Lately on social media, there’s been a trend to look back at photos of our lives from 10 years ago, in 2016. Back then, the world felt like it was moving at the speed of a viral trend. We were chasing Pokémon through our neighborhoods, freezing in place for the “Mannequin Challenge” and celebrating the Chicago Cubs finally breaking their 108-year curse. It was a year of digital shifts and rose-colored nostalgia. But for a dairy farmer in the U.S., looking at a milk check today can feel like a strange case of déjà vu.
The Price of Stagnation
In January 2016, the base price for our milk in East Moline, Ill., stood at $14.44. In nearly ten years, the fundamental revenue for the wholesome dairy product we have poured into our life has relatively stayed the same.
While the milk price has remained almost frozen in time, the world around the farm has moved at a breakneck pace. The nostalgia of 2016 fades quickly when you look at the financial ledger. The true story of the last decade isn’t just found in the base price, but also in the input creep:
- Labor: Since 2016, the cost of keeping a reliable team on the ground has surged by 30% to 50%, driven by a tightening rural workforce and rising cost of living. This especially holds true for farms located in states that have since mandated overtime laws for dairy employees.
- Feed: The cost of fueling the herd has risen by approximately 20%, according to dairy financial analysts, as global supply chains and weather volatility redefined the price of a ration.
- Operation: From stainless steel parts to the diesel in the tractor, the 2016 dollar simply doesn’t command the same power it once did. In fact, steel prices have risen more than 100% and concrete 65% in the last decade.
The Resilience of the American Dairy
However, the truth illustrates there are fewer farms in the last decade. In fact, the latest licensing data show there were about 5,100 dairy herds operating in Wisconsin at the start of the New Year. That’s just over half of the number of farms operating ten years ago. I know this data isn’t just isolated to the Badger State.
The 2016 trend reminds us of what we’ve lost and what we’ve gained, but for dairy farmers all around the U.S., it highlights a profound reality: Efficiency is no longer an option; it is the only way to survive. To deal with basically the same milk price a decade later, while costs have skyrocketed requires a level of grit and innovation that a viral hashtag could never capture.
Corey Gillins, chief milk marketing officer for Dairy Farmers of America, says they estimate 70% of dairy farmers are now engaged in beef-on-dairy, adding a significant $2.50 to $3.00/cwt. to their bottom line. Gillins also notes rising component values are adding another $1 to $3/cwt. to milk checks that are showing up even in Holstein herds that are now achieving high protein and butterfat levels.
The world might look back at 2016 with rose-colored glasses, remembering the music and the games. But the dairy industry is looking at the numbers. We are proving that even when the milk price stays the same, the American farmer never stops moving forward — evolving, innovating and finding new ways to turn a stagnant check into a sustainable future.
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