Land O’Lakes Warns of Shrinking Margins for America’s Dairies
- Higher crop prices will increase animal feed costs, CEO says
- Company’s animal feed business gets boost from backyard farms
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A recent rally in grain prices will squeeze margins for American dairy farmers by increasing costs to feed cows at a time when surging U.S. milk production is already weighing on the market.
That’s according to Land O’Lakes Inc., one of the biggest U.S. farm cooperatives. Dairy farmers could see a “bumpy” first half of 2021 given the combination of rising costs and bigger output, said Beth Ford, chief executive officer of the cooperative.