Feed prices taking their toll

As milk prices remain in the cellar, the high cost of feed is placing further strain on producers nationwide. For farms west of the Mississippi the strain may be the greatest in California. In a just-released report from Moore, Stephens, Wurth, Frazier, and Torbet — a California-based accounting firm, net incomes for herds throughout the state were ranging from negative $138 per cow in Southern California to $188 in the heart of cow country, California's San Joaquin Valley. On a per-hundredweight basis that's a range from negative 90 cents to $1.13. Farm profits were higher for farms in Arizona, Idaho, and the Texas Panhandle. The only region in the accounting firm's report with lower profits was for farms in New Mexico.

While those numbers may seem livable, keep in mind that was during a time when California mailbox prices were near $16.25 for the state. Now, mailbox prices may drop by $4 to $5 or more, bringing severe financial hardship to farmers.

Feed prices remain robust. In January, 14,444 tons of Supreme alfalfa hay was sold with prices ranging from $170 to $268 per ton. Rolled corn was selling for $187.50 to $196.60 per ton; soybean meal at $359 to $361; and whole cottonseed at $317.25 to $319.25.