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Invitation to dairy farmers

The Dairy Cost Study offers a cost of milk production analysis for participating Alberta dairy farmers.

Dairy Cost Study

‘Enrolment is now open for the next Dairy Cost Study program beginning January 2022,’ says Pauline Van Biert, research analyst with Alberta Agriculture, Forestry and Rural Economic Development.

‘A prime objective of any business is to have a good understanding of how well it is performing. Important parts of measuring that performance include tracking revenues, expenses, and profit margins.’

The Dairy Cost Study is an annual program where dairy farmers provide farm information over the course of a year. This information is compiled, creating a business analysis on the cost and returns of producing milk at their farm. This analysis is a tool to help identify and start the thought processes and conversations on how to manage costs.

The data of all the participating farms is then combined to produce an Alberta benchmark document called the Economics of Milk Production.

‘Farming is becoming more complex, and there is a need to go back to the basics to really know how your business is performing. It is important to know the details. Only once you have a complete picture of your business can you better manage its opportunities. Annual budgeting and planning are better when you use your own numbers. Having your own numbers in front of you helps assess farm management options.’

Van Biert uses these questions as some examples that the Dairy Cost Study final farm analysis will help answer.

  • How will the dry conditions of 2021 and increase in feed, fuel and electricity prices affect my cost of production?
  • How will the proposed increase to farm gate milk price affect my income?
  • My total vet costs are higher than I thought. Why? What can I do about it?
  • How much are my cows producing? Is this satisfactory, or should I try to up my production to fill my quota or buy some more cows?
  • What is my cost per kilogram of butterfat?

‘Being in the program and receiving your detailed farm analysis is free. The cost is the investment of time, and the payback can be huge.’

Van Biert adds a current participant found that the time invested in the program is well spent and the results are useful when making decisions. This participant has been in the program every year for over 10 years and continues to get value from the analysis.

‘Whether you join for one year or stay for many, you will get that value too,’ says Van Biert. ‘I will come out to the farm and explain the details. We make it as easy as possible to provide the requested farm information. I can work with the farm’s accountants or feed providers to fill in some of the blanks.’

Source : alberta

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Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

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