Let's take a look at what has happened to box beef prices, fed cattle prices, feeder cattle prices and corn prices over the last year. I will start with USDA Choice box beef prices. In June of 2010, the price averaged $157 per cwt. and increased to $168 by January 2011. In April of this year, the price increased to $188 and on June 1, 2011 the price had decreased to $178 per cwt.

The feature story about demand for fluid milk on the cover of this year’s June Dairy Month issue has been in development for several months. Fluid milk represents a significant portion of U.S. domestic demand. And it’s in trouble again.

For anyone who grew up in a small town, I’m sure you will probably agree that “everyone knowing you” is both a blessing and a curse. Unfortunately, our parents somehow already knew about the shenanigans we pulled before we even got home. But on the flip side, there was usually someone nearby who’d help us get out of a jam before anyone else found out. And for many of us who moved “back home” after school, we’re still hoping nobody remembers who we were during our rebellious high school days!

There are many theories as to why milk prices have gone higher since the lows of 2009. Some will argue that the CWT cow kills removed enough production capacity so as to shorten the available milk supply for processors, thus raising their effective bid. Others will make a case for growing export demand and the broad sweeping interest that foreign buyers have for our products. Some will bring up the crippling weather conditions experienced throughout the Oceania region that shortened their feed availability and ultimately their milk supply.

Starting a risk management plan can be a daunting task for many dairy producers. You spend most of your time focusing on cow management – maximizing milk production, reproduction, cow comfort and cow health. You fix equipment, plan this year’s crop rotation and buy next month’s loads of cottonseed or hay. Suddenly, you’re being asked about your risk tolerance, futures contracts, long puts and short calls. It’s not an easy or natural transition for most.

Rain poured down continuously from leaden skies overhead. Inside the calf nursery, the newest babies were settling down to rest after guzzling down their breakfast bottles. The bawling of older ones, impatient for their shares of morning milk and fresh feed, partially drowned out the staccato hammering of raindrops pounding the barn’s metal roof. Sheltered from the deluge only by a red, plastic rain poncho, I swooped from the nursery like a crimson Batman, swiftly slipping warm bottles of milk into holders on the pens of the outside calf condos. A yard-wide stream flowed past the nursery door, requiring a leap over the runoff to feed a final round of morning hay to the weaned calves in the barn on the opposite side.