Farms like Spencer Aitel’s Two Loons Farm feel they are not immune to the effects of milk prices, but are part of an organic-farm cooperative that eases the pain. The cooperative puts a set price on milk that allows farmers to have a solid business plan to sketch out the future.
“The reward is that prices remain stable instead of fluctuating with the commodity market,†Aitel told the Kennebec Journal. “Without stable pricing, the business person can’t plan ahead effectively.â€
Milk prices are down this winter due to the falling exports of the U.S. dairy industry. Most farmers rely on government subsidies to bridge the gap between prices and production costs, but Maine is considering cutting some of these subsidies.
This is where the cooperative comes in handy. “If the industry as a whole crashes, that puts pressure on the entire dairy infrastructure, such as trucking veterinary services and supplies,†Russell Libby, executive director of the Maine Organic Farmers and Gardeners Association said. “So it’s important to maintain a base of dairy farming wherever we can in the state.â€
To save the dairy industry, both organic and conventional dairy farmers have become allies. “I think most organic farmers value their conventional neighbors,†Aitel said.
The biggest impact the farmers have is to continue to maintain a “critical mass†despite conditions.
“Critical mass is one of those numbers you really don’t know what it is until you’ve lost it. Once you’ve lost it, you see the other businesses that support dairy farms go out.â€
“You want to maintain enough people using milking machines so there’s a milking-machine repairman,†Aitel said. “What happens if the nearest repairman is Vermont?â€
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