Re: price per gallon to dairy farmer?

[Guest guest]

Current price is about $21.00/CWT and milk weighs 8.43

pounds/gallon or about $2.50/gallon. The breakeven for

dairy, even when grazing has been above $14 for years,

today feed coasts and inputs are driving it to about

$16.50, so even if a farmer is getting about $5.00/cwt

profit right now, how does that make up for losing

$2.00/cwt for the last several years?

If I could sell raw at my farm, for $5.00/gallon, I

could make a good living with 20 cows.

Bill Dunlap

--- Val wrote:

> Can anyone tell me approximately how much a dairy

> farmer in Oh/Ky/IN

> would probably currently be earning per gallon on

> milk sold to a

> traditional processor or co-op?

>

> Val

>

>

>

>

> > Dr. Temple Grandin has tremendously helped improve

> conditions in

> > the industrialized cattle raising and slaughter

> industry reducing

> > stress on animals, etc. Almost 50% of the animal

> handling systems

> > in large-scale plants/slaughterhouses are now of

> her design. Some

> > of her writings and ideas on the subject of

> handling, transport,

> > human slaughter, etc., can be found at

> http://www.grandin.com/.

> > Dr. Grandin is Autistic - a fascinating person to

> read in that

> > regards, too.

> > Sharon

> >

> >

> >

> > << I find myself wondering what the humane way to

> > end an animals life is? <<<

> >

> > Janelle,

> > It's such an ugly thing. Our family has been

> raising our own meat

> > for the last 8 years. Very small scale - one

> steer, one pig and 50

> > chickens per year, plus we have 2 milk cows. We

> are fortunate to

> > have a family business in the area that comes to

> do the killing and

> > initial processing on our site. I had them here

> last Friday for a

> > steer. He was like a big puppy dog as I led him

> into the barn and

> > gave him a pan of grain so he could be shot in the

> head. It is

> > always sad, but this spares the animals a truck

> ride or a night

> > spent in a foreign holding pen. " Jack " had a

> wonderful life, was on

> > momma's milk for 6 months and had bovine " friends "

> to lick and play

> > with. We can't afford to keep him on as a pet. He

> had a job to do,

> > and we like to eat beef. We have 4 children who

> are growing up

> > learning this lesson, and it makes me glad.

> > Polly

> >

> >

> >

> > Recent Activity

> > 11

> > New Members

> > 1

> > New Links

> > Visit Your Group

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> > A Parent´s Place

> >

> > to share ideas on

> >

> > family cooking.

> >

> > Biz Resources

> > Y! Small Business

> >

> > Articles, tools,

> >

> > forms, and more.

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> > Athletic Edge

> > A Yahoo! Group

> >

> > to connect w/ others

> >

> > about fitness goals.

> >

> > .

> >

> >

> >

> >

> > --

> > Deut 11:14 He will put grass in the fields for

> your cattle, and you

> > will have plenty to eat.

> >

> >

>

>

________________________________________________________________________________\

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[Guest guest]

Thank you, Bill! So probably the local dairy farmers are making

about $2.50 per gallon they sell, is that correct? Is it the same

all over the country?

I pay what works out to $5.22/gallon for my herdshare milk. Glad to

hear this is a living wage.

Val

> Current price is about $21.00/CWT and milk weighs 8.43

> pounds/gallon or about $2.50/gallon. The breakeven for

> dairy, even when grazing has been above $14 for years,

> today feed coasts and inputs are driving it to about

> $16.50, so even if a farmer is getting about $5.00/cwt

> profit right now, how does that make up for losing

> $2.00/cwt for the last several years?

>

> If I could sell raw at my farm, for $5.00/gallon, I

> could make a good living with 20 cows.

>

> Bill Dunlap

>

> --- Val wrote:

>

> > Can anyone tell me approximately how much a dairy

> > farmer in Oh/Ky/IN

> > would probably currently be earning per gallon on

> > milk sold to a

> > traditional processor or co-op?

