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Dairy Farm Income Enhancement Proposals

Direct Base Plan

Submitted by Robert Wellington

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Posted by Josh Nett on September 3, 2018 at 11:17 pm

Robert,
Is a new producers base of 1,000,000 lbs an annual number or monthly? I'm assuming monthly which would be roughly the equivalent of a 400 cow herd at 85 lbs per cow. Can u take time to clarify?

Posted by Harry Stugart on August 18, 2018 at 5:05 pm

Bob,
Assuming the program is effective it would keep milk close to the $20.00 level. My concern then is that we will not be able to compete in the export markets which would mean that production would have to be reduced to domestic demand. A $20.00 price would also create incentives for cheese buyers ect. to import when world prices are cheaper further reducing domestic demand.

Posted by Melissa Bravo on August 17, 2018 at 9:29 am

Hi Robert,

Thank you for putting up this proposal. I like the premise of individual base. However, I think it does need to be tiered to reflect the disparity in farm size that has come on line the past few years, in anticipation of this very situation I am sure. Building up base to corner the market options in the future is surely a strategy that larger producers were advised to do. I would love to see this proposal start broader from the top down. As in: Could you show us graphically the distribution of the 65,000 farms remaining by base size. I.E. how many producers are under 50 cows; 150 cows; 300 cows; 500 cows; 30,000 cows etc. And then also show us the same spread pre - 1999. (I.e, the land availability in the country has not changed so much that smaller operations of the size historically could not come back on line in the future)

Then apply this base proposal to each 'tier' and create an example packet on paper that could be shared with that 'tier's demographics (and within each state I would think ) so they could see what it would mean to them (the state and the producer) if this proposal was 'adopted' and have an idea of equality and equity in the market before expansion- currently- and in the future; and where new to the industry farmers fit in by tier?

Posted by Kevin Knueven on August 15, 2018 at 10:38 am

I am trying to look over the proposals and without much time at the moment on this one without getting real in depth yet I think that really the penalty for going over base should be much more strict at the higher prices. Like flip it around where if milk is 18-20 that is a 6 dollar deduction for example. To me that is a lot more incentive to keep around their base number.