By LEE MIELKE
Mielke Market Weekly

National Milk’s Chris Galen weighed in on the Nov. 4 elections in Thursday’s DairyLine broadcast last week, saying "It was certainly a big night Tuesday for Republicans. I think it’s fair to say they exceeded expectations," with victories in both the U.S. House and Senate, adding the caveat that "There will still be a Democrat living in the White House for another two years, but he will be facing off against the GOP majority."

For agriculture, Galen said it’s expected that there will be some "implementation issues" with two new chairmen of those committees as we start 2015. Rep. Mike Conaway (R-Texas) will be taking over the reins from Frank Lucas (R-Okla.) in the House. While both are from the Southwest, it will still be a bit of a shift, he said.

Over in the Senate, Pat Roberts (R-Kan.), who faced a very difficult re-election campaign but won rather handily, will be rewarded with chairing the Senate Agriculture Committee, Galen said. Many are wondering how this will affect the key issues on Congress’ plate next year, like the "Waters of the U.S. Rule."

"I think it’s going to make it harder for the Obama administration and its Environmental Protection Agency to move forward with that," Galen said. "Given the opposition in the House and also now in the Senate."

Another big question is immigration reform, and Galen said a Republican Senate is not going to pass the same type of bill that was passed by the Democrats last year. "It’s still possible we’re going to see something comprehensive get done, but I think it’s going to be an issue where we’re going to have to really do a lot of spade work from the grassroots level in order to encourage Republicans to pass something that is going to be friendly and useful for dairy farmers and other agricultural employers," he said.

Voters also defeated mandatory GMO labeling in two states. But, even after the defeats in Colorado and apparently in Oregon, the food-labeling debate is far from over, according to Galen, who reported that nearly 90 bills in 29 states addressing labeling have been introduced this year alone. "Regardless of what happens with the states’ labeling initiatives, a lot is going to depend on how the courts look at these things," Galen said, referring to what is happening in Vermont after voters approved GMO labeling in that state.

While the latest approval rating for Congress is around 16 percent, Galen said there weren’t a lot of incumbents defeated. Voters instead sent a message to the White House by not voting for the president’s party, he concluded.

There has been a lot of speculation regarding last week’s elections and no one knows the ramifications. After several conversations and e-mails with friends, I am taking a rare stab at opinion here.

While the elections were good news for Republicans, I have to wonder if it’s good news for the people. If all we have done is trade one group for another in "rearranging the deck chairs on the Titanic," then we have accomplished nothing but have wasted a lot of time, money, and TV and radio commercials.

My thought is that the Republicans won by default not because they presented better ideas. That is disappointing, and, if they morph into typical Washington bureaucrats, then perhaps we better start learning Spanish or Chinese or memorizing the Koran. Newly elected (and re-elected) lawmakers need to develop some true solutions to the huge issues confronting this country, not their political futures, or they too will be ousted just like Tuesday’s Democrats.

This country’s mounting debt, borrowing against our kids’ and grandkids’ future, and the moral break away from what this country was founded upon is bringing this glorious land to its knees. Maybe, that’s exactly where it needs to be brought.

You’ll recall that September 2014 milk production totaled 15.5 billion pounds, according to USDA’s preliminary data, up 4.1 percent compared to a year ago. The latest Dairy Products report shows it mainly went to the dryer and the vat.

September butter production totaled 130 million pounds, up 1.2 percent from August but 1.6 percent below September 2013. Nonfat dry milk output, at 114 million pounds, was down 3.3 percent from August but a whopping 54.1 percent above a year ago.

Italian type cheese, at 415 million pounds, was up 3.5 percent from August and up 7.9 percent from a year ago. American type cheese totaled 361 million pounds, down 3.4 percent from August but 4 percent above a year ago. Total cheese output in September came to 942 million pounds, just 0.2 percent above August but 4.7 percent above a year ago.

The USDA announced the October benchmark Class III milk price last week at $23.82 per cwt., down 78 cents from September but $5.60 above October 2013, $2.88 above California’s comparable Class 4b cheese milk price. That equates to about $2.05 per gallon. That puts the 2014 Class III average at $22.83, up from $17.81 at this time a year ago and $16.98 in 2012.

Class III futures portend more drop to come. The November contract was trading late Friday morning (Nov. 8) at $21.73 and December was at $19.05. That would put the year’s average at $22.43, up from $17.99 in 2013 and $17.44 in 2012.

The October Class IV price is $21.35, down $1.23 from September, $1.18 above a year ago, but the lowest Class IV price since November 2013. The 2014 Class IV average is now at $23.01, up from $18.66 a year ago and $15.56 in 2012.

The NDPSR-surveyed cheese price used in calculating milk prices was $2.2914 per pound, down 5.6 cents from September. Butter averaged $2.5255, down 32.7 cents. Nonfat dry milk averaged $1.49, up 1.8 cents, and dry whey averaged 65.25 cents per pound, down 2 cents.

The California Department of Food and Agriculture announced the October 4b cheese milk price at $20.94 per cwt., down $1.45 from September but $4.12 above October 2013. That pulls the 2014 4b average to $20.57, up from $16.17 at this time a year ago and $15.16 in 2012.

The 4a butter-powder milk price is $21.51, down $1.21 from September but $1.51 above a year ago. The 4a average is now at $22.93, up from $18.44 a year ago and $15.18 in 2012.