> >

> > Val

> >

> >

> >

> >

> > > Dr. Temple Grandin has tremendously helped improve

> > conditions in

> > > the industrialized cattle raising and slaughter

> > industry reducing

> > > stress on animals, etc. Almost 50% of the animal

> > handling systems

> > > in large-scale plants/slaughterhouses are now of

> > her design. Some

> > > of her writings and ideas on the subject of

> > handling, transport,

> > > human slaughter, etc., can be found at

> > http://www.grandin.com/.

> > > Dr. Grandin is Autistic - a fascinating person to

> > read in that

> > > regards, too.

> > > Sharon

> > >

> > >

> > >

> > > << I find myself wondering what the humane way to

> > > end an animals life is? <<<

> > >

> > > Janelle,

> > > It's such an ugly thing. Our family has been

> > raising our own meat

> > > for the last 8 years. Very small scale - one

> > steer, one pig and 50

> > > chickens per year, plus we have 2 milk cows. We

> > are fortunate to

> > > have a family business in the area that comes to

> > do the killing and

> > > initial processing on our site. I had them here

> > last Friday for a

> > > steer. He was like a big puppy dog as I led him

> > into the barn and

> > > gave him a pan of grain so he could be shot in the

> > head. It is

> > > always sad, but this spares the animals a truck

> > ride or a night

> > > spent in a foreign holding pen. " Jack " had a

> > wonderful life, was on

> > > momma's milk for 6 months and had bovine " friends "

> > to lick and play

> > > with. We can't afford to keep him on as a pet. He

> > had a job to do,

> > > and we like to eat beef. We have 4 children who

> > are growing up

> > > learning this lesson, and it makes me glad.

> > > Polly

> > >

> > >

> > >

> > > Recent Activity

> > > 11

> > > New Members

> > > 1

> > > New Links

> > > Visit Your Group

> > > FruitaBü Group

> > > A Parent´s Place

> > >

> > > to share ideas on

> > >

> > > family cooking.

> > >

> > > Biz Resources

> > > Y! Small Business

> > >

> > > Articles, tools,

> > >

> > > forms, and more.

> > >

> > > Athletic Edge

> > > A Yahoo! Group

> > >

> > > to connect w/ others

> > >

> > > about fitness goals.

> > >

> > > .

> > >

> > >

> > >

> > >

> > > --

> > > Deut 11:14 He will put grass in the fields for

> > your cattle, and you

> > > will have plenty to eat.

> > >

> > >

> >

> >

>

> __________________________________________________________

> Building a website is a piece of cake. Yahoo! Small Business gives

> you all the tools to get online.

> http://smallbusiness.yahoo.com/webhosting

>

>

[Guest guest]

I'm a little confused on how you figured $2.50/gallon. That CWT always

throws me off. Doesn't it mean per hundred pounds? If so,

$21/100=.21x8.43=$1.77/gallon. I know when I've looked at livestock

auction prices, they use CWT as well, so I'd like to know if I'm figuring

it correctly.

Thanks,

Tammy K.

Proverbs Farm

Alvin TX

P.S. Around here, raw goat milk sells for as much as $15/gallon at the

Houston-area farmer's markets, and raw cow milk for $8/gallon.

B Dunlap wrote:

> Current price is about $21.00/CWT and milk weighs 8.43

> pounds/gallon or about $2.50/gallon. The breakeven for

> dairy, even when grazing has been above $14 for years,

> today feed coasts and inputs are driving it to about

> $16.50, so even if a farmer is getting about $5.00/cwt

> profit right now, how does that make up for losing

> $2.00/cwt for the last several years?

>

> If I could sell raw at my farm, for $5.00/gallon, I

> could make a good living with 20 cows.

