Dairy farmer Rohr thinks he's found price solution

By Carol Stender
cstender@agrinews.com

Date Modified: 03/25/2010 9:17 AM

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BLUFFTON, Minn. — Bluffton dairy farmer Mark Rohr has thought a lot about the problems caused by low and volatile milk prices.

The solution, he says, can be found in a producer-driven system.

"I think the producers are the ones who understand it and will be most affected by it," he said.

While local cooperatives get a lot of attention in discussions, Rohr said a broader view is needed.

"I think we have to realize we are all in this together and whether we are milking 30 cows organically or have 700 cows in a parlor confinement system, what has affected all of us is the price of raw milk," he said. "Until we deal with that, other problems may seem minor."

He's concerned about the latest federal orders where make allowances are based on the peak of energy prices. The make allowances are guaranteed for every pound of cheese processed.

"If they can cover their costs, why can't I," Rohr asked. "I think the processor has definitely looked out for themselves and on one hand, I can't blame them."

Rohr would like similar measures taken for dairy producers.

"I would love to see the make allowances, checkoffs and prices received by processors tied to the price of milk," he said. "If all of us were in this together, we would probably have a pricing system."

Rohr, who has a 55-cow, 300-acre farm, is a National Farming Organization member and supports the organization's Cooperative Marketing Initiative.

Like NFO, Rohr supports Cooperatives Working Together and its dairy buyout and export enhancement programs.

"Not all farmers like buy-outs,'' Rohr said. "I look at it as something that's great for the dairy industry as a retirement plan."

NFO's Cooperative Marketing Initiative would be administered by the National Milk Producers' Federation under the CWT board's direction. The program would set a national production level consistent with milk usage, assigning each cooperative a base level consistent with its share of national production. Target prices would be set at levels enabling members to profitably produce milk.

The plan hasn't been fleshed out and is meant to be part of dairy industry discussions, said Rohr. As dairy and farm groups gather to take part in the conversations, they shouldl keep an open mind.

"We can't have six different plans, but we have to come up with one plan," he said. "...For this to be successful, it needs to be a producer-driven plan. We have to come to grips that no one will have a plan that we all 100 percent agree with. What attracts me to it might be something that someone else doesn't."