Julyaugust2014

KENTUCKY

July - August 2014 w w w. k y d a i r y. o r g

Milk Matters Dairy Situation and Outlook

Supported by

Find out more on pages 8-9

Dairy Farmer Asks to Lower Diversion Percentage Limits More info on pages 14-15

Technology and On-Farm Innovation Highlights Kentuckiana Tours

By Sherry Bunting

A

mix of new technologies, on-farm innovation, top-notch management, family farm transitions, and the incorporation of bedded-pack barns as stepping stones to expansion highlighted the 2014 Kentuckiana Dairy Exchange tours in Taylor, Greene and Adair counties, Ky. July 29-30 and included an evening educational program featuring Dr. Nicola Blackie, from Writtle College in England. A combined 100 dairy producers from both states attended for a time of learning, networking and sharing ideas.

Indiana Dairy Producers president Steve Obert -- whose dairy is located just 25 miles f rom the Kentucky border -- noted the group f rom Indiana found “a lot of ideas to take North” from this year’s Kentuckiana Dairy Exchange.

An 8-year tradition -- alternating between the two states -- the

Father and son team Tony (left) and Ben (right) Compton talk about how they achieved SCC of 70 to 80,000 at their 200-cow dairy in Kentucky. Photo by Sherry Bunting

event is organized annually by the UK and Purdue extension, and is promoted by the Kentucky Dairy Development Council (KDDC) and the Indiana Dairy Producers (IDP).

“We picked dairies that have features of interest to other producers and with intergenerational transfer,” said UK’s Dr. Jeffrey Bewley about the 2014 Kentuckiana tours. Low somatic cell counts were a primary feature on the first day, showing “we can achieve high quality milk in the South,” said Bewley.

Compton Dairy and Hutchison Holsteins were recognized as the top two dairies in 2013 for milk quality. Tony and Ben are the father and son team at Compton Dairy, and they have taken their SCC down to an average of 70 to 80,000. The 190 cows produce an RHA of 23,000 pounds (2x).

“One of the biggest things we focus on is to keep the parlor dry at all times,” said Tony Compton. “We put no water on the cows, and our milkers wear gloves.” They rely on fully laundered microfiber towels and pre- and post-dip, and cull at 45%. The new Cont’d on page 16 freestall barn built six years ago

Tony Cowherd, dairy farmer in Taylor County, talking with other producers about his automatic calf feeder and new heifer barn.

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

2014 KDDC Board of Directors & Staff Executive Committee President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Past President: Bob Klingenfus

Board of Directors District 1: Lesa Elliot Clark 270.210.3743 District 2: Josh Duvall District 3: Don Kinslow 270.646.0086 District 4: William Crist, Sr. 270.590.3185 District 5: Tony Cowherd 270.469.0398 District 6: Todd Burgess 270.427.6403 District 7: Larry Baxter 859.612.2738 District 8: Charlie Edgington 859.229.0442 District 9: Robert List 606.748.2944 District 10: Richard Sparrow 502.370.6730 District 11: Bill Mattingly 270.699.1701 District 12: Larry Embry 270.259.6903 Equipment: Eric Risser 423.368.7753 Milk Haulers: Alan Wilson 606.875.7281 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dr. Ron Wendlandt 502.839.4222 Dairy Co-op: Fabian Bernal 859.351.0610 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Michael Smith Former Pres.: Bob Klingenfus 502.817.3165

Employee & Consultants Executive Director: Maury Cox 859.516.1129 DC-Central: Teri Atkins 859.516.1619 DC-Western: Dave Roberts 859.516.1409 DC-Southern: Meredith Scales 859.516.1966 DC -Northern: Jennifer Hickerson 859.516.2458

KDDC 176 Pasadena Drive Lexington, KY 40503 www.kydairy.org KY Milk Matters produced by Carey Brown

July - August 2014 • KDDC • Page 2

President’s Corner Richard Sparrow

I

n late July, Kentucky dairy farmer, Lee Robey requested the Market Administrator for Federal Order 7 use his discretionary authority to lower the diversion percentage limits from 25% to 0% for August, September, October, and November, 2014. As with most issues involving milk marketing, diversion limits is a complex topic. Basically, milk that is pooled (used) in Federal Order #7 can be diverted to plants outside Federal Order #7 and still be counted as used in Federal Oder #7. If this milk is processed in Class III or Class IV plants outside the area, it lowers the utilization in the market, thus lowering the producer blend price. The KDDC Board voted to send a letter to the Federal Order #7 Market Administrator in support of a reduction in diversion percentages.

At this time, the Federal Order #7 Market Administrator has not made a decision on the request.

There are many controversial issues surrounding the marketing

of milk: diversion limits, transportation credits, depooling, and even price discovery. It is a complicated process; however, milk price is a critical factor in your dairy farm’s bottom line. I believe it is the responsibility of KDDC to be a producer advocate when these issues are discussed. Above all, the milk pricing system needs to be more transparent. In the future, I hope KDDC can bring more information to Kentucky dairy producers which will help explain milk pricing and Federal Orders.

Novice Dairy Showman Overtakes the 2014 Kentucky State Fair Seventy-seven kids were all smiles as they made their show ring debut in this year’s 2014 KY State Fair Novice Showmanship class held on Friday August 15th in Louisville, KY. They were each named winners in the biggest tie ever! Youth from ages 3 to 8 crowded the green shavings filled show ring.

Every breed was represented from junior calves to cows being shown by these youngsters.

Congratulations to all of them!

