Dairy Producers of New Mexico
President's Letter
Luke Woelber
November, 2012

I was reading this morning that USDA announced the Class III milk price for October 2012 at $21.02. We must all be getting rich! Ten years ago that might have been the case. I hope that the perception of the public is not that we are all raking it in. In that same article, it equated the Class III price into an approximate price per gallon, $1.81. I put this number out there so that if we are talking to the public that we can explain in a price per gallon that we are only getting a portion of what they are paying.

By the time you get this edition of the Udder Report, election day will probably have already passed. Perhaps we might have an idea of which direction congress will be taking in their efforts to get us a farm bill before the end of the year. At this point, I can only offer you my opinion; and I think we are going to end up with some kind of extension of the current bill until sometime in 2013. That means a continuation of the MILC, the $9.90 price support system and export assistance programs that were in place over the past few years. I hope that I am wrong, but being that it will be a “lame duck” session, I don’t think anyone will be inclined to move forward on it.

If you need any information on what is happening concerning the farm bill, please contact us. The ladies in the office are keeping tabs on it and how it will affect us. Let’s hope that something happens and that the $20 milk price holds.