In today's agriculture markets many Iowa farmers hope to just break even, for those who can't stay ahead, foreclosure is becoming a very real possibility.
For dairy farmers its all about how to manage heavy losses, since may first, 68 dairy farms have closed in the state; many more are headed in that direction.
"Large farms, small farms, industrial type farms, family farms, they have been all hit very harshly by the economics of recent months," says Eric Lang who operates a 500 head dairy operation near Brooklyn, Iowa.
Lang's farm has been in his family over a hundred years, he says the price decline for milk has dropped severely since last January.
Dairy farmers have seen a 41-percent decline this past year to $11.30 per 100 lbs. of milk; that's devastating when it costs producers around $18.00 to make 100 lbs. of milk.
Because farmers have been losing so much the Iowa Mediation Service has seen more requests from farmers to help work out debt problems with creditors.
"What we've seen in the last three months in dairy is we've been averaging about six dairy cases a month," says Mike Thompson, executive director of IMS, "We didn't see dairy cases at all for a very long time. Many of the debt cases we're seeing are between one and two million dollars.''
Thompson says of all the dairy cases, six were beyond a feasible resolution and therefore went back to the bank, creditors have to eat many of those losses
Thompson advises anyone in trouble to seek help immediately instead of trying to hope for the markets to rebound.
For dairy farmers its all about how to manage heavy losses, since may first, 68 dairy farms have closed in the state; many more are headed in that direction.
"Large farms, small farms, industrial type farms, family farms, they have been all hit very harshly by the economics of recent months," says Eric Lang who operates a 500 head dairy operation near Brooklyn, Iowa.
Lang's farm has been in his family over a hundred years, he says the price decline for milk has dropped severely since last January.
Dairy farmers have seen a 41-percent decline this past year to $11.30 per 100 lbs. of milk; that's devastating when it costs producers around $18.00 to make 100 lbs. of milk.
Because farmers have been losing so much the Iowa Mediation Service has seen more requests from farmers to help work out debt problems with creditors.
"What we've seen in the last three months in dairy is we've been averaging about six dairy cases a month," says Mike Thompson, executive director of IMS, "We didn't see dairy cases at all for a very long time. Many of the debt cases we're seeing are between one and two million dollars.''
Thompson says of all the dairy cases, six were beyond a feasible resolution and therefore went back to the bank, creditors have to eat many of those losses
Thompson advises anyone in trouble to seek help immediately instead of trying to hope for the markets to rebound.
