June 29,2019-
Milk prices trend higher
Milk prices paid to California dairymen are improving as cow numbers and milk supply continue to shrink.Here is the latest forecast. U.S. milk production declined in May to 19.06 billion pounds, down 0.4% from the prior year. Chart is fromWestern United Dairymen. Dairy producers sent 258,100 cows to slaughter in May, 5.8% more than in May 2018 and the largest total for any May on record aside from 1986, the year of the cow-kill program. Milk production is down big in the midwest even though California production edged higher in the latest report. Milk Producers Council says CME spot butter posted a nearly 13-month high on Wednesday and finished today at $2.42, up 2ȼ from last Friday. Spot nonfat dry milk (NDM) climbed a half-cent to $1.05. Valley processors like CDI make a bunch of NDM and until recently the price has been in the cellar. Cheese prices are suddenly up as well as the Mexican tariffs have been lifted. Even with higher prices for their product on the horizon , increased feed prices – corn – limit bottom line relief.
Dean Foods stock suffers
The US largest dairy company Dean Foods is suffering and its stock is trading below $1 a share compared to $11 a year ago. Analysts are whispering bankruptcy and asset sales may soon follow. The company operates fluid milk plants in LA- Alta Dena and in the Bay Area – Berkeley Farms. Dean Foods sold their Tulare plant to Saputo.
Good news bad news in state budget
California will fund needed drinking water improvements in disadvantaged communities in the San Joaquin Valley without a new tax on ag. Instead they will pull money out of the Cap and Trade fund adding up to $130 million to help small towns clean up their water, many in Tulare/Fresno counties. The bad news is they are taking the funding from the methane reducing diary digester program. WUD reports that the funding level for livestock manure methane reduction will be reduced to $34 million. The past 2 years had seen levels of $99 million each year so this year’s funding is a significant hit.The final negotiated solution on drinking water was $130 million this year, with $30-$35 million from the general fund and the remaining $70 million from the Cap and Trade revenues. Cuts were made to both the diesel replacement and dairy methane digester incentive programs. Its a choice between clean air or clean water!
The methane reduction program has been hailed as California’s version of the Green New Deal.
CBDs in food?
Food and drinks infused with CBD would be legal in California under a bill approved by a state committee this week. Currently, only hemp seeds and hemp seed oil are approved for human consumption under state
California Avocado prices up
California avocado prices are up 44% compared to a year ago in the first week of June, reaching multi-year highs for this time of year. You can thank the smaller harvest here this season coupled with strong US demand and lower than expected Mexican harvests.This is
California’s smallest crop in a decade the could last only through August. USDA’s Agricultural Marketing Service reports prices of $70-80 per carton, best since 2017.
Citrus prices down
As California harvest of lemons and navels comes to an end, prices are s down from last year. Produce press says prices for mid-sized lemons were down 12% from 2018 and 26% compared to the five-year average. Imported supplies are expected to increase during the summer. Prices of mid-sized navel oranges are down about 50% compared to the multi-year highs last season (see Citrus Mutual chart).
GM salmon on the table
Politico reports that genetically modified salmon could first become available in restaurants and college cafeterias by late 2020. AquaBounty’s salmon are the first genetically modified animals approved for human consumption in the U.S.
Who is number one ag Congressional District?
While most people believe that the Centrwsl Valley congressional district are the nations largest for ag sales a just released USDA survey for 2017 shows our own District 21 is just number 4 – beat out by several Midwest districts.One Nebraska district did better than $16.5 billion in sales in 2017 compared to $9.8 billion in the 21st. Next door in District 22 there were $3.2 billion in annual sales. The two districts cover most of off Fresno,Kings and Tulare counties.
Each of the top Midwest districts have more than 30,000 farms compared to 4500 in District 21..
USDA also surveyed milk sales and here District 21 is number one at $1.99 billion in sales followed closely by a district in Idaho with $1.92 bil in sales. District 21 has just 250 producers and 22 has 138 farms compared to Wisconsin milk producers districts with 2600 dairy farms.
Who needs Roundup?
Chemists at Tübingen University in Germany recently caused a stir when they discovered a harmless sugar molecule, which they say works just as well as glyphosate as a weed killer.
Report say valley fever getting worse
In California, valley fever cases last year reached an all-time high since the disease was recorded, surpassing the previous records set in 2016 and 2011 (after a brief period of decline in cases between 2012 and 2014), according to the California Department of Public Health. The department recorded 7,466 confirmed cases by the end of 2018, a 137% increase since 2015.
An increase in droughts and dust storms on the west coast is spreading valley fever, a fungal infection that can cause permanent lung damage and, in rare cases, death. As climate change worsens, researchers suspect wind-borne fungal infections like valley fever could become more and more dangerous to public health.
Nebraska land values down for fifth year
Land values in Nebraska are down for the fifth consecutive year. Between 2018 and 2019, the estimated market value decline in agricultural land and buildings totaled about $3.6 billion, according to the University of Nebraska-Lincoln.Overall, Nebraska farmland prices have dropped 20%, since 2014.