According to the USA Today, dairy prices are down 50 percent from last year. It has dairy farmers in a panic to the point they are selling their herds to other farms or slaughter houses.

Some farmers like Pennsylvania farmer Walt Moore feel like there is no light at the end of the tunnel, “If these prices stay low through 2009, there’s going to be a lot of producers that don’t make it,” he told the USA Today.

Producers in Pennsylvania receive $11.50 per hundred pounds of milk despite production costs of $15.50 to $18.50.

However, the USDA is working with farmers to help them get through the price slump. Emergency aid is available to those in need and the USDA has been purchasing surplus milk, butter and other dairy products to clear the market and put a floor under prices. The products are being donated to food banks.

Prices started to fall because of the lack of exporting and oversupply.

Until the market clears up there are options to make additional money on farm lands. The government is pushing renewable energy and offers carbon credits and credits for ethanol crops and wind energy.

Despite what appears to be harsh conditions, agriculture is not in trouble and now is a great time to invest in the farm of your dreams. Farm Plus offers low rate farm loans to fit your needs. Call 866-929-5585 or visit online for more information regarding farm loans.