It took seven years for this to happen. But finally, prices paid to local dairy farmers have reached $20 per hundred weight (CWT).
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 The Market Administrator for Federal Order #1 has announced the value for milk produced in December 2021 at $20.41 CWT.

Records indicate the the value of milk in December 2014 was $21.02 CWT.

Prices since Dec. 2014 have jumped around like Mexican jumping beans. One might say this new price is a victory for dairy farmers. However, when you consider that the national average for the cost of production is $22.67 CWT (USDA), then you realize that dairy famers are still being paid far below the price they need to stay in business.

Everyone must realize that the figure of $22.67, if they got it, would only cover the cost of production. Beyond the cost of production, money is taken out of dairy farmers milk checks for marketing costs and hauling costs along with other trivial costs. It is obvious that many dairy farmers are having between $2.50 and $3.00 CWT taken out of their milk checks for these additional charges. They are getting way below the new $20.41 new rate….they are getting more like $17.00.

Two more local dairies are getting out after another tough year.

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