By  E. W. Lang

I should preface this report with a reminder that milk producers have some buffer from the abrupt market collapse that has afflicted the globe following widespread CoVid-19 concern and general hysteria.

This market crash followed an 11 year bull run on equities that were at an obscene 18 times earnings six weeks ago. Equities now average 13 times earnings. The Russians and Arabs are at it over oil, and all of agriculture is also seeing lower commodity prices.

Even marijuana production is less profitable than many had hoped. It's a commodity now, just like barley, carrots, spinach and termayters, and other traditional farm produce, except you can't enter it at the County Fair as a 4H or FFA project. At least not yet.

Again, milk is the only commodity with a guaranteed revenue over feed cost, depending upon production history and producer participation, all courtesy of the USDA Dairy Margin Coverage Program. Right now it looks like every forthcoming month this year will have low enough margins that farmers who signed up for the $9.50 Coverage will get a payment.

That said, Class III Milk Futures run from $15.32 to $16.26 per cwt for this year, and Class IV Futures run from $14 to $15.36 for March through December of this year. Those prices are better than a couple days ago, but they're on the low end of normal, and offer little or no margin for most. Averages for March through December are $16 on Class III and $14.81 on Class IV, down 40 and 60 cents since Friday, last.

Barrel Cheese lost seven cents to close at $1.43 per lb. Blocks lost four cents this week to close at $1.87 per lb. Butter lost six cents since Friday to close at $1.75. Render thanks, however, all of you. Cheese, yogurt, butter and milk are moving off retail shelves as people gather and hoard for the Corona.

Retail orders for cheese are climbing, according to USDA's Dairy Market News. Cheese orders for food service and public schools are nearly non existent. This could all go the other way next week when the hoarding habit has run its course, of course.

Some milk plants are operating seven days, some are closed for general maintenance, and one major cooperative has notified producers that they may have to each ship less milk starting in another week, owing to possible worker absenteeism, and less demand for dairy products. They were talking in terms of general possibilities, and no one has yet come down from the mountain and said, "We're not taking all your milk." I'm guessing it could happen in wide spread fashion, however.

DFA is no longer the lead bidder for Dean Foods. I don't know what's going to come of that, but I think I have enough change on my dresser and under my recliner to make a serious offer on Dean's, given these economic times.

Hay in northeast Iowa was steady to weak this week. Milk cows were steady to stronger at Premier in Withee, Wisconsin. Iowa land prices and cash rent bids for the second week of March were called steady. This week China bought a lot of U.S. corn and wheat after those markets tanked and corona concerns dominated the markets and news.

World Dairy Expo sent out a letter stating that all is on as scheduled for this year's show, starting September 29. On time entry fees were raised a dollar or two, and I think they could have been raised more, given the addictive effect of competitive exhibition, be it pig, cow, dog, horse, or any other vice or expensive habit.

A lot of spring dairy shows, most or all of them actually, have been cancelled. This will eliminate several opportunities to return favors, reward investments, and gather chits for when it really counts during the fall show season.

The current economic situation is going to shake out with a lot, and I do mean a lot, of casualties. Economic casualties, not human casualties from the CoVid, that is.

There will be fewer farmers, fewer small businesses, and fewer workers in big business when technology can replace a person who might be late for work, be absent or have to leave early, etc. The abrupt nature of all of this will be unusually cruel, regardless of government largess.

However, new opportunities will be abundant for those who are creative, diligent and tenacious. It won't end up being better for everyone, but this consuming health and economic event will force a lot of people make difficult choices, and many of those choices will lead to better lives ahead.