Kddcjanfeb2014

KENTUCKY

January-February 2014 w w w. k y d a i r y. o r g

Milk Matters

Supported by

Harvesting Forages at the Right Time Directly Impacts Your Cash Flow Find out more on pages 6

Farm Bill Dairy Title Summarized More info on page 12

Dairy is a Big Deal in Kentucky

By Teri Atkins, KDDC Dairy Consultant “Unity is strength... when there is teamwork and collaboration, wonderful things can be achieved.”-Mattie Stepanek . This quote reads true in the Kentucky dairy industry. Several years ago, there were multiple annual meetings being held across the state which made it tough for producers to attend all of them. Now the KY dairy industry has partnered to make one spectacular event that is beneficial to all parties, but even a larger benefit to the dairy farmers.

This two-day event held February 25th and 26th, in Bowling Green, KY, is a collaborative effort between the University Of KY College Of Agriculture, the KY Department of Agriculture, KY Dairy Development Council and the Southeast United Dairy Industry Association, Inc/ American Dairy Association of KY. The first day SUDIA held their Annual Board Meeting while the KDDC Young Dairy Producer Conference attracted nearly 150 attendees. The evening festivities included a buffet dinner and networking opportunities at the Industry Tradeshow. The tradeshow is drawing more and more exhibitors with the numbers growing every year. There were representatives from over 17 states, three countries, and dairy farmer attendees from IN, TN, and 35 KY counties.

The YDP Conference featured several topics of discussion from finances to udder health.

The day started off with a teaser from Gary Sipiorski on “Preparing for a Trip to the Banker”. His first talk led into his later two subjects, but they all focused on practical finances that any size dairy could take home and use. Kevin Ferguson, from the University of Tennessee Extension, had the

opportunity to communicate the importance of “Farm Transitions” which is an issue that all farms, no matter the size or type will have to face in the future. During lunch, Dan Clark, an engineer by trade, a dairy farmer by marriage, spoke on the successes LeCows Dairy has obtained by working with KDDC and UK on their milk quality and production.

Katie Holzhause, from UK Extension, showed the crowd the updated Sustainable Dairy Manual and the Cost of Production Calculator that can both be found at http://www.uky.edu/Ag/AnimalSciences/dairy/ decisiontools. The YDP Conference ended on a “milky” note. Christian Rippe, DVM Vi-COR® -Global Technical Dairy Specialist, presented on udder health and milk quality before preforming an udder dissection that the crowd was allowed to put their hands on too.

Day two kicked off with the opening of the tradeshow and an early KDDC Board meeting to elect officers for the 2014 year. Dr. Robert Harmon, UK Professor and Chair, Department of Animal & Food Sciences, welcomed a near capacity crowd to the KDP Meeting. The first item on the agenda was the SUDIA/ADA Annual Meeting led by Cheryl Hayn, General Manager for SUDIA. Then the main theme of the KDP Meeting, feeding management of both cows and calves, was ready to begin. First to speak was none other than, Dr. Sam Leadley, a calf management consultant who is the author of the monthly “Calving Ease” newsletter on the website calfnotes.com and the blog titled “Calves with Sam.” He kept the crowd on their feet, literally, using the attendees as examples of colostrum absorption over a period of time.

Also speaking on feed management was Dr. Trevor DeVries, a researcher focused on feeding management at The University of Guelph in Canada.

Cont’d on page 18

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

2014 KDDC Board of Directors & Staff Executive Committee President: Tony Cowherd Vice President: Richard Sparrow Sec./Treasurer: Tom Hastings EC Member: Jim Sidebottom EC Member: Bob Klingenfus

Board of Directors District 1: Lesa Elliot Clark District 2: Jimmy Wright 270.726.7079 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: Joel Oney 330.464.1804 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

January - February 2014 • KDDC • Page 2

President’s Corner Tony Cowherd

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efore sunrise every morning, as a child, I was in the barn helping milk cows with my dad, James A. Cowherd. I always envisioned myself growing up to become a dairy farmer and following in my father’s footsteps. I graduated from Taylor County High School and proceeded to earn an Agricultural Business degree from Lindsey Wilson College. This gave me the skills to open a successful busines, Cowherd Equipment & two part-time employees that keep my Rental, Inc. I have been married to my business running efficiently. wife Lisa for 11 years and we have two Although I have been fully committed boys Austin and Caden that I hope will to the unlimited amount of responsibilities one day manage the farm. that go hand-in-hand with running two When I was a child dairy farming businesses, I am pleased to have been seemed effortless, excluding the labor, elected the President of the Kentucky but I later discovered that I was in for Dairy Development Council. The a rude awakening. My father is close to KDDC’s involvement in Kentucky retirement therefore I have accepted most has been overwhelmingly generous of the responsibilities of the farm. In doing throughout the years. From the overtime so I have been able to witness first hand put in by the dairy consultants to the exactly what it takes to run a dairy farm. many miles logged to help dairy farmers, Especially providing adequate nutrition KDDC is always finding ways to make and a clean and healthy environment dairy farming more competitive. The for the cows, as well as hiring honest MILK program is just one example of employees who care about the well-being how KDDC goes the extra mile. The of the farm and cows. As the owner MILK program not only helps dairy and operator of Cowherd Equipment & farmers but also cuts costs for farmers in Rental, Inc. I felt I had enough experience numerous ways. The dedication of the to handle the overload of duties required Kentucky Dairy Development Council when I accepted the role; however it has inspired me to take on the role of took a while to balance my obligations President. in order to operate smoothly. Now that I would like to thank everyone who I have consistent control over the dairy expressed confidence in me to represent farm everything is running a lot more such an influential organization. We have uniformly. I currently have 210 cows that a busy year ahead of us and I look forward are being milked daily on a total of 500 to meeting new people as I start this new acres, just like when I was a child. My dairy journey in my life. farm employs 14 full-time employees and

