Pennsylvania Dairy Farmers Losing $550 Million Each Year
The economic crisis afflicting the United States’ dairy industry has reached a fever pitch in recent years. In 2018 alone, almost 3,000 dairy farms were forced to permanently close their doors due to the practically impossible demands of the modern market. Pennsylvania provides an illustrative and more specific example: according to local sources, the dairy industry in that state is currently losing around $550 million every year.
These figures are staggering, and they demand some further explanation. However, if you’re worried about how the dairy crisis could affect your business, there are options available to you. One of these is obtaining an agriculture ag loan.
In this article, we’ll explore how the dairy crisis could continue to change the face of the U.S agricultural industry. And how ag loans can help farmers in need.
What Are the Causes of the Dairy Crisis?
Like any economic downturn, the current dairy crisis in the United States can be traced back to a huge number of interconnected social, economic, and political events. But the primary cause of the crisis has been overproduction.
The average price of milk has been steadily declining in the United States for many years. There are a number of factors that are driving this trend, including the fact that demand for cow’s milk is steadily declining while the national appetite for dairy-alternatives is steadily growing.
Thousands of independent farms are trying to compensate for the decrease in sales by producing even greater quantities of milk. As a result, however, they’re continuing to flood an already overflowing market, which is in turn driving down the price of milk even further.
What Does the Future Have in Store for the U.S Dairy Industry?
The national economy and the habits of consumers in the United States are forces that are far too complex for us to be able to forecast any outcome with certainty. That said, we can expect that the pressure that’s currently being felt by dairy farmers across the country will not be relieved anytime soon. If the dairy industry is ever going to recuperate to its former glory, it will require an uptick in consumer demand as well as dramatic political intervention.
If your farm is among the many that is suffering from the dairy crisis, you may want to consider farm refinancing. Refinancing your farm can help you gain access to funds so that you can keep your farm stable until the crisis is resolved.
Find Agriculture Ag Loans Today!
Whether you’re buying a farm or seeking financial solutions for your current business, MSF Agriculture has the resources and expertise that you need. We’ll help you secure the best agriculture ag loan available. Contact our office today to learn more!