Freight Safety and Dairy Market Pressures: The AgNet News Hour delivered another wide-ranging discussion today, spotlighting California’s unpredictable weather, pressures in the dairy and hay markets, and major safety concerns in the state’s freight industry.
Rainfall Raises Questions for Crops
Unexpected rainfall across the Central Valley sparked concern for sensitive crops like peaches, plums, nectarines, and grapes. While some crops may benefit from the added water, hay and alfalfa growers risk damage when fields are cut before storms hit. “We love the rain, but sometimes we don’t love the rain,” host Nick Papagni noted, reminding listeners that timing makes all the difference for growers.
Federal Pushback on California Policies
Papagni and co-host Josh McGill also highlighted recent federal actions to counter what they described as California’s regulatory “twilight zone.” The EPA has moved to block the state from imposing trucking rules on out-of-state carriers, while the USDA has announced efficiency standards for energy projects on federal lands. Both developments, the hosts argued, mark important steps to limit California’s regulatory overreach.
Nick Folio on Freight, Dairy, and Hay
The centerpiece of the program was an in-depth interview with Nick Folio of Folio Commodities, who provided updates on hay markets, dairy economics, and trucking industry challenges. Folio explained that alfalfa markets remain soft, with prices aligning closely to weakened milk futures. Hot weather continues to reduce cow productivity, while out-of-state inventories linger due to weaker export demand.
Perhaps most alarming, Folio warned of serious safety issues in the freight sector, noting that “50 percent of owner-operators shouldn’t be on the road.” He described how lax licensing standards, fraudulent testing practices, and aging equipment create risks for both professional truckers and families sharing the highways. “Our families travel the 99,” Folio said. “It’s a huge concern when you have somebody on the road that probably shouldn’t be operating this kind of equipment.”
Folio also noted that while almond turnouts are lower this season, the reduced supply is beginning to firm up prices, providing cautious optimism for growers.
Looking Ahead
Folio urged listeners to watch winter inventories, commodity prices, and the milk market as key indicators for where hay and dairy will head in the coming months. “At the end of the day, it’s going to be about consuming inventory,” he said.
For the full interview with Nick Folio and more ag policy insights, tune into the AgNet News Hour at AgNetWest.com
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