Missouri Farm Start Dairy Tour Mark your calendars for the second Kentucky FarmStart Dairy tour from Monday, June 30 thru Wednesday, July 2. We will be visiting dairy farms in Missouri including dairies using intensive grazing and robotic milking. This trip will be a great chance for young or beginning dairy producers to get to know other dairy producers. We will also have the chance to see many progressive dairy farms in a climate similar to ours. Stay tuned for more details. Contact your KDDC consultant or county agent for applications.

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

Executive Director Comments Maury Cox

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nother KY Dairy Partners Meeting has come and gone.

This was the seventh year the KY Department of Ag, University of KY Dairy Extension, Southeast United Dairy Industry Association and the KY Dairy Development Council has come together in synergy to hold this event. I hope dairy farmers, industry supporters, professional advisors and all others enjoyed the experience as much as me.

The planning of this meeting begins in summer and continues throughout the year. The partners are always seeking ways to improve the event for every participating group. We especially want to thank the many allied industries and the KY Ag Development Fund which underwrites much of the cost of the event. If it were not for the investment each have made in the future of this industry there is no way there would be the caliber of speakers, level of participation and opportunities to get together. Please take time to thank them and if you have an opportunity, frequent their businesses.

When the KDDC Bylaws were drafted, term limits were established to keep the organization fresh with the opportunities for new leadership and direction. Directors can serve two consecutive, three year terms.

Each year typically three or four of the 20 members come off the board and new folks are elected to serve. Officers including President, VicePresident and Secretary/Treasurer are elected every year by all board members.

Tony Cowherd, Taylor County dairyman, has been elected as the

The KDDC testified before the Senate and House Ag Committees in February, updating our legislators on the importance of the KY Ag Development Fund. The KDDC MILK Program alone has returned over 100 percent of the grant money in tax revenues from increased production and improved quality of milk. Testifying are L to R. Maury Cox, Bob Klingenfus and Jennifer Hickerson.

January - February 2014 • KDDC • Page 4

new KDDC President and Richard Sparrow, Owen County dairyman will serve as Vice-President. Tom Hastings, Burkmann Feeds was re-elected to serve as Sec/Treas. These men will lead the organization with the guidance from the board, industry advisors and dairy producer membership into future years.

The KDDC has been fortunate to have the presidential leadership of both Jim Sidebottom and Bob Klingenfus. Their servant’s attitude, wisdom and dedication in representing the interest of KY dairy producers at many meetings throughout their terms have helped make the KDDC a strong organization. They of course have depended on the input and support from all past and present directors to do what has been best overall for KY’s dairy industry. We thank them all for their service.

As the KDDC looks toward the future many questions and issues will need to be addressed. Some of these will be viewed as hurdles while others as opportunities. One question I have heard numerous times as I’ve traveled is in regards to the future funding for the KDDC. Really I believe the heart of this question is more about how valuable is the organization to KY’s dairy industry. Although the KDDC is much more than one program, the MILK Program alone, has generated more than four million dollars in incentive premiums, while stimulating increased local milk production in the amount of 351 million lbs. over base years production and been a factor in helping producers lower SCC over 36 percent. It could not be administered if it was not for the regional dairy consultants.

I believe the question above should be directed more to the stakeholders of KY’s dairy industry. The KDDC is YOUR organization and an opportunity to be a part of something special. It is all about doing what is best for KY dairy farm families. How could one not support that?

The KDDC was a sponsor of the KY Proud Legislative Breakfast held February 4th at the State Capital. Attending representing the dairy industry were L to R. Front row: Jennifer Hickerson, Dave Roberts, Bob Klingenfus and Jim Sidebottom. Back Row: H. Barlow, Roger Thomas, James Comer, Dale Fudge, Maury Cox and Eunice Schlappi.

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Harvesting Forages at the Correct Time Directly Impacts Your Cash Flow By: Donna M. Amaral-Phillips, Ph.D., University of Kentucky Extension Professor and Dairy Nutritionist orages are the foundation upon which diets for dairy cows and heifers are built. Grains, byproducts, minerals and vitamins then are added to these rations to complement the forages being fed and provide the additional nutrients needed by the cows or heifers to support growth, milk production or reproductive performance. Generally speaking, 55% or more of a dairy cow’s diet on a dry matter basis comes from forages. The higher the quality of forages being fed, the more forage you can feed, and generally the ration can support a greater level of milk production at a more economical cost.

To optimize your net income regardless of feed costs or milk prices, incorporating high quality forages always is key.

Incorporating more home-grown forages and less purchased concentrates?