The average cost of mastitis is about $184 per cow per year.

Organic minerals have been proven to be more readily available for the animal’s needs than inorganic.

Through increased availability of organic minerals in a dairy cow’s diet, the function of the white blood cells in the udder is optimized, allowing them to more effectively deal with mastitis-causing bacteria.

5.7% 4.1%

Treatment ($7.36)

Discarded Milk ($10.45)

22.1%

66%

Replacements ($41.73)

Lost Milk ($121.00)

1.5% Veterinary ($2.72)

0.1% Labor ($1.14)

Source: Current Concepts of Bovine Mastitis.

The National Mastitis Council (NMC), 1996.

The ALLTECH MINERAL MANAGEMENT program places high value on milk quality, immune function, herd health, efficiency, and the environment, benefitting your herd and your dairy’s profitability.

Alltech has been providing nutritional solutions to farmers around the world for more than 30 years through innovations like BIOPLEX® and SEL-PLEX®.

Alltech.com

AlltechNaturally

@Alltech

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Executive Director Comments Maury Cox

A

lthough my experiences and knowledge of other industries apart from dairy is limited, I do believe the dairy industry must rank as one of the most diverse, complicated, challenging businesses in all of agriculture. If one simply looks at the marketing rules alone, it can quickly become overwhelming to comprehend.

I have heard the following anonymous quote on several occasions regarding the Federal Milk Marketing Order system saying, “There was only one man that ever understood it… but he died.”

I think it is very important for producers to have at least a basic comprehension of milk pricing and the FMMO system. I will be the first to say it is not an easy read, but I become concerned when I hear dairy farmers say the system is made complicated to keep us from understanding it. Especially when in reality dairy farmers are the ONLY ones that vote to ratify the Order language. No other stakeholder has a vote except in the case of the “bloc vote” by cooperatives, which is still representative of producers. But even then, a producer has the right to voice his/her position.

USDA/Federal Milk Market Order Educational Meeting Oct. 7, 2014 • 10:00 a.m. to 12:00 p.m.

Warren County Extension Office 3132 Nashville Rd. Bowling Green, KY 42101 (270) 842-1681 The Kentucky Dairy Development Council is hosting an educational meeting for The USDA Federal Milk Marketing Orders. This will be an informative meeting regarding Federal milk marketing and is to be held, October 7, 2014 at the Warren County Extension Office in Bowling Green, KY The meeting will be from 10:00 a.m. to 12:00 p.m. Central Time and lunch will be served following the meeting.

Please make every effort to attend.

For more information on the meeting call KDDC at 859-516-1129.

July - August 2014 • KDDC • Page 4

The more one studies the FMMO language and witnesses its evolutionary process, the better understanding one gets of a very complex system. But through study, often many of the “whys” this or that was done becomes much clearer. It is not designed to be complicated to keep anyone from understanding, but rather it is difficult because there are many intricacies of the business which must be considered. It changes from time to time often as markets change and industry stakeholders adjust to the economic challenges they face.

It also offers processes to request for adjustments, even without the hearing process. Recently just such a request occurred.

A Kentucky dairy farmer petitioned the Market Administrator of FMMO 7 to consider lowering milk diversion limits of 25 percent to zero percent during the months of July through November of 2014.

Below is a description of how diversions are used, as stated by Harold Friedly, Jr., FMMO 5, M.A. in a response letter to a FMMO 5 dairy farmer: “Diversions are used by pool plant operators and cooperatives acting as handlers to attract an adequate milk supply to meet Class I needs. In setting a reasonable limit, diversion limit standards must take into account reserved supplies needed for Class I use, the balancing needs of the markets and the seasonality of production.”

The actual process of how diversions occur in a deficit production market is when a pool plant operator or a cooperative contracts with distant milk producers to supply the needs of the plant or customers and exceeds that amount by up to the diversion limits they handle. If that milk is not needed to supply the Class I needs, it is diverted to cheese or powder plants. Diversions can also be used to relieve the market of locally produced excess milk while still capturing the local blend price. The question being asked is what amount of distant milk is truly needed by the local market. The provisions for diversions of milk can be found in the Order language 1007.13 (d) 3:7, at the Federal Order 7 website: http://www.fmmatlanta.com/ The FMMO 7 Market Administrator’s response to this request was to allow a period of time for comments from stakeholders to help make a determination as to how it might be addressed. A similar request was made of FMMO 5 Market Administrator, but the request was denied, based primarily on the request to lower it to zero. Therefore no comments were made on behalf of the FMMO 5 stakeholders.

The response letter from the M.A. of FMMO 7 along with comments from the KDDC Board can be read on pages 14-15.

Whether diversion percentages should be lowered or left alone is best answered by the Market Administrators of the given Orders.

Each area is unique and the needs of those markets are different.

Also individual pool plants and cooperative handlers have made commitments to the market based on the rules in play now and those agreements must be considered in the process. While that information is strictly proprietary, the M.A. has access to it and changes in diversions limits should not create unfair competition for or against those entities.

It is our hope further discussion will continue on this subject and an equitable balance of diversions more reflective of the actual utilization within the geographic area of the Order be established.

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Welcome Our New Board Members Josh Duvall Josh Duvall is a third generation dairy farmer from Warren County near Bowling Green. Josh has been farming since 1999 and milks 225 Holsteins averaging 80 lbs. of milk per day. His cows and heifers are bred A.I. and he raises all of his own replacements. Josh utilizes a compost bedded pack barn for cow comfort and care.

