Post on Dairy Farm

The WaPost has an article on the death of a dairy farm. It's more than an article:

One more year on the farm

A visual narrative of one family’s fight to save their land

Photos and video by Ricky Carioti | Text by Annie Gowen Aug. 3, 2019

After seeing a number of stories on the plight of dairy farms I'm frankly becoming numb to the plight of the families.   So my reaction to this is: flat flat land.

Farming: the Definition

I follow Cam Houle on twitter and was struck by his T-shirt in this tweet.

Turns out the t-shirt is available on Amazon.

It seems even in Canada with its supply management setup, dairying is a losing proposition.

The Resurgence of Whole Milk?

I've been buying 2 percent milk at the grocery for decades.  In recent years, as I've noted before, the amount of cooler space devoted to milk of different fat levels has decreased.  When I picked up milk the other day I realized the amount of space devoted to 2 percent milk was down, and the proportion devoted to whole milk was up.

I'm vaguely aware of some research supporting the consumption of whole milk.  Googling found this piece, along with others with titles pointing both ways.

Meanwhile I see this post. showing the dairy industry pushing for whole milk in schools.

Bloomberg on Dairy

I found this Bloomberg article on the dairy industry to be a good overview of recent trends.

What 5G Can Do for: Dairy

Technology Review has a short post on a test of 5G and cows, in Britain.  Cows wear 5G collars which transmit biometric data and open gates to milking parlors.

(I'm not clear why 4G wouldn't work for this, but connecting fancy technology and cows has a certain reader appeal. )

Vertical Integration for Dairy?

A comment in this twitter thread suggested that some form of vertical integration would be coming for the dairy industry, as it has for poultry and hogs.

That makes sense to me.  Dairy is under more and more pressure--the other day I found not 3 but 5 thermos of "milk" at the Starbucks counter--to the usual nonfat, milk, and half and half they'd added soy and another "milk" which I forget now.  

With the divorcing of cows from pasture and the proliferation of robotic milkers the capital cost is only going up.  

And finally there seems to be closer ties between outlets, like Walmart, and their suppliers. 

Maybe another 15 or so years there will be only smaller, "truly organic" dairies feeding a niche market and perhaps encouraging tourists who experience nostalgia, and the big operations with 5 digits worth of cows.  

Women, Cows, and Hens

Just skimmed this summary of research on economic history.  A couple paragraphs:

Given the obviously crucial role of endogeneity issues in this debate, we carefully consider the causal nature of the relationship. More specifically, we exploit relatively exogenous variation of (migration adjusted) lactose tolerance and pasture suitability as instrumental variables for female autonomy.
The idea is that a high lactose tolerance increased the demand for dairy farming, whereas similarly, a high share of land suitable for pasture farming allowed more supply. In dairy farming, women traditionally had a strong role; this allowed them to participate substantially in income generation during the late medieval and early modern period (Voigtländer and Voth, 2013).

My translation: women do better with dairy cows than plowing ground for grain, and if women do better, the overall economy does better.

A similar logic could apply to chickens.  You don't need a lot of strength to manage a flock of hens.  The one advantage dairy has over chickens is it's easier to store dairy products--cheese specifically, than it is eggs.

I suspect this may be over-simplified. I vaguely remember that the development of plows which could handle the soils of northwest Europe, soils which were heavier than the soils of southern Europe, was a big deal, at least in history as it was taught 60 years ago.

Alabama Dairy

According to this Alabama has gone from 3,500 dairy farms 60 years ago to 50 now.

Dairy Supply Management for US?

Tamar Haspel, a food writer I follow on twitter, praised this article in Civil Eats about dairy supply management.  The article describes rising grass roots interest in supply management among Wisconsin dairy farmers and some other areas.  The Farm Bureau opposes it, of course. 

Canada has used supply management for dairy, poultry and eggs since at least 1972 according to this wikipedia article.  (I write "at least" because supply management was a feature of depression-era ag policies but I'm not sure Canada used it for dairy.)

