WRCBtv.com | Chattanooga News, Weather & SportsDropping Milk Prices Cause Dairy Farms to Struggle

Dropping Milk Prices Cause Dairy Farms to Struggle

Update Monday, 8/3

Dairy farmers struggling to make a profit will be getting some help from Uncle Sam. 

The U.S. Department of Agriculture has temporarily raised milk and cheddar cheese price supports.

The move should put a quarter billion dollar into farmers' pockets. The price supports run through October.

Lauren Brown
Eyewitness News Reporter

McMINN COUNTY, Tenn. (WRCB) -- Tennessee dairy farmers say they're struggling now that milk prices are at historic lows. Farmers say they are making less money than it actually costs to produce milk.

Blan Dougherty spends around $8 for 100 pounds of feed. That's enough to fill an entire wheelbarrow and feed one cow. But he has to feed 110 cows every single day, which can add up really fast. Especially with a big drop in milk prices plus skyrocketing feed and fertilizer prices.

"The price of feed has just been out the roof. That's a 150 times what it normally is, and the price of fertilizer has been 200 percent what it normally is," said Dougherty.

It's making it hard for farmers like Dougherty to churn any kind of a profit. In fact, he says he's lost thousands of dollars since the beginning of the year.

"It would take an astronomical price for the price of milk to gain that back," said Dougherty.

It's an utter disappointment for a farmer who's been working in the dairy industry for more than 50 years.

"I don't feel there's much I can do to make it any better. I think we're there," said Dougherty.

Even though Dougherty says he's losing about 23 cents for each gallon of milk his cows produce, he's not giving up.

"I'm planning on sticking it out. I don't really think I have much other choice," said Dougherty.

Others have already cut their losses.

The McMinn County Extension Office says the number of dairy farms has been cut in half over the past 20 years.  And one farm has already closed in 2009. The office says they expect to lose more if the price of milk doesn't go back up soon.

"There are going to be people who are forced out. They're not opting out. They've borrowed as much money as they can borrow," said Dougherty.

And by the end, they may not have anything to show for it.

"The sad part will be that a lot of those people will have spent 15 or 20 years in the business and they'll leave penniless," said Dougherty.

Last year Dougherty sold milk for a $1.85 a gallon, but this year the price has dropped to $1.10. But his expenses for running the farm have stayed the same. Dougherty says that makes it very hard to turn a profit, but he is hoping the price of feed will go down in the months to come.