Associated Press - August 16, 2009 3:05 PM ET
VEGUITA, N.M. (AP) - New Mexico dairy farmers say low production payouts are squeezing some dairies out of business and threatening the industry.
Dairy Producers of New Mexico executive director Sharon Lombardi says the situation is dire for dairy farmers.
Farmers say overproduction, less demand and a drop in exports is driving down milk prices.
The situation is costing farmers massive revenue losses each month while expenses for feed continue to rise.
Dairy farmers Laurent and Maurice Othart of Veguita say low milk prices are losing them thousands of dollars a day.
It hasn't always been this way. Dairy production tripled over the last 15 years to become New Mexico's top agricultural commodity, worth more than $1 billion annually.
New Mexico ranks eighth nationally for milk production.
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