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|Archives - November 2009|
|Wednesday, October 21, 2009|
Oregon dairy farmers have been losing money since the financial crisis drove down milk prices last fall.
Farmers don’t see many options besides continuing to sell at a loss, since cows must be milked regularly and farms can’t cut costs without compromising their health and milk. No one wants to buy dairy cows, and selling cattle for ground beef is a last resort. Most farmers are now relying on credit and savings to stay in business.
A program created and funded by dairy producers offers buyouts to farmers who are ready to retire, but it has raised the price of milk by just $.71 per hundred pounds. The average price paid to Oregon dairy farmers in 2008 was $20.11 per hundred pounds of milk; the average for 2009 to date is $10.94. Most farmers need prices in the $15 range in order to break even.
A few Oregon farmers have gone out of business, says Jim Krahn, executive director of the Oregon Dairy Farmer’s Association. He expects more farmers will close down before prices stabilize at a sustainable level.
“I’ve essentially lost everything that I’ve worked for in the last 20 years,” says Louie Kazemeir of Rickreall Dairy in Polk County, where 1,600 cattle produce 4 million pounds of milk a month. Kazemeir estimates he’s losing between $6,000 and $8,000 a day, totaling $1.2 million so far in 2009.
The good news is that milk prices seem to have turned around; the futures market shows enough of an increase in November’s prices to make some farmers a profit. But even as farmers recover, complex subsidies and pricing formulas ensure that the industry will continue to boom and bust. The answer is more regulation, Kazemeir says.
“We need to get production controls across the country to avoid this again,” he says. Milk prices were low in 2005 but rose to historic highs in 2007, when farmers added cows to cash in. When prices dove back down, some farmers were still paying off the loans they had taken out to add capacity.
U.S. Agriculture Secretary Tom Vilsack said last month that the dairy industry must be restructured to be less volatile. In the meantime, dairy farmers are getting a modest bailout: $290 million in direct payments and $60 million for the government to buy cheese.
Thursday, July 30, 2015
BY JASON E. KAPLAN | STAFF PHOTOGRAPHER
Greenpeace activists suspended themselves from the St. John's Bridge in an attempt to prevent a ship from heading to the Arctic.
Monday, August 03, 2015
BY KIM MOORE | RESEARCH EDITOR
Pushing the extreme.
Tuesday, July 14, 2015
The Big One serves as an allegory for Portland, a city that earns plaudits for lifestyle and amenities but whose infrastructure is, literally, crumbling.
Wednesday, August 19, 2015
BY JACOB PALMER
A Power Lunch at Bob's Red Mill Whole Grain Store and Restaurant.
Wednesday, July 15, 2015
We asked readers to weigh in on the fossil fuel-green energy equation.
Monday, July 13, 2015
BY JACOB PALMER
Holding a Power Lunch at Veritable Quandary in downtown Portland.
Thursday, July 09, 2015
The sweltering weather didn't keep the crowds away. Although the numbers were down slightly from last year, the Oregon Food Bank raised $850,636 to fight hunger. About 80,000 people attended despite temperatures in the upper 90s.
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Transforming the culture of Oregon’s educational leadership.
The Board dismissed a petition related to efforts to unionize the Northwestern University football team.
Every once in a while we receive a letter in the (fictional) mailbag that is tough to describe and quite compelling. This week, Isabel, the new HR manager at LabCo (and someone who is new to HR), wants to know whether she may fire the owner’s son for having an Oregon medical marijuana card. In passing, Isabel also makes a number of alarming admissions about her motivation. Here is Isabel’s nerve-racking question and our response to it.
Oregon Sick Leave is here, and changes to the federal white-collar worker regulations are on the way. This workshop will prepare you for both. We invite you to participate in an interactive discussion on how to start planning now for the future impact on your operations and finances.
Presented by OEN + CENTRL + YESpdx.
This Roundtable will cover numerous issues under the employer "shared responsibility" rules of the Affordable Care Act, including how to track the "full-time" status of variable-hour employees, temporary or seasonal employees, and employees who experience a change in status or a break in service. Additionally, we will provide a brief overview of Code sections 6055 and 6056, which require most mid-sized and large employers to submit their first information reports to the IRS in early 2016 regarding the health insurance coverage being offered to employees. We invite you to participate in an interactive discussion on how to prepare for the future impact of the shared responsibility rules on your operations and finances.