[Guest guest]

You are right. 100 pounds/8.43 pounds per gallon =

11.86 gallons per 100 pounds. $21.00/11.86 = 1.77/

gallon. A relative high percentage of the retail food

dollar, but still not profitable enough to give a

farmer a decent lifestyly.

Bill Dunlap

--- Tammy K / Proverbs Farm

wrote:

> I'm a little confused on how you figured

> $2.50/gallon. That CWT always

> throws me off. Doesn't it mean per hundred pounds?

> If so,

> $21/100=.21x8.43=$1.77/gallon. I know when I've

> looked at livestock

> auction prices, they use CWT as well, so I'd like to

> know if I'm figuring

> it correctly.

>

> Thanks,

> Tammy K.

> Proverbs Farm

> Alvin TX

>

> P.S. Around here, raw goat milk sells for as much as

> $15/gallon at the

> Houston-area farmer's markets, and raw cow milk for

> $8/gallon.

>

> B Dunlap wrote:

> > Current price is about $21.00/CWT and milk weighs

> 8.43

> > pounds/gallon or about $2.50/gallon. The breakeven

> for

> > dairy, even when grazing has been above $14 for

> years,

> > today feed coasts and inputs are driving it to

> about

> > $16.50, so even if a farmer is getting about

> $5.00/cwt

> > profit right now, how does that make up for losing

> > $2.00/cwt for the last several years?

> >

> > If I could sell raw at my farm, for $5.00/gallon,

> I

> > could make a good living with 20 cows.

>

________________________________________________________________________________\

____

Boardwalk for $500? In 2007? Ha! Play Monopoly Here and Now (it's updated for

today's economy) at Yahoo! Games.

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[Guest guest]

Well, that's the way I figure it too. I know on my small scale this would

not be a living wage but a starving wage. But now you would figure this

times the amount each cow gives in a day then multiply that by the number of

cows on the farm. Now subtract the cost involved. Every cost involved

including the paper towels to phone calls to chemicals. Don't forget to pay

yourself. I was working on a hog farm once. That farmer told me that he only

paid himself at the rate of $1 per hour. At the rate I'm going right now, I

am not getting paid. But. I do love what I am doing! BTW, our goat milk is

selling off the farm at $10 per gallon but is only bottled in half gallon

containers.

Jessi

Re: price per gallon to dairy farmer?

I'm a little confused on how you figured $2.50/gallon. That CWT always

throws me off. Doesn't it mean per hundred pounds? If so,

$21/100=.21x8.43=$1.77/gallon. I know when I've looked at livestock

auction prices, they use CWT as well, so I'd like to know if I'm figuring

it correctly.

Thanks,

Tammy K.

Proverbs Farm

Alvin TX

P.S. Around here, raw goat milk sells for as much as $15/gallon at the

Houston-area farmer's markets, and raw cow milk for $8/gallon.

B Dunlap wrote:

> Current price is about $21.00/CWT and milk weighs 8.43

> pounds/gallon or about $2.50/gallon. The breakeven for

> dairy, even when grazing has been above $14 for years,

> today feed coasts and inputs are driving it to about

> $16.50, so even if a farmer is getting about $5.00/cwt

> profit right now, how does that make up for losing

> $2.00/cwt for the last several years?

>

> If I could sell raw at my farm, for $5.00/gallon, I

> could make a good living with 20 cows.

PLEASE BE KIND AND TRIM YOUR POSTS WHEN REPLYING!

Visit our Raw Dairy Files for a wealth of information!

http://groups.yahoo.com/group/RawDairy/files/

Archive search: http://onibasu.com

[Guest guest]

Farmers are paid a "blend" price, which is prorated based on class

utilization. Class I is fluid milk, II is for things like yogurt, III

is cheese, and IV is powdered milk. The August blend price for

Kentucky for $24.16/cwt. and can be found at:

http://www.malouisville.com/ORDER5/stats5.pdf Actually milk is

considered to be 8.6 pounds per gallon but it will vary with cream and

solids content. So, 100 pounds (cwt) of milk has 11.62 gallons which

would make the blend price $2.079/gallon.

