Data Shows Most Farmers Had No Chance for Profitability in 2015 [VIDEO]
While milk prices are expected to start climbing out of the gutter over the next several months, cost of production is still top of mind for farmers as they weather low prices. Each year USDA releases cost of production data by state as well as average milk price for the year by state. Below is a comparison of cost of production (the blue line) compare to milk price per cwt (the red line) for 2015.
Idaho farmers were the only ones included in the data that actually made money last year. While they do have one of the lowest milk prices in the U.S., even in a year like 2015 their cost of production allows for a profit. Kentucky has the highest cost of production at nearly $42 per cwt. Farmers there were paid a decent amount for their milk in 2015 but their cost of production disabled them from making a profit. Cost of production exceeded $30 per cwt in 11 of the states included in the survey data. Georgia boasted the highest milk price at more than $23 per cwt.
What's your cost of production? Let us know in the comments below.