In the past, many rations have contained 50 to 60% of the dry matter coming from forages. In recent years, these percentages have been pushed upwards to include 60% or more of the diet coming from forages, especially in lower producing groups of dairy cows. Increasing the amount of forage fed has been successful when quality forages are available.

Quality forages provide more nutrients in every bite. Thus, less

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concentrate or grain needs to be fed to provide dairy cows with the nutrients they need to support their milk production. To determine the quality of any forage, a representative sample must be collected, sent to a forage testing laboratory, and analyzed by that lab for its’ nutrient content. These results then are used to balance a least cost ration for the cows in the herd. The higher the quality of forages available, the greater the amount of forage which can be used to balance a ration for a particular group of cows or heifers.

How can I control the quality of forages on my farm?

The quality of forages harvested varies from year-to-year as well as from field-to-field in the same year. Thus, the importance of analyzing separate forage samples for different cuttings and crops. Various factors impact the quality of forages harvested. These include: ĂźGrowing conditions- such as temperature, rainfall and overall fertility. ĂźSpecies harvested- for example, grasses versus legumes.

Generally, legumes are more digestible than grasses and are higher in crude protein. ĂźVariety differences. Some varieties of forages are more digestible than others. ĂźStage of maturity forages are harvested.

Management can control fertility as needed for growth of a specific crop. However, changes in environmental temperature and rainfall are beyond our control. Varietal differences may impact the quality of forages, especially as they relate to NDF digestibility and leafiness of the plant. The best example of varietal differences is related to brown midrib crops, such as corn harvested for silage, forage sorghum, or sudangrasses. The brown midrib gene decreases the amount of lignin in the plant and increases the digestibility of the NDF component of the plant. These varieties are generally more digestible and provide more energy to cattle than their non-brown midrib, genetically similar varieties.

Stage of Maturity for Harvest in Spring Grasses .......................... Late Boot* Alfalfa ............................ Late Bud (before early flower) Oats/Rye/Triticale.......... Late Boot* Wheat ........................... Late Boot* and then soft dough** * Late Boot- Just before the seed head emerges from the stem ** Soft dough- wheat kernel is filled out and is soft when pinched with your thumb nail The quality of forages is greatly impacted by the stage of maturity at which the plants are harvested. This factor is definitely under your control. As grass and legume plants mature, the percentage of leaves in the total plant decreases while the percentage of stems increases.

As a result, the digestibility or energy value of the crop decreases with advancing stage of maturity. Thus, the recommendation is to harvest grasses and small grains, such as wheat, triticale, oats, and rye, at the late boot stage of maturity or just before the seed head emerges from the stem. Delaying harvest does increase yield slightly, but, can negatively impact milk production and heifer growth and the amount of forage that can be used in the diet because of decreased concentrations and therefore amounts of digestible nutrients. Remember that the hardest

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund nutrient to get into dairy cattle of all ages is energy. Thus, forage maturity or the stage at harvest greatly impacts the amount of forage which can be effectively used in dairy cattle diets to maintain milk production or growth and optimize profit.

Key Points When Harvesting Silage and Baleage One of the challenges with harvesting quality forages in the spring is harvesting them between rain showers. Thus, harvesting spring crops, as either silage or baleage, decreases the time between cutting and harvesting the forage crop, thus allowing one to potentially harvest higher quality forages. To preserve small grains, grasses or alfalfa as either silage or baleage, they must be cut and allowed to wilt to the proper moisture content, chopped or baled, and then packed and storage structure covered or wrapped with the correct amount and type of plastic.

For forages stored as silage, ideally they should be chopped at 32 to 35% dry matter (65 to 68% moisture) if stored in silage bags or bunkers and 35 to 40% dry matter (60 to 65% moisture) for upright silos. For baleage, the ideal dry matter at baling is 40 to 50% (50 to 60% moisture) to help prevent a clostridial fermentation which can cause botulism poisoning. To ensure spring forages are harvested at the proper dry matter (or moisture), a sample of the material to be baled should be dried using a microwave (do not use the house microwave) or Koster Tester. For baleage, bales should be wrapped shortly after baling but within 12 hours post-baling, be wrapped with at least 4 layers of 7 to 8 mils UV stable plastic with the plastic layers overlapping by 50%, and then placed on a well-drained, varmint-free (rodent and bird free) area.

Kentucky’s spring weather is often times an enemy when trying to harvest quality forages as spring rains can delay harvest. The key is to make the most of Kentucky’s unpredictable weather. Starting a few days before the optimum stage of maturity allows you to harvest higher quality forages overall with only small decreases in yield.

These small decreases in yield result in more milk or growth per acre which greatly affects your bottom line. Ideally, you want to be one of the first of your neighbors in the field instead of the last. Those dairy neighbors in the field first are often times those who are able to utilize more forage in their cows’ diets, get higher milk yield per cow, and potentially more income after feed costs are accounted for.

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Producers Needed for On-Farm Evaluations The Southeast Quality Milk Initiative (SQMI) is a multi-state project aimed at helping dairy producers throughout the Southeastern U.S. control mastitis and lower bulk tank SCC through cost-effective control strategies. A key component of this program is on-farm visits to evaluate current practices and to glean more information from regional dairy producers. The information collected will help the SQMI team develop Extension programs and support tools to help farmers manage mastitis.