Essentially supply management means assigning production quotas to farms, with penalties for over-production.  The US used to have supply management in place for wheat, cotton, rice, peanuts, and tobacco, rules which dated back to the 1930's.  Over time they've all been dismantled.   Judging by the impace of the change on tobacco farmers, the effect of supply management was to slow the decline of farm units.  In other words, it was harder to get bigger and easier to stay small, but the trends were the same.  The advance of technology and the power of markets still work, just slower.

Slow is what, IMO, the proponents want.  If you're a farmer in your 50's, you'd like to keep going until you can retire. Supply management might make that possible.  But if you're a young go-getter in your 30's looking to expand and adopt new technologies, you don't like the concept.  Politically there's always been more old farmers than young farmers.

Wisconsin Dairy

Here's a good  piece on the Wisconsin dairy situation, more in detail than many media reports. Many farmers going out of business, other farmers expanding their herds so the number of farms is way down (close to half in 4 years) but the number of cows is about even.  What strikes me is even though herds have doubled in size, they're still below 200 cows per herd average.  None of the Wisconsin counties are in the top 13 counties in the US in production (most are California), likely mostly because the big dairies (1,000+ ) aren't  in Wisconsin.

I suspect from a birdseye view the same forces which are leading to the big increase in the income of the top 1 percent and the top 0.1 percent are also leading to the big increase in the size of dairy herds and the big increase in the value of the top companies in the US.  That's just a hunch, without supporting arguments now, maybe later.

Small Dairy? Test Farm

The Times today had an article on a supposed small farm; actually a billionaire's test farm (i.e. playtoy given my cynical mood today) trying out various systems intended for small farms.

It's call Rivendale (it doesn't tweet much).

The article is frustrating--apparently  one person is mostly responsible for the 175 milking Jerseys, using an automated feeding system and $200,000 robotic milking systems.  The cows determine when they are milked (4 times a day) and produce 15 percent more.  But it's not clear whether it's their breeding or the milking system which is responsible for the gain.

What I'd like to know, among other things:

• what's the expected life of these robotic systems? 3 year, 5 year, 8  years, 10 years? 
• how much maintenance and downtime do they require?  my guess is 4 systems means that 3 systems can handle the 175 with the fourth providing for some backup and fudge factor.
• what happens when Murphy's law strikes and the systems go down?  With the systems I grew up with, as long as you had electricity you could milk cows.  Without electricity, it was hand milking.
• can the farmhand handle the technology or does it require a tech?
• how does the feeding system handle the "non-processed feed" they claim to be using?
• what's the overall picture--are the cows on pasture or is it a CAFO?

Kentucky Dairy Farms Fading

The Rural Blog had a post on the plight of Kentucky dairy farms recently.  A lowlight:

In Kentucky, more than 10 percent of dairy farms shuttered in 2018, lowering the count to 513, down from 1,400 in 2005, Bill Estep reports for the Lexington Herald-Leader. 

I don't know what the reduction in cow numbers was--Estep wrote: ""Farm Aid pointed to Walmart’s new Indiana processing plant as a example of large players taking over more of the milk-supply chain. Large companies with processing plants typically would rather deal with a few large farms than many smaller ones," 

The End of Family Dairies?

The Post has an op-ed on dairy farming, beginning:

"After 40 years of dairy farming, I sold my herd of cows this summer. The herd had been in my family since 1904; I know all 45 cows by name. I couldn’t find anyone who wanted to take over our farm — who would? Dairy farming is little more than hard work and possible economic suicide."

The ex-farmer is from Wisconsin, he switched from conventional to organic mid career, and blames "organic milk" from Texas as a cause of his problems. 

Here' a USAToday story which provides some further background. 

One complaint is whether the cows producing the organic milk actually graze in the fields.  (Not that Wisconsin cows graze in the fields 12 months of the year.)

