THE LAND — JANUARY 7/JANUARY 14, 2022
www.thelandonline.com — “Where Farm and Family Meet”
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USDA makes changes in Dairy Margin Coverage program This column was written for the marset higher corn and soybean prices to keting week ending Dec. 31. nudge the November milk feed ratio higher for the third month in a row. The Happy 2022! USDA’s latest Ag Prices report has the We attempted to take a look at what ratio at 1.94, up from 1.87 in October, but lies ahead in the New Year in the Jan. 3 well below last year’s 2.58. “Dairy Radio Now” broadcast with Bill The index is based on the current milk Brooks, dairy economist at Stoneheart price in relationship to feed prices for a Consulting in Deerborn, Mo. ration consisting of 51 percent corn, 8 MIELKE MARKET Brooks predicted, “It should be a better percent soybeans and 41 percent alfalfa WEEKLY profitability year for dairy farmers,” but hay. In other words, one pound of milk warned, “that’s contingent on the weathwould purchase 1.94 pounds of dairy feed By Lee Mielke er and how that impacts our main input of that blend. prices as far as feed costs.” Feed n costs finished 2021 strong, he said, but milk prices finished 2021 fairly The U.S. All Milk Price averaged strong as well. $20.80 per cwt., up $1.10 from October, but was 30 cents below November 2020. The U.S. Department of Agriculture has made changes to the risk management Dairy Margin The national average corn price jumped 25 cents to Coverage program with respect to previous year eli- $5.27 per bushel after dropping 45 cents in October, gible milk marketings as well as the feed price caland is $1.48 per bushel above November 2020. culation, which will now be based on 100 percent Soybeans averaged $12.20 per bushel, up 30 cents premium alfalfa hay, instead of the 50/50 hay blend. from October and $1.90 per bushel above November Many of the changes will be retroactive, according 2020. to Brooks, and result in additional benefits to dairy Alfalfa hay averaged $210 per ton, down $3 from producers so it behooves them to check with their October, but is a hefty $46 per ton above a year ago. local Farm Service Agency office for complete details. Looking at the cow side of the ledger, the Brooks says international dairy prices look strong November cull price for beef and dairy combined and that is helping firm U.S. prices — especially on averaged $69.20 per cwt. This is down $1.40 from butter, where $3 per pound plus is a global reality October, $9.90 above November 2020, but is $2.40 and could potentially move our price higher. below the 2011 base average of $71.60 per cwt. Cheese prices will hopefully remain strong, he Bill Brooks says, “A DMC payment is expected for said, as economies open more, so “We’re looking at a the 11th time in 2021 and 12th month straight better price year than what we experienced in 2021 when the FSA announces the November 2021 milk and it should be a better profitability year for us.” margin above feed costs. The milk margin above Meanwhile, a higher November All Milk Price off- feed costs is expected to be $9.14 per cwt. for
MARKETING
November — a gain of 60 cents over October’s level and the highest since November 2020 when the margin was $11.64. Dairy producers with coverage at the $9.50 per cwt. level would expect to see a payment on eligible November milk production.” In the week ending Dec. 18, 61,700 dairy cows were sent to slaughter, down 600 from the previous week and 1,500 head or 2.4 percent below a year ago. The StoneX Dairy Group stated in its Dec. 27 “Early Morning Update,” “The second half of 2021 was marked by an increased willingness, or need, for producers to cull animals. That said, the fourweek rolling total of dairy cows slaughtered has been trending down over the last three months. Week-to-week, the majority of slaughter levels have been higher than year-ago levels; but the surplus over last year has been declining. The contraction seems to be slowing down, as higher milk prices encourage farmers to keep animals in the herd.” n Cash dairy prices finished 2021, mostly higher and it was a full week of trading. The 40-pound cheddar blocks closed the last day of the year at $1.98 per pound, up 10.75 cents on the week, highest since Nov. 12, 2020, 12.25 cents above where they were on Dec. 1, and 33 cents above that week a year ago. The 500-pound cheddar barrels finished Dec. 31 at $1.71 per pound, up 6 cents on the week, highest since Nov. 1, 16.75 cents above a year ago, but a still-too-high 27 cents below the blocks. There were seven sales of block on the week at the Chicago Mercantile Exchange and 27 for the month of December, up from just 14 trades in November. Barrel sales totaled 30 for the week and See MIELKE, pg. 18
Registration for 2022-23 SowBridge program is now open WILLMAR, Minn. — Registration is now open for SowBridge, the distance education series for people involved in managing or caring for sows, and/or their litters, and boars, including operation owners, caretakers, technicians, managers and technical service providers. New this year, the series will be provided online through Zoom, although participants will be able to use a call-in option instead if they prefer. Sarah Schieck Boelke, University of Minnesota Extension swine educator said, “Producers and others in the industry can get the information they need without the hassle of traveling or giving up a whole day to attend a meeting. Participants can take part where it works best for them whether at home, in an office or in the swine unit. And whether or not they can participate in the live session, all sessions are recorded and available to participants after each session for later use.” The SowBridge program has 12 monthly sessions throughout the year. Sessions are generally sched-
uled for the first Wednesday of the month from 11:15 a.m. to 12:15 p.m., which includes time for questions. Cost for the series is $200 for the first registration from an entity and $100 for each subsequent registration from the same entity. Registration information can be found at z.umn. edu/SowBridgeRegistration. Registration is due Jan. 18 to ensure materials are received for the first session. SowBridge 2022 session dates and topics are as follows: Feb. 2 — The Impact of Non-edible Trim Loss on Cull Sow Value. March 2 — Proposition 12 Implications. April 6 — Estrus Detection and Insemination Strategies for Different Housing Systems. May 4 — Lactation Feeding Strategies.
June 1 — Global African Swine Fever Overview. July 6 — What Will Happen if ASF Comes to the United States? Aug. 3 — How Does Mass Depopulation Work? Sept. 7 — How Does PRRS 1-4-4 Compare to Other Strains? Oct. 5 — Fan Maintenance and Ventilation Settings. Nov. 2 — Body Assessment Methods. Dec. 7 — Preweaning Piglet Survival. Jan. 4, 2023 — PCAI: An Update on Adoption in the United States. For more information on the sessions or registration, contact Sarah Schieck Boelke at (320) 235-0726 ext. 2004 or schi0466@umn.edu. This article was submitted by University of Minnesota Extension. v
