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

September 16, 2005 Deadline for submitting bids

September 19 - September 23, 2005 Bid analysis by independent audit firm

September 26 - September 30, 2005 Bids reviewed by CWT Staff
Final bid selection by CWT Staff

October 5, 2005 Notification of successful bidders to field auditors

October 10, 2005 Field Audits begin

October 27, 2005 Notification (by letter) to successful bidders
Notification (by letter) to unsuccessful bidders

October 10, 2005 - January 30, 2006 Field Audit/Herd removal period

Interested in Bidding? Here's what you need to do.

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.

CWT Bid Calculator

Herd Retirement 2005 Bid Form

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:

CWT
Herd Retirement Program
P.O. Box 41049
Bethesda, MD 20824-1049

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).