As reports come out about farms tilling crops under and milk being dumped, I'm seeing a lot of misinformation and lack of understanding about how agriculture operates, and how farmers/ranchers/dairy owners get paid for their products. The truth is Ag is not one size fits all.

There are several ways the above can sell a product - cash contract, futures contract, crop specific, and direct to consumer. A producer can choose any combination of the above to sell his crop, though most only choose one or two. The choice varies widely depending on location.

States like Idaho tend more toward futures contracts, cash contracts, and crop specific products like milk, sugar beets, feeder corn and trout. (Idaho has one of the largest processing facilities in the world.)

Milk, for instance, is paid out on either a fixed contract or a floating contract. A fixed contract is between a producer and a creamery, and pays the producer a fixed amount per 100 cwt (100 lb) of milk. Producers gets bonuses for low somatic cell counts.

A floating contract allows the producer to sell milk to any creamery, in state or out of state, who may be experiencing a low production day, but the price is not guaranteed. It's a very tough way to make a living, but we are seeing more floating contracts.

Crops, such as barley, peas, sunflower, beans, and potatoes, are sold on cash or futures. Most producers try to lock in futures, because the return on the crop is normally 11-15% higher than cash contracts. Futures simply mean the contract is locked in on an anticipated price.

While Idaho does have some direct to consumer (farmer's markets, CSAs, custom beef, goat and organic milk - look up Clover Leaf Creamery in Buhl, which has the best ice cream EVER), the majority of our operations are too large scale to make direct to consumer feasible.

Direct to consumer Ag is more common in states like CA, which has larger, and much more dense, population centers, where producers are able to effectively market and deliver products to the consumer. Plus, especially in SoCal, the growing season is longer, so more crop variety.

So those saying the solution for changes to food distribution is as simple as...

It isn't. Ag is varied and complex, and trying to alleviate the issues depends on crop, market, and logistics.

There is no quick and easy answer.

Fun Idaho fact: While Idaho is still the number one producer of spuds, it is also the 4th largest producer of dairy. However, the majority of milk produced in Idaho goes to cheese.

Other Idaho crops are mint (#3), trout (#1), sugar beet (#3), and wine (#22).