They maintain a 100 head beef, cow/calf herd as well.

Josh has 11 employees on the farm where he utilizes Dr. Charles Townsend as his herd veterinarian and Dan Riddell, Ph.D. as his nutritionist. He is also on the KDDC MILK Program in which he usually maxes out every year.

In addition to his dairy operation, Josh has 1,800 acres of row crops with his brother where they farm corn, soybeans and wheat.

Josh and his wife, Brandi have been married 10 years and they have four children. Josh was nominated by Dr. Charles Townsend.

Welcome Josh Duvall to the KDDC Board.

Michael Smith My name is Michael Smith I grew up on a beef cattle and tobacco farm in Jessamine County. I spent my childhood showing registered dairy cattle with my family and being surrounded by the dairy industry. I am still very active in showing and owning dairy cattle of all breeds. My brothers and I have owned Guernsey’s,

Jersey’s, Brown Swiss and Holsteins. We have exhibited dairy cattle all across the country at different state fairs and national shows. My father instilled in me the love for the dairy industry and for the dairy cow. I spent my childhood under the leadership of Dr. Heersche, judging dairy cattle around the country in 4-H and then had the opportunity to represent the University of Kentucky as a member of the Dairy Judging team in 1996.

I also served as an assistant coach for the UK Dairy Judging team in 1998.

Today I am a Regional Vice President for Farm Credit MidAmerica, in Lexington. I cover the areas of Lexington, London, Richmond & Somerset. I have been employed by Farm Credit for the last 16 years. In my time there I have had the opportunity to work with various facets of the dairy industry from dairy heifer raising operations to dairies along with a few dairy cattle brokers who shipped cattle around the world. I have worked with both good and bad operations and experienced the level of management and business practices it takes to be successful in this endeavor.

I believe the state of Kentucky offers various opportunities to the dairy industry. We have the ability to be a successful state in this industry given our central location, access to good roads for transportation of both cattle and milk and our natural resources that allow for plentiful water, good crops and landscape that offer good pasture and shade.

Trenton Farm Supply

July - August 2014 • KDDC • Page 5

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

2014 Kentucky State Fair 4-H - FFA Youth Show

By Teri Atkins & Jennifer Hickerson

A

ugust is always a fun month for the 4-H – FFA Dairy participants because that is when the kids get the opportunity to show off their projects at the State Fair. This year there were over 100 youth exhibitors in the KSF Youth Dairy Show on August 14-15. There are now seven different breed shows that occur during the youth dairy show with 320 total head exhibited: Ayrshire, Brown Swiss, Guernsey, Holstein, Jersey, Milking Shorthorn and R&W Holstein. After all of the Junior, Senior and Grand Champions are chosen there is a Parade of Champions to select the Supreme Champion Heifer, Supreme Champion Cow and the Supreme Champion Showman. In recent years there has also been an addition of Supreme KY Proud Champion Heifer and Supreme KY Proud Champion Cow to help promote animals that were born and raised solely in KY. This year the quality in all of the breeds was outstanding and the Parade of Champions was a ring filled with excellence from one end to the other.

KY Proud Supreme Champion Heifer

KY Proud Supreme Cow

The KY Proud Supreme Champion Heifer was a Spring Calf owned by Jagger Jones of Glasgow, KY while the KY Proud Supreme Champion Cow was a Junior 3-Yr Old Holstein owned

by Kadyn Gibson of Eminence. Both of these champions were both born and raised on KY soils and proves that KY dairy farmers are breeding for good quality animals.

Commissioner’s Trophy

There is a Commissioner’s Trophy handed out each year to the Supreme Showman of all breeds. This year Joselyn Elliott of Mercer County worked hard to beat out six other top showmen for the award. This honor is one that is not easy to win and most of

July - August 2014 2014 • KDDC • Page 6

the time takes a very experienced showman to compete. This was the final year for Joselyn to show and she definitely had a great ending.

Supreme Champion Heifer

Supreme Champion Cow

The most anticipated honor of the 4-H – FFA Dairy Show is the Supreme Champion Heifer and Cow. This year the Supreme Champion Heifer was awarded to Kaydn Gibson and Jordan Elmore with the Senior Yearling R&W Holstein heifer, Milksource LD Teagin-Red. This heifer was also the Junior Champion of the Junior Show at World Dairy Expo in 2013 as a Senior Calf. The Supreme Champion Cow was awarded to Billy Cameron of Broadhead, KY, with Cameron-Ridge RL Lora-ET. She is a 4-Yr Old Holstein cow.

Kentucky State Fair Dairy Shows may be over for 2014 but the experience will remain a lifetime and not just for the participants.

The dedication, ambition, hard work, sportsmanship and fellowship of the exhibitors was evident up and down the stalls and as hundreds of people walked through the aisles each day you heard a range of comments and a multitude of questions being answered by the exhibitors. It was a common sight to see these show kids take the time to let their cattle be petted, talk to people about their animals and explain the basics of dairying and showing. Not only do the youth that have dairy projects learn life skills such as time management, organizational skills, public speaking, patience, selfconfidence, responsibility, and determination but they represent the dairy industry in a positive way!

The Top 5 Quotes from fairgoers: 1.

“If white milk comes from that cow and chocolate milk comes from brown cows where does strawberry milk come from?”

2.

“How do they stand the smell! Yuck!”

3.

“He’s so cute!” (of course it’s a heifer)

4.

“How do you get the milk out?”

5.

