As we enjoy the Labor Day holiday, we need to realize that the first Monday in September was designated as Labor Day way back in 1884.

Labor Day is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity and the well-being of our country.

It is appropriate, therefore, that the nation pays tribute to the American worker even though most identify organized labor with Labor Day.

It is also important to recognize the significance of our agricultural labor force. Regardless of the type of enterprise, agricultural labor is a very important labor force that also needs to be included in the recognition of the national Labor Day observance.

One segment of our local agriculture labor force that has changed dramatically over the past 20 years is the dairy industry.

Dairy producers are faced with milk prices that are below production costs and are projected to remain low throughout the year and into 2007. The last few years have helped many dairy producers catch up on old accounts payables, enabling most to operate at a profit. But 2006 is a completely different story.

One producer recently showed evidence that in 1980 he was paid more for his milk than he was in July 2006. Like any other business, losses can only be accumulated for so long then the business must liquidate. It would depend on how willing the current vendors and lending institutions are to work with the operation.

Dairy producers are caught in a catch 22, being that they cannot control the cost of their inputs and they cannot control the price of their own product.

The price of what is hauled off the farm today will not be known for another month. On the other hand, they must have feed delivered and they must have milk hauled away.

Trucking expenses have also increased, but the product being sold is worth less today than in 1980. This is largely due to milk production from large operations in states such as California, Arizona, Idaho and Texas.

It has become increasingly difficult for local dairy operators to remain competitive and continue a viable operation.

In the past 20 years, there has been a 50 percent decline in local dairy producers. This trend will only continue. It is very rare that a new operator starts up a dairy operation. At one time there were dairy producers all over the county, as evidenced by the number of old milk houses and barns throughout the area.

In the future, dairy cows will become more like an endangered species in this area, leaving the operators to either adapt to another enterprise or sell the farm. It will not happen overnight, but unless some changes occur soon, we will see fewer dairy producers in the future.

For more information, contact the Farm Service Agency at 724-482-4800, Ext. 2, or 724-775-2369, Ext. 2.