Coronavirus to blame for dairy market about-face
The director of Minnesota Milk blames coronavirus for the about-face in dairy markets.
Lucas Sjostrum says the outbreak is having a very broad impact.
“There was a high there on about January 22nd of us looking like we were going to have a pretty good year, being able to pay down some debt. And looking at the markets today, it’s ugly.”
He tells Brownfield the outlook would be even uglier if it weren’t for an improved dairy safety net.
“It looks like those insurance programs are going to pay out this year. As of last week, I think April or May through August are going to pay out all of a sudden. Before, the markets were good enough that wasn’t the case.”
Sjostrum says dairy farmers want an insurance program that provides a floor, but don’t like having to actually use them.