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KENTUCKY
November - December 2017 w w w. k y d a i r y. o r g
Milk Matters Dairy Leaders Commend USDA Progress for Expanding School Milk Options Find out more on page 11
Kentucky Dairy Partners and Young Dairy Producers Conference Find out more on page 16-17
MILK Program Update By Maury Cox
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he first premium checks for the NEW MILK Program finally hit KY dairy farmer’s mailboxes in the October settlement check. The premiums were retroactive and based on production and quality numbers from milk produced in April to the end of June 2017. It has been an arduous process to say the least and we are still working hard to get all the “bugs” out to make sure there are no mistakes or miscalculations. We appreciate your patience. We are also checking with producers to validate whether premiums are being matched by the MILK Program partners. This is a requirement of the Kentucky Agricultural Development Fund Board. The new program has significant changes from the initial MILK Program. The most prominent is the removal of the increase in production factor required to receive premiums. Although Kentucky is still listed as a milk deficit area, it is not the case for many other regions of the nation and that excess milk still competes with locally produced milk to service processors in our region. A new factor focusing on percent of herd somatic cell counts in part replaced the increased production qualifier. This new parameter requires participating farmers to take individual cow samples to receive premiums. These incentives are based on percent of herd with SCC below 200,000 in a range from 85% down to 65%. To qualify a producer must DHIA test a minimum of six (6) times a year and at least once (1) per quarter. The first tier of the program focuses on bulk tank SCC and
Preliminary Incubation Counts or PIC. The total program qualifiers are listed in the charts below. Chart #1-Premiums are based on SCC – PIC Average for the month. (Max per producer is $6,000 per year)
Total Premium SCC PIC $0.25/cwt <200,000 <20,000 $0.13/cwt 200,001 - 250,000 <20,000 $0.08/cwt 250,001 - 300,000 <20,000 Chart #2-SCC cell count by percentage of herd < 200,000 SCC. (Max per producer is $6,000 per year) Total Premium $0.25/cwt $0.13/cwt $0.08/cwt
% of cows 85% 75% 65%
SCC < 200,000 <200,000 <200,000
We believe the MILK Program has been instrumental in increasing production on KY dairy farms helping KY rank first in the nation in increased production per cow over the past 5 years. The increase in quality produced milk from KY dairy farms has been a result of several driving forces but the MILK Program has also played a part there as well. These accomplishments were made possible by the financial incentives offered by the KADF, the milk marketing partners and the hard work of KDDC.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2017 KDDC Board of Directors & Staff
President’s Corner Richard Sparrow
Executive Committee President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Member: Freeman Brundige EC Past President: Bob Klingenfus
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s we close out 2017 and look forward to 2018, it is difficult to see any milk price improvement.
When you look at milk price direction, the most important trend to follow is U.S. cow numbers. Nine million dairy cows is the balancing point and we are at 9.2 and change. While culling has increased in 2017 compared to 2016, the United States dairy herd is relatively flat due to an ample supply of replacement heifers. United States milk production has grown when comparing a month to the same month in the previous year for forty-five continuous months. This is the longest trend of milk production growth on record. The major dairy export areas of the globe are beginning to increase dairy production in 2017, after experiencing
Board of Directors
some decline in 2016. This is very important because of the U.S. dairy industry’s growing dependence on exports. There is a large inventory of Non-Fat Dried Milk in the European Union that is pulling down the world price of NFDM and causing downward pressure on the Class IV milk price. Domestic consumption of cheese and butter is a bright spot in the market. However, every other major factor affecting our milk price is negative, at least for the first half of 2018. There is one thing you can do to protect your margin. Right now, there is still some opportunity to help your bottom line by forward contracting for early 2018.
