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Mielke Market Weekly
This column was written for the market- or 4.1 percent from a year ago, thanks to ing week ending May 21. an 85-pound gain per cow, but 1,000 U.S. milk production grew for the 11th consecutive month in April and saw the biggest spike since November, thanks to increased cow numbers and increased fewer cows. Wisconsin was up 117 million pounds, or 4.6 percent, on a 70-pound gain per cow and 14,000 more cows. milk per cow. The U.S. Department of Idaho was up 1 percent on 5,000 more Agriculture’s preliminary data shows out- cows and five pounds more per cow. put at a bearish 19.3 billion pounds, up 3.3 percent from April 2020. Output in the top 24 states, at 18.4 billion, was up 3.5 MIELKE MARKET WEEKLY Michigan was up 4.5 percent on 15,000 more cows and a 20-pound gain per cow. Minnesota was up 6.9 percent on a percent. By Lee Mielke 55-pound gain per cow and 17,000 more Revisions added 30 million pounds to the March 50-state estimate, now put at 19.78 billion pounds, up 1.9 MARKETING cows. New Mexico was up 2.9 percent, thanks to a 40-pound gain per cow and 3,000 more cows. percent from a year ago. Keep in New York saw a 2.2 percent rise on mind, a year ago some regions had co-op mandated a 45-pound gain per cow, but cow numbers were supply management programs in place. unchanged. Oregon inched 0.9 percent higher on April cow numbers were up for the 15th consecutive month, totaling 9.49 million head in the 50 states, up 16,000 head from the March count, which was revised up 6,000 head, and is up a whopping 1,000 more cows, but output per cow was unchanged. Pennsylvania was down 1 percent on a drop of 10,000 cows, although output per cow was up 20 pounds. 113,000 head from April 2020. South Dakota showed the biggest gain again, up April output per cow averaged 2,033 pounds, up 40 pounds or 2 percent from a year ago. 13.4 percent, on 18,000 more cows outweighing a five-pound drop per cow. Indiana was up 11.4 percent, thanks to 19,000 more cows milked and a
California milk was up a hefty 144 million pounds 10-pound-per-cow gain.
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Give better incentives for CRP participation
THIESSE, from pg. 14
Pothole” region can now enroll in the Soil Health and Income Protection Program (SHIPP), which is a pilot program being offered under the CRP program. The SHIPP program is a short-term CRP option to plant cover vegetation on less productive agricultural lands, while improving soil health and enhancing carbon sequestration. The SHIPP program takes farm land out of crop production, while still allowing livestock producers to utilize the land for haying and grazing. States eligible for the SHIPP program include Minnesota, Iowa, Montana, North and South Dakota. The current SHIPP enrollment period continues through July 16.
Summary
The CRP program has a long and successful history of preventing soil erosion, improving water quality, enhancing wildlife habitat, and aiding in carbon sequestration. While it may seem quite logical to utilize expansion of the CRP program to reach further goals related to carbon sequestration, there could be some obstacles in accomplishing those goals. Commodity prices for corn and soybeans are their highest levels in eight or nine years. Farm profit levels have improved considerably in the past couple of years, which is also resulting in higher land rental rates in many areas. This may make it difficult to convince farmers and landowners to take farm land out of production in order to enroll in the CRP program, unless there are some added financial incentives.
Increasing CRP annual rental rates back to comparable farm land rental rates in a given area is likely to face kickback by some members of Congress and by farm organizations. The reduction factors in the maximum CRP rental rates which were put in place in the last Farm Bill were due to CRP competing with farmers who were trying to rent farm land for crop production — especially younger beginning farm operators. This CRP rental rate reduction had bipartisan support in Congress during the development of the 2018 Farm Bill. Hopefully, USDA and Congress kind find a workable solution to the CRP rental rate situation, as the CRP program does seem to be a sensible approach toward further enhancement of carbon sequestration efforts in many areas of the United States.
For more information on the current CRP enrollment, expiring CRP acres, rental rates, etc., contact the local USDA Farm Service Agency office or refer to the USDA CRP web site at http://www.fsa.usda. gov/crp
Kent Thiesse is a government farm programs analyst and a vice president at MinnStar Bank in Lake Crystal, Minn. He may be reached at (507) 726-2137 or kent.thiesse@minnstarbank.com. v
Texas output was up 7.7 percent on 29,000 more cows and a 55-pound gain per cow. Vermont was down 2.7 percent on 5,000 fewer cows, but output per cow was up 25 pounds. Washington State was down 1.4 percent on 3,000 fewer cows and a 10-pound drop per cow.
Rising milk prices spurred April milk output, but also resulted in a drop in dairy cow culling from the previous month and year. The USDA’s latest Livestock Slaughter report shows an estimated 257,500 head were sent to slaughter under federal inspection, down 44,700 head from March and 21,900 or 7.8 percent below April 2020. Culling in the first four months of 2021 totaled 1.1 million head, down 29,700 or 2.6 percent from the same period a year ago.
In the week ending May 8, 56,800 dairy cows were sent to slaughter, up 1,100 from the previous week and (pardon the pun) dead even with a year ago. n
The May 18 Livestock, Dairy, and Poultry Outlook mirrored milk price and production projections in the May 12 World Agricultural Supply and Demand Estimates report; but it projected the U.S. milking herd will average 9.47 million head in 2021, 10,000 head higher than last month’s forecast. “The number of milk cows is expected to trend upward through third quarter and then decline in fourth quarter due to relatively high feed prices,” the Outlook stated, and the milk per cow forecast was 24,070 pounds — unchanged from last month’s estimate.