“They have names too?”

e c i v r e S l l u F r u o Y r e d i v o r P y r i a D

VES 50” and 72” cyclone fan. It produces in excess of 80,000 CFM of air movement while using only 2.2KW of power on high.

Billions of milkings have been performed by DeLaval EP100/200 series pulsators. Switch to the proven quality of the DeLaval pulsation platform and experience it for yourself! $150 each.

New & Used Equipment for Sale • Penta 6020SD with 16” hay ring and corner doors 2011 model • Schuler 220BF feeder wagon with scales (NEW) • Anderson NWX and NWS inline bale wrappers • Houle 42 ft agi pump with AR steel HD driveline • Houle 42 ft agi pump with AR steel HD driveline (NEW) • Leon 425 cu ft manure spreader twin vertical beaters (NEW) • Penta 4120 HD vertical mixer 2014 model • Artex 550 vertical beater manure spreader • Badger BN3352 manure spreader • Aerway 10ft quick adjust with wheel kit • Delaval 4000 gallon cooler built by Mueller • Penta 4020 SD with flip up conveyor • GEA Houle 4800 gallon spreader • Roto Grind 760 bale chopper

Improving your dairy production with durable engineered equipment.

Valley Farmers Co-op sells and services full lines of milking, hay, ventilation and manure equipment.

View all we have to offer online at www.vfcoop.com or call 800-467-2150

86 Farmers Drive • Russellville, KY Pete Graber - 270-438-3928 • Eric Risser - 423-368-7753 Lavern Martin - 423-368-1235 In -Service preventative maintenance technician David Newlin - -270-331-5982, March July August - April 2014 2014 2014 • KDDC •Route KDDC • Page •Sales Page 7 7

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Mattingly Silo Inc. Bardstown, KY

502-252-7300 7655 Bloomfield Rd. - Bardstown, KY silosbardstown@hotmail.com 3/4” Floor AR Screw, 4 Pt. Scale

ROTO-PRESS BAGGERS We can also get Sioux Automation Parts

AT Films & Klerks Hyplast Silage & Grain Bags

August 19, 2014

By Bob Cropp, Professor Emeritus, University of Wisconsin Cooperative Extension, University of Wisconsin-Madison

M

MIXER KNIVES Starting at $90 Many models in stock for Jay-Lor®, Tioliet®, Kuhn Knight®, Penta® & Valmetal. All teet are Tungsten Carbide. Other brands available upon request.

Can UPS ship same day.

Stoltzfus 8 Bale Carrier 10 Bale Carrier

Dairy Situation and Outlook

Stoltzfus 51/2’x24’ Silage Feeder Stoltzfus 8’x24’ Hay & Silage Feeder Silage Cover & Tire Sidewall

All sizes le! availab

(20) Silage Baggers Availabe for Corn Chopping 30” Silage Wrap, 1 ML. & 1.2 ML • In Stock July - August 2014 • KDDC • Page 8

ilk production is picking up as dairy producers feed for higher production per cow and by adding milk cows. USDA’s milk production report revised June’s milk production to 2.2% higher than a year ago and estimated July’s production 3.9% higher. July milk cows numbered 0.4% higher than a year ago and milk per cow was 3.5% higher. Cow numbers increased by reduced culling and adding dairy replacements. Dairy cow slaughter this year is 10.3% lower than a year ago.

Of the 23 reporting states 11 had more cows than a year ago, 21 had more milk per cow and 20 had more total milk production.

Despite milk production picking up butter and cheese prices will average higher in August. On the CME butter averaged $2.46 per pound in July but has been higher in August reaching a record high for the year at $2.66 on August 15th. Cheddar barrels averaged $1.997 per pound in July and have increased

We can expect dairy product prices and milk prices to decline. The question is how soon and by how much. during August reaching $2.21 on August 15th. The 40-pound cheddar block price averaged 1.987 per pound in July but increased to $2.22 on August 15th. The 40-pound cheddar block price has averaged above $2 per pound every month this year except for July, and cheddar barrels averaged above $2 per pound first quarter of the year and near $2 since then. Higher cheese and butter prices along with dry whey holding at $0.67 per pound will result in a Class III price near $22.20 in August compared to $21.60 in July.

While butter prices have increased nonfat dry milk prices have weakened. Nonfat dry milk averaged above $2 per pound through May but is now at $1.70 per pound. But, the higher butter price will hold the August Class IV price near $23.25 compared to $23.78 in July.

With higher milk production and anticipation of some softening in dairy exports the higher butter and cheese prices were a little surprising. Butter exports which were running well above a year ago were 21% lower in June than a year ago, but still 57% higher year-to-date. Cheese exports however were

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Milk Prices FMMO 5 www.malouisville.com August 2014 Class I Advanced Price (@ 3.5% BF) $27.27 September 2014 Class I Advanced Price (@ 3.5% BF) $27.03

FMMO 7 www.fmmatlanta.com August 2014 Class I Advanced Price (@ 3.5% BF) $27.67 still 33% high than a year ago and 34% higher year-to-date.

Domestic butter and cheese sales have been running above a year ago. June butter production was slightly below a year ago while American cheese production was 3.2% high and total cheese production 3.3% higher. The latest stock report is for June 30th stocks. Butter stocks were 42% lower than a year ago, American cheese stocks 7% lower and total cheese stocks 8% lower. With good domestic sales and strong exports the need for higher stock level exists. Compared to the previous five year average June butter stocks were actually 32% higher and total cheese stocks 3% higher.

