Wisconsin Ag Connection - CWT Program Announces Another Herd Retirement

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CWT Program Announces Another Herd Retirement
Wisconsin Ag Connection - 06/04/2008

As dairy farmers suffer from dramatically higher costs of production, Cooperatives Working Together announced that it will conduct its latest herd retirement round. Bids are now being accepted through June 30th, with cow removals to start in seven weeks.

"All of the economic indicators and benchmarks that guide CWT's decisions, including farmers' cost of production, show that now is the appropriate time for us to initiate this herd retirement," said NMPF CEO Jerry Kozak. "In particular, significantly higher feed and energy costs have put dairy farmers between a financial rock and a hard place."

This is fifth herd retirement round since CWT began operations in the summer of 2003. It is the first that will offer bidding producers the option of including all their bred heifers, for a flat fee of $1,050 per animal.

Detailed information can be found at www.cwt.coop, including a bid application, a calculator to help estimate a farmer's bid, and answers to frequently-asked questions. All dairy producers submitting bids to sell their herds must be members of CWT as of January 2008--either through their membership in a fully participating cooperative, or as an independent member of CWT.

Bids will be reviewed in early July, with field auditors then proceeding after mid-July to visit each accepted farm to begin the cow removal process. CWT is not targeting how many pounds of milk, cows, or herds will be removed.

"The final tally will be determined by the quality and quantity of the bids," Kozak said. "As always, we will operate CWT in a cost-effective and frugal manner."

Unlike past herd retirements, regional safeguard limits will not be utilized and, therefore, CWT bidders will not be competing regionally, but nationally. Through the herd retirement program, if a farmer's bid is accepted, CWT pays that farmer for the volume of milk produced by that herd in a 12 month period. The farmer is responsible for selling the cows for slaughter, and he or she retains the proceeds from that transaction.

For more information on how to participate in CWT's herd retirement, call 888-463-6298.

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