Testimony presented by USDA chief economist Joe Glauber to a Senate Ag Committee hearing on the impact of the drought highlights the harm high feed costs are causing for the nation’s dairy farmers, according to Jerry Kozak, president and CEO of the National Milk Producers Federation.

He said the testimony provided evidence that Congress needs to pass a farm bill providing a workable new safety net for dairy producers.

“Glauber noted that feed costs make up 51 percent of expenses for dairy – the highest feed costs of any livestock commodity,” Kozak said.

Glauber also pointed out that because of high feed costs, milk-feed ratios have remained near the low levels experienced during 2009, and that margins are expected to remain tight in 2013.

According to Kozak, Glauber also said that "another year of below-trend yields and high (feed) prices would likely result in further liquidation" of herds.


“These factors make it all the more urgent for the Senate and the House Agriculture committees, along with the full Senate and House, to pass a five-year farm bill that provides our dairy producers the security and stability they need,” Kozak said. PD

—From NMPF news release