I've sympathy for the plight.  Back in my youth 45 cows was a good-sized farm, about the size of my uncle's farm (formerly my grandfather's).  Giving up a way of life is hard, particularly when you feel passed over by progress. 

Dairy in Japan

Google's official blog has a  post on a big (900 cow) dairy in Japan.

While most/many Asians may be lactose-intolerant, there seems to be enough exceptions to support a dairy industry.

Some googling found this paper by the Japanese Dairy Council which covers the ground from a to z.

A couple highlights--no. of dairy farms has declined from over 400,000 in the 60's to 20,000 in the 2010's, number of cows has been relatively steady at about 1.4 million or so.  Consumption is about half in milk and half in cheese/butter.  For anyone with more stamina than I there's an explanation of how milk is marketed and how the government's subsidy/regulation setup works.

The History of NY Dairy, and the Future?

Civil Eats had a piece on Engelbert Farms of Nichols, NY, which isn't too far away from where I grew up.  The farm is partly in the flood plain of the Susquehanna, meaning it's got some good soil.  Our farm was partly (very small part) in the flood plain of the Page Brook flood plain, meaning we had less good soil.  The farm now consists of over 1,000 acres, owned and rented.  Our farm was 80 acres, owned.

From the Civil Eats piece I did a search for the farm's website, which has this history of the farm.

From the history you can infer much about the overall history of dairy in NY--the consolidation of farms, the competition for land from urban and industrial uses, the influence of Cornell and extension, etc.

The farm was an early, perhaps the early adopter of organic principles, so it might predict the future.

"Iowans with better food" and Dairy

That, I'm sure, is a grossly unfair characterization of Iowan food.

It's a quote from an Esquire article on Rep. Devin Nunes, and his family's dairy farm in Iowa (not California where it used to be).  The dairy farms in the county are paranoid about the possibility of ICE raids because apparently most of their labor consists of undocumented immigrants.  On a dairy farm, the cows have got to be milked every day, either twice a day or in some cases three times a day. When you have 2,000 cows there's no way to handle the sudden jailing of 10 or 15 employees for even a day.  You have a lot of very unhappy cows (should PETA lobby against ICE raids on dairies) and a hit to production.  When a mammal's milk remains in the mammary gland, it's a signal to the body the milk's no longer required; start to switch energy to body building.

The quote comes from a person in town, commenting on the significant presence of Latinos now living there.

Canada and Supply Management for Dairy

One of the biggest issues in the renegotiation of NAFTA with Canada is their desire to maintain their system of supply management for dairy.  Here's a site with statistical data on the industry.  The two big provinces are Ontario and Quebec.  As one can see from this chart there's little variation in cow numbers over the last 15 years (2004-2018).  But if you look at the number of farms, there has been roughly 1/3 reduction in farm numbers over the same period (17,000 to 11,000).

From ERS  (the copy and paste process loses the formating.  I've bolded the two big points): Midpoints increased for each commodity over 1987-2012, but the rate of increase varies widely, with dramatic long-term changes in egg, hog, and dairy production (table 9). The midpoint flock size in egg layers increased to 925,975 birds in 2012 from 117,839 in 1987 (and just over 62,000 in 1982); the midpoint for hog removals rose to 40,000 in 2012 from 1,200 in 1987; and the midpoint dairy cow herd rose to 900 cows in 2012 from 80 in 1987. The broiler and fed cattle industries show continued consolidation, with 2012 midpoints a bit more than double their values in 1987. However, each underwent striking changes in organization and technology well before the series starts in 1987 (MacDonald and McBride, 2009). Table 9 Consolidation in livestock sectors, 1987-2012 Commodity 1987 1997 2007 2012 Change (percent) 1987-2012 2007-2012 Sales midpoint: Number of head sold or removed Broilers 300,000 480,000 681,600 680,000 127 -0.1 Fed cattle 17,532 38,000 35,000 38,369 119 10 Hogs and pigs 1,200 11,000 30,000 40,000 3,233 33 Turkeys 120,000 137,246 157,000 160,000 33 2 Inventory midpoint: Number of head in herd/flock Beef cows 89 100 110 110 24 0 Egg layers 117,839 300,000 872,500 925,975 686 6 Milk cows 80 140 570 900 1,025 58 Source: USDA, Economic Research Service, compiled from census of agriculture data.