USDA ERS has costs data at :

http://www.ers.usda.gov/Data/CostsAndReturns/testpick.htm

The most recent (August) is $30.26

/cwt for Kentucky. Part of the reason for the high cost "opportunity

cost for unpaid labor". USDA throws that number in so they can make

the smaller farms look inefficient.

One of the "victories" of the Reagan revolution was to eliminate parity

pricing for milk. Parity pricing, when it was in effect, kept farm

milk price rising at the general rate of inflation. It was actually a

% of parity rate which could be varied depending upon supply and

demand. The current 100% parity would be $40.60, if it was in

effect. The likely % would be about 70% which would give a national

average price of $28.42.

You can find data on ag prices at:

http://usda.mannlib.cornell.edu/usda/current/AgriPric/AgriPric-09-27-2007.pdf

That will tell you that prices paid to all farmers is "142 percent,

based on 1990-92=100" and that prices paid by farmers is "159 percent

of the 1990-92 average" right on the first page. Now, if you project

those numbers out, you will see that producing food for strangers will

have to end at some point.

The chart, compiled by Krugman, shows the

share of the richest 10

percent of the

American population in total income – an indicator that closely tracks

many

other measures of economic inequality – over the past 90 years, as

estimated by

the economists Piketty and Emmanuel Saez.

If the richest 10% are getting a larger share of the pie, many, many

more must get a smaller slice. It is fairly easy to see why the golden

age of American agriculture ended with the 1980 election.

Bunting

Val wrote:

Thank you, Bill! So probably the local dairy farmers are making

about $2.50 per gallon they sell, is that correct? Is it the same

all over the country?

I pay what works out to $5.22/gallon for my herdshare milk. Glad to

hear this is a living wage.

Val

> Current price is about $21.00/CWT and milk weighs 8.43

> pounds/gallon or about $2.50/gallon. The breakeven for

> dairy, even when grazing has been above $14 for years,

> today feed coasts and inputs are driving it to about

> $16.50, so even if a farmer is getting about $5.00/cwt

> profit right now, how does that make up for losing

> $2.00/cwt for the last several years?

>

> If I could sell raw at my farm, for $5.00/gallon, I

> could make a good living with 20 cows.

>

> Bill Dunlap

>

> --- Val <listvalcinci (DOT) rr.com>

wrote:

>

> > Can anyone tell me approximately how much a dairy

> > farmer in Oh/Ky/IN

> > would probably currently be earning per gallon on

> > milk sold to a

> > traditional processor or co-op?

> >

> > Val

> >

> >

> >

> >

> > > Dr. Temple Grandin has tremendously helped improve

> > conditions in

> > > the industrialized cattle raising and slaughter

> > industry reducing

> > > stress on animals, etc. Almost 50% of the animal

> > handling systems

> > > in large-scale plants/slaughterhouses are now of

> > her design. Some

> > > of her writings and ideas on the subject of

> > handling, transport,

> > > human slaughter, etc., can be found at

> > http://www.grandin.com/.

> > > Dr. Grandin is Autistic - a fascinating person to

> > read in that

> > > regards, too.

> > > Sharon

> > >

> > >

> > > On 10/10/07, P. Ekin <psouperverizon (DOT) net>

wrote:

> > > << I find myself wondering what the humane way to

> > > end an animals life is? <<<

> > >

> > > Janelle,

> > > It's such an ugly thing. Our family has been

> > raising our own meat

> > > for the last 8 years. Very small scale - one

> > steer, one pig and 50

> > > chickens per year, plus we have 2 milk cows. We

> > are fortunate to

> > > have a family business in the area that comes to

> > do the killing and

> > > initial processing on our site. I had them here

> > last Friday for a

> > > steer. He was like a big puppy dog as I led him

> > into the barn and

> > > gave him a pan of grain so he could be shot in the

> > head. It is

> > > always sad, but this spares the animals a truck

> > ride or a night

> > > spent in a foreign holding pen. "Jack" had a

> > wonderful life, was on

> > > momma's milk for 6 months and had bovine "friends"

> > to lick and play

> > > with. We can't afford to keep him on as a pet. He

> > had a job to do,

> > > and we like to eat beef. We have 4 children who

> > are growing up

> > > learning this lesson, and it makes me glad.

