As we enter July, here are some financial factors to consider, as well as opportunities for awards, scholarships and the opening of World Dairy Expo cattle show entries.

Lee karen
Karen Lee
Managing Editor / Progressive Dairy

Farmer sentiment falls slightly based on future outlooks

After seeing some recovery in May, farmer sentiment turned downward again in June based on future expectations, according to the latest Purdue University/CME Group Ag Economy Barometer.

“High input costs and the risk of lower prices for the products they produce continue to weigh on farmer sentiment, along with concerns about rising interest rates,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.

The percentage of producers concerned about rising interest rates continues to grow. In the June survey, 23% of producers cited it as a top concern, up from 18% in February.

Fewer producers are expecting a rise in farmland values over the next five years. Those who expect an increase point to non-farm investor demand, inflation and energy production as possible drivers for farmland values.

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The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released July 2, reflect ag producer outlooks as of June 17-21.

GDT index fell 6.9%

The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is down 6.9% in an auction held July 2.

Compared to the previous auction, prices for individual product categories were mostly lower, with the exception of lactose, which was up just 0.6%. Anhydrous milkfat and butter fell the most, down 10.7% and 10.2% respectively. Cheddar cheese, skim milk powder, buttermilk powder and whole milk powder were down by 4%-7%. Mozzarella was not traded.

The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).

The next GDT auction is July 16.

July FSA interest rates move higher again

The announced interest rates on loans through the USDA’s Farm Service Agency (FSA) continued an upward trend for the fourth straight month. As we begin July 2024, interest rates for operating and ownership loans (compared to June) are as follows:

  • Farm operating loans (direct): 5.5%, up from 5.375%
  • Farm ownership loans (direct): 5.75%, up from 5.625%
  • Farm ownership loans (direct, joint financing): 3.75%, up from 3.625%
  • Farm ownership loans (down payment): 1.75%, up from 1.625%
  • Emergency loan (amount of actual loss): 3.75%, unchanged

The FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. For more information, producers can contact their local USDA Service Center.

World Dairy Expo dairy cattle show entries now open

Entries for the dairy cattle show at the 57th World Dairy Expo in Madison, Wisconsin, are now being accepted, exclusively online. The first entry deadline is Sept. 2 at 11:59 p.m. (CDT). Late entries, for an increased fee, can be submitted online through Sept. 15 to be included in the cattle log, or until 5 p.m. (CDT) the day before the respective breed meeting.

The dairy cattle show will run Sunday, Sept. 29 through Friday, Oct. 4. Entry information, the schedule of events, rules and other updates can be found in the premium book. Exhibitors may request a mailed copy of the premium book by contacting Laurie Breuch, dairy systems manager, or Lexa Miller, dairy cattle and contests coordinator.

World Dairy Expo is closely monitoring highly pathogenic avian influenza (H5N1) and is in contact with state and federal animal health officials. The expo will share new information and directives as provided, but for the latest information on H5N1, visit the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) website.

World Dairy Expo’s prestigious Parade of Champions will be split into two events for the 2024 dairy cattle show. Recognizing each champion deserves her moment in the spotlight, the selection of the Junior and Open Show Supreme Champion Heifers will move to Thursday evening, immediately following the selection of the International Holstein Show’s Junior Champion. The Junior and Open Show Supreme Champion Cows will continue to be selected on Friday.

Nominations now open for the National Dairy Quality Awards program

The National Dairy Quality Awards (NDQA) program is now open to dairy producers in the U.S. and Canada. This program recognizes dairies that excel in producing high-quality milk. Nominations close Aug. 31.

Coordinated by the National Mastitis Council’s (NMC), the NDQA program recognizes U.S. and Canadian dairy producers who market milk with a low somatic cell count (SCC) and low standard plate count (SPC). Additionally, judges evaluate dairy producers’ systems of monitoring udder health, milking routine, protocols for detection and treatment of clinical and subclinical cases of mastitis, and strategies for overall herd health and animal welfare.

Dairy industry professionals – including veterinarians, extension agents, dairy processor field staff and consultants – are encouraged to nominate dairy herds that exemplify milk quality excellence. To nominate a dairy producer, complete the online nomination form. Dairy producers cannot nominate themselves or their peers.

Judges will name approximately 50 finalists from the NDQA nominations. Finalists, along with their nominators, will complete a more detailed final application. From the finalists, judges will rank dairy operations as platinum, gold or silver. The platinum winners receive international recognition, complimentary lodging and registration, and a travel stipend to attend the National Mastitis Council 64th Annual Meeting, Jan. 27-30, 2025, at the Le Meridien-Sheraton, Charlotte, North Carolina.

National DHIA seeks scholarship applicants

The National Dairy Herd Information Association (DHIA) announced that it will offer $1,000 scholarships to high school seniors and college undergraduate students.

Applicants must be full-time, incoming or continuing students at a technical college or a two-year or four-year college/university. To be eligible for a National DHIA scholarship, the applicant must be a family member or employee of a herd on DHI test, family member of a DHI employee or employee of a DHI affiliate. The DHI affiliate for the herd or affiliate employee must be a member of National DHIA.

The scholarship selection committee will evaluate applicants based on scholastic achievements, leadership, community activities, work experience, knowledge of and experience with DHIA, and responses to questions on the application. Applications are due Oct. 31. Recipients will be announced at the 2025 National DHIA Annual Meeting and Leadership Session.

To apply for a National DHIA scholarship, download and complete the electronic application form. For more information, contact JoDee Sattler, National DHIA scholarship coordinator.

USDA selects Joseph L. Parsons as NASS administrator

The USDA National Agricultural Statistics Service (NASS) announced Joseph L. Parsons as its new administrator as of June 16; this follows Administrator Hubert Hamer’s retirement in March.

Parsons, who was acting administrator and before that associate administrator, has been serving American agriculture through NASS for more than 37 years, since joining the federal service in 1985.

Throughout his career with NASS, Parsons has served in several leadership roles, including but not limited to associate administrator where he was responsible for oversight and coordination of agency operations and the agricultural statistics program carried out within the various organizational units in NASS. He also served as chair of USDA’s Agricultural Statistics Board and director of NASS’s Methodology Division.