The farmers petitioned the Department of Agricultural Resources to declare an emergency in late January, turned out in force for fact-finding hearings in Amherst and Boston in March , and flooded state officials with touching letters describing how they are on the verge of going out of business.

The consensus at the hearings was that 189 dairy farms are left in Massachusetts, but state Senator Stephen M. Brewer of Barre said last week that he now believes the number is down to 167. He said the state's largest dairy farm has received a foreclosure notice.

Jim and Krisanne Koebke , who milk 75 cows on a nearly 100-year-old dairy farm in Dudley, told state officials their situation is precarious. "It is a fact, not a dramatic statement, when we say that we wonder every day if we are making the right decision by staying in business," they said.

Tedd F. White of Hawley sent state officials a single sheet of paper tallying up what it costs him to produce milk and what he is paid for it. By his calculations, his costs are 25 percent greater than his revenue.

For most dairy farmers in Massachusetts, 2006 was a nightmare. What farmers are paid for their milk is determined largely by federal formulas using national prices for butter, cheese, nonfat dry milk, and dry whey. Those prices plummeted last year as milk production soared on giant dairy farms in states such as Texas, California, Idaho, Colorado, and New Mexico.

Even as milk prices fell, the cost of feed, fertilizer, and energy soared. Industry specialists say the typical Massachusetts farmer lost $40,000 to $60,000 last year. Milk prices are rebounding this year, but dairy farm losses are expected to continue because production costs also are increasing.

Brewer estimated Massachusetts dairy farmers on average last year were paid $1.14 for a gallon of milk that cost them $1.70 to produce.

Source: Boston.com