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On Cows and Markets

By  E. W. Lang

Genetic Diversity was in the offering at the Great Lakes Dairy Exchange Online Auction that concluded Friday.

Topping the sale was the No. 3 Homozygous Polled Red and White Holstein at $5025. Born July, 2019, she was sired by Progenesis Winifred, $718 on the Merits and 2511 GTPI.

Second high seller was a June Polled Milking Shorthorn calf by Lover Boy from an All-American dam. His maternal sister was also a Unanimous All-American in milking form.

After that the sale got interesting. Third high seller was an Miniature Jersey at $3250. Sired by Kristoff, her dam was a Barnyard Mini Heart Throb daughter that traced back, directly and maternally, to Mini Miss Shelly, herself.

Fourth high at $3025 was another high Net Merit, Polled Red and White Holstein. She was followed by another Milking Shorthorn, then another Miniature Jersey at $3000 and $2975 each.  Later in the sale, an Miniature Jersey cow sold for $2025, and a Dutch Belted heifer sold for $1600.

Top groups of fresh Holsteins ran from $1800 to $1875. Two pots of fresh Jerseys sold for $1775.

Bear in mind, this is Michigan where commercial production of Holstein milk has been standard practice for many years. The Michigan culture is different, and milking cows has been serious business for decades. Parlours went in, and herds industrialized, earlier and faster than we did in much of the country. An offering of Dutch Belted and Miniature Jerseys, along with pots of fresh cows, is unique, and enabled by internets bidding.

I've long appreciated Michigan breeders Velmar and Duane Green, and particularly their father, Merle, from some years ago. They were among the early Holstein people, along with Mr. Bachmann, Howard Binder and Sonny Bartel, to bring Registered Holstein money into the Ayrshire breed.

Our first pot of Registered Holstein cows were purchased from Green Meadow Farm in 1973. So, in a sense, we were among the early Ayrshire herds to invest in Holsteins.  This enabled us to sell 60 to 90 Registered Holstein bulls a year, dwarfing our Ayrshire bull market of that time.

Getting back to the Great Lakes Sale, there were several groups of Holstein heifers selling from $55 to $195 that were in the January to September range.  USDA's cattle report just announced that dairy heifer replacement numbers are now at their lowest level in six years.

I'm reminded of the early 1980's, when Iowa Farm Land value went from $2100 per acre to $800 per acre, then started to rebound in 1987. Today's average farm value is $7432 per acre. Healthy, started Holstein heifers may be the most promising investment in all of agriculture today.

Block Cheese was up one cent this week at $1.93 per lb. Barrels were down two cents at $1.47. That 46 cent Block/Barrel spread is huge, and unusual. Four cents is normal. Butter lost seven cents this week, and ended at $1.83 per lb.

February to December Class III Milk Futures average $17.60 per cwt. Class IV averages $17.44. Milk-Feed Indices remain at a high-normal almost $10 for the next several months.

USDA has issued the third tranche of 2019 government MFP subsidies to qualified dairy and crop farmers. These are to 'assist farmers suffering from damage due to unjustified trade retaliation by foreign nations.'  This payment should equal the payment we got in November.

Government subsidies will be awarded to producers of barley, canola, crambe, dry peas, flaxseed, lentils, millet, mustard seed, rapeseed, safflower, sesame seed, chickpeas, sorghum, sunflower seed, temperate japonica rice, along with milk, corn, beans and hay. 

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