How many gallons of milk does someone go through that the price doubling makes or breaks your budget?
If we were paying the true cost, milk would be lower priced. Government is price supporting milk. The impending price increase is due to a ridiculous government fallback that would make taxpayers bid UP the price.
It is a cascading affect due to the lack of feed for this winter. A shortage caused by the drought and the Govt mandating that a percentage of corn be used for ethanol.
So now you have a shortage of feed corn and a mandate that steers feed used for our food animals to be used as a fuel.
There are already plenty of dairy farms for sale right now, if the propping up by the Govt with subsidies backfires and causes prices to double that will put even more under and that is a good thing. Then in a move to survive you can buy your milk local AND cheap.
It is always better to own the land the animals are standing on then the animals.
Farm commodity prices are not directly influenced by input prices. Farmers are price takers, milk and beef prices did not rise because of corn diverted to ethanol, the drought yes.
A cheap protein source for cattle is the byproduct of ethanol, distillers grain. Lack of forages, especially grass hay, caused many farmers to cull both dairy and beef cows (mothers) this summer. Milk prices are more rapidly effected than beef prices,(calf is 18-24 months from birth to market) the beef shortage has yet to hit the supermarket.
There is a massive explosion of dairy farms in west central Indiana, just drive up I 65 around ST RD 14. Every single new farm in this area is a transplant farm from somewhere else, California, Minnesota, Maine, Wisconsin and The Netherlands.
this years crop was sold way before we saw $8 corn tradings. im unsure if youre implying farmers are getting rich off the current exploited market.
farmers will NEVER see the profits from this inflated market. they'll pay the price first, this spring, from the inflation of production costs. of all the people that make money in putting food on your table, farmers will get ****ed in the ass in doing the most, more than you as the consumer.
Great points but the circle continues on, more like a spiral, because we subsidize ethanol. So that cheap protein source is not so cheap in the big picture.Farm commodity prices are not directly influenced by input prices. Farmers are price takers, milk and beef prices did not rise because of corn diverted to ethanol, the drought yes.
A cheap protein source for cattle is the byproduct of ethanol, distillers grain. Lack of forages, especially grass hay, caused many farmers to cull both dairy and beef cows (mothers) this summer. Milk prices are more rapidly effected than beef prices,(calf is 18-24 months from birth to market) the beef shortage has yet to hit the supermarket.
There is a massive explosion of dairy farms in west central Indiana, just drive up I 65 around ST RD 14. Every single new farm in this area is a transplant farm from somewhere else, California, Minnesota, Maine, Wisconsin and The Netherlands.
I'm sure it is. But I pay that whether I buy milk or not. If the free market were allowed to work, those who use milk would be made to pay the cost of producing it.
I don't drink a gallon of milk in a year. I rarely eat cereal. A gallon of milk usually goes bad in my house before its gone. Even a gallon a day at an increased cost of $4 per gallon is under $30 a week. Water is free.
i believe you most likely pay a water bill...
Not unless the nearest municipality 5 miles away has trenched a water main out here.
i guess i didn't take into consideration you living in the sticks! but you catch my drift. NOTHING in the world is free. someone dug the well you get your drinking water from and it most likely wasn't free
The electricity to pump it isn't free either. But I'm certainly not paying $7 a gallon to drink it. It just amazes me that people will spend large amounts of money on things they don't need and then think the world is going to end when necessities go up a nickel. One poster stated they drink a gallon a day. That's $210 a month at $7 a gallon. I spend roughly that for 2 iPhones an directv. People ***** about $3 gas and walk into the gas station to pay a buck or more for a bottle of water. People paid over $10 for a beer at the Super Bowl. But when necessities go up, something must be done to stop it.
I easily go through a gallon a day. It is my soda, setting aside cooking, cereals etc.
The electricity to pump it isn't free either. But I'm certainly not paying $7 a gallon to drink it. It just amazes me that people will spend large amounts of money on things they don't need and then think the world is going to end when necessities go up a nickel. One poster stated they drink a gallon a day. That's $210 a month at $7 a gallon. I spend roughly that for 2 iPhones an directv. People ***** about $3 gas and walk into the gas station to pay a buck or more for a bottle of water. People paid over $10 for a beer at the Super Bowl. But when necessities go up, something must be done to stop it.