Updating things on the farm bill as Congress heads into its August recess; National Milk’s Chris Galen reported in his Thursday DairyLine program that “There’s been no visible progress in trying to bring leaders from the House and Senate to negotiate a compromise farm bill.” He said it’s up to dairy farmers, in the next four to five weeks to let their elected official know that “failure is not an option” to get a bill passed before the end of September which is the end of the fiscal year and some farm programs expire. He suggested farmers visit lawmakers at local fairs and meetings and log on to the NMPF website, www.nmpf.org, and use the “Write to Congress” feature. 

Uncle Sam sure likes yogurt. DairyBusiness Update (DBU) reports that USDA purchased nearly 200,000 pounds of high-protein yogurt from Chobani as part of a new pilot program for schools in four states. The strawberry, vanilla, blueberry and plain yogurt will be delivered between September and November, with the total contract priced at $279,720 or $1.40 per pound.

The deadline to enter the 30th World Forage Analysis Superbowl for standard and brown midrib corn silage categories is Aug. 15. All other samples, including dairy hay, haylage, baleage, commercial hay and grass hay, must be submitted by Sept. 5. Over $22,000 will be awarded to the best forages from around the country. Call 920-336-4521 or visit  www.foragesuperbowl.org for the entry form and further details. Winning entries will be on display in the Arena Building at World Dairy Expo. Finalists will be notified in September.

July farm gate prices decline

The July Federal order farm gate Class III milk price took a 64 cent dip. The USDA announced the manufacturing grade price at $17.38 per cwt., down 64 cents from June but 70 cents above July 2012, and equates to about $1.55 per gallon. That put the 2013 Class III average at $17.69, up from $16.01 at this time a year ago and $17.68 in 2011. 

The Class III futures portend a turnaround in the August contract, which was trading late Friday morning at $17.91. September was at $18.52; October, $18.52; November, $17.75; and December was at $17.24. 

The Class IV price is $18.90, up 2 cents from June and $4.45 above a year ago. Its 2013 average now stands at $18.27, up from $14.84 a year ago but compares to $19.38 in 2011.

The four-week, AMS-surveyed cheese price used in determining the Class milk prices averaged $1.7142 per pound, down 6.7 cents from June. Butter averaged $1.4674, down 7.5 cents. Nonfat dry milk averaged $1.7272, down 6.7 cents, and dry whey averaged 58.04 cents per pound, up 0.7 cent.

California’s 4b cheese milk price was announced by the California Department of Food and Agriculture (CDFA) at $15.65 per cwt., including CDFA’s temporary mandated price increases. The 4b price is down 26 cents from June, 47 cents above a year ago, but $1.73 below the Federal order Class III price. The 2013 4b average now stands at $15.99, up from $14.02 at this time a year ago and compares to $16.20 in 2011.

The 4a butter-powder milk price is $18.61, up 22 cents from June and $5.11 above a year ago. The 2013 4a average is now at $18.03, up from $14.55 a year ago and compares to $19.10 in 2011.

July’s milk-feed ratio was unchanged from June, at 1.52, according to USDA’s latest Ag Prices report, but is up from 1.34 in July 2012. Lower monthly average milk prices, with small declines in average alfalfa hay and corn prices offset a higher average soybean price and was the 28th consecutive month the milk-feed price ratio was below 2.0.

The U.S. average all-milk price was $19.10 per cwt., down from $19.50 in June but up from $16.90 a year ago. Corn, at $6.83 per bushel, was down 14 cents from June, and 31 cents less  than July 2012. Soybeans averaged $15.40 per bushel, up 30 cents from June and unchanged from last year. Alfalfa hay averaged $209 per ton, down $11 from June, but $11 more than July 2012.

Dairy Business Update (DBU) points out that the Ag Price report shows estimated U.S. July cull cow prices (beef and dairy combined) averaged $81.80 per cwt., up $1.50 from June’s revised estimate, and 90 cents per cwt. more than July 2012. DBU also reported that “The July increase ended a string of three consecutive monthly declines. The year-to-date average is $80.91 per cwt., compared to $82.99 for the same period a year ago.”

With the Ag Prices report providing the final feed cost adjuster, USDA announced the June Milk Income Loss Contract (MILC) program payment at 21.873 cents per cwt. on eligible milk. DBU adds that, based on current and futures prices as of July 31, a small MILC payment (less than 10¢ per cwt.) is likely the last for fiscal year 2013, which ends Sept. 30, 2013.

 

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Lee Mielke may write to him in care of this publication.