Please contact Amanda Sterrett (amanda.sterrett@uky.edu or 412-558-2075) if you would like to volunteer to help producers in the Southeastern U.S. by allowing our team to visit your farm for this regionally and nationally important project.

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January - February 2014 • KDDC • Page 7

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

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January - February 2014 • KDDC • Page 8

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

Center of KY Dairy Short Course

By Nick Roy he Annual Center of Kentucky Dairy short course took place last month providing dairymen some of the latest technologies and research in dairy management. A collaborative effort by the Adair, Green, and Taylor County Cooperative Extension services, the Center of Kentucky short course has been an annual tradition for over a decade.

With over thirty sessions offered in the past, we sometimes wonder what we will be able to come up with next. With input sought from dairy producers and Extension specialists, there seems to always be something new to discover in the dairy industry.

The short course kicked off with a discussion led by Dr. Donna Amaral-Phillips, UK Dairy Nutritionist, on dairy feed efficiency. Simply put, dairy feed efficiency is the amount of milk produced per the amount of dry matter consumed. Dairy feed efficiency can be affected by many things other than the ration itself. Days in milk, genetics, cow comfort, and health are just a few examples. Each participant calculated dairy feed efficiency for their own farm. Participants discovered if their own farm’s feed efficiency fell within industry benchmarks or if there was potential room for improvement. Most dairies feed efficiency met benchmarks, however a few were slightly below expectations. As a result, these farmers were able to identify issues limiting their efficiency on their dairy. If you would like to calculate the dairy feed efficiency for your own farm, a simple calculator can be found online at http://afsdairy.ca.uky.edu/extension/nutrition/milkingcows/calculators.

Dr. Amaral-Phillips also noted that when selecting sires, we can unintentionally select for larger frame size when selecting for other traits that impact profitability.

Larger cattle consume more feed and if not adequately offset by higher production, feed efficiency decreases. Dr. Amaral-Phillips feels that there will be a larger emphasis placed on efficiency in future dairy genetics.

The second session was led by Mark Witherspoon with Mid-South Dairy Records. Witherspoon provides an update on new PC Dart features and DHIA services. One new feature of PC Dart is “Money Corrected Milk”. This feature allows dairymen to determine the income derived from each cow based upon her milk production, components, and quality bonuses. The Money Corrected Milk feature can be found on the input desk of PC Dart. Witherspoon also discussed milk pregnancy testing now offered by DHIA. Milk pregnancy testing is highly accurate and can confirm pregnancy within 35 days of breeding and 60 days post calving. Milk pregnancy testing services are offered by Mid-South at a rate of $4 per cow. Samples can be collected on testing day or shipped to the lab by the producer anytime.

The third and final session featured Dr. Christina Peterson-Wolfe, Associate Professor of Virginia Tech. Dr. Peterson-Wolfe is recognized nationally as an expert in mastitis in dairy cattle. Joining the group via Skype, Dr. PetersonWolfe discussed the benefits of on-farm milk culturing for mastitis. On-farm milk culturing can many times provide quicker culture results to dairymen, thus accelerating the availability of information needed to properly diagnose the cause and respond to mastitis infections. Dr. Jeffery Bewley, UK Dairy Systems Management Specialist, and Amanda Sterrett, UK Graduate Student, demonstrated milk culturing procedures and how to interpret plate results. At least one participant, David Hutchison, has already begun culturing on farm. “I’ve only cultured a few samples so far. On-farm culturing requires some practice to become comfortable with interpreting plate results, but I think it is feasible for a dairy farm to implement.” Supplies needed to conduct on-farm culturing includes: swabs, gloves, sample containers, an incubator ($50-60), and media plates ($2-3).

The Center of Kentucky Dairy short course is held each year in January or February. While most of the participants are from the tri-county area, all producers across the state are welcome to attend. For more information, contact Nick Roy at (270) 384-2317 or by email at nick.roy@uky.edu.

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

Kentucky Dairy Partners Meeting Synopsis

Udder Dissection Workshop

By Karmella Dolecheck

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Christian Rippe, DVM Vi-COR® -Global Technical Dairy Specialist, presented a milk quality udder dissection workshop at the Logan County Extension office located in Russellville, KY on February 25th, to the area Hispanic dairy employees and dairy owners. Dr. Rippe explained in English and Spanish, the physiology of the milking process, the negative impact of bacteria increases, and the risk of mastitis and milk quality. He also presented the importance of a clean and consistent milking practice as well as the calm cow handling procedures and how it impacts the milk production, milk quality and herd health.

One of the main discussions was focused on how to properly clean and disinfect the udder prior to attaching the milk unit and how it helps reduce the risk of mastitis and high somatic cell count, as well as the impact on the economic performance of the dairy. Dr. Rippe also provided training on the importance of good stimulation process and preparation that determines the efficiency of the milking process.

