Minnesota Sees a Loss of Over 50 Dairy Farms in November

Lucas Sjostrom, the executive director of Minnesota Milk Producers Association, notes that while these numbers can be subject to change, the monthly decrease in dairy permits reflects a trend not observed since 2007.

Sjostrom attributes the decline to record-high beef prices and uncertain milk futures. He emphasizes that the figure shouldn't be seen as the loss of 50-plus herds but rather as an indication of dairy farmers' concerns about the future.

Phil Plourd, president of Ever.Ag Insights, acknowledges that the past year was challenging for dairy producers, with the Dairy Margin Coverage (DMC) calculations likely showing an annual average margin of less than $7 per hundredweight. Plourd points out that cheese prices ended the year on a low note, and Class III prices for early 2024 are expected to add pressure.

The Minnesota Department of Agriculture reports that the state ended 2023 with 146 fewer dairy farm permits than at the beginning of the year. The key question remains: given the razor-thin financial margins in the dairy industry, how many more dairy farms will exit in the coming year?