Year of challenges met with consistent support
Thursday, December 10, 2020
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This story appeared in the Edge December newsletter. Click here to view the digital version of the newsletter.
Written by Dale Beaty, director of member relations
Jamais Cascio once said... “Resilience is all about being able to overcome the unexpected. Sustainability is about survival. The goal of resilience is to thrive.”
This year has tested all of us in ways we likely never imagined. However, many of us found a well of resiliency we never tapped into before. We discovered our potential to improvise, adapt and overcome anything thrown at us. This is especially true for dairy farmers.
Farmers yearn for consistent and stable milk prices. After milk prices rallied at the end of 2019, this year began with much anticipation for improved consumer demand and rising milk prices. Those expectations were dashed when milk prices came crashing down as the milk supply chain experienced major disruptions due to pandemic shutdowns.
When the economy was reopened, demand and prices rebounded significantly. A slew of government emergency federal aid programs helped sustain farmers, and the Farm to Family Food Box program drove cheese demand up and milk prices followed over a six-week period. Now, we are experiencing a serious resurgence of the pandemic, as well as the inherent challenges of social distancing during the cold winter months. Those forces are likely to drive down domestic demand, which may indicate lower milk prices are on the horizon going into 2021.
This year’s roller coaster milk prices make it hard to plan; especially when no one has a clear prediction of what may be the short- or long-term staying power of the pandemic. Nobody knows how that will impact the dairy supply chain and consumer demand. Many farmers continue to be concerned about the impact negative producer price differentials (PPDs) have on their milk check. There is a good news–bad news dynamic with negative PPDs. Recently, PPDs have been negative because cheese prices rose rapidly on strong demand. Rising milk prices for Midwest dairy farmers is good news. That good news has been slightly offset by the bad news of negative PPDs.
The workforce implications of the pandemic are top of mind for all farmers. Every person is integral to the effective and efficient operation of the farm. So, the most important challenge faced by farmers is maintaining their health and safety, as well as those who work for them.
Generally speaking, farms have been very successful in implementing protocols to limit COVID-19 infections and the spread of the virus.
Throughout this turbulent year, Edge staff delivered consistent services and support to you:
- Continue to help shape federal and state relief programs
- Communicate information on how to apply for federal programs
- Share CDC guidelines to keep you and your employees healthy and safe
- Educational podcasts about PPDs and how to read your milk check
- Helping establish and promote farmer-led watershed groups
- Lab verifications, milk tank calibrations and in-person farm visits
Your Edge staff has been there for you every step along the winding path of 2020. Our goal is to bolster your resiliency which drives your sustainability so you and your farm will not only survive but thrive!
Contact a member services representative at info@voiceofmilk.com.
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