Dairy Industry Crashing in 2015

Just last year, milk prices started skyrocketing as China had poor milk production and needed to begin importing milk.  The United States Dairy Farmers were happy to help China with their milk production crisis.  However, now that exports are back to normal, milk prices are crashing.  Talking with Dairy farmers today, they mentioned their checks were going from 25 cents per hundred down to 15 cents per hundred.  Other farmers mentioned similar slides in prices.  Meanwhile, other farmers see the price slide and are being asked to pay 5 cents per hundred to pour milk down the drain.  Why would we pour milk down the drain?  To stabilize milk prices.  While customers will be happy to see the gallon of milk return to $3.00 prices, farmers will be not so appeased.

With the large cash crop Ag sector crashing also, in its second year down, Ag producers were hoping to cash in on getting more dairy farmers to buy new equipment.  Looks like the Ag equipment companies are in for a long hard year.  I expect more layoffs coming in manufacturing plants this year as well.  Last year Deere lead the way with thousands of layoffs.  I think this will be a good year for anyone looking to get new farm equipment as companies will be giving away their equipment for bottom dollar prices to maintain cash flow and minimize layoffs/downsizing.

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