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Cattle Boards
Got Milk?
As Vermont's Milk Industry Continues To Free-Fall, Canadian Dairies Are Thriving
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<blockquote data-quote="Stocker Steve" data-source="post: 1506491" data-attributes="member: 1715"><p>Global commodity markets and digital technology can make for ugly producer outcomes. Somewhere there are a couple above average commodity producers making a nice profit, but they may be a third world aberration.</p><p></p><p>I recently saw some info proposing a back to the future Coop solution for dairy issues. We still have a lot of ag infrastructure here - - so I am a member of 2 ag supply coops, 1 semen coop, and 1 grain marketing coop. They are struggling in general. High overhead, unsophisticated leadership, and lots of door prizes does not a globally competitive operation make. Unfortunately labeling and supporting local food seems to be an uphill slide in USA. Canada may operate differently.</p><p></p><p>Two land sales to two dairy families occurred recently near me. The buyers are agglomerated multigenerational operations that used equity to buy land so sons could come back to the farm. I ran numbers on both parcels and they did not cash flow for cow/calf nor stockers nor soybeans. I am sure they don't cash flow with current dairy prices. So it was a lifestyle and legacy investment using Grandpas equity that will increase our commodity milk supply.</p><p></p><p>A big question is where is the capital coming from to continue propping up the local land Ponzi scheme? Ag land here is being bought with family money or subsidized beginning farmer loans and prices are continuing to go up. Recreation land is being bought with imported money and prices are dropping if there is no lake shore involved. I think our inflation expectations are changing.</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 1506491, member: 1715"] Global commodity markets and digital technology can make for ugly producer outcomes. Somewhere there are a couple above average commodity producers making a nice profit, but they may be a third world aberration. I recently saw some info proposing a back to the future Coop solution for dairy issues. We still have a lot of ag infrastructure here - - so I am a member of 2 ag supply coops, 1 semen coop, and 1 grain marketing coop. They are struggling in general. High overhead, unsophisticated leadership, and lots of door prizes does not a globally competitive operation make. Unfortunately labeling and supporting local food seems to be an uphill slide in USA. Canada may operate differently. Two land sales to two dairy families occurred recently near me. The buyers are agglomerated multigenerational operations that used equity to buy land so sons could come back to the farm. I ran numbers on both parcels and they did not cash flow for cow/calf nor stockers nor soybeans. I am sure they don't cash flow with current dairy prices. So it was a lifestyle and legacy investment using Grandpas equity that will increase our commodity milk supply. A big question is where is the capital coming from to continue propping up the local land Ponzi scheme? Ag land here is being bought with family money or subsidized beginning farmer loans and prices are continuing to go up. Recreation land is being bought with imported money and prices are dropping if there is no lake shore involved. I think our inflation expectations are changing. [/QUOTE]
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Got Milk?
As Vermont's Milk Industry Continues To Free-Fall, Canadian Dairies Are Thriving
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