| Iowa dairy farmer: Biofuels increased ag operating costs |
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| By DOUG SCHMITZ
Iowa Correspondent
WASHINGTON, D.C. — An Ollie, Iowa dairy producer told the U.S. House Agriculture Subcommittee on Livestock, Dairy and Poultry last month that the recent biofuels boon has not only increased both the feed and fuel costs on his Keokuk County operation over the past three years but has financially strapped all 62,000 U.S. dairy farmers as well.
“Based on my farm’s financial reports, my costs have risen sharply since 2004, which on cwt. basis is an operating cost increase of approximately $2 per cwt.,” said Robert Wonderlich, 46, who’s been running a 270-cow, 520-acre dairy operation with his wife, Corrina, for 27 years, and serves on the board of directors of the Dairy Farmers of America, Inc. (DFA).
“On my personal farm, I have calculated that the recent increase in grain prices has increased my cost of production by $1.90 per cwt. (+45 percent), which is extremely close to the U.S. average feed cost increase of $1.89 per cwt.,” said Wonderlich, who only purchased 50 percent of his feed.
The March 8 hearing, chaired by Rep. Leonard Boswell, D-Iowa, allowed U.S. producers to testify on how feed and fuel costs have impacted the livestock industry, which Wonderlich said is the greatest cost for most U.S. dairy farmers and which has adversely affected farm finances.
According to the USDA, the all milk price received in Iowa during January 2007 was $14.40 per cwt., which was $1.90 higher than June 2006.
“The increase in milk price is returning to me to average revenue,” Wonderlich said.
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| 4/18/2007 |
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