By LEE MIELKE
Mielke Market Weekly 

A federal judge in Washington state, Thomas Rice, has handed down a ruling that will have ramifications for agriculture across the country. The case involves several Yakima Valley Washington dairy operations sued under the Resource Conservation and Recovery Act (RCRA) on charges that any potential over application of manure is illegal dumping.

Dan Wood, executive director of the Washington State Dairy Federation, said on the Feb. 27 DairyLine program that this decision is the first one ever applying the RCRA to agriculture, despite explicit language in the law exempting agriculture. The judge ruled that if you apply manure that is not taken up by the plants, the excess constitutes as a dumping, Wood reported, and the judge held that "theoretic leakage of lagoons is actual leakage and also constitutes as dumping."

He has yet to rule whether composting or having livestock on dirt pens constitutes as dumping, but Wood emphasized that the judge has ruled that the RCRA does apply to agriculture despite its language to the contrary, and "applies to manure and its constituent nitrate when it is stored in NRCS-compliant lagoons, ‘over-applied’ to growing crops as fertilizer and composted on native, unlined soil."

The remaining issues go to trial in May, and Wood reported that discussions are ongoing with the families involved to "potentially settle those out of court, but right now it is an active lawsuit."

The outcome of this case will affect every dairy and livestock operation in the country, Wood warned, as well as non livestock farms "because it’s not just about dairy nutrients, it’s about any kind of nutrients, so even if you’re using conventional fertilizer, if you put on more than the plant uses, this judge would say that you have illegally dumped."

U.S. milk production continued to top year-ago levels for the 13th consecutive month, according to preliminary data in the December Milk Production report. The USDA estimates January output in the top 23 producing states at 16.5 billion pounds, up 2.1 percent from January 2014. The 50-state total, at 17.6 billion pounds, was also up 2.1 percent from a year ago. Revisions raised the original December 23-state estimate by 14 million pounds, now reported at 16.3 billion pounds, up 3.4 percent from a year ago.

January cow numbers in the 23 states, at 8.62 million head, were up 8,000 head from December and 103,000 more than a year ago. The 50-State count, at 9.3 million head, is up 51,000 from December and 96,000 more than a year ago.

January output per cow in the 23 states averaged 1,918 pounds, up 17 pounds from January 2013, and the highest production per cow for the month of January since the 23 State series began in 2003.

Continued increasing cow numbers and higher output per cow fueled the gains in January, although California was down 2.6 percent on a drop of 2,000 cows from a year ago, and output per cow was down 50 pounds. Wisconsin was up 2.1 percent, thanks to a 55 pound gain per cow and 5,000 more cows. Idaho was up 1.4 percent on 14,000 more cows, but output per cow was down 20 pounds. New York posted a 3.7 percent increase on 65 pounds more per cow and 1,000 more cows. Pennsylvania was up 3.0 percent on a 55 pound per cow gain, but cow numbers were down 1,000. Minnesota registered a 3.0 percent increase on a 50 pound gain per cow, but cow numbers were unchanged.

The biggest gain was in Michigan, up 9.6 percent, thanks to 22,000 more cows and 75 pounds more per cow. South Dakota was next, up 8.7 percent, followed by Utah up 6.9 percent, and Colorado and Indiana both up 6.2 percent. Two states showed declines, California and New Mexico. In New Mexico, a 40 pound drop per cow put less milk in the tank even though cow numbers were unchanged.

Arizona was up 3.0 percent on a 25 pound gain per cow and 3,000 more cows. Texas was up 4.4 percent despite a 20 pound drop per cow, but cow numbers were up 25,000 head. Washington State was up 2 percent, thanks to 9,000 more cows, but output per cow was down 25 pounds.

The USDA also reports annual milk production for 2014 in the U.S. hit 206 billion pounds, up 2.4 percent from 2013. Revisions to 2013 output increased the annual total by 13 million pounds, and 2014 output was revised up 52 million from last month’s projection.

Output per cow in 2014 averaged 22,258 pounds, up 442 pounds from 2013. USDA says the average annual rate of milk production per cow has increased 13.9 percent from 2005.

The average number of milk cows on U.S. dairy farms totaled 9.26 million head, up 0.4 percent from 2013. The average number was revised up 2,000 head for 2014, according to USDA.

Jan. 31 butter stocks totaled 148.1 million pounds, according to preliminary data from the USDA’s latest Cold Storage report, up a whopping 43.4 million pounds or 41 percent from December and 4.2 million pounds or 3 percent above January 2014. It’s been some time since butter stocks exceeded month-ago and year-ago levels.

American type cheese, at 632.5 million pounds, was up 4.7 million pounds or 1 percent from December and 1.7 million or virtually unchanged from a year ago. The total cheese inventory stood at 1.04 billion pounds, up 24.6 million pounds or 2 percent from December and 27.5 million or 3 percent above a year ago. Revisions added 6.1 million pounds of butter to the original December estimate and 4 million pounds of American cheese.

The block Cheddar cheese price closed the last week of February at $1.5450 per pound, unchanged on the week but 67.75 cents below a year ago and 1.25 cents higher on the month. The Cheddar barrels finished at $1.4925, up three-quarter cents on the week, 70.75 cents below a year ago, and down 1.25 cents on the month. Seven cars of block traded hands on the week and 10 of barrel. The NDPSR-surveyed U.S. average block price inched up 0.9 cent, to $1.5325 per pound, while the barrels averaged $1.5282, up 0.3 cent.

Midwest cheese markets are in a "curious calm position," says USDA’s Dairy Market News (DMN). Even with more milk going into cheese than would be typical in past years, discounted milk being available, and expectations of more milk arriving soon during the spring flush, cheese markets have been quite stable. The potential impact of uncertainty involving near future cheese production is minimized for the present as markets seem to reflect a comfortable balance between demand and supply of cheese.