During the “udder dissection” presentation, participants had the opportunity to see what the udder looks like inside. Everyone observed and learned how the oxytocin hormone is released. They also learned how it affects milk let down and the factors that are created to develop a complete process to increase overall milk production and milk quality.

he main theme at this year’s Kentucky Dairy Partners Meeting, held February 26 in Bowling Green, was feeding management of both cows and calves. The first speaker was Dr. Sam Leadley, a calf management consultant who is the author of the monthly “Calving Ease” newsletter on the website calfnotes.com and the blog titled “Calves with Sam.” His critical calf care advice included: 1) milk fresh cows within 6 hours of calving in order to receive high quality colostrum, 2) always check colostrum quality and feed 3.5 to 4 quarts of the highest quality within 4 hours of birth, 3) properly clean colostrum and milk handling equipment after every use and culture both colostrum and milk/milk replacer on a regular basis to confirm how well you are doing, 4) feed enough to young calves to support 1 pound of gain per day all year round, and 5) keep calf housing clean.

Dr. Trevor DeVries, a researcher focused on feeding management at The University of Guelph in Canada, was the second guest speaker of the day. His first presentation focused on ration management. He noted there are three different rations on the dairy farm: the one developed by the nutritionist, the one mixed by the feeder, and the one the cow actually eats.

Major differences between these three rations occur due to variations in feed quality, human error, and sorting by the cow. Recent research conducted at the University of Guelph discovered that the average TMR exceeds formulation for net energy, non-fiber carbohydrates, acid detergent fiber, calcium, phosphorus,

January - February 2014 • KDDC • Page 10

magnesium, and potassium while underfeeding crude protein, neutral detergent fiber, and sodium (Sova et al., Journal of Dairy Science 97(7): 562-571). Additionally, an extreme amount of day-to-day variation in multiple ration parameters existed.

Not only does this result in feed inconsistencies for our cows, but overfeeding certain components may be unnecessarily increasing our feed costs. In order to match our ration formulation as close as possible, regular feed testing and proper training of employees in charge of feeding is necessary. Even if we do provide cows with the proper ration, sorting can become a problem. Another study found that for every 2% of feed sorted, 2.2 less pounds of milk is produced per day (Sova et al., Journal of Dairy Science 96(7):4759-4770). In order to reduce sorting, length of feedstuffs and ration moisture content (which determines how well feed binds together) should be evaluated.

The second presentation given by Dr. DeVries focused on management at the feedbunk. As most dairy producers are aware, feed availability is important in maximizing feed intake and, therefore, milk production.

The two most important steps we can take to maximize feed availability is providing and pushing up feed at regular intervals and allowing sufficient bunk space for cows to reach feed. Dr. DeVries discussed a study comparing feed delivery once, twice, or three times daily (Hart et al., Journal of Dairy Science 97(3): 17131724). Dry matter intake was highest in cows fed three times daily. Another recent study concluded that increasing space per cow at the feedbunk by 10 cm increased milk fat by 0.06% and, because cows stood longer after milking which allow their teat ends to close, decreased somatic cell count by 13% (Sova et al., Journal of Dairy Science 96(7):4759-4770).

Overall, this year’s meeting was a good reminder of the basics of feed management on all parts of the dairy.

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

Milk Prices FMMO 5 www.malouisville.com January 2014 Class I Advanced Price (@ 3.5% BF) $24.88 February 2014 Class I Advanced Price (@ 3.5% BF) $25.42 March 2014 Class I Advanced Price (@ 3.5% BF) $27.04

FMMO 7

Dixie Dairy Report Calvin Covington, ccovington5@cs.com, 336-766-7191

March 2014 Cheese and powder continue to trade in record territory. The CME block cheddar price has remained over $2.00/lb. since the beginning of the year. As of March 6 the block price was $2.28/lb. just $0.08/lb. below the record price set the last day of January.

February was the second consecutive month the NASS nonfat dry milk powder averaged over $2.00/lb. After declining the butter price is back up to a $1.88/lb. January butter production was down 3% compared to January a year ago. Increased whole milk powder production is taking cream away from the butter churns. Looking ahead we project commodity prices declining during the next few weeks. However, we do not see a significant price decline as long as exports and milk production remain steady.

2013 record year for exports. According to the U.S. Dairy Export Council, 15.5% of total milk solids were exported in 2013.

Powder exports represented 58% of total U.S. powder production.

Butterfat exports represented 10.7% of production and cheese exports 6.3% of production. Butterfat exports in 2013 were

www.fmmatlanta.com January 2014 Class I Advanced Price (@ 3.5% BF) $25.28 February 2014 Class I Advanced Price (@ 3.5% BF) $25.82 March 2014 Class I Advanced Price (@ 3.5% BF) $27.44

more than double compared to last year. 2013 saw fluid milk (UHT) exports increase 42% from the previous year. Powder exports were up 35%, and cheese exports up 22% in 2013 compared to 2012.

January milk production up slightly. According to USDA January milk production was up 0.9% compared to last January.

Last November and December saw no change in milk production compared to a year earlier. The January production increase was due to more milk per cow. January 2014 had 14,000 less cows than January 2013. Production was up 4.7% in California, the nation’s largest milk producing state. Production was down 2.7% in Wisconsin, the number two milk producing state. Florida production in January was up 0.5%.

Southeast blend prices. Record Class I Movers along with high Class I utilization means higher blend prices.The March Class I Mover of $23.64/cwt. is a new record high.

We project February southeast blend prices about $1.00/cwt. higher than January.

