A Fountain of Hope: Dairy Farmers Address 2022 with an Optimistic Set of Lens

Despite having endured razor-thin margins over the past few years, the spike in milk prices has spurred optimism for some dairy farmers in the year ahead. A lot has happened since 2014, the last time dairy farmers opened $20 plus milk checks. Two dairy producers on opposite sides of the country talk about the challenges that face them, how technology will play a role in the future and what excites them about the future of dairy.

Seventh-generation dairy farmer, Joanna Shipp, who owns and operates Bowmont Dairy Farm Inc., home to 200 milk cows in partnership with her father in Boones Mill, Va., says that the last few years of the pandemic has taught her to learn to be prepared to pivot.  

“I’m trying to not get ahead of myself,” she says. “We will make our best-educated guess on expenses based on past experience and prediction from experts.”

Nearly 3,000 miles away in Chehalis, Wash., dairy farmer, Michelle Schilter says the pandemic surfaced so much for her family and farm and she appreciates all the extra time she had with her children. “Our family was able to reconnect, eat meals together and work side by side while the world was experiencing absolute chaos day after day,” she shares.

Unsure how the pandemic impacts their future, Schilter says that like most dairy farmers, they were busy running a dairy during the pandemic. Her and her husband, Lonny, own Sun Ton Farms in partnership with his parents, Anton and Sunny Schilter, where they milk 240 cows. They ship their milk to Northwest Dairy Association and have been certified organic since 2006.

Labor and Supply Chain Headaches

The number one challenge both producers face is the lack of labor. “The labor pool is tight,” Shipp notes. “Many people are looking for flexible work schedules. A large part of my time is putting together coverage from an employee pool of part-time workers, and I don’t think that is going to change drastically over the next year.”

Schilter concurs about the constant labor struggle and shares that the lack of labor stems from competition with other industries, like construction. Coupled with the new overtime rule employed by the state of Washington, Schilter says that this is easily their number one challenge.

Another headache felt by both producers is the supply chain shortages. “It affects our ability to purchase supplies we need for day-to-day operations,” Schilter says. “It has been so frustrating the amount of time it takes to get parts and supplies for necessary repairs within our farm operation.”  

Shipp, who ships their milk to Maryland and Virginia Milk Cooperative Producers is optimistic about the rise in milk price. However, she is concerned that higher inputs may eat up any margin. “We can listen to forecasts and predictions, but we are unsure where they actually will end up,” she notes. 

Opportunity on the Horizon

In Virginia, Shipp focuses on capitalizing on continuous improvements made to her family farm. She returned to the farm 10 years ago and over that time the family has made small, but important changes to animal care, dairy protocols and milk quality. Shipp shares that those improvements have helped them keep going through the last few years. “With the current milk price projections, we are poised to reap the benefits of the improvements we have made over the last 10 years,” she shares.

With the decision to install a robotic milking system, excitement is brewing for the Schilter family. “Given our location in western Washington and the ability to maintain our family farm for the next generation, we decided to go robotic,” she says.

The decision to go robotic was essential for the Schilter family to transfer the farm to the next generation. They plan to incorporate more than just a robotic milking system into their farm. “As technology and equipment evolve and become more affordable, we will continue to look for ways to streamline and incorporate this kind of technology on our farm,” she says.

Robotic milking has been a consideration that Shipp has put on hold for several years. They currently milk in a parlor that was built by Shipp’s grandfather in 1972. The family started to plan for a new barn and robots, but the family pushed pause due to the status of the dairy economy in 2017. “I hope that a positive milk price through 2022 will allow me to resume that project,” she shares.

Shipp hopes that the robotic milking technology will help her get over the labor hurdle and allow her farm to strive for efficiency.

Risk Management Factors In

After experiencing a string of years of uncertainty, both producers say that they will continue to utilize risk management tools to help minimize uncertainty. Shipps says that Dairy Margin Coverage (DMC) has greatly helped and states they contract feed when they can. “We also buy local and work with our neighbors which helps to minimize risks,” she adds. 

Out west, Schilter takes advantage of risk management tools like the Margin Protection Program (MPP), which she shares, “has been a useful tool for our farm, especially given the past few years in our industry.”

Overall Optimism

Overall, both producers are optimistic about the year ahead for the dairy industry. “I’m trying to not let the challenges I face cloud all of the positive things that are happening in the wider dairy community,” Shipp says. “History shows the ups and downs of dairy farming, and I plan to celebrate 200 years of farming at Bowmont Dairy Farm.”

Out west, Schilter wholeheartedly agrees and says that she sees a huge opportunity for dairy farms. “Given where we live in western Washington, our farm provides a great opportunity for consumers to see how their favorite dairy products are produced,” she notes. “From watching cows out on pasture during the summer to our transition to a robotic milking system, consumers can see the dynamic and exciting things happening in agriculture.” 

The old question — is the glass half full or half empty isn’t a puzzle for these two dairy producers. While challenges have certainly filled their cup the last several years, the producers cling to optimism that is fueled by technology, allowing their family farms to be passed onto the next generation down the road.