A dairy lending specialist suggests the dairy herd is not growing commensurate to milk prices.

Greg Steele with Compeer Financial says when the market is this strong there’s usually a spike in dairy cows.

“Generally be encouraged whether it’s $24 or $25 milk, you would see the bulldozers rolling and contractors working to put up new barns.”

Despite some growth “around the fringes,” he tells Brownfield processor limitations and base program penalties are stunting that development.

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