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Farmers hope to stanch decline of Missouri dairy farms

MORRISON, Mo. (AP)--A dairy farmer since he returned to his parent's farm in 1960, Arlen Schwinke has no trouble highlighting what he likes about the lifestyle: the love of the land, the cows, a wonderful environment to raise a family.

A few years ago, Schwinke's wife, Kay, thought the farmer, now 77, was getting too old for the day-in, day-out labor that comes with twice-a-day milking. But he was deeply committed to Missouri's dairy industry. Rather than sell the cows, he rented them out to other farmers and retains ownership of the offspring.

"We kept seeing cows leaving the state of Missouri," he said. "I wanted them to stay here. That was the motivation," Schwinke said.

Milk production is up nationwide and the number of dairy cows remains steady at about 9.2 million. Still, several states like Missouri--with a history of small, family-owned farms--are seeing declining numbers of dairy operations despite efforts to expand the industry.

"I would say most states, especially in our region, are in the same situation we are," said Katie Smith, director ofthe Missouri Department of Agriculture. "All of agriculture is in a different place than it's ever been before."

In an industry with narrow profit margins, there's a trend toward larger dairies and increased production in the West and Southwest, in states like California, Idaho, New Mexico, Arizona and Colorado.

The overall trend in much of the nation is, "you see farms going, but the cows staying," said Allison Specht, an economist with the Washington-based American Farm Bureau Federation. States with a strong dairy tradition, like Wisconsin, Minnesota and New York continue to remain strongholds, she said.

But Missouri is losing not just its dairy farm operations, but also seeing a decline in its number of dairy cows and milk production.

From the 1920s through the end of World War II, the number of dairy cows in Missouri increased from about 800,000 to 1 million. From there, the numbers in Missouri largely declined each year, but cows were also more productive, so that didn't always translate into less milk being produced.

However, the state has seen more rapid declines in recent years--in 2000, there were 154,000 dairy cows counted in Missouri. That dropped more than 25 percent by last year, to about 112,000, and has meant a decline in the amount of milk being produced, from about 2.3 billion pounds in 2000 to 1.7 billion pounds last year. Missouri now imports about 1.7 billion pounds of milk a year.

The USDA's National Agricultural Statistics Service shows the numbers of operations with milk cows in Missouri are also falling, down to 2,400 last year compared to 3,900 in 2000. Missouri dairy production is a drop in the bucket--the state contributes just about 1 percent of the national product.

But the loss of cows and dairy farms has real economic ramifications, particularly in rural areas, on jobs related to feed and supplies, hauling, milk processing and veterinary care.

Dave Drennan, executive director of the Missouri Dairy Association and the Missouri Dairy Growth Council, said a University of Wisconsin study found "one dairy cow is worth almost $14,000 in economic activity."

Missouri is engaging in a number of efforts to bolster the industry. The Missouri Dairy Growth Council assists existing farmers, encourages expanded operations and tries to attract new farms.

Smith said a state-hosted summit earlier this month focused on grass-based dairy production practices, as Missouri tries to capitalize on its land that lends itself to grazing pastures as an alternative to feed costs.

Gov. Matt Blunt supports dairy parlor renovation grants, calling for $200,000 this fiscal year that would allow farmers to update the area where they milk cows to allow for more efficiency. Farmers would take on 50 percent of the costs and receive up to $10,000 per grant.

Another proposal would offer dairy farmers business planning grants to consult with professionals on improving efficiency and possible expansion. A third would pay the first year's interest on loans taken out to acquire more dairy cows.

There's also a proposal to create a new program, which would extend beyond the dairy industry, to match beginning farmers with those nearing retirement to form new working relationships.

Drennan called Kansas and Iowa examples of success stories near Missouri, where years of active work and programs to promote dairy are paying off with greater milk production.

Schwinke said more needs to be done to help Missouri's dairy farmers. He and his wife have converted two guesthouses to a bed and breakfast business on their farm outside of Morrison, about 95 miles west of St. Louis. They still raise heifers that aren't producing milk, have a beef herd, and grow hay.

One son returned for several years to the farm, but ultimately their four children chose not to pursue the dairy business. The Schwinkes have help on their farm, but called dairy farming a total lifestyle commitment, with tangible results, but long days and constant work.

"I have known in my lifetime people who did not miss a milking in 30 years," Schwinke said. "No one would do that anymore."

5/26/08
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Date: 5/16/08


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