The numbers are in as to just how much the plunge in dairy prices hit America’s Dairyland. The University of Wisconsin-Madison says farm income in the Badger State dropped 56 percent to $1.1 billion in 2009, the lowest farm income level since 2002. The ag economists say milk income was down $1.8 billion from the previous year. Net farm worth also fell $1.8 billion in the state due mainly to a drop in the value of dairy cows and replacement heifers. Farm real estate was lower as well.
No big surprise, farm debt increased but not as much as some anticipated. The aggregate dairy farm debt-to-equity ratio rose from.15 to .18 meaning the average Wisconsin dairy producer has 18 cents of debt for every dollar of assets. The ag economists say as long as that number is under 20 farmers are still on sound financial footing.
The best part about the year is that it is behind us, milk prices have recovered somewhat and the all-milk price for 2010 is projected to be around $17.50, that would be $4.50 better than in 2009.
Read the full “Status of Wisconsin Agriculture” report here:
Latest: 
