Farm Credit East Releases Report on Post-2014 Dairy Industry Reset
Enfield, Conn., Thursday, August 25, 2016 — The dairy industry, and its related processing and marketing activity, is a key economic engine in the Northeast, supporting thousands of families and providing more than 100,000 jobs. The industry is currently in a transition period, with market disruptions and many dairy producers experiencing financial stress as 2015 and 2016 prices have been far below 2014 levels.
Farm Credit East’s Knowledge Exchange program has released a briefing report on the current dairy situation and the recent history leading up to it. The report describes how the industry may be going through a reset following 2014’s unique market conditions and discusses ways dairy producers can respond.
“Farm Credit East has a major long-term commitment to lending to dairy farms,” said Bill Lipinski, Farm Credit East’s Chief Executive Officer. “Our dairy portfolio has increased by $100 million over the past 18 months as we work with our customers through this challenging time. We drafted this report to emphasize the necessary steps to maintain a strong Northeast dairy industry for the current and future generations. Our region is home to many of the world’s best dairy farmers and the industry has a great future here.”
The report examines three distinct eras of dairy industry conditions since the early 1980s, and contends that the industry may be entering a new era with conditions similar to the late 1990s and the early 2000s. The report also offers some ways dairy farmers can take bold action based on the experience of Farm Credit East lenders and consultants.
“We hope this report will challenge the conventional wisdom and give producers some ideas for adjusting their operations,” Lipinski said. “We have always been amazed by the resilience of our region’s dairy farmers and their ability to adapt for success. Farm Credit East staff stands ready to work with producers to help them move forward.”
To view the full Farm Credit East Knowledge Exchange Report, Dairy Industry Reset Post-2014: A Time for Dairy Producers to Take Bold Action, visit FarmCreditEast.com. For farmers that would like to obtain additional information on reports available from Farm Credit East’s Knowledge Exchange program, please email Chris Laughton or contact your local branch office.
