Central California Dairies Closing Before They Burn Through Equity
The Visalia Times-Delta newspaper based in California’s Central Valley reports that a number of dairy farms are selling out while cow values are still decent and before they burn through all of their remaining equity.
The newspaper notes that 32 California dairies closed last year, and even more could shutter operations in 2016 with milk prices well below the cost of production. California milk prices now hover at $13/cwt, but the cost of production is $4 to $6 higher than that.
Christine Foreman and her six brothers auctioned off their 750 cows yesterday. The family has been in the dairy business since the 1940s. But fear of losing all of their remaining equity prompted them to sell, she says.