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Spencer dairy farmer hanging tough amid economic upheaval

November 6, 2009, 7:05 pm

One of the big questions on peoples' minds these days is when will the recession end? Oh, I know Federal Reserve Chairman Ben Bernanke says that the recession is over. Yet, in recent economic news, General Electric's third-quarter earnings took a big hit -- tumbling down 44 percent. This alarming result from one of the world's largest companies shows the spotty strength of the economy. While "signs of life" are emerging -- profits are up for some industrial goods and services -- consumers and businesses are still reeling from large numbers of defaults in credit cards and mortgages.


The unemployment rate, currently at a 26-year high of 9.7 percent, also serves as a stark reminder that we have yet to enter into a full recovery. For those in the throes of joblessness, I can truly feel your pain. After nearly 16 years with one company, I now find myself on the street looking for work.

The aftershocks of the global fiscal crisis have also hit home down on the family farm. It now costs dairy farmers approximately $18.82 to produce a hundredweight of milk, yet they only receive roughly $11.60 per hundredweight, and according to the United States Department of Agriculture, there are many dairy farmers that receive even less.

Like the prey trapped in the coils of a python, farmers are being relentlessly squeezed, some to the very death. A grain shortage and decrease in dairy product exports across the globe are adding to the distress.

Spencer dairy farmer Dave King is holding the line in the face of a grim combination of plunging milk prices and high production costs including fuel, feed and electricity that are stretching his operation financially.

If there hadn't been a slight moderation in the production expenses, King conceded he'd be in serious trouble.

It's during challenging times like these he's grateful for the excellent management skills he learned from his father, John, that help him run his farm in a highly efficient and economic manner.

These skills range from working with a knowledgeable nutritionist to feed his herd for maximum production to having an innovative genetic program geared for reproductive strength by utilizing superior sires to a herd-health schedule that includes well-timed vaccinations designed to keep cows in the milking string and out of the sick pen.

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What were once incidental expenses, such as unscheduled veterinarian calls, equipment breakdown and replacement costs, are now deciding factors as to whether a farmer remains solvent given today's troubling financial dilemmas. King would like to see a more stable pricing structure in place to determine how farmers are paid for their milk rather than the current system that's filled with volatile spikes and valleys.


He also hopes the government doesn't offer farmers a massive bailout option as it did with the banks and automakers. "The bailouts just seem to create more problems than they intend to solve," he said.

To help alleviate stress, King ventures out in the surrounding woods for deer hunting during the season and, along with his family, enjoys cheering on the Big Red basketball team. Thanks to some great management skills and a terrific support system comprising friends and family, Dave King is riding the storm out and looking ahead to a more prosperous future -- not only for himself, but for other farmers as well.

"We're a resilient bunch," he said.

Bill Huttunen grew up in West Danby and is a former dairy herdsman. Send him your farm news at billtvc15@comcast.net or call (561) 427-3309.

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