California Agriculture in trouble?

[Farmer Kitty]

California is the 5th largest Ag. identity in the world.

I heard an interview with a California dairy man in which he stated that California's whole ag industry is going to be wiped out. He stated that it was due to the economy and their water situation.

Their milk pricing is different than the rest of the country and currently their milk price is at $8.90/100 weight and above quota is under $8.

He had shipped 40 bull calves and they averaged $2 a calf (not sure if that was what they brought or after expenses such as trucking, etc.)

 

[wynedot55]

kitty everyone is in trouble this time.but the big dairies will hurt alot worse than you will.because if they arnt cash flowing enough.they will be broke in 6 months.he wouldve been better off giving the calves away.

 

[Farmer Kitty]

Yes, everyone is having trouble. According to the interview, though, California's ag. will end up gone for the most part anyway.

 

[wynedot55]

they are only telling part of what killing their ag industy.they arnt telling that farmland cost $10,000 to $20,000 an acre.or ptea trying to push the hog an chicken producers out.as well as the high cost of labor.

 

[Farmer Kitty]

they are only telling part of what killing their ag industy.they arnt telling that farmland cost $10,000 to $20,000 an acre.or ptea trying to push the hog an chicken producers out.as well as the high cost of labor.

Those are factors they have been dealing with for a while now and I'm sure are not helping any now. The banks are forcing some off thier land because of the low prices they are now recieving and they can't make the payments.

Yet, another reason to plan for the bad years. Anyone wanting to get into ag and can make a go of it now, should do okay as long as they remember this bad time and keep it in mind when doing financial planning.

 

[wynedot55]

but they wont accept that 9 out of 10yrs its hard to pay all the bills.ab they dont realize the bank notes have tobe paid profit or no profit.

 

[m.holloway]

boy, how can anyone pay 8.00 for milk. i don't buy milk now cause it's 3.98 a gal. i hope something change quick for that area!

 

[Farmer Kitty]

boy, how can anyone pay 8.00 for milk. i don't buy milk now cause it's 3.98 a gal. i hope something change quick for that area!

The farmer is recieving $8.90 for 100 pounds of milk. Not the consumer. There's 8 pounds of milk in a gallon, if I remember correct!

 

[wynedot55]

your right kitty theres 8.6lbs in a gal of milk.on the ave the store sales 100lbs of milk for $50/100.an the farmer gets like $9/100 for the same milk.plus the processor sale all the by products from stripping the milk down.

 

[m.holloway]

so does that mean someone is making double off of what you guys make. cause they pay you and when they stripe the milk of what vaule it has,and sale that for something else, shouldn,t you guys get a piece of that!