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The Economic Downturn Has Slowed Idaho’s Dairy Industry

A circuit court dismissed a case challenging the Wisconsin Department of Natural Resources’ power to require big farms to get licenses. The case, filed last May on behalf of the Wisconsin Dairy Alliance and Venture Dairy Cooperative, argued that the DNR lacked the jurisdiction to require farms to get licenses under the state’s water quality rules. Calumet County Judge Carey Reed denied the claim, citing Wisconsin Statute Section 283.001(1). Clean Wisconsin and the Wisconsin Farmers Union opposed the case, arguing that big livestock operations should be held accountable and licensed, as well as respect environmental requirements.

Wisconsin Manufacturers and Commerce could not be contacted for comment on Tuesday. Kim Bremmer of Venture Dairy Cooperative says it will be up to their board members to determine whether to appeal Judge Reed’s verdict. Idaho Dairymen’s Association Inc. CEO Rick Naerebout feels that output expansion would likely come to a standstill owing to financial hardship and unfavorable margins that western farmers are now facing. He observes that although smaller facilities often suffer the most during a downturn, medium-sized and larger companies are also hurting.

Idaho’s dairy business has been in a growth mentality for three decades, and although expansion will continue, it will not be at the rate that the state has been used to. When it comes to resources, particularly in the long term, water is what will stall or drive output on dairies throughout the United States, not only in Idaho and Texas. Texas rests atop the dwindling Ogallala aquifer, yet they have the ability to replenish it with surface water from the mountains.

Genetics has played a significant part in assisting Idaho farmers in getting more out of their cows, and greater consideration is given to which cows or heifers are bred to produce sexed versus beef semen. However, there is far from enough margin in dairy, and consumers will pay much more for innovations such as new management methods and technologies to cut greenhouse gas emissions. Revenue for this will have to come from sources other than milk checks.

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