Photos by Stephanie Klein-Davis | The Roanoke Times

Dairy farmer Laird Bowman runs a farm that's been in his family since 1839 and says he isn't going anywhere, no matter what happens. His operation milks 200 cows twice a day, and while he makes about $1 a gallon of milk, the cost of producing that gallon is currently about $1.70.

Billy Cole (left) helps Laird Bowman in the milking barn of Bowmont Farms between Boones Mill and Callaway.

Hungry cows hit the feed trough after an afternoon milking on Laird Bowman's Franklin County dairy farm.

BOONES MILL -- An economy that's taken a toll on the financial and auto industries is also putting a squeeze on one of Franklin County's largest industries.

If the price paid to dairy farmers for their products doesn't increase by midyear, some may have no option but to find a new occupation, said Beverly Cox, dairy specialist with the Virginia Cooperative Extension.

It's hard to keep their operations running when the production costs are higher than the revenue for an extended period of time. And that's what's happening.

Franklin County, the second largest milk producing county in the state after Rockingham County, has 1,043 farms, 66 of which are registered dairies. Dairy and other types of farming remain strong in Franklin County. According to the 2007 Census of Agriculture, the county gained 31 farms between 2002 and 2007.

But when it comes to dairy, this year has seen a sharp decrease in the price paid to farmers for their product -- a price determined by a collection of government and private agencies. For March, the price per 100 pounds of milk dropped $3 from about $16.50 in February, an unusually large shift in price. According to a recent Associated Press report, the price of wholesale milk has fallen 40 percent in the past six months.

Analysts predict March will be a low point in pricing with a small increase in April and then prices should stay steady through June, Cox said.

Donnie Montgomery, president of Homestead Creamery and one of two farmers who supply its milk, said he has no immediate plans to close his dairy operation.

"But if the price stays under the cost of production too long, I don't know," he said. "It works like any other business."

Montgomery has run his dairy outside Burnt Chimney since 1971 and said this recession is the worst he has seen for dairy farmers because the cost of production is so high.

No matter what happens, sixth generation dairy farmer Laird Bowman of Bowmont Farms says he's not going anywhere.

The 800-acre farm nestled between Boones Mill and Callaway has been in his family since 1839.

"Things have gotten unpredictable," Bowman said. "There have always been cycles. Usually it's not good, not bad, but stable." To keep his operation running, Bowman has had to rely on loans rather than revenue.

At current prices, Bowman is making about $1 a gallon of milk but production costs hover about $1.70 per gallon. Federal government subsidies will add only about 15 cents per gallon.

"That's a long way from getting us where we need to be," he said.

After soaring in 2007 and remaining high in much of 2008, milk prices paid to farmers have collapsed and are expected to remain dismal, even as feed and fuel stay fairly expensive.

"We project one of the lowest milk prices in 2009, one of the lowest in decades," said Larry Salathe, senior economist at the U.S. Department of Agriculture.

"Right now, our thinking is pretty bleak. ... This has been a very sharp and sudden decline that no one anticipated," he said.

Farmers are accustomed to price swings, but experts say this one has been wilder than most.

A main culprit for the farmers' woes is a decrease in the export of dairy products -- which has resulted in a surplus nationally.

An increase in dairy farms in the West contributed to the surplus, Bowman said. But in the Southeast a shortage remains, and surplus milk is used to fill the gap.

To remedy the situation, the number of cows nationwide needs to decrease by about 400,000, Cox said.

"It's very difficult to turn cows on and off," Bowman said.

While other farmers figure out how to cut back, Bowman and Montgomery said they will not.

Until the market balances out again, farmers have to focus on controlling costs on the production side, such as getting their feed early at cheaper prices, Cox said.

Bowman continues to try to control his costs and sells other products such as hay, calves and lambs.

Just as in favorable economic times, he'll continue to milk an average of 200 cows twice a day, producing 1,200 gallons a day.

Bowman said he hopes everything turns around in six months, but some say it will be at least a year.

However long, he's in it for the long haul.

"When things start getting tough, it's about who will survive the longest," he said.