Can rising milk prices save farmers?

US - Increases in operating fees and prices for fuel, feed, and fertilizer are just some of the reasons area farms struggled in 2006. Dairy prices were at a record low, and very few farms in Jefferson County were able to make a profit. According to Jefferson County Agricultural Coordinator Jay Matteson, it could take eight to 12 months for farms to recover.
calendar icon 5 January 2007
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"We had farms here in Jefferson County that were borrowing against their equity just to stay operating," said Matteson.

That's why some are dubbing 2007 the recovery year. One thing that could help is setting milk prices 20 cents higher per gallon statewide. The State Department of Agriculture said a higher demand for dairy products and a poor feed crop harvest both played a part in the increase.

2006 was a bad year for many dairy farmers in Jefferson County. This year, milk prices are set to rise by 20 cents. But, will that be enough to help struggling farmers? News 10 Now's Amy Ohler explains what contributed to the bad year and what farmers are doing to recover in 2007.

"It will help, but the problem is we've seen just looking at the books that the expenses have gone up more than the 20 cents a gallon," said farmer Michael Kiechle.

Jefferson County Executive Director of the USDA Glen Bullock agrees.

Source: News 10 Now
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