A dairy economist says the decline in the cow herd has been
larger than expected with current feed prices over the past 18 months.
Nate Donnay with INTL-FCStone says the recent herd reduction is been the longest sustained contraction in the past 15 years.
“It’s been smaller than what we’ve seen for large contractions in the past, but it’s been longer lived.”
Donnay says he’s not convinced the contraction is being
driven by just low margins but believes farms that would have left in 2015 have
hung on longer because of previous record higher prices.
Continue reading Economist expects dairy herd expansions at Brownfield Ag News.