Your Input Is Needed Most are aware of what The Kentucky Dairy Development Council mission statement is “To educate, promote and represent dairy producers and foster an environment for growth of the Kentucky Dairy Industry.” What better way to do this than listening to the producers! We are dedicated to helping dairy producers in any way that is possible and continually strive to better our services to you. That’s why we are seeking input for your newsletter. What would YOU like to see covered in each issue. Your input and opinions are a valuable resource to us and we would enjoy hearing from you. Please take a minute to share with us what you would like to see included in the newsletter. Responses can be sent to KDDC at 859-516-2458 or email @ kddc@kydairy.org
District 1: Freeman Brundige 731.446.6248 District 2: Josh Duvall 270.535.6533 District 3: Don Kinslow 270.646.0086 District 4: William Crist Sr. 270.590.3185 District 5: Tony Compton 270.378.0525 District 6: Mark Williams 270.427.0796 District 7: Greg Goode 606.303.2150 District 8: Jerry Gentry 606-875-2526 District 9: Dwight Leslie 859.588.3441 District 10: Richard Sparrow 502.370.6730 District 11: Stewart Jones 270.402.4805 District 12: Larry Embry 270.259.6903 Equipment: Tony Cowherd 270.469.0398 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: Justin Olson 765.499.4817 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Michael Smith 859.619.4995 Former Pres.: Bob Klingenfus 502.817.3165
Employee & Consultants Executive Director: Maury Cox 859.516.1129 DC-Central: Beth Cox 859.516.1619 • 270-469-4278 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
November - December 2017 • KDDC • Page 3
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Executive Director Comments Maury Cox
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ne aspect of the KDDC Mission is to educate or “inform” you, the dairy producer of the latest news and policy changes being considered in our industry. On the front page of the September – October 2017 issue of the KDDC Milk Matters Newsletter was an article from Farm Journal explaining the industry proposing changes in how fluid milk is priced. We thought this was very important news, especially since in the southeast the fluid milk price makes up 60 – 70 percent of a farmers’ milk check while nationally it is the second highest category of milk at 27 percent. The proposal would change the present formula of determining the Class I price based on the “higher of ” the Class III and Class IV price to a formula that would average Class III and Class IV prices and then add $0.74. Applicable Class I differentials would be added as they presently are to the Class I price. Even though the article points out since 2001 the “higher of ” formula has added $0.43/cwt to the Class I value it also states the basis risk to cross hedge on Class III
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averaged $0.47cwt. but ranged from a low of ($0.78/cwt.) to a high of $4.64/cwt. The Class IV averaged $0.90/cwt. And ranged from ($0.77/cwt.) to $6.68/cwt. The $0.74 would cover the spread at times, but not all the time so ultimately averaging of the two Classes could lower the price farmers receive. It is stated in the article using the 50/50 Class III/IV mechanism will allow farmers and fluid milk users [processors] to better hedge risk. It goes further saying that would allow milk retailers such as McDonald’s and Starbucks to hedge their input costs and provide more price stability for customers. Plus, it adds this would reduce risk of servicing school milk contracts currently held by milk processors. But the present system calculates and announces the Class prices a month in advance. Which begs the question, how much time is needed for processors to price their product to retailers? The article emphasizes there would be “some” risk in the market but the new formula would be a substantial improvement by making sure the processor doesn’t choose the wrong Class I mover over a longer time than the present system. However, it’s important to note while many processors utilize hedging tools, most dairy farmers don’t. Secondly, as we look at retail milk prices in this region, with some gallon milk selling for less than a $1.00/gal., is this just another way to squeeze the farmer for a few more cents to make up the difference in using milk as a loss leader? The last paragraph of the article suggests the level of “risk” as the catalyst for innovation of new and unique products which would generate demand for more beverage milk. Possibly so. We’ve seen some evidence in the last few years of new innovative products coming on the market creating new demand. But was it generated by reduced risk or by the opportunities seen by entrepreneurs who recognized potential consumer demand in the market and acted on those opportunities. Incrementalism: a policy of making changes by degrees. This proposal, although seemingly slight fits very nicely into the “incrementalism” definition. There have been other incidences that have eaten away at farmers’ profit margins. The mandatory removal of the use of recombinant bovine somatotropin (rBST) from dairy farms is another example. It began in fluid milk markets while at the same time its use was allowed in other markets. Where was the consumer outrage over the use of rBST in those markets like it was professed in the fluid markets? Whether you agreed or not it was a legal tool for dairy producers. We could go on and on with examples where the price paid or cost to produce is pushed back to the producers from new environmental and drug regulations to milk transportation cost and marketing fees for milk dumping, to mandatory animal care standards. One thing is certain, the profit margin for many dairy farm families is past a breaking point. Dairy farmers are the easy targets and it seems they have been incrementally losing their economic position, proposal by proposal and rule by rule. It is a matter of taking a little here and a little there, from the only ones in this industry that produce the product that generates revenue! A lot of folks are consuming at the dairy producers’ trough and that trough is getting smaller and smaller every day.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Basketball and Dairy Farming By George Heersche, Jr., Ph.D. University of Kentucky Dairy Extension
