UPDATE: New federal pricing changes are breathing new life into New York’s dairy industry, signaling a brighter future for farmers. Just announced adjustments to the Federal Milk Marketing Order (FMMO) are expected to stabilize prices, giving dairy producers crucial support amid rising costs.
In LeRoy, New York, Natasha Sutherland, co-owner and herd manager of Stein Farms, expressed optimism about the future. “My girls are amazing,” she said, referring to her cows. As a third-generation dairy farmer, Sutherland understands the challenges her industry faces. “The red tape has increased, and interest rates on our mortgages have been burdensome,” she explained.
Sutherland highlighted the dire situation: “In 2009, milk prices plummeted to $14, while it costs me $21 to produce 100 pounds of milk. We were losing money every day.” The new pricing structure, which categorizes milk based on its intended use, is seen as a game changer. It sets minimum prices, ensuring that farmers are compensated fairly for their products.
The FMMO has not seen significant national-level changes since 2008, leaving farmers vulnerable to fluctuating costs. “Electricity, labor, and fuel prices have all gone up since then,” noted Chris Wolf, a professor of agricultural economics at Cornell University. The recent updates aim to increase income for farmers producing level one and two products while adjusting prices for cheese and butter.
“We’re seeing nearly $3 billion in new investments in dairy processing facilities in New York,” Wolf added. This influx of capital from companies like Chobani, Fairlife, and Great Lakes Cheese reflects a growing confidence in the dairy sector.
Sutherland recently received her first check under the new system, which showed a minor loss of $0.04 for approximately 12 gallons produced. “I’m grateful for that, as it could have been much worse,” she stated, referring to potential losses of up to $0.20 per gallon. For a farm with 1,200 cows, such losses would be catastrophic.
Despite challenges, Sutherland remains hopeful. “It’s not a today fix; it’s a 15-year, 20-year fix,” she said. The dairy industry is witnessing a surge in demand as consumers prioritize protein in their diets. “Dairy is having a tremendous moment in New York state,” Sutherland emphasized.
With these urgent changes, New York’s dairy farmers are being given a fighting chance to thrive. As the industry adjusts to the new pricing landscape, all eyes will be on how these developments unfold in the coming months. Expect more updates as farms like Stein Farms navigate this pivotal moment.