> > > Polly

> > >

> > >

> > >

> > > Recent Activity

> > > 11

> > > New Members

> > > 1

> > > New Links

> > > Visit Your Group

> > > FruitaBü Group

> > > A Parent´s Place

> > >

> > > to share ideas on

> > >

> > > family cooking.

> > >

> > > Biz Resources

> > > Y! Small Business

> > >

> > > Articles, tools,

> > >

> > > forms, and more.

> > >

> > > Athletic Edge

> > > A Yahoo! Group

> > >

> > > to connect w/ others

> > >

> > > about fitness goals.

> > >

> > > .

> > >

> > >

> > >

> > >

> > > --

> > > Deut 11:14 He will put grass in the fields for

> > your cattle, and you

> > > will have plenty to eat.

> > >

> > >

> >

> >

>

> __________________________________________________________

> Building a website is a piece of cake. Yahoo! Small Business gives

> you all the tools to get online.

> http://smallbusiness.yahoo.com/webhosting

>

>

[Guest guest]

So, Bill, if you go to 40 cows, you can make a living?

Forgive my ignorance -- what's the significance of 305 days per year?

>

> Can a dairy farmer make any money? If he is careful

> and has a fairly low debt load, maybe. $21/cwt or

> about $1.77/gallon will pay the bills right now. Not

> much for future investment. $14 was breakeven when

> corn was < $2.50, all other things being equal.

>

> If I had 20 cows, staggered in the time they freshened

> so that I always had 15 in some stage of good milk,

> averaging 5 gallons a day for 305 days a year and

> could sell at the farm for $5/gallon I would have a

> daily income of $375.00. Likely about half would go

> for infrastructure and other capital costs. Fertility

> and other inputs along with some feed, would take

> another 20%. That leaves about 112.50 X 365 =

> $41,062.00 for labor and management. This is what you

> have left to pay for health insurance, house and all

> the other lifestyle needs. It would take a capital

> investment in land of at least $200,000 (around here)

> $50K for cattle, another $50K for equipment and

> buildings if you bought used.

>

> Any Takers?

>

> Bill Dunlap

>

> __________________________________________________________

> Don't let your dream ride pass you by. Make it a reality with

> Yahoo! Autos.

> http://autos.yahoo.com/index.html

>

>

>

>

[Guest guest]

If I had 60 acres of good grass, and bought all my

additional feed off farm, and was careful with not

over buying machinery, 40 cows could make me

comfortable. IF I could raise the bulls for beef, and

sell them and sell some replacement heifers, I could

do OK.

305 days is considered a standard lactation. A cow

needs 60 days dry just before she calves.

Bill Dunlap

--- Val wrote:

> So, Bill, if you go to 40 cows, you can make a

> living?

>

> Forgive my ignorance -- what's the significance of

> 305 days per year?

>

>

>

>

> >

> > Can a dairy farmer make any money? If he is

> careful

> > and has a fairly low debt load, maybe. $21/cwt or

> > about $1.77/gallon will pay the bills right now.

> Not

> > much for future investment. $14 was breakeven when

> > corn was < $2.50, all other things being equal.

> >

> > If I had 20 cows, staggered in the time they

> freshened

> > so that I always had 15 in some stage of good

> milk,

> > averaging 5 gallons a day for 305 days a year and

> > could sell at the farm for $5/gallon I would have

> a

> > daily income of $375.00. Likely about half would

> go

> > for infrastructure and other capital costs.

