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More dairy consolidation coming?

A feed commodity dealer says a good forage season will help keep dairy farmers well positioned this year.

Clint Cherney with Harvey Commodities tells Brownfield, “They have the highest amount of forage they’ve had in probably the last 10 years on farm, excellent hay crops, excellent corn silage, and a lot of high moisture corn on farm.”

Cherney says he expects farmers to strongly consider their long-term plans while prices are good.

“As time goes on, I feel like this is a great time for smaller dairies to sell their herds out,” he says. “The price replacements is very high, price of calves is very high.”

The latest milk report from USDA shows herd building efforts are underway. Dairy farmers added 56,000 more head to their herds in the second quarter, and 127,000 more cows compared to the same period last year.

Havey Commodities procures feed for producers across Michigan, Indiana, Ohio and parts of the eastern U.S.