|Missouri Dairy Business Update|
|Volume 5, Number 8|
Deadline for Submitting CWT Bid is Sept 16th
The stronger and more stable milk prices that the industry has enjoyed since CWT's launch in the summer of 2003 have encouraged many farmers to increase their milk production. After reviewing rising cow numbers as well as the comments of farmers across the nation, the CWT committee, comprised of member representatives, has determined that another herd retirement round should be undertaken under the following timeline targets.
TIMELINE TARGETS DATE HERD RETIREMENT PROGRAM
August 10, 2005 Announce bid process Distribute
bid forms for all CWT Participants
CWT producer members interested in participating in the 2005 Herd Retirement must submit completed bid forms by September 16, 2005. Bids post-marked after September 16th will not be considered.
Bids must be accompanied by a milk company printout of monthly milk marketings during the period of July 1, 2004 through June 30, 2005. Producers with an interest in more than one farm must submit milk marketings for each farm.
Producers who were selected in a previous CWT Herd Retirement Program are not eligible to bid in this program. In addition, no cows may have been sold or transferred after June 15, 2005 (except cows sold for slaughter).
All bids must be sent by U.S. mail to:
If your bid is selected, you can expect the following:
CWT will send a farm auditor to your farm. The auditor will reconcile the cow numbers, compare the current milk volume (at the time of the farm audit) to the twelve (12) month history of milk marketings and provide CWT tamper-evident ear tags to be applied to every cow.
Then you will have to arrange to transport all cows to slaughter within 15 days after completion of the farm audit. Promptly after the sale of all your cows, you must provide CWT with documents verifying the sale, but you retain all the proceeds from the sale of your cows.
After CWT receives documentation of the sale of your cows, payment shall be made based upon your bid price multiplied by your verified milk volume for the period of July 1, 2004 through June 30, 2005. You choose how you get your CWT payment – as a lump sum upon sale of all cows; in two installments with 50% upon sale of cows and the remainder paid after January 1, 2006; or as a single payment delayed until after January 1, 2006.
Still have questions? Review the following Bid Questions and Answers or contact the CWT staff by calling 888-Info-CWT (888-463-6298).