I am writing this concerning the Stevens County Planning Board meeting on Monday, Aug. 3, concerning Riverview’s expansion plans.
Ag economists teach that market prices send signals, low prices are telling farmers that the market has more production available than it needs. High prices tell farmers that the market is short of production.
In my time as Upper Midwest Regional Director for National Farmers Dairy division, I was confronted with the fact that it is easier to sell milk for $20 per hundred weight (cwt) than it is to sell milk for $14 cwt. When milk is $20 cwt buyers are short and looking for more, when milk is $14 everybody has all they need.
In the last 10 years, 2022 is the only year the Class III price was above $20 cwt. Why are we even considering this expansion when the market is telling us we don’t need more milk?
At the meeting, the statement was made that large farms do not push small farms out of business or the market. That is contrary to my experience as a dairy farmer, and in my time employed in the dairy industry, and my almost 20 setting on the national board for National Farmers Organization, which markets milk from California to Maine.
The son of friends of mine wanted to milk about 50 cows, as the family had for many years. The coop that he was going to sell to had bulk trucks going right past his driveway. He had to wait to start milking for a couple of years as they were full and were not taking any new patrons. This was not an isolated case; the market was not flooded by small herds.
My experience in the dairy industry spans 25 plus years, from dairy farmer to management setting price and working on contracts. My question is how many cows are enough for Riverview? If this is approved, will they be back in five years asking to go to 50,000 on this site?
Mark Rohr
Bluffton
Otter Tail County