March blend prices are projected even higher, with the Florida blend to exceed $28.00/cwt. and the Southeast Cont’d on page 15

January - February 2014 • KDDC • Page 11

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

Farm Bill Dairy Title Summarized

By Dave Natzke, Editor, Dairy Herd Management, Updated: 1/27/2014

U

nder the bill, USDA must establish a Margin Protection Program for dairy producers no later than Sept. 1, 2014. All U.S. dairy operations will be eligible to participate, provided they register (method to be determined by USDA) and pay an annual $100 fee to cover administrative costs.

If a participating dairy operation is operated by more than one producer, all will be treated as a single dairy operation. If a dairy producer operates two or more dairy operations, each must register separately to participate.

Production history To participate, dairy operations must establish production history. Initially, the production history of a dairy operation for the margin protection program is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012 or 2013 calendar years. The individual production history will grow by the U.S. average production growth in subsequent years. So, producers who expand significantly beyond average U.S. growth will not be able to protect the additional milk production under this program. Beyond that, there is no significant penalty – there is no dairy market stabilization program.

For participating dairy farms in operation for less than a year, the participating dairy operation may determine a production history by using the volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount; or estimate of the actual milk marketings of the participating dairy operation based on the herd size relative to the national rolling herd average.

Protection, premiums Dairy operations may select margin insurance to protect between a $4.00/ cwt. to $8.00/cwt. milk-feed price margin in 50¢ increments. They may also elect to cover a percentage of their milk production in 5% increments, beginning with 25% and not exceeding 90% of the production history.

There are two tiers of pricing for annual premiums. The first 4 million lbs. of milk sold annually will have significantly lower premiums than milk production above 4 million lbs. The $4.00/cwt. margin coverage level is available at no cost, but the premiums become increasingly expensive as margins increase. Additionally, premiums below the $8.00 level will be discounted by 25% for the first two years of the program (2014 & 2015) for the first 4 million lbs. of production history.

Margin Coverage $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00

Premium per cwt. on annual milk production < 4 million lbs. > 4 million lbs.

None None $0.01 $0.02 $0.03 $0.04 $0.04 $0.10 $0.06 $0.16 $0.09 $0.29 $0.22 $0.83 $0.30 $1.06 $0.48 $1.36

Calculation of average feed costs USDA will calculate a monthly national average feed cost to produce 100 lbs. of milk, using: • the average price of corn per bushel received by U.S. farmers, as reported in the monthly Ag Prices report, multiplied by 1.0728; plus • the average price of soybean meal received in central Illinois, as reported in USDA’s Market News Monthly Soybean Meal Price report, multiplied by 0.00735; plus • the price of alfalfa hay received during that month by U.S. farmers, as reported in the monthly Ag Prices report, multiplied by 0.0137.

Calculation of actual dairy production margin USDA will calculate the actual dairy production margin for each consecutive 2-month period by subtracting the average feed cost for the consecutive 2month period from the all-milk price for that consecutive 2-month period.

Payments A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the margin level selected by the participating dairy operation. Payment will be based on the percentage of annual milk production covered, divided by 6 for the two-month period.

USDA will create administrative rules and enforcement procedures, and establish an appeals process. The margin protection program is scheduled to end on Dec. 31, 2018 The bill repeals the Dairy Product Price Support Program, Dairy Export Incentive Program and the Federal Milk Marketing Order Review Commission, but extends the Dairy Forward Pricing Program, the Dairy Indemnity Program and the Dairy Promotion and Research Program.

The KDDC Welcomes Jennifer Hickerson The Kentucky Dairy Development Council is pleased to announce the hiring of Jennifer Hickerson as the new Northern Kentucky Dairy Consultant. Jennifer resides in Fleming County with her husband Chris and five children Ashley (17), Dustin (15), Andy (13), Casey Jo (10) and Maggie (8). They farm 250 acres of tobacco along with beans and a small herd of beef cattle. Jennifer is a lifelong dairy producer and operates a small registered herd of Holsteins with her father, James Adams.

Jennifer returned to the farm in order to teach her children the importance of a farming lifestyle. They enjoy growing up in the country

and participating in 4-H, FFA and especially showing cows at the local dairy shows.

Jennifer graduated from Morehead State University majoring in Agri-Business. She is very active in her community and loves working with youth. She presently serves as the certified 4-H dairy leader as well as Co-coordinator of Fleming County Progressive Agriculture Safety Day. Jennifer sits on the County Cooperative Extension Council and is on the Risk Protection Committee. She serves as the 4-H Treasurer and also on the Public Relations Committee and the Membership Committee of the 4-H Council. Jennifer is also a member

January - February 2014 • KDDC • Page 12

of the Kentucky Holstein Cattle Club and serves as the Northeast District Director and a cochair of the Junior Committee.

Jennifer brings a wealth of knowledge and experience to this position along with her enthusiasm and love of the dairy industry. We look forward to having Jennifer on the team at the KDDC. You can contact Jennifer by email at j.hickersonkddc@ gmail.com or call her at 859-516-2458.

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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, Route Sales

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

Custom Manure Pumping and Hauling List In an effort to provide information of companies that custom haul or pump manure here is a list of those available in the Kentucky area.

