Tuesday, April 13, 2010

States woo Calif. dairymen with less regulation

The number of dairies in California has plummeted by more than 500 in the past decade, with many moving to other states enticing them with promises of lower costs and simpler regulations. Eight states, ranging from Idaho to Iowa, have been courting dairies from California, the nation's largest milk producer. The reason is clear: Cows mean cash for local economies. Mike Meissen, vice president for value added agriculture for the Iowa Area Development Group, estimated each dairy cow has an economic impact of $15,000 a year. "So if a thousand cows go into a county, that's $15 million," said Meissen, whose group is made up of rural electric cooperatives that work to bring new business to Iowa. Texas also has lured dairies with what it claims are less onerous regulations, an attractive climate and large feed supplies. Its dairy cow population has grown from about 17,000 in 2000 to more than 200,000 this year, said Ellen Jordan, a dairy specialist with the Texas A&M extension. Overall, Texas ranks No. 8 among dairy states, according to the U.S. Department of Agriculture. "Producers who come here know what the regulations are," she said. "They can get a permit to operate and they know the area they are choosing is very ag friendly." Meanwhile, the number of California dairies dropped from more than 2,200 dairies in 1999 to 1,700 in 2009...more

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