In news affecting dairy's bottom line:
- Requirement for electronic ID tags now in effect
- Utah becomes 15th state with HPAI in dairy, following mandatory surveillance
- GDT index up 4.8%
- November FSA interest rates continue to lower
- Farmer sentiment bounced back in October
Requirement for electronic ID tags now in effect
Amendments to the USDA’s Final 2024 Animal Disease Traceability (ADT) rule requiring visually and electronically readable tags as the only form of official identification for specific classes of animals took effect on Nov. 5.
The rule pertains to the interstate movement of cattle, specifically all dairy cattle; sexually intact cattle and bison 18 months old and older; and all rodeo and exhibition cattle.
Cattle and bison tagged with previously acceptable National Uniform Eartagging System (NUES) tags prior to Nov. 5 will be grandfathered in, so a new official eartag will not need to be applied.
Producers can request RFID tags through their veterinarian or order RFID tags directly from a manufacturer.
Additional information can be found at the USDA's Traceability webpage.
Utah becomes 15th state with HPAI in dairy, following mandatory surveillance
Highly pathogenic avian influenza (HPAI) was confirmed in eight dairy herds in Utah in late October, making it the 15th state to find the disease in dairy. All cases were in Cache County where mandatory surveillance for the disease was put into effect on Oct. 23.
Initial samples collected from all dairies in the county were sent to the Utah Veterinary Diagnostic Laboratory and were confirmed by the USDA National Veterinary Services Laboratories (NVSL). A ninth positive case was confirmed by NVSL on Nov. 4.
Positive dairies have been placed under a quarantine; no movement of lactating cattle is permitted on or off affected facilities with the exception of cattle going direct to slaughter. Positive dairies have also been asked to implement biosecurity measures to prevent the spread of virus off of the dairy.
There have been 446 confirmed cases of HPAI in dairy cattle since the disease was first diagnosed in March 2024. Almost one-third of those cases (151) have been found in the past 30 days in three states, Utah (9), Idaho (2) and California (140).
This news follows the USDA’s announcement to begin bulk milk testing nationwide for HPAI (H5N1).
GDT index up 4.8%
After four trade events with marginal movement, the price index of dairy product prices sold on the Global Dairy Trade (GDT) platform jumped 4.8% in an auction held Nov. 5.
Compared to the previous auction, prices for individual product categories were mostly higher. Butter was up a whopping 8.3%. Cheddar cheese, anhydrous milkfat, skim milk powder and whole milk powder were up between 4% and 4.6%. Mozzarella and buttermilk powder posted small increases. Lactose was the only category that decreased. It was down 6.1%.
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 Nov. 19.
November FSA interest rates continue to lower
The announced interest rates on loans through the USDA’s Farm Service Agency (FSA) have lowered in each of the past four months. As we begin November 2024, interest rates for operating and ownership loans (compared to October) are as follows:
- Farm operating loans (direct): 4.5%, down from 4.875%
- Farm ownership loans (direct): 5.125%, down from 5.375%
- Farm ownership loans (direct, joint financing): 3.125%, down from 3.375%
- Farm ownership loans (down payment): 1.5%, unchanged
- 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.
Farmer sentiment bounced back in October
An increase in producers’ confidence in the future provided a surprising preelection bounce in farmer sentiment, according to the latest Purdue University/CME Group Ag Economy Barometer.
“Producers this month expressed some optimism that economic conditions will improve and not precipitate an extended downturn in the farm economy,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Farmers still had a weak view of their current situation. Over half (56%) of the October respondents said their farm’s financial condition was worse than a year earlier.
With the survey taken a few weeks before the election, comments provided by survey respondents indicated that politics and policy were top of mind. The November barometer survey, to be conducted one week following the presidential election, will provide an update on how the election’s outcome affects producers’ outlook.
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 Nov. 5, reflect ag producer outlooks as of Oct. 14-18.