Dairy exports higher than a year ago have been a big factor for higher dairy product prices and milk prices. World dairy product prices have been higher than U.S. prices giving U.S. a competitive edge in exports. But, world milk production has improved significantly particularly in the major exporters of New Zealand the EU-28 countries. China has been very active in importing dairy products and has moved passed Canada as U.S. second largest customer. But China has accumulated stocks to the point where their imported activity has decreased. The result has been a significant fall in world prices putting prices below U.S. prices. While cheese exports were still higher than a year ago for June reports are that new orders by international buyers have softened. As noted June butter exports have already fallen below a year ago as have nonfat dry milk exports down 25%. To maintain export levels U.S. prices will need to come down closer to world prices. Yet, export volume will likely hold at levels that will end the year above the record level of 2013.

We can expect dairy product prices and milk prices to decline.

The question is how soon and by how much. The level of

milk prices and much lower September 2014 feed costs has meant very Class I Advanced Price favorable margins for dairy (@ 3.5% BF) producers to increase milk $27.43 production. Corn prices are 44% lower than a year ago, alfalfa hay prices just 3.3% higher and soybean oil meal prices are starting to decline and are 5% lower than a year ago. However, California with a severe drought is experiencing alfalfa hay prices 35% higher than a year ago. Milk production last year was flat the last quarter of the year. We can expect milk production to continue to run 4% or more higher than a year ago for the remainder of the year and end the year around 2.4% higher than 2013. Milk production for January through July was 1.6% higher than a year ago. But, it will take time to build stock levels so prices could gradually decline rather than take a sharp fall. Dairy futures remain very optimistic with the Class III price staying above $21 through October and above $19 for December. The Class III price stays above $18 all of 2015. The Class IV price stays above $20 through October, but then declined more quickly to less than $18 by December and stays in the $17s for 2015. But, the odds are that prices later this year and into 2015 could average lower than these future prices rather than higher. Nevertheless, milk prices will set new records in 2014 with the Class III price averaging well over $21 compared to $17.99 last year and the Class IV price over $22 compared to $19.05 last year.

July - August 2014 • KDDC • Page 9

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Kentucky Producers Tour Missouri Dairy Farms

By Teri Atkins

D

airy tours and on-farm education has been proven to be one of the best learning tools for farmers; however, sometimes being a dairy farmer makes it hard to step away from the operation when there are so many chores to be completed. The opportunity to see operations in action that are being profitable may make that step worthwhile.

The KYFarmStart program began in 2013. This program is supported by the Beginning Farmer and Rancher Development Program of the National Institute for Food and Agriculture and USDA, and is coordinated by the Kentucky Dairy Development Council and University of Kentucky Department of Animal and Food Sciences.

Opportunities through the program have included a Virginia tour in 2013, several farmer-included conference calls and a three-day short course at the UK Coldstream Dairy. This program has focused on the transitioning and first-generation dairy farmers to help them see and learn about various aspects of dairy farming. The most recent opportunity was a finale tour to Missouri.

The first day stops on the tour were the Tribute Dairy in Benton, Missouri, and the Telle Dairy in Perryville, Missouri.

Tribute Dairy was a New Zealand style dairy, milking 1,000 crossbred cows, twice a day, with a rolling herd average (RHA) of 15,000. The operation is primarily a grazing herd with center pivot irrigation used both for forage production and cattle cooling. One of the best quotes of the tour was, “Production is

July - August 2014 • KDDC • Page 10

vanity, and profitability is sanity,” said by Peter Gaul, owner of Tribute Dairy.

Telle Dairy was also primarily a grazing herd, but their approach was much different from Tribute. Telle Dairy milks about 40 cows now, but they started with a 60-cow herd in 1997.

Their herd consists of all Jerseys with a 13,500 RHA. They pride themselves on good quality milk on low inputs. They began on their own from scratch with a great motto: “Gotta have faith.”

And faith has brought them a long way.

Day two consisted of a major change in farming practices from day one. The day began at the Scheer Dairy in New Haven, Missouri, and finished up at the University of Missouri Foremost Farm in Columbia, Missouri.

Scheer Dairy was purchased in 1897 and has progressed in current technologies to Lely robotic milkers. Today they are milking 135 cows, and the cows decide how many times a day they want to be milked. It varies from two to six times a day with a 25,000 RHA. The second visit was at the University of Missouri Foremost Farm. This farm that was donated by JC Penny to his home state of MO to carry on his love of the Guernsey breed and his Foremost prefix. They are half research and half production based, a little different than a family farm. They are currently milking 190 cows, with 20 to 30 being Guernseys. The RHA on the Holsteins runs 23,800 and 15,000 on the Guernsey herd, on twice a day milking. While they do focus on some research, their management reflects production as an important aspect.

The final tour stop was at the Purina Research Farm in Gray Summit, Missouri, which was started in 1894 by William Danforth. Research actually began in 1916 with only 260 acres

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

and has grown to the current size of 1,200 acres.

The main goal was to “establish a culture, not a company.�

The operation is now owned by Land O’Lakes and has 125 patents, 3,000 animals, 81 horses, 320 beef cattle, 200 dairy animals and 200 swine. So no, the Purina Research Farm is not similar to a Kentucky dairy farm in its structure, but the

Cowherd Equipment & Rental, Inc. Make Feeding Easy We specialize in new & used equipment sales

management of the dairy cattle was impressive. The milking herd is pumping out a 27,000 RHA on three times a day milking, with a 198,000 SCC. They are also unique in that they sell compost. They turn their compost every two weeks, and in 90 days, it is ready to buy at $9 a cubic yard.

