ST. PETER, Minn. (KEYC) — Milk prices have been dropping since 2014, making it tough for some dairy operations to stay afloat.
According to the Minnesota State Farm Business Management Database, dairy farm profits continued to decrease in 2018 with the median dairy farm in Minnesota earning less than $12,000 dollars, down from $47,254 dollars in 2017.
A local dairy farmer said prices are on the uptick with futures higher than they were the previous four years for several reasons.
“Cow numbers are down in the U.S. It’s really a global market, so there were some weather problems in New Zealand and Australia which are very large dairy exporters and the expansion in Europe has slowed down, there was a major expansion in Europe,” said Rolf Annexstad of Annexstad Dairy Farms.
Annexstad said that government programs assisted throughout low price years, but were only short term fixes.