Dairies In California Consider Incentives To Move Out Of State
Photo Credit: Glenn Koenig
Seizing on the plight of the state’s dairy industry, which is beset by high feed costs and low milk prices, nearly a dozen states are courting Golden State dairy farmers. The pitch: cheaper farm land, lower taxes, fewer environmental regulations and higher prices for their milk.
At the World Ag Expo, a behemoth trade show held in Tulare County last month, nine states had recruitment booths on the ground’s Dairy Center. South Dakota sent its governor, Dennis Daugaard, to make a personal appeal for his state. Ag officials there estimate that a single dairy cow creates $15,000 worth of economic activity annually through feed, vet bills and the like. That translates into jobs and revenue for hard-pressed rural areas.
“We’re trying to corral some California cows,” Daugaard said recently. “We’re looking for dairymen who are looking to move out of California.”
The state’s $8-billion dairy industry leads the country in milk production. California cows produced 41.5 billion pounds of milk, or about 4.8 billion gallons, in 2011. That’s 21% of the nation’s milk supply. The next top milk-producing states, Wisconsin and Idaho, produced a combined 39.4 billion pounds of milk in 2011. Although the migration is not yet a stampede, some California dairy farmers have left for what they see as better opportunities.
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