The producers involved in the KYFarmStart program have had opportunities that many other states do not offer.

The chance to see different farming practices that work in real life, the opportunity to have hands-on experiences with herd health and the chance to speak with some of the leading experts in the dairy industry have all been beneficial in the learning process for beginning farmers. In Kentucky the number of dairy farms may be decreasing; however, the quality of farms and producers is more vibrant than ever.

Searching for Heat Stress Solutions

Vertical Mixers Above: Penta 4020 SD Left: Penta 5620 HD

Call the Pros for Your KĂźhling Audit

For More Information: Cowherd Equipment & Rental, Inc. 1483 Old Summersville Rd. Campbellsville, KY 42718

270-465-2679 or 270-469-0398

TM

KĂźhling Solutions

July - August 2014 • KDDC • Page 11

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Multiple Component Milk Pricing

By Erick Metzger, General Manager, National All-Jersey Inc. The graph below show the protein tests for each of the three Orders in the Southeast by month. Every time protein test is above 2.99 percent, producers are being underpaid for milk.

The tables in the “Annual Difference In Producer Milk Value” shows how much value would have been added to each of the

three Federal Milk Marketing Orders annually if they were MCP instead of skim-fat pricing. Orders 5 and 7 would have added nearly $70 million over the 8 years.

The graft labeled “Change in protein level” shows how producers in the multiple component orders have increased their protein levels since the adoption of component pricing in 2000.

The prospect of changing the Orders to component pricing is being discussed by the co-ops in the region. There are several reasons to make the change.

1.

Orders 5 and 7 would have gained money each year from

July - August 2014 • KDDC • Page 12

MCP. Florida is a breakeven proposition.

2.

Increased protein test by 0.05%, and about $0.03/cwt. would have been added to each pool.

3.

Producers in the current MCP Orders have responded by increasing protein over time.

4.

Easier to attract supplemental milk from producers in MCP areas with above average components.

5.

Eliminate the basis risk from buying milk outside the region on MCP and selling it inside the region on skim-fat pricing.

6.

MCP in the southeast will eliminate producers with low component milk being subsidized by producers with above average component milk.

7.

Processors no longer overpay or underpay for milk.

Although discussion on this from the KDDC Board of Directors has been minimal a good explanation regarding the issue was given

by Richard Sparrow in an email copied below: First of all, multiple component pricing would not have a negative effect on our Class I utilization. The Class prices are determined through formulas in all Federal Orders (Class I, II, III, IV prices are calculated under the same formula regardless of Federal Order: skim, fat, or multiple component). Processors would still pay into the Federal Order on the basis of Class I, II, III, IV prices.

The difference is more on the producer side. Low protein producers and high somatic cell producers would be negatively impacted by multiple component pricing. Conversely, high protein and/or low somatic cell count milk would reap a higher price.

DFA Mideast has a price calculator where a producer can input his/her components and compare Federal Order 5 and Federal Order 33. This is an effective tool for producers to determine which market holds the most benefit.

The KDDC appreciates the opportunity to be involved in the discussion. Your input is important and if you have comments regarding this issue, please let us know.

ClassicPro GQ Silicone Liners Quick and gentle milking with a silver lining

< IQ Milking Units A smarter way to milk cows

Classic 300 Evolution Milking Units The industry standard… now enhanced for today’s cows

* * *SPECIALS * * * Complete I.Q. Milking Unit with ClassicPro GQ Silicone Liners and air tubes for

$375 Complete Classic 300 Evolution Milking Units with ClassicPro GQ Silicone Liners and air tubes for

$209 engineering for a better world Trenton Farm Supply Dairy Supplies • Complete Dairy Systems • Sales & Service

2470 Cemetery Rd., Trenton, KY 42286

270-466-3180

888-925-6795

GEA Farm Technologies Lots of deals on equipment!

Call Now — Limited Time Offer.

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

July - August 2014 • KDDC • Page 14

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Dave Corbin talks about taking over his parents’ 60-cow dairy and expanding with internal herd growth to milk 300 cows today. Photo by Sherry Bunting Cont’d from page 1 brought the first SCC drop.

Dave Hutchison and his nephew Matt Sabo are the twogeneration team at Hutchison Holsteins, where 125 cows are milked 3x and produce a 28,900 pound RHA with SCC averaging 160,000.

This farm has made significant advances in production largely the result of two big changes – going from 100% hay and pasture to a corn silage forage base for the ration and adding the third daily milking. The cows also went from being housed in freestalls only in the winter to being housed year-round today.

The corn silage for the dairy ration is custom-harvested by a large grain operator in the area. “He knows corn, and we concentrate on the cows,” Dave explained. The culling rate at Hutchison runs 38 to 39% with so many heifers coming in.

The breeding interval is 80 to 85 days, and Dave has found “it is better to breed later than earlier. We breed off of 21-day heats, and use the GEA Cow Scout system to help us catch heats and early problems,” which he finds more difficult with 3x milking. Their calving interval runs 12.9.

On the second day of tours, production and reproduction were part of the focus, and all three farms work together to buy commodities, grind corn and chop silage.

The first stop was Corbin Dairy with an RHA of 26,988 pounds with SCC averaging 180,000.

A former tobacco farmer, David took over his parents’ small dairy and expanded internally over the past decade to 300 cows, which are housed in two systems: sand-bedded f reestalls and a bedded-pack barn that uses the fine particle sawdust.

