Rising milk production costs and lower water consumption per acre
From the Ag Information Network, I’m Bob Larson with your agribusiness update.
**California dairy farmers may be earning a higher market price for their milk these days, but they’re paying more to produce it.
Water restrictions have sent local food prices skyrocketing as more growers reduce plantings of crops such as alfalfa hay and silage.
Dairies across the country are also facing challenges related to rising production costs and market uncertainties due to the pandemic, which has led to a slowdown in milk production in the United States.
**The latest Rural Mainstreet Index shows that rising input prices are the main threat in 2022 for farmers.
The index fell in January, although it remained above neutral growth for the 14th consecutive month.
Overall, the region’s reading for January fell to 61.1 from 66.7 in December, with 50.0 representing neutral growth.
The region’s farmland price index fell to a very high 88.5 from December’s record high of 90.0.
**Updated information from the USDA Economic Research Service shows that water use per acre is declining on irrigated farmland, which it has been doing since 1969.
Average water use per irrigated acre was over two acre-feet in 1969, decreasing to nearly 1.5 acre-feet in 2018.
An acre-foot is approximately 325,000 gallons.
According to the USDA, efficient water application technologies, such as the transition from gravity irrigation systems to pressurized irrigation systems, have resulted in reduced water use per acre of irrigated land. .