may not have similar optimism, but both farmers love the business.

"There is always room for improvement, but I am pleased with how our cows have produced, " stated both Wissing and Scheevel. Both also went on to relate their love of the outdoors and how they can take the rough hours and hard work because they enjoy working with the cows.

Not what you think

With the turf come several topics of misunderstanding and concern that have nothing to do with dairy prices. For example, the controversy over BST in milk, as related by Wissing, is one of the biggest misconceptions about cows and the milk they produce. BST is a naturally produced hormone in the cows' system that stimulates milk production. Many farmers, but not all, inject their herds with additional BST to yield maximum production. The problem Wissing has is that milk containers label whether or not the milk has BST in it or not.

"All cow milk has BST in it, " Wissing said. "The hormone is what drives the cow to eat and produce more milk. Besides, there is absolutely no health difference in milk that was produced by a cow not receiving BST injections than the milk produced by a cow that was."

In summation, if you are drinking cow milk with no trace of BST in it, you aren't drinking cow milk.

Scheevel tends to view the dairy industry as a misunderstood business. "The government sets environmental standards and mandates that we follow. I think people that see us spraying our fields sometimes get the misconception that we don't care about the environment at all."

Indeed, complaining about it won't fix the problem; rather, take necessary and conscientious steps to change the standards. Along with environmental misunderstandings are educational misconceptions.

As the number of dairy farms has decreased, the number of kids not exposed and educated about farming has increased. "We had a group of children at Sunday school that could not tell us where cream comes from, " explained Wissing. "I think with the urbanization of society we have sacrificed the knowledge about the farm that we used to take for granted."

A love of dairying

What can also be taken for granted, as Sebastian explained from experience, is the amount of time put into a dairy farm.

"I milked 18 and one-half years and I only had a handful of days off, " stated Sebastian, "Milking is an everyday lifestyle that does not take breaks for most anything. That also goes for milk truckers and vets because they need to come in any type of weather and any time of the day, respectively."

Both Scheevel and Wissing were grateful for the chance to have their voices heard, so when they were asked about their future in dairy, they didn't shy away from conveying their passion for the industry.

"I have a short-term outlook on things, " laughed Wissing. "After all, I'm close to retirement age."

Scheevel, meanwhile, looks to go full steam ahead. "I'm looking to expand and stay active in the industry until I retire."

For Sebastian, "I have finally been able to do things I've wanted to do, but never had the time for. It is a relief from the stress."

Dedication is unmistakable in these current and ex-dairymen. If this is any indication as to what many other farmers are like in the U.S.A., problems like the current crop will be met with determination and increased commitment to the herd.



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© 2011 The Chatfield News Chatfield, Minnesota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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