Dr. Bewley’s team of graduate and undergraduate students recently completed a study at Corbin Dairy comparing the AfiMilk heat detection system to a synchronization program.

Corbin confirmed that while there were differences in how they got there, the reproductive performance improved dramatically for both groups of animals so that the end

July - August 2014 • KDDC • Page 16

Green County Extension Agent, Ricky Arnett discussing hte dynamics of the tour. result was about the same level of improvement in pregnancy rate under both systems.

The preg rate used to be 33. Today it’s 21. It used to take 2.4 services to conception, today that’s 1.9; and days open have gone from 171 to 132 while the calving interval dropped from 14.5 to 13.6. Culling runs 31%, primarily because they are adding 36% heifers as they are growing a little along the way. The flexibility of the bedded-pack barn, in addition to the freestall barn, helps handle their internal growth.

The Corbin visit showed that a facility doesn’t have to be fancy to get the job done. Corbin constantly tweaks and innovates. His on-farm innovations include adapting stainless steel cheese vats for waterers.

He also implemented group housing and automatic feeding for the calves in an existing structure by adding an old freezer truck-box at the end of the hay barn to house the automatic feeder. “It’s insulated so it’s cool in the summer and warm in the winter,” he said.

In addition, he has found that taking 15 minutes each day to flush the drag line to clean the sand out instead of allowing it to settle has prolonged the life of his manure pump.

They grow all their own corn silage and have extra corn shelled. They also chop wheat then roll what is left as a “wet wrap” feed for heifers and dry cows.

“We really try to chop corn silage at the optimal time,” Corbin noted. “Going from 90 cows and grazing to 300 cows on a TMR, I’ve learned that if the silage isn’t right, we end up with a full year of lower production.”

The visit to Sidebottom Dairy featured a newly installed GEA milking parlor and successful multi-generation farm transition. Jim Sidebottom was instrumental as a pioneer for Kentucky’s dairy industry in establishing the Kentucky Dairy Development Council, and he served as its former president. Jim and Ona and their son Stacy milk 250 cows with an RHA of 23,000 pounds.

“We bought this farm in 1981 as a crop farm,” Jim reflected. “Then we hit the drought of 1983. We started milking cows in 1985. It has offered us a good living.” They

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund farm 600 acres to grow corn silage and hay, and last year they bagged high moisture shell corn as well, saving them grinding time during feedout.

They keep a low culling rate of 21 to 22%. Calving interval runs below 14 months, and they average 2.2 services per pregnancy, achieved with a presynch program.

They went f rom 3x milking to 2x milking and lost production, but gained it back by milking their early lactation cows 4x until they reach 80 days in milk. “The cows do well in this system -- giving an average of 10 to 12 pounds more milk -- and it solves the problem of finding milkers for that night shift.” The 4x cows are milked at the beginning and the end of each of the 2x milkings.

Sidebottom Dairy also utilizes a bedded-pack barn. Jim prefers the freestall barn for its cleanliness, but the beddedpack allows cows to stay milking a few more years because of cow comfort. “Our SCC runs 200 to 210,000 for the whole herd and we see no difference in mastitis rates between the two barns,” he confirmed.

Cowherd Dairy was the last tour stop. Tony and father, James Archie milk 200 cows with an RHA of 24,800 pounds (3x) and SCC averaging 200 to 250,000. A new calf barn with automated feeders and group housing was one of the features, along with a remodeled parlor.

Tony is the 5 th generation to farm here. They purchased the 60-cow herd in 2006 and built everything themselves to expand to 200 cows. This Kentucky dairy also uses a beddedpack barn for 100-plus cows they’ve added to the herd size.

They may add another structure for future expansion.

Jim and Ona Sidebottom and their son Stacy own and manage Sidebottom Dairy. They started milking cows in 1985 after the 1983 drought convinced them that their farm was not large enough to specialize in marketing cash grain. Jim was instrumental in establishing the Kentucky Dairy Development Council and served as a former president. Photo by Sherry Bunting The 5 th generation at Cowherd Dairy marked the transition from “being the labor to hiring the labor,” as Tony puts it.

“The future decisions will depend on whether the 6th generation wants to do this. We’ll have to see.”

Select Sires MidAmerica Telephone: (800) 489-1868 • www.selectsires.com

July - August 2014 • KDDC • Page 17

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

By Dave Roberts

Can It Still Be Done? Part 3

T

his article is a continuation of our series on dairy producers that have started from scratch. There are some common traits starting to become evident when comparing our first three producers. There are also some things unique to each one. So, can it still be done?

Our interview in this issue is with Joyce Rose who milks eighty five head in Graves County Kentucky.

Joyce grew up on her family’s dairy in Western New York and enjoyed working with the cows and the dairy way of life. After Joyce graduated high school she realized there wasn’t enough income to justify her remaining on the family farm and went to work as a para-legal. Still having that urge to farm, Joyce gradually bought some beef cows and replacement dairy heifers. Joyce knew if she ever got the chance to start milking on her own she would need current management skills not learned on the family dairy.

An opportunity to work as an unpaid dairy consultant apprentice to small farms through Cornell University Extension in Niagara County

“Give Your Cows The Advantage...”

dvantag AHOOF e CARE Specializing in functional & therapeutic “hoof trimming” Hydraulic Upright Chute cow comfort

Shane McCoy 615.210.9246 cowhoofhealth@gmail.com

A hoof trimmer that cares about your cow’s hoof health and over all well being.