> Fertility

> > and other inputs along with some feed, would take

> > another 20%. That leaves about 112.50 X 365 =

> > $41,062.00 for labor and management. This is what

> you

> > have left to pay for health insurance, house and

> all

> > the other lifestyle needs. It would take a capital

> > investment in land of at least $200,000 (around

> here)

> > $50K for cattle, another $50K for equipment and

> > buildings if you bought used.

> >

> > Any Takers?

> >

> > Bill Dunlap

> >

> >

>

__________________________________________________________

> > Don't let your dream ride pass you by. Make it a

> reality with

> > Yahoo! Autos.

> > http://autos.yahoo.com/index.html

> >

> >

> >

> >

>

>

________________________________________________________________________________\

____

Check out the hottest 2008 models today at Yahoo! Autos.

http://autos.yahoo.com/new_cars.html

[Guest guest]

Farmers are paid a "blend" price, which is prorated based on class

utilization. Class I is fluid milk, II is for things like yogurt, III

is cheese, and IV is powdered milk. The August blend price for

Kentucky for $24.16/cwt. and can be found at:

http://www.malouisville.com/ORDER5/stats5.pdf

Actually milk is

considered to be 8.6 pounds per gallon but it will vary with cream and

solids content. So, 100 pounds (cwt) of milk has 11.62 gallons which

would make the blend price $2.079/gallon.

USDA ERS has costs data at :

http://www.ers.usda.gov/Data/CostsAndReturns/testpick.htm

The most recent (August) is $30.26

/cwt for Kentucky. Part of the reason for the high cost "opportunity

cost for unpaid labor". USDA throws that number in so they can make

the smaller farms look inefficient.

One of the "victories" of the Reagan revolution was to eliminate parity

pricing for milk. Parity pricing, when it was in effect, kept farm

milk price rising at the general rate of inflation. It was actually a

% of parity rate which could be varied depending upon supply and

demand. The current 100% parity would be $40.60, if it was in

effect. The likely % would be about 70% which would give a national

average price of $28.42.

You can find data on ag prices at:

http://usda.mannlib.cornell.edu/usda/current/AgriPric/AgriPric-09-27-2007.pdf

That will tell you that prices paid to all farmers is "142 percent,

based on 1990-92=100" and that prices paid by farmers is "159 percent

of the 1990-92 average" right on the first page. Now, if you project

those numbers out, you will see that producing food for strangers will

have to end at some point.

The chart, compiled by Krugman, shows the

share of the richest 10

percent of the

American population in total income – an indicator that closely tracks

many

other measures of economic inequality – over the past 90 years, as

estimated by

the economists Piketty and Emmanuel Saez.

If the

richest 10% are getting a larger share of the pie, many, many

more must get a smaller slice. It is fairly easy to see why the golden

age of American agriculture ended with the 1980 election.

Bunting

[Guest guest]

bill

you do have to admit that this is still a better price per cwt than it was several years ago when milk prices bottomed out around $8-$9 cwt. for some people who want to farm, commercial farming may be all they can do. rented ground, raw milk illegal, may variables, yada yada. could i live on $41,000 a year adjust gross farm income? sure i could.

ro

price per gallon to dairy farmer?

Can a dairy farmer make any money? If he is carefuland has a fairly low debt load, maybe. $21/cwt orabout $1.77/gallon will pay the bills right now. Notmuch for future investment. $14 was breakeven whencorn was < $2.50, all other things being equal. If I had 20 cows, staggered in the time they freshenedso that I always had 15 in some stage of good milk,averaging 5 gallons a day for 305 days a year andcould sell at the farm for $5/gallon I would have adaily income of $375.00. Likely about half would gofor infrastructure and other capital costs. Fertilityand other inputs along with some feed, would takeanother 20%. That leaves about 112.50 X 365 =$41,062.00 for labor and management. This is what youhave left to pay for health insurance, house and allthe other lifestyle needs. It would take a capitalinvestment in land of at least $200,000 (around here)$50K for cattle, another $50K for equipment andbuildings if you bought used. Any Takers?Bill Dunlap__________________________________________________________Don't let your dream ride pass you by. Make it a reality with Yahoo! Autos.http://autos.yahoo.com/index.html

