Wisconsin farmers, and other dairy producers across the country, are optimistic as milk prices rise to levels that haven’t been seen in almost five years. With fuel prices and the demand for corn-based ethanol, producers are hoping the increase in the milk price will help offset the dramatically increased expensses.
“That’s the nature of farming and the commodity markets,” said Mike Wildeck, dairy agent for the University of Wisconsin-Extension Marathon County. “It’s supply and demand, and it’s a perishable product. It’s very cyclical.
“You have times when you can’t make ends meet and you’re cutting corners, and other times you get caught up on bills and maybe replace some machinery.”
The average price for Wisconsin milk in April was $17.20 per hundredweight, according to the U.S. Department of Agriculture’s Wisconsin field office. That’s up $4.70 from a year ago.
Last year, Wisconsin farmers earned an average of $13.30 per hundredweight for their milk, $2.30 less than the 2005 average. Corn prices have been rising as a result of demand for the corn-based fuel ethanol.
“They don’t hit the home run and hit the high price, but they kind of even out the the roller coaster,” Wildeck said. “It’s hard to run a business when it’s feast and famine.”