To the Editor:
Allow me to introduce myself, my name is Karen Fierbaugh and our family has a dairy operation. Dairy farming has been in the Fierbaugh family for 3 generations. The current milk prices in the grocery store do not reflect the price that the Dairy farmer receives. Please read on to get a picture of our family income along with expenses.
We currently milk 30 Jersey Cows which takes, in the winter 3-4 hours twice a day. Unfortunately, that does not cover barn cleaning, feeding of older calves, grinding feed, minor repairs, and bedding down the calves. Also, the dairy farmer does not receive minimum wage. Yes, I know we have chosen this profession and the proverbial “you’ve made your bed so lie in it” can be applied to this career along with many others. However, I don’t think that it is too much to ask to have our bills met and at least money for a family to live on. But, with being a dairy farmer we are at the mercy of the retailers and the government who decide the price of milk per hundred.
When I go into the stores I see $3.38 and up for one gallon of milk. Then I see the price the dairy farmer is currently receiving, per hundred weight of milk sold, which is the same price that the farmers received in the 1970’s. Then it’s no wonder that the family owned and operated dairy farm is going out of business. When our paycheck comes from the dairy I see $10 - $16 per 100 lbs of milk produced. The average small dairy farmer will ship any where from 1,500 pounds to 3,500 every other day. An example is: one regular paycheck will have 14 shipped days per month. Let’s figure low milk prices first then the high price. Take 1,500 pounds multiplied by 14 ship days and that equals 21,000 pounds of milk per month. Then divide the 21,000 pounds by 100; that equals 210. Next, multiple 210 by $10 and you get $2,100. That is one month’s total gross income. The following deductions are then taken: Trucking fee ($432 for the month), FMMO Fee ($9.98), Federal Deduct ($9.98), and Dairy Promo (19.96). The high figure would be $3,360.
Hopefully to help make this a little clearer for you, the dairy companies pay an advance paycheck at the end of every month and that price per hundred is $4 - $6 lower than the regular paycheck (which arrives on the 15th) It also does not have any deduction. The advanced check is based on the first 8 shipments of the month. Using the figures from above our advanced paycheck would total $1,050 (low) and $2,450 (high). They then take all the above mentioned deductions plus deduct the amount of the advanced check out of the regular paycheck. So, the regular paycheck would be $3,360 minus the following: $1,050 (advance), Trucking fee ($432 for the month), FMMO Fee ($9.98), Federal Deduct ($9.98), and Dairy Promo ($19.96) making your total $ 1,838.08. As you can see, trying to run a dairy farm on $2,888.08 per month is not a profitable business. You have feed expenses, fuel, electric, repairs, Dairy supplies, breeding fees, vet bills, labor, etc. which are not at the 1970’s prices.
I have stated all the above to bring it to this conclusion. We need to know that we have your support and backing of your retail business. Please lower your price per gallon of milk as a reflection of your support for the dairy farmers. Your backing and support will mean that more small dairy farmers will be able to stay in business and continue to provide your business with quality dairy products.
There are more details that I will not go into but will be willing to sit down and discuss with you as the family dairy business struggles to survive.
Robert M. Fierbaugh
Fierbaugh Dairy President
Bowerston, OH
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