No virus found in this incoming message.Checked by AVG Free Edition. Version: 7.5.488 / Virus Database: 269.14.4/1057 - Release Date: 10/8/2007 9:04 AM

[Guest guest]

bill

you do have to admit that this is still a better price per cwt than it was several years ago when milk prices bottomed out around $8-$9 cwt. for some people who want to farm, commercial farming may be all they can do. rented ground, raw milk illegal, may variables, yada yada. could i live on $41,000 a year adjust gross farm income? sure i could.

ro

price per gallon to dairy farmer?

Can a dairy farmer make any money? If he is carefuland has a fairly low debt load, maybe. $21/cwt orabout $1.77/gallon will pay the bills right now. Notmuch for future investment. $14 was breakeven whencorn was < $2.50, all other things being equal. If I had 20 cows, staggered in the time they freshenedso that I always had 15 in some stage of good milk,averaging 5 gallons a day for 305 days a year andcould sell at the farm for $5/gallon I would have adaily income of $375.00. Likely about half would gofor infrastructure and other capital costs. Fertilityand other inputs along with some feed, would takeanother 20%. That leaves about 112.50 X 365 =$41,062.00 for labor and management. This is what youhave left to pay for health insurance, house and allthe other lifestyle needs. It would take a capitalinvestment in land of at least $200,000 (around here)$50K for cattle, another $50K for equipment andbuildings if you bought used. Any Takers?Bill Dunlap__________________________________________________________Don't let your dream ride pass you by. Make it a reality with Yahoo! Autos.http://autos.yahoo.com/index.html

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[Guest guest]

bill

you do have to admit that this is still a better price per cwt than it was several years ago when milk prices bottomed out around $8-$9 cwt. for some people who want to farm, commercial farming may be all they can do. rented ground, raw milk illegal, may variables, yada yada. could i live on $41,000 a year adjust gross farm income? sure i could.

ro

price per gallon to dairy farmer?

Can a dairy farmer make any money? If he is carefuland has a fairly low debt load, maybe. $21/cwt orabout $1.77/gallon will pay the bills right now. Notmuch for future investment. $14 was breakeven whencorn was < $2.50, all other things being equal. If I had 20 cows, staggered in the time they freshenedso that I always had 15 in some stage of good milk,averaging 5 gallons a day for 305 days a year andcould sell at the farm for $5/gallon I would have adaily income of $375.00. Likely about half would gofor infrastructure and other capital costs. Fertilityand other inputs along with some feed, would takeanother 20%. That leaves about 112.50 X 365 =$41,062.00 for labor and management. This is what youhave left to pay for health insurance, house and allthe other lifestyle needs. It would take a capitalinvestment in land of at least $200,000 (around here)$50K for cattle, another $50K for equipment andbuildings if you bought used. Any Takers?Bill Dunlap__________________________________________________________Don't let your dream ride pass you by. Make it a reality with Yahoo! Autos.http://autos.yahoo.com/index.html

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[Guest guest]

Wow, great post! Thanks!

Val

> Farmers are paid a " blend " price, which is prorated based on class

> utilization. Class I is fluid milk, II is for things like yogurt,

> III is cheese, and IV is powdered milk. The August blend price for

> Kentucky for $24.16/cwt. and can be found at: http://

> www.malouisville.com/ORDER5/stats5.pdf Actually milk is

> considered to be 8.6 pounds per gallon but it will vary with cream

> and solids content. So, 100 pounds (cwt) of milk has 11.62 gallons

> which would make the blend price $2.079/gallon.

