US production grows steadily

Dairy farmers in the United States continued to expand last year with the national dairy herd growing by 59 000 cows. Milk production also continues to grow although profit margins are small. Margins are expected to improve this year and milk production will be higher. Sarina Sharp, agricultural economist with the Daily Dairy Report said: “Like last year, dairy producers who also farm will likely have very little farm revenue to cover costs. Land values continue to slip, reducing producers’ potential collateral for loans, and agricultural lenders are in no position to be generous − interest rates are on the rise, and profits look slim for farmers and livestock producers.” Expectations are that costs, in particular wages, will continue to increase in 2017. To read more, click HERE.