One Wisconsin Dairy Cooperative Offering Farmers an Incentive to Leave Farming
Tuesday, April 7th, 2020 -- 9:32 AM
(Wisconsin Ag Connection) -At least one dairy manufacturing plant in Wisconsin is telling its patrons that it will provide financial incentives for anyone who decides to quit the business after the COVID-19 pandemic caused tremendous losses to the market.The board of directors of the Ellsworth Cooperative Creamery has approved a buyout program that would offer payments of full equity to co-op members for 2010 through 2019. The program is available for reducing the cooperative's first 100,000 pounds of milk per day by April 15. In order to qualify, producers must not sell their cows to another member of the co-op. And they will not be allowed to re-enter into a purchasing agreement with the creamery without approval by the company's board.
The co-op has already heard from several producers who have interest in the buyout option. Over the past week, several dairy processors throughout the Midwest have asked certain patrons to begin dumping their milk because factories are rapidly running out of storage space. In addition, the market for cheese and other dairy products have dropped significantly because many of its retail customers include restaurants.
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