Insight on Business

September 2012

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Nick Schneider, Winnebago County agricultural agent with the University of Wisconsin-Extension. He says the differences from Green Lake to Oshkosh to Chilton are dramatic. Oleson says livestock take farther south. "The line does seem to run through Winnebago County, " says steer, and typically raises corn, hay and alfalfa, enough forage for the farm. "This year the corn that we have here is not going to be adequate," he one-quarter to one-half of all the corn produced in Wisconsin, and as the price of purchased feed goes up, those who raise livestock are making tough decisions. Changing the feed ration is one option, but it's not all about quantity. "It has to be good quality feed to get good productivity, herds for the short-term. "Livestock farmers have been Some farmers are reducing their " Schneider says. considered both options. He has 190 dairy cows and raises 40 to 50 head of sending livestock to market in record numbers," says Oleson. Omro dairy farmer Jim Kasten has says. He's already sold half the steer, and may sell them all in an effort to protect the dairy operation. He started farming in 1987 with his parents, and weathered the last severe drought in 1988. "I don't remember this feeling of panic," he says. "This event is big enough to put people in a precarious position financially. You're afraid to make a mistake that will cost you so much you won't recover. having an impact. "As we are moving through this year, the impact is more than what has been estimated, than they were mid-July, and crop insurance will help with some of his losses. Statewide, about 70 percent of the corn crop is insured. Already, high grain prices are He says things are slightly better " " says Kasten. "At this point, I would estimate corn prices will be 25 to 30 percent higher than trend. What we don't know, looking down the road, is what farmers can afford to pay. that the price of corn is not unlimited, because farmers won't pay infinitely more to feed livestock if selling the animals makes better financial sense. "That's the squeeze right now, " He notes prices is unlikely to be as dramatic. On July 25, the USDA Economic Research Service forecast an increase of 3 to 4 percent for 2013. However, beef, pork, poultry and dairy could increase within months and into 2013. In the short term, the meat supply could increase, resulting in lower meat prices due to herd culling. Businesses are more likely to feel says. "The cost of grain has gone up drastically. The price of milk has not. The impact on consumers and food " he " the drought's impact within their community, when farmers [continued] » It's simple, really: the less money you spend powering your business, the more you'll have left over to invest in it — from new equipment and hires, to, yes, the humble office supplies. You see, at Wisconsin Public Service, we run a business too. And we know cuts in overhead expenses can be steered instead toward growth. So we're out to make sure you spend less on energy every day of the year, and have more to spend on your business. And that's exciting. Visit the Saving Energy section of wisconsinpublicservice.com and follow us on Twitter @WPSforBiz. www. insightonbusiness.com September 2012 • INSIGHT | 13

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