Low dairy prices worry ISU students, faculty

Justin Petersen

Though many dairy farmers on the East Coast may be facing bankruptcy, some of Iowa’s dairy producers aren’t giving up yet. However, the recent drop in milk prices has some ISU faculty and students concerned about the future of the dairy industry.

Last week, many farmers rallied for higher milk prices outside the Maryland Statehouse. The Associated Press reported that the federal minimum price of milk last month was $9.63 per 100 pounds, which is a $6 drop since September. This is the lowest price for milk in more than 20 years.

The market price for milk has dropped due to a large milk surplus caused by high production, according to Hoard’s Dairyman. Hoard’s Dairyman also attributed lower prices to a 15 percent increase in dairy imports and a 3 percent decrease in exports.

Some ISU students and Iowa dairy farmers are also noticing the effects of the low prices.

“I think it will take awhile for prices to come. We just have to try and make it until the supply and demand evens out,” said Jennifer Kunde, president of the ISU Dairy Club. “With three kids in college right now, my parents are really feeling the effects of these low dairy prices. My dad said that his milk check was about $2,000 less this month.”

For students in the dairy science program at Iowa State, issues such as the current farm crisis can be overwhelming.

“When you are dropping $2,000 per month, it is hard to keep up your operation when you get behind,” said Kunde, junior in dairy science from Manchester. “In times like these, there isn’t always money to keep things fixed up.

“Sometimes you have to sell some of your cows because you can’t afford to feed them. Or you may have to keep some that you should have sold so you will have more milk to sell,” she said. “Farmers just can’t cover all the costs with these prices, and it will eventually become hard to recover.”

All areas of agriculture are seeing hard times, and the dairy industry hasn’t suffered as much as others, said M. Douglas Kenealy, adviser of ISU Dairy Science Club.

“In some respects, dairy is doing relatively better than some of the other areas in agriculture,” said Kenealy, professor of animal science. “It is not really good anywhere in agriculture right now, and dairy farmers are seeing very low prices, but there are other types of agriculture that are even worse.”

Kenealy said Iowa dairy farmers are doing slightly better than farmers in other states. He also said that despite current issues, the need for qualified dairy specialists is quite high.

“Iowa is in a really unique position that becomes a double-edged sword,” Kenealy said. “This state has potential to produce more milk than we currently are. The negative side to this is that students start talking about the problems with paying for school when prices are low. Yet, the positive is that the demand for people in this field is very high.”

Dairy farmers know that the dairy business always spins through good and bad cycles, Kunde said. For some dairy farmers, surviving the bad times means planning ahead when things are going good.

“You really always have to be ready for something like this,” Kunde said. “A lot of the feed industry people know what we are facing. Many times they will help out by allowing some farmers to pay the feed bills when things get better.”

Matt Bolin, freshman in dairy science pre-vet from Clarksville, said his family also prepares for low-milk prices.

“We use the futures, so our half of our milks’ prices are locked in ahead of time,” he said. “We try to look ahead for the higher prices, so we usually fare pretty good even when the price drops. The prices still are less than normal, but we’re better off because we locked in early.”

Bolin said he is always aware of the up-and-down cycle of the markets.

“Like anything, price will fluctuate,” Bolin said. “That is just the way farming works. You have to know that before you get into it. You are not always going to make a profit. You can’t be in it for the money. It has to be more for the love of farming.”

Despite possible conflicts, Kunde said she still wants to work on her family’s dairy farm after she graduates.

“There is always a fear that by the time I am out of school, it may be impossible to survive in this business, but it is a life that I love,” she said. “I am willing to take a chance.”