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have preached this sermon before, but I think it is worth repeating for the new folks and in case anyone in the congregation was sleeping the first time. What are two key elements of a winning basketball team? It takes talented players and good coaching. What about your dairy farm? What are two of the key elements of a winning milk-producing team? It takes talented cows (players) and good management (coaching). Let us use a series of questions and answers to expand on this analogy. Do talented players or talented cows just show up? No … it takes more effort to get talented players or talented cows. What determines the talent level of your milk producing team? Genetics ... ability is determined by genetics. Where can you find the best talent for your milk producing team? Artificial insemination provides the best talent, because A.I. sires are the best of the best. How much better is A.I. talent? Daughters of average active A.I. Holstein sires receive a genetic merit of 501 more pounds of
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milk per lactation than daughters of average non-A.I. Holstein bulls born in the last 8 years. That difference is much larger if you use the top end of the A.I. sires. In addition, the rate of genetic progress has been accelerated with the use of genomic sires, and cows with more talent pass that talent on to future generations. Is the level of talent predictable? High school players recruited on four years of game stats are more likely to be good college players than those recruited based on their performance in a few high school games. A.I. sire proofs contain much more information than the information available on natural service bulls. Therefore, we can more accurately predict the ability of the future herd by using A.I. sires. Do all of the players on a basketball team have the same talents? No … a winning basketball team has some tall players, some shorter players, and some players who run faster than others. Do all the cows on the milk producing team have the same talents? No, but through A.I. you can select in advance the talents your milk producing team has and what they will look like. If you want high production, you can select for high production. If you want correct feet and legs, you can select for correct feet and legs. If you want correct udders, you can select
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WHY ADVERTISE IN THE KENTUCKY MILK MATTERS NEWSLETTER? • It is the ONLY publication that goes directly to ALL KY DAIRY FARMERS • KY has more permitted dairy farms than any other state in the Southeast • It goes directly to the decision makers on all KY dairy farms • Over 1,400 KDDC Milk Matters Newsletters are distributed
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November - December 2017 • KDDC • Page 6
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for correct udders. If you want to improve production and type, you can select for both. Furthermore, A.I. allows you to use several different sires which spread the risk if one does not do as well in your herd. If you use a natural service bull, all of your eggs are in one basket so to speak. If he is a dud, you have a team of duds to coach. How much of the milk producing team performance is due to talent and how much is due to coaching? Milk production is 30 percent talent/genetics/ability and 70 percent coaching/ environment/opportunity. Can we have winning milk producing teams with just talent or just coaching? No … it takes both. For examples, see the table.
Talent + 30% (great talent) 10% (poor talent) 30% (great talent) 10% (poor talent)
Talent and coaching influence performance Do teams which stay healthy have a better chance of winning? Yes! Healthy players spend more time in the game and less time with the trainer … ditto for healthy cows. We can use A.I. to plan for healthier cows. Using calving ease sires on heifers yields fewer bad starts in the rookie season. Breeding for correct feet and legs and correct udders yield cows with fewer problems. Selecting for Productive Life results in cows which have a greater chance of having a more productive life. Do coaches who stay healthy have a better chance of winning? Yes! Anywhere there is a dairy bull there is a chance of injury or death. If the coach is laid up, the team suffers. If the coach is dead, the game is over. Do we really need any other reason to use A.I.? Please A.I. your heifers and Performance cows. Do not do it because I made the suggestion. Do it for 100% performance yourself and your family. Do it to 80% performance make your farm a safer place. Do it because you deserve to have the 65% performance best talent to coach.
Coaching = 70% (great coaching) 70% (great coaching) 35% (poor coaching) 35% (poor coaching)
45% performance
ATTENTION DAIRYMEN · DAIRY AUCTION DISPERSAL Jan. 26, 2018 @9am
9am: Equipment will begin selling. Around 1pm: cows will begin selling. Address: 1920 Seay Rd. · Trenton, KY 42286 Auctioneer’s Note: These are some of the nicest cow and heifers in the community. Here’s an opportunity to add some outstanding cows to your heard. Don’t miss this auction.