If you know of any other companies that custom pump and/or haul manure please contact your local KDDC consultant or contact KDDC at 859-516-1129.

Company Contact Info

Area/Radius of Service

Pumping

Hauling Other Services

Pat Urlick 502-507-3898 Custom Ag Service (Dan Young) 270-692-0666 Mayslick Farm Supply Nutrient Management Partners (Justin Wagler) 812-360-6283 Preachers Pumping (Larry Gorham) 270-776-4255 R and R Pumping (Bruce Uhls) 270-776-4584 Chad Burton 270-634-0867 B & C Pumping 270-606-3100 Haley Bryson 270-670-5163 Double C Irrigation (Eddy Copass) 270-427-6700 H&R Irrigation 270-634-0473 Joe Jerrigan 270-776-2659 Premier Pumping 270-776-2325

Bardstown / 40 miles

X

Lebanon / 200 miles

X

Custom Chopping

Mayslick / 200 miles Morgantown, IN / 300-400 miles

X X

Silo Moving & Repair

Franklin / 90 miles

X

Franklin / 50 miles

X

Columbia / 110 miles

X

Franklin / 75 miles

X

Metcalfe County / 50 miles

X

Monroe County / 100 miles

X

Adair County / 115 miles

X

Franklin / 100 miles

X

Franklin / 120 miles

X

X

tccopass@yahoo.com (Tony Copass) 270-427-6776

January - February 2014 â&#x20AC;˘ KDDC â&#x20AC;˘ Page 14

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from page 11 order blend over $26.00/cwt.

Our blend price averages for 2014 continue to increase. Currently, we project southeast blend prices in 2014 to average about $2.50 to $3.00/cwt. more than 2013.

Fluid milk sales continue to struggle. Total 2013 fluid sales are down 2.6% compared to 2012.

2013 fluid milk sales (adjusted for Leap Year) in the Florida order are down 2.0% from a year ago; sales in the Southeast order are down 2.6%; and Appalachian order sales are down 3.5%. Hopefully, the new fluid milk promotional efforts emphasizing milk protein will reverse the downward trend. 2 Southeast milk production continues to hold. 2013 southeast milk production was down 0.6% from 2012. However, when accounting for 2012 being a Leap Year, southeast milk production in 2013 was almost unchanged compared to 2012.

As seen in the table below, since 2010, milk production in the ten southeast states has increased over 2.5%. We predict within the next ten years, southeast milk production will be at least 10 billion lbs.

Southeast milk production becomes more concentrated.

Since 2010, three states - Florida, Georgia, and North Carolina have increased their percent of total southeast milk production while the other states’ share has declined. Florida and Georgia, alone, now account for almost 43% of all southeast milk production

January - February 2014 • KDDC • Page 15

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

2014 New KDDC Board Members

T

he KDDC board is comprised of 12 dairy farmers from across the state and eight Allied Industry board members. It is always sad to have to say good-bye to the exiting board members; however it is as exciting to welcome new blood to the board to keep the organization fresh and motivated. This year we have five new board members joining KDDC. From District 1, in Western KY, we would like to welcome Lesa Elliot Clark. Lesa is replacing her daughter, Ellie Gore Waggoner. Lesa has been farming her entire life on her family’s 900 acres, where they milk 125 Holstein cows. She was away from the farm just a short time attending the University of Kentucky, where she graduated in 1982. She is a fifth generation dairy farmer and was the primary milker for 25 years. She has been driving tractors since she was eight and can be seen planting in the spring and combining in the fall. Lesa is an active Facebook blogger and advocates for agriculture daily.

Lesa and her daughter Ellie are the owners of LeCows Dairy in Paducah. She loves her family and farm.

From District 6, in South Central KY, we would like to welcome Todd Burgess. Todd is replacing Steve Young of Clinton County. Todd became a partner with his father, Jerry Burgess in Monroe Co., KY, in 1991.

They have a total of 325 head of Holsteins. Currently they are milking 130 cows. They farm a total of 450 acres: 120 of corn, 120 acres rye and pasture. Their RHA is 21,266. They also own and operate B & B Farm Supply in Gamaliel.

From District 10, in Northern KY, we would like to welcome Richard Sparrow. Richard is replacing Bob Klingenfus of Oldham County. Richard and his wife, Renelle, have three sons, Joe, Ben and Kirby, and reside in Owenton, KY. He is an elder at the First Christian Church in Owenton. Richard received a degree in Animal Science from the University of Kentucky in 1978. He has worked with producers, processors and

January - February 2014 • KDDC • Page 16

haulers for 33 years with three milk cooperatives. He is the president of the Kentucky Brown Swiss Association and a director of the Brown Swiss Cattle Breeders Association.

Richard and his sons operate Fairdale Farm, LLC, milking 40 registered Brown Swiss.

From the Dairy Co-op, we would like to welcome Fabian Bernal, with Dairy Farmers of America. He is taking the place of John Brooks. Fabian joined the DFA Mideast area council in October 2011 as Dairy Production Manager and Adviser. He is in charge of milk quality, dairy performance evaluations, and programs development. Fabian is a native of Bogota, Colombia and attended the University of La Salle. He graduated from WKU with a major in Agri-Business and Ag-Economics. He also graduated with a Masters degree in animal science (large animal nutrition) from WKU, and speaks fluent Spanish and English. With more than nine years of experience in the dairy industry as milk quality and dairy performance consultant, his special interests are Livestock Management, Physiology of Lactation, Udder Health, Cow Comfort, Dairy Nutrition and Farm Management.