Bottom line: while Canadian dairy farms have declined in number, the rate of decline in the US is higher. 

I'm reminded of the supply management system the US used to have for tobacco, now ended.  It had a similar effect: slowing the transformation of the industry.

Any Double-Dipping on MFP

Still no FSA notice on the MFP, but there is a notice on the Dairy Margin Protection Program.  I have not kept up with program, but from the following Background paragraphs my guess is it's a revenue insurance type program, but run by FSA and not RMA.

"MPP-Dairy payments are triggered when the difference between the National all milk price and the National average feed cost (the margin) falls below the producer-selected margin trigger, ranging from $4 to $8, calculated monthly. USDA prices for milk and feed components required to determine the National average margin for July were released on August 29, 2018. The actual National average margin for July is $6.71815/cwt. As a result, dairy operations that elected margin coverage of $7.00, $7.50 and $8 will be issued a payment.

Payments for margins triggered will be issued directly to producers. MPP-Dairy payments issued will not be offset by premium balances due. The full balance of the premium is due September 28, 2018."

It raises the question to me, which I may have mentioned before, of whether there will be double-dipping under the MFP.  In other words, crop insurance has products, on which I'm not expert, which can cover loss of revenue from a base, a loss which might be caused by production losses and/or market price dips.  Producers have to sign up for such products and pay premiums.  MFP is essentially a free one-shot policy covering market price dips. So producers who signed up for the DMPP or a revenue crop insurance policy will receive two payments for the same loss.  That doesn't seem right, but from a program administration standpoint it immensely simplifies the operation.

"Milk", by Mark Kurlansky

I got this book from the library, not Amazon, so I wouldn't feel right reviewing it there.  But I think the "critical" reviews on Amazon are  generally on point. 

For someone who grew up on a dairy farm the subject is interesting.  For someone who doesn't cook all the recipes aren't interesting.  The coverage is wide and broad, but not deep.  He tries to cover milk from a variety of species around the world, tossing in recipes every two or three pages.  He wraps up with a brief look at modern US farming.  The book started as a magazine article, and it still retains some of that character.  The author leans somewhat to the side of organic/locavore dairy, finding farms which are trying to find a niche where they can charge high enough prices to stay in business.

But the author is a bit credulous, I think, in accepting some of the claims.  For example, that one Holstein could outproduce 50 Jerseys.  Not possible--the farmer must have been pulling his leg. 

There's also the claim cows stay in the herd until 3 or 4.  Seemed incredible to me--3 means one lactation, which isn't enough to cover the cost of rearing the calf.  I know we had cows in our herd aged 9 or 10, because they were still productive milkers.  Did some superficial googling and found 4 or 5 is a common figure.  Still seems low to me, but then I remembered what we did with our calves: the males went for veal, of course; some of the females we kept and others we sold (depending on whether chance had given us a run of females).  The selling is the key--dad could sell calves because there were other dairies in the region, and his herd was respected.  Today, I'd assume there's no market for female calves, so they all go into the herd. If the cow has two pregnancies, chances are she's borne her replacement.  So the economic calculation for the herd is the cost of rearing the calf until it can be bred and give birth, versus the cow's production over that time.   (I'd also assume because of better breeding the calf has a greater potential than its mother had.)

Gottlieb Got Milk

Don't say the Trump administration has never done anything for dairy farmers.  His FDA head, Scott Gottlieb, says he'll crack down on "milks" from vegetative sources.