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The latest on the Key Bridge collapse, New York puts forth legislation to get clean energy projects on the grid and Wisconsin and other states join a federal summer food program to help feed kids across the country.

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Ohio Dairy Farmers Struggle Amid Falling Prices

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Monday, March 23, 2009   

Ottawa, Ohio – It's a rocky road for Ohio dairy farmers these days. Dairy market prices have gone from a peak in 2008 to current historically low levels. Now the price of milk has dropped below its production cost.

Ohio Farmer's Union executive director Roger Crossgrove, a former dairyman, says it will be tough for many dairies to stay in business this year, due to low prices for their milk and higher input costs.

"The picture is really bleak at this time. I foresee if things don't change - and change soon - we're probably going to lose 20 percent to 30 percent of the dairy farmers in the state of Ohio."

Crossgrove says prices to the dairy farmer have dropped 50 percent or more, but retail prices for dairy products have not followed suit.

"We need some type of new pricing mechanism that funnels more revenue back to the dairy farmer. With the prices holding on retail, the money is there. We just need to disperse it more evenly."

Crossgrove says it's not just falling prices that are hurting dairy farmers. With rising production costs, many can't turn a profit.

"We get hit with hauling costs and with promotion expenses; we were hit with the surtax for the high price of diesel and we have no way of recovering it."

According to the U.S. Department of Agriculture, Ohio farmers were paid about $1.15 for a gallon of milk in January that cost them $1.32 a gallon to produce.

Crossgrove says long-term policy solutions are needed that will help producers get a fair price by basing it on the dairy farmer's costs of production instead of on the market.

Meanwhile, Ohio Farmers Union members and Capital Hill lawmakers are working to get Milk Income Loss Contract payments out, which pay dairy farmers when domestic milk prices fall below a certain level.





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