The dairy industry is tough enough, what with regulated prices, not inflation, and strict rules, which threaten to be even closer. Now that the recession, the prices in the tank (not the cost) and to weaken the demand, many dairy farmers are rethinking their business model. Get out of the dairy industry is as difficult as staying in. Prices for dairy cows has fallen and the attractiveness of a dairy, well, it's not just there.
The message from the USDA, but one good one. The dairy farmers are about to get a healthy dose of relief thanks to the state agency. USDA Secretary Tom Vilsack recently announced revenue growth for the dairy farmers who would fill their pockets with 3 million, thanks to an amendment to the Agriculture Appropriations bill that will increase the budget of the Farm Services Agency.
Between now and October 2009, price increases in all areas will go a long way to alleviate the burden on dairy farmers to make their businesses run on any kind of going to think about profit. Increases were announced as follows: nonfat dry milk – 92 cents per pound (from 80 cents), Cheddar Blocks – 0.31 per pound (from (.13); Cheddar Barrel, 0.28 per pound (from .10).
In addition, the USDA Dairy Export Incentive Program reactivation, to U.S. exporters in meeting global dairy price support claims.
This comes at a time when farmers are facing increased costs decreased and feed market prices. Public programs such as the milk income loss contract (Milc not help) turn away some market participants to losses, but often the changes do not reflect the true picture of what dairy farmers are facing.
If you are a dairy operation is not netting the desired results, or if you just want to explore ways to increase your business success, consider a risk assessment carried out, including a look at your operation and your insurance coverage. It is a good way to identify any areas of improvement, which in this market is never a bad idea.
Agribusiness and Farm Insurance requires specialized knowledge of both the businessside of operations and home and property coverage. The only thing our Agribusiness and Farm Insurance Department writes, is just that – Agribusiness and Farm Insurance. We know the industry inside and out. We know which companies offer the best product in your or your clients special circumstance.
Contact http://www.insureyourfarm.com
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