Prospects are good for dairy markets heading into 2025. “I think there’s going to be a chance to do more protein business with whey overseas, and I think butterfat remains a big component in terms of world trade,” said Dan Basse, AgResource Company. “We may bottom out here at $18 per hundredweight (on Class III milk), and we have a chance to make it up to $24-$26 (per hundredweight) for a high in 2025.” While other commodities are weak, Basse has optimism for dairy and beef markets.
Dairy supply and demand numbers updated
In the December U.S. Department of Agriculture’s supply/demand report, the 2024 milk production forecast was increased to 226.3 billion pounds. A bump in cow numbers was cited as the reason. For 2025, the forecast for milk production was also up from the previous estimate, totaling 228 billion pounds. USDA lowered its Class III price forecast for 2024 and 2025.
National milk testing strategy announced
U.S. Department of Agriculture has issued a federal order requiring raw, unpasteurized milk samples to be collected nationwide and tested for H5N1. The first testing will happen at dairy processing plants. Six states are included in the first round of testing: California, Colorado, Michigan, Mississippi, Oregon and Pennsylvania. USDA Animal and Plant Health Inspection Service Executive Director for Field Operations Julie Gauthier said there is a simple goal.
“Ultimately, at the end of this process, we want to be able to declare the United States free of avian influenza in dairy cows,” Gauthier said.
Keeping H5N1 at bay
The advancement of H5N1 in California’s dairy industry concerns Minnesota Agriculture Commissioner Thom Petersen. “California has about 900 dairy farms; over 500 have them have avian influenza in dairy, and we want to keep that at bay,” Petersen said. “We don’t want that in Minnesota because we have twice as many dairy farms as California. Fingers crossed that we can keep it controlled.” Raw milk has been part of the H5N1 story in California as well.
“As commissioner, I always remind people that pasteurized milk is safe,” Peterson said. “We’ve found the virus to survive in that.”
Announcements expected soon for sub-cabinet USDA posts
President-elect Donald Trump is moving quickly through the nomination process, naming members to his new administration. Brooke Rollins, who was a member of Trump’s Domestic Policy Council, will lead the U.S. Department of Agriculture. According to Agri-Pulse President Sara Wyant, more top-tier agriculture department officials will be named soon.
“They’re interviewing a lot of those folks as we speak; they may not all be announced here this week, but I do think that there’ll be a very good bench established before the inauguration,” Wyant said.
Beneficial ownership requirement suspended
A federal court in Texas has issued a preliminary injunction blocking a new reporting requirement for businesses, including farms. The Corporate Transparency Act required businesses to disclose their beneficial ownership to the treasury department by the end of the year. That reporting requirement is likely unconstitutional and has been suspended pending further action by the courts.
Appeals court weighs in on Winona County dairy expansion
The Minnesota Court of Appeals has upheld a 2023 Winona County District Court decision dealing with a proposed expansion of a Lewiston dairy farm. Daley Farms applied for a waiver of the county’s 1,500 animal unit cap to expand its operation to 6,000 cows. The waiver request has been denied twice and has been in the courts since 2018.
Succession planning challenges seen for rural businesses
A new report from Minnesota’s Center for Rural Policy and Development identified unique challenges for rural business transitions. Fifty-three percent of Minnesota business owners are over the age of 55, and only 19% have a written succession plan. The report found rural areas have limited access to advisory services, a lack of awareness about succession options and difficulty in attracting buyers for their business.
A focus on leadership
Over 600 FFA members participated in the Minnesota FFA Leadership Conference in St. Cloud. This program is normally held during the State FFA Convention in the Twin Cities. However, renovations at the State Fair’s Warner Coliseum triggered the move to a new format and location. State FFA officer Cole Sundeen is pleased with the inaugural event. “This is definitely a new and exciting opportunity for students to get more hands-on learning about leadership and opportunities within FFA,” Sundeen said. The leadership development events include public speaking, creed and conduct of meetings. This leadership conference will be held in St. Cloud again in 2025, but commitments have not been made beyond that.
AgriGrowth adds new members to its board
During the AgriGrowth annual meeting, board members were elected. These board members are Santo Cruz of CentraCare, Brady Janzen of Riverview LLP, Joe Lerman of Ellingson Companies, Andy Martin of AgCountry Farm Credit Services, Tom Ryan of R.D. Offutt Farms, Karin Schaefer of Minnesota Farm Bureau Federation, Marc Schober of Bremer Bank, Lydia Underdahl of BNSF Railway and Michael Yost of Yost Farms.
Monson to wrap up his Compeer career
As of Jan. 2, John Monson will retire from Compeer Financial. Monson has been with Compeer for the past 18 years, primarily, as its chief mission officer. Previously, Monson was the Minnesota Farm Service Agency state director.
Corcoran takes on foundation role
Erin Corcoran is the new program coordinator for the Minnesota Foundation for Agriculture. This organization was previously known as the Minnesota Farm Bureau Foundation. Corcoran has been with the University of Minnesota Extension for the past two years.
Trivia challenge
Abomasum is the last compartment of a cow’s stomach. That answers our last trivia question. For this week’s trivia, when did the U.S. tradition of leaving cookies and milk for Santa begin? We’ll have the answer in our next edition of the Dairy Star.
Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.
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