By  E. W. Lang

I've had some hysterical inquiries about the Build Back America infrastructure bill including a fee for methane production that amounts to $2600 per cow and $500 per pig.  This is some social media sewage that is based in nothing, and false in its entirety.  No language regarding a livestock methane fee or tax is included in any part of the legislation. 

Section 30114 of the legislation provides for a “methane fee,” but it applies only to “petroleum and natural gas systems,” and not the agriculture sector.   And for the record, a methane tax on petroleum is wrong on several levels, particularly to the extent that it ultimately becomes a tax on all, impacting most the least wealthy.  This includes the elderly who have outlived their savings, and the working poor who have to drive to work, skimp on everything to stay warm in winter, and buy food and other necessities, often shipped from a great distance.  So remember, farmers, it's not always about us. 

One major farm organization has used this "methane tax news" as a way to rally membership in opposition to a common enemy, the federal government.  This, even though they are first in line when it's time for taxpayers to subsidize their livestock and crop producer membership.  

Dairy Cattle prices were as hot as we have recently seen at public auction this week, at least at Premier Livestock Auctions in Withee, Wisconsin.   Their regular dairy sale included Holstein fresh cows topping out from $1700 to $2550 and a dispersal of Holstein parlor cows averaged $2100 on 250 head.  Top sellers at the dispersal ran from $2800 to $3100.  Some Registered Guernseys cows sold from $2000 to $3300.  Holstein bred heifers sold from $1400 to $2175.

Most market cows sold from 36 to 51 cents, so the added value of milk production is in no way justified, given the current margins of milk over feed price.  As such, producers needing or wanting to cash out of their current situation should talk to their lender about an exit plan.  There are situations where a lender will take the proceeds from a dispersal and all other farming assets in return for zeroing out a loan.  This will leave the producer with a place to live, a car and every opportunity to get a good job.  Yes, some locals will point and laugh, but those are the ones who have never been In the Arena. They are the cold and timid souls who have never known victory or defeat within the complexity of milking cows.   

Spot milk traded this week from 50 cents to $1 per cwt. over Class.  Block cheese gained 17 cents to close out on Friday at $1.75 per lb.  Barrels were steady at $1.95 per lb.  Class III Milk Futures, in turn, gained 12 cents for the rest of this year, and average $17.82 per cwt.  January through June of next year averages $18.57 per cwt., a gain of 22 cents. 

Class IV Futures for the rest of this year average $18.90 per cwt., up a nickel for the week.  The first half of next year averages $19.06 per cwt., a gain of one cent since Friday, last. 

USDA reports that dairy cattle slaughter was up 3.1% from a year earlier, and year to date slaughter is up 2.2 percent.