>

> USDA ERS has costs data at : http://www.ers.usda.gov/Data/

> CostsAndReturns/testpick.htm

>

> The most recent (August) is $30.26 /cwt for Kentucky. Part of the

> reason for the high cost " opportunity cost for unpaid labor " . USDA

> throws that number in so they can make the smaller farms look

> inefficient.

>

> One of the " victories " of the Reagan revolution was to eliminate

> parity pricing for milk. Parity pricing, when it was in effect,

> kept farm milk price rising at the general rate of inflation. It

> was actually a % of parity rate which could be varied depending

> upon supply and demand. The current 100% parity would be $40.60,

> if it was in effect. The likely % would be about 70% which would

> give a national average price of $28.42.

>

> You can find data on ag prices at: http://usda.mannlib.cornell.edu/

> usda/current/AgriPric/AgriPric-09-27-2007.pdf

>

> That will tell you that prices paid to all farmers is " 142 percent,

> based on 1990-92=100 " and that prices paid by farmers is " 159

> percent of the 1990-92 average " right on the first page. Now, if

> you project those numbers out, you will see that producing food for

> strangers will have to end at some point.

>

> The chart, compiled by Krugman, shows the share of the

> richest 10 percent of the American population in total income – an

> indicator that closely tracks many other measures of economic

> inequality – over the past 90 years, as estimated by the economists

> Piketty and Emmanuel Saez.

>

>

>

> If the richest 10% are getting a larger share of the pie, many,

> many more must get a smaller slice. It is fairly easy to see why

> the golden age of American agriculture ended with the 1980 election.

>

>

>

> Bunting

>

[Guest guest]

Wow, great post! Thanks!

Val

> Farmers are paid a " blend " price, which is prorated based on class

> utilization. Class I is fluid milk, II is for things like yogurt,

> III is cheese, and IV is powdered milk. The August blend price for

> Kentucky for $24.16/cwt. and can be found at: http://

> www.malouisville.com/ORDER5/stats5.pdf Actually milk is

> considered to be 8.6 pounds per gallon but it will vary with cream

> and solids content. So, 100 pounds (cwt) of milk has 11.62 gallons

> which would make the blend price $2.079/gallon.

>

> USDA ERS has costs data at : http://www.ers.usda.gov/Data/

> CostsAndReturns/testpick.htm

>

> The most recent (August) is $30.26 /cwt for Kentucky. Part of the

> reason for the high cost " opportunity cost for unpaid labor " . USDA

> throws that number in so they can make the smaller farms look

> inefficient.

>

> One of the " victories " of the Reagan revolution was to eliminate

> parity pricing for milk. Parity pricing, when it was in effect,

> kept farm milk price rising at the general rate of inflation. It

> was actually a % of parity rate which could be varied depending

> upon supply and demand. The current 100% parity would be $40.60,

> if it was in effect. The likely % would be about 70% which would

> give a national average price of $28.42.

>

> You can find data on ag prices at: http://usda.mannlib.cornell.edu/

> usda/current/AgriPric/AgriPric-09-27-2007.pdf

>

> That will tell you that prices paid to all farmers is " 142 percent,

> based on 1990-92=100 " and that prices paid by farmers is " 159

> percent of the 1990-92 average " right on the first page. Now, if

> you project those numbers out, you will see that producing food for

> strangers will have to end at some point.

>

> The chart, compiled by Krugman, shows the share of the

> richest 10 percent of the American population in total income – an

> indicator that closely tracks many other measures of economic

> inequality – over the past 90 years, as estimated by the economists

> Piketty and Emmanuel Saez.

>

>

>

> If the richest 10% are getting a larger share of the pie, many,

> many more must get a smaller slice. It is fairly easy to see why

> the golden age of American agriculture ended with the 1980 election.

>

>

>

> Bunting

>