Serving Clovis, Portales and the Surrounding Communities

Q&A: Dairy board vice chair talks position, challenges

The Dairy Farmers of America's board of directors has re-elected area dairy farmer Wayne Palla as first vice chairman of the board.

Palla and his son Eric of Clovis, have an integrated farm operation with dairy, crop farming and cattle ranching. In conjunction with three dairy farms, they farm 16,000 acres of corn, wheat, alfalfa, sorghum and green beans.

Palla answered questions about his position and the current issues facing local dairy farmers. His answers were edited for clarity and style.

Tell me about your background as a farmer and your history with the DFA board?

My entry to the dairy industry was in 1966 in Bakersfield, Calif. I started a dairy in the Portales area in 1974, which I later sold to Andy Schaap in 1977. We built our existing operation in Clovis in 1978, and at that time my family and I relocated our California operation to New Mexico. Today we operate dairies in New Mexico and Texas. Starting in 1982, I served on the board for Associated Milk Producers Inc., a Dairy Farmers of America, Inc. predecessor cooperative. I served on the southern region board and was treasurer on the corporate board at time of the merger with DFA, and have been a director on DFA's Board ever since.

What are the general responsibilities that come with your position?

Generally, it is my duty to look after interests of the owners of DFA and to see to it that the cooperative remains fiscally responsible for these members' interests. As first vice chairman of DFA's Board, it is my responsibility to see that the business activities of the cooperative are in line with the wishes of its members. As chairman of DFA's Southwest Area Council, it is my duty to look after the interests of the dairymen in the southwest area.

What is your favorite part about being the first vice chairman of the DFA Board?

The best part is being able to represent dairy farmers on national and international issues. I really enjoy the exposure to the corporate world of finance and international trade and negotiations.

What plans does the board have in regards to the dairies closing down in eastern and southern New Mexico?

The board has a deep concern about the economic conditions of the dairies in the Southwest and continues to advocate for the farm bill, which contains numerous dairy provisions that would help farmers to preserve their margins through insurance and other means. The Southwest has been hit extremely hard on the feed input side due to the historic drought that we have just experienced, and the board is constantly looking for ways to improve the milk price relative to costs.

Why do you think this problem is growing?

The main issue is that feed costs have risen due to the drought. At the same time, the current price of milk is depressed due to world supplies. The world markets are beginning to play a larger role in our domestic price of milk. These two issues combined have a real impact on our local dairy farmers.

What solutions or advice would you offer to local dairy owners?

My best recommendation is to watch the cost side of the business and whenever possible, take advantage of risk management tools to lock in a profitable margin.

— Compiled by CMI staff writer Christina Calloway

 
 
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