From the Milk Haulers, we would like to welcome Alan Wilson. Alan is replacing Mike Owen of Owen Trucking. Alan has over 40 years’ experience in hauling milk. He is a 3rd generation milk hauler, with two sons that have been working in the business for over 15 years.

Alan was a collaborator on the Home Land Security project on Bioterrorism in the dairy industry, with a host of others. He served six years on the KY Milk Handlers Association Advisory Board. Alan was married to his high school sweetheart for 33 years, until he lost her to cancer. He is the commander of Pulaski Veterans Inc. Post #100, a branch of the VFW in Somerset. He is also a board member and secretary/treasurer of a non-profit organization called Veterans Essentials Thrift Shop that helps provide basic living essential for homeless veterans placed in housing provided by HUD-VASH program.

These five individuals will help KDDC lead the dairy industry in KY during their board terms. We appreciate all that the past and present board members do for KDDC and dairy overall. If you would like to see a complete list of board members you can visit our website at www.kydairy.org.

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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from page 1 His first presentation focused on ration management and his second presentation focused on management at the feedbunk.

The two most important steps we can take to maximize feed availability is providing and pushing up feed at regular intervals and allowing sufficient bunk space for cows to reach feed.

During lunch, the KDDC conducted their Annual Business Meeting, welcoming on five new board members and honoring those retiring from the board. Immediately following lunch Nate Janssen, DMI Director of Producer Relations, spoke on “Consumer Confidence, Building Trust and Telling Your Sustainability Story”. The KDP Meeting ended with a Producer Panel made up of three KY dairy farmers discussing “Raising Milk Making Forages”. The producers were: Eddie Klingenfus from Shelby County, David Hutchison of Adair County and Jesse Ramer of Todd County.

Below is a producer comment on the meeting: “I really enjoyed the meetings and all. I probably brought back more info than I have at any other meeting. to

all

for

making

it

so

easy

to

gain

vital

Thanks

information.

There could not have been anyone there that didnÕt take home

some

really

important

messages.Ó-Mary

Jones,

Dairy Farmer in Marion County, KY

No matter where you milk cows, your opportunities are only as big as your dreams! Kentucky is proving this more and more with producers of every size becoming more progressive.

Without the collaboration of all of the dairy entities in KY this would not be possible. Working together is working better!

January - February 2014 • KDDC • Page 18

Above: Gary Sipiorski focused on practical finances any size dairy could take home and use.

Right: Kevin Ferguson talking on Farm Transitions.

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

S P E C I A L

Allied Sponsors Platinum

Dairy Products Association

T H A N K S

Gold Animal Health Management Services Arm & Hammer Animal Nutrition KABA/Select Sires Kentucky Nutrition Service Lone Star Milk Producers Mid-South Dairy Records Neogen Owen Transport Prairie Farms Purina Animal Nutrition, LLC Valley Farmers Coop

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

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 Southern States Co-op, Inc. Whayne Supply

Silver Grain Processing Corp.

Kentucky Veterinary Medical Assoc.

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

Bronze

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

January - February 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 April 26

March March 10 March 11-13 March 14 March 17 March 18 March 19 March 19 March 22 March 27 March 28

Agriculture Water Quality Plan Mtg., Nelson County Extension Office Farm Start Short Course, University of Kentucky, Coldstream Dairy, Lexington, KY Agriculture Water Quality Plan Mtg., Fleming County Extension Office 4- H Dairy Jeopardy Contest – Barren County Extension Office Agriculture Water Quality Plan Mtg., Christian County Extension Office Agriculture Water Quality Plan Mtg., Warren County Extension Office Russell County Dairy Mtg., Russell County Extension Office Gary Rock Fund Raiser – EKU, Richmond, KY Agriculture Water Quality Plan Mtg., Metcalfe County Extension Office Agriculture Water Quality Plan Mtg., Adair County Extension Office

April April 3-5 April 11

Kentucky National Dairy Show and Sale, Louisville, KY KDDC Board Meeting – Nelson Co. Extension Office

Milk Matters January - February 2014

4-H Cow Camp, Metcalfe County Extension Office

May May 10 May 17 May 18-21 May 20-21

June June 7 June 10 June June June June June June June

Tweaking Your Grazing Program, Monroe County 4-H Dairy U-Know Before You Show Clinic, Horse Cave, KY Alltech International Symposium, Lexington, KY University of Kentucky Spring Grazing School, Woodford County Extension Office

4-H District Dairy Show, Harrodsburg, KY Dairy Night, Lexington Legends, Lexington, KY 14 4-H District Dairy Show, Edmonton, KY 17 4-H State Dairy Judging Contest, University of Kentucky Coldstream Dairy 18 4-H District Dairy Show, Liberty, KY 21 Barren County Agriculture Day, Glasgow, KY 21 Tweaking Your Grazing Program, Morgan County 26 4 –H District Dairy Show, Shelby County 30-July 2 Farm Start Farm Tour to Missouri