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November - December 2017 • KDDC • Page 7
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Dixie Dairy Report By Calvin Covington, ccovington5@cs.com, 336-766-7191
December 2017
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rowth in milk production slowing and cow numbers stabilizing. According to USDA, October milk production is 1.4% higher than last October, and September production was revised to only 1.0% higher than a year earlier. January 2016 is the last time monthly milk production was lower than 1%. The nation’s dairy herd is estimated at 9.4 million cows in October. Cow numbers have remained stable for the past six (6) months. So far this year the number of dairy cows slaughtered is running about 4.5% higher than last year which is helping steady cow numbers. Milk produced per cow in September and October, compared to the same months a year earlier, was only up four (4) and twelve (12) lbs., respectively, lower than the historical average increase. Of the 23 milk reporting states, production was down in California, New York, Oregon, and Washington, but up in the other 19 states. In the Southeast, October milk production in Florida was 0.6% higher than last October. In Virginia, milk production was 3.6% higher. October milk produced per cow, in Florida, was 30 lbs. lower (impact of hurricane) than a year
November - December 2017 • KDDC • Page 8
earlier, but USDA estimates there were 3,000 more cows. More milk in Virginia is due to 65 lbs. more milk produced per cow this October compared to a year ago. F luid demand weak, domestic demand flat, and exports up. Conventional fluid milk sales were 2.7% lower this September compared to last September. Organic September sales were down 4.2%. For the first nine months of the year conventional fluid sales are down 2.4% and organic sales up 0.2%. Again, the bright spot is whole milk with sales up 2.4% for the year-to-date. Fluid decline in the Southeast is not a low as the national average. Through September total fluid sales in the three southeast federal orders are down 1.2%. For the first nine months of the year, compared to the same period a year ago, commercial disappearance of butter is up 0.4%, American cheese up 2.3%, other cheese down 0.4%, and nonfat dry milk powder down 12.8%. The export side looks better with butter exports up 70%, cheese up 23%, and nonfat/skim milk powder up 8%. Total solids. A more precise way to monitor demand is on a total solids basis. This combines the fat and solids-notfat used in all dairy products, fluid and manufactured. The following table shows both domestic and export demand, on a total solids basis. Through September, domestic demand is slightly lower than last year while exports are about 6.5% higher. Combined, total demand is only 0.8% higher than a year ago.
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices FMMO 5
www.malouisville.com November 2017 Class I Advanced Price (@ 3.5% BF) $19.81 December 2017 Class I Advanced Price (@ 3.5% BF) $20.28
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Dairy product prices mixed. The November butter price declined about nine cents from October, but is still higher than a year ago. Flattening butter demand and adequate inventories are weakening the price. November cheese gained about four cents, and is about even with last year. However, CME trading shows cheese prices moving lower. Expect a several cent decline in the December price. Cheese demand is weak, production is up, and surplus milk is already moving to cheese plants at a discount. Both powder and whey prices continue to decline. Since the beginning of the year, powder has dropped about a quarter and dry whey a dime. Both powder and whey inventories are about double, compared to a year ago. Lower blend prices. Compared to last month our 2018 blend price forecast is lower, especially for the first few months of the year. Currently we project 2018 blend prices to average $0.50-$0.75/cwt. lower than this year. Even though milk production increases appear to be slowing, domestic demand is weak. The industry will head into 2018 with heavy inventories, not only in the U.S., but worldwide. Exports are up from last year, but competition in the international market is strong, especially from the European Union. It will be a struggle for the U.S. to export all the milk produced beyond domestic needs.
www.fmmatlanta.com November 2017 Class I Advanced Price (@ 3.5% BF) $20.21
However, compared to the current futures market, our projections are December 2017 more optimistic. We anticipate lower Class I Advanced Price farm milk prices and margins will (@ 3.5% BF) lower production by the middle of $20.68 2018. Milk production concentrated in a few counties. The November 2017 Central Federal Order Marketing Bulletin reports, in May 2017, 25% of federal order and California milk production was produced in only 14 counties. Seven of those counties were in California with Tulare County the number one milk producing county. Out of those 14 counties, only one was east of the Mississippi, Lancaster in Pennsylvania. 61 counties produced 50% of federal order and California milk, and 185 counties produced 75%. Best wishes to everyone for a blessed and joyous Christmas season. As we enjoy the celebrations during this time of the year, may we not lose focus of why we celebrate – the birth of Jesus Christ. A birth the angel of the Lord announced with these words, “I bring you good news of great joy for all the people…a Savior has been born to you; he is Christ, the Lord.”
November - December 2017 • KDDC • Page 9
Anthem of Kentucky has revised their eligibility guidelines for KDDC Association Group Health Plans. Key Changes: • Employer groups of one may be eligible for small group plans. • Husband/wife employer groups may be eligible for small group plans. • Employer groups of 5 or more can choose 2 plan options. • Employer groups of 10 or more can choose 3 plan options. For more information, please contact: Melissa Hinton