Farm Frustration: Dairy Farmer Losing $1300 Every Single Day

By: Mary Rinzel Email
By: Mary Rinzel Email

Some farmers say the economy is costing them more than a thousand dollars a day.

One lifelong farmer told us he wakes up angry, watches the markets, gets angrier and continues to work 15 hours a day only to lose money. He says his only option—wait for times to get better.

For four generations, Bernard Killian and his family have prided themselves on being Trempealeau County farmers. He always hoped his farm would one day belong to one of his five children.

“You would like to pass it on to them,” Killian says. “But, when you see prices go like this, who's going to want to do that type of work for that many hours?"

Killian says the price of milk is so low he loses almost $1300 every day. It is literally costing him money to milk.

"It's very frustrating," he says.

Killian says his 250 cows produce 15,000 pounds of milk every day.

His operational costs are $2700 daily. In February and March, Killian says he'll only make about $1400 every day. His loss: $1275 dollars a day.

"The milk we're selling now is zero value. It's dipping into equity," he tells us.

"What producers are seeing is a significant drop in net value and in some cases below net value to where he’s not making any money at all on his livestock," says Mike Dummer with Equity Co-op.

Dummer says milk and beef prices have both dropped significantly. He says it's somewhat seasonable, but says it's also a direct result of the poor economy.

"People are eating, but they're eating cheaper," Dummer says.

"I just received a check for two calves. I got $3.93 after commission. That was a 110 pound bull calf and 115 pound bull calf," Killian says.

It’s a price he says didn't even pay for his gas to drive to Altoona. He says it's so bad at the auction house, he's better off giving his calves away.

“It's very hard on everyone when you have a bull calf born and it's not worth anything," says Ellen Killian, Bernard's wife.

She says that makes it very hard for her to support Bernard's dream of keeping their farm in the family.

"I don't know if I encourage my kids to think about farming as much as my husband would like. I see the struggles every day,” Ellen Killian says.

The Killians say what frustrates them the most is the fact that the price of milk, cheese and other farm products keep going down for them, but continue to go up at the store. They say farmers just aren't getting their fair share.


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