July - August 2014 • KDDC • Page 18

was offered and she took it. Now she was working as a para-legal, unpaid dairy consultant and milking thirteen of those dairy heifers she had raised. The schedule was quite full but the consulting job gave her the chance to learn much needed dairy management skills that she could later put into practice. After a few years Joyce moved her cows to Central New York and worked as a dairy consultant for the State University of New York (SUNY) at Morrisville and as a para-legal.

During this time she decided to lease, with the option to buy, a dairy and work full time at making it a success. The dairy grew to 250 milk cows and she had to manage labor as well as cows. After a combination of events, including the owner not having a clear title of the property, Joyce lost it all and had to go back to being a para-legal.

This devastating set back didn’t dampen her desire to eventually have a dairy of her own. Joyce started saving money buying dairy heifers again and during this time got married to Mike Rose. Remembering the landscape of the Kentucky and Missouri area from a meeting she attended in St. Louis in 2000, Mike and Joyce decided to move to Kentucky and give dairying another try.

In 2011 Joyce and Mike entered a “lease to buy” agreement with a retiring dairyman in Graves County. They brought thirty milk cows and forty head of replacement heifers down from New York to add to the producers ninety head of milk cows and forty heifers. After being turned down by two lenders, Joyce secured a loan after six months and purchased the farm and livestock. Joyce’s advice is “don’t get discouraged, keep trying”. I think after hearing her story about getting in the dairy business, we shouldn’t be surprised with that recommendation.

Below are Joyce’s responses to questions she was asked: Why did you want to start dairying?

It’s a lifestyle choice. There is no better way to raise my daughter and teach the rewards of hard work and good values. You know the old saying, “if you love what you do you’ll never go to work a day”.

Who was your go to/mentor to help you get started?

My basic dairy knowledge came from my Dad but the cutting edge knowledge came from my work with Cornell and SUNY Morrisville, also publications and some sales representatives. I must say Todd Templeton of NRCS has been a tremendous help in getting started here in Graves County as far as the soil fertility and nutrient management.

What was the biggest challenge getting started?

Financing, getting someone to believe in what you are doing and understanding the dynamics of the dairy business. We went to three lenders before we secured a loan. Also, growing your herd from within has challenges and that’s how we plan to grow.

What would you recommend to a new dairy farmer getting started?

Educate yourself to the business any way you can. You must decide if you are willing to make the commitment to the dairy to make it work and make it profitable.

What is your five-year goal?

I would like to increase herd size to match the farms capacity and improve the herd’s genetics to maximize total efficiency. I have recently learned AI to help reach that goal.

Not only is Joyce a dairy farmer but she also volunteers at a local women’s shelter and often brings women to the dairy to teach them responsibility, commitment to work toward a goal, confidence felt from achieving tasks and knowledge of the dairy industry.

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Allied Sponsors

S P E C I A L

Platinum AFI Milk Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Dairy Products Assoc. of KY Farm Credit Services of Mid-America Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Mammoth Cave Dairy Auction Prairie Farms Southern States Co-op, Inc. Whayne Supply

T H A N K S

Gold Animal Health Management Services Arm & Hammer Animal Nutrition Kentucky Nutrition Service Mid-America Select Sires, Inc Mid-South Dairy Records Neogen Owen Transport Purina Animal Nutrition, LLC Valley Farmers Coop

T O O U R

Silver

P L A T I N U M S P O N S O R S

Grain Processing Corp.

Kentucky Veterinary Medical Assoc.

Koetter & Smith, Inc. Luttrull Feeds MD/VA Milk Producers

Bronze

Kentucky Department of Agriculture

Mammoth Cave Dairy Auction

ABS Global Advantage Hoof Care Alan Wilson Milk Hauling Bagdad Roller Mills Central Farmers Supply of Green Co. Chaney’s Dairy Barn Clark Dairy Supply Cornerstone Vet Clinic Cowherd Equipment Double “S” Liquid Feed Genetics Plus Hartland Animal Hospital Logan County Animal Clinic MultiMin USA Premier Crop Insurance

July - August 2014 • KDDC • Page 19

Non-Profit US Postage PAID Boelte-Hall LLC

176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph www.kydairy.org

2014 Dairy Calendar of Events September Sept 4 Sept 22-24 Sept 24

CPC Annual Fall Field Day, Fountain Run, KY 2nd Annual Southeast MilkvQuality Initiative Mtg., Blacksburg, VA World School Milk Day

October Oct 1-4 Oct 14 Oct 15 Oct 16 Oct 24 Oct 25 Oct 28 Oct 29 Oct 30

KDDC Young Dairy Producer Bus Tour, World Dairy Expo, Madison, WI KDDC/ Alltech Fall Meeting and Tour, Oldham Co., Robert Klingenfus Dairy KDDC/ Alltech Fall Meeting and Tour, Fleming Co., Wayne Martin Dairy KDDC/ Alltech Fall Meeting and Tour, Marion Co., Bill Mattingly Dairy KDDC Board Meeting, TBA Dare to Dairy, University of Kentucky Coldstream Dairy, Lexington, KY KDDC/ Alltech Fall Meeting and Tour, Todd Co. Marvin Kanagy Dairy KDDC/ Alltech Fall Meeting and Tour, Warren Co., Balance Dairy Farm KDDC/ Alltech Fall Meeting and Tour, Adair Co., Bruce Willis Dairy

November Nov 7-11

North American International Livestock Exhibition, Louisville, KY

December Dec 3-6

Kentucky Farm Bureau Annual Meeting, Louisville KY

Milk Matters July - August 2014