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Across California, the nation's largest dairy state, dozens of dairy operators large and small have filed for bankruptcy in recent months and many teeter on the edge of insolvency. Others have sold their herds or sent them to slaughter and given up on the business.

Experts say California dairymen face a double whammy: exorbitant feed costs and lower milk prices. The Midwest drought has led to corn and soybean costs increasing by more than 50 percent this summer, stressing dairymen from Wisconsin and Minnesota to Missouri. But in California, milk prices have also lagged behind those in the rest of the nation, exacerbating the crisis.

And while milk revenues in California have soared to over $7.5 billion in 2011, making milk the top agricultural commodity, higher revenues mean little, famers say, because it costs so much more to produce the milk.

"I don't think there's a milk producer in the state who is profitable right now," said Michael Marsh, CEO of Western United Dairymen.

Since 2008, California has lost nearly 300 dairies, with 1,668 remaining as of January, according to the California Department of Food and Agriculture. There are no official estimates on how many dairies have shuttered in 2012 ? but interviews with dairymen and experts indicate several hundred dairies could be in danger of going under.

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With the millions of new workers every year from Mexico, you'd think they'd over come this.

How would that help in any way?

Its feed costs that are hurting them the most, and thats because of a drought in the midwest leading to vastly lowered yields, as well as stupid high oil prices, and that affects everything from fertilizer costs to transporting the feed and milk.

It all adds up, additional workers aren't going to help at all, especially when the milking is automated anyhow

Does California not have a subsidy program for dairy farms the way that the midwest does? Here, if you show your herd was somehow negatively affected by the drought you can ask for government assistance in paying for the losses.

Califronia is full of crazy vegans who think doing anything to animals is cruel, they won't help, they'l cheer till the last dairyman goes bankrupt

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I guess we'll only have milk if we buy our own cow. :s

Or have remixcat as a neighbor. Which I do see an uptick in the breast milk market. Wonder where I can get some breast milk stock....

Califronia San Francisco, Los Angeles, and San Diego are full of crazy vegans who think doing anything to animals is cruel, they won't help, they'l cheer till the last dairyman goes bankrupt

FTFY

Please dont lump the rest of us into those others where they think they live in never-never land.

And this is only the tip of the iceberg, it is going to get way worse before it starts to get better.

I agree. The only thing that will help is for the price to go up and for that to happen a lot of producers are going to have to go out of business.

We need to stop fueling our cars with cattle/pork/chicken feed for one thing...thanks to the boys in washington the drought has compounded their mess.

The argument over government subsidies for growing and not growing corn aside. Starches used in alcohol production from corn are not used at all by the animals, they only use the proteins. Ethanol facilities SHOULD be selling these DDG's (the unused protein part) back to the farmers as feed/feed suppliment. Ethanol production should have little or no effect on feed prices at all.

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