Sunday, February 15, 2009

A real effort to improve dairy farm profitability

The Cooperatives Working Together (CWT) program was approved for another two years of operation, and this was announced in a news release on the CWT website. This program is the one being pushed by the National Milk Producers Federation (NMPF) as the key mechanism for controlling country-wide milk production.

"“America’s dairy farmers are looking to CWT to help them overcome the dire financial circumstances they are facing,” said Jerry Kozak, President and CEO of NMPF, which manages CWT. “I’m pleased that our members are willing to support a two-year commitment to the program, in order to give us the resources necessary now to make a positive impact on farmer income.”"

The newest version of the CWT Program will have two changes. Those changes were described in the press release.

"CWT’s members also approved two changes in program policy. First, all members whose bids are accepted in future herd retirement programs will agree and warrant to cease dairy production for one year. This warranty will apply to both the producer and his/her dairy facility.
The second change is that farmers who were successful participants in past CWT herd retirement rounds will be permitted to bid in the next herd retirement round that CWT conducts."

This program will take approximately one year to have the desired effect for a variety of reasons. While the CWT program works and more than pays for itself, at least from the viewpoint of the producer, this is not a quick fix.

I'm not sure that a 'quick fix' is available for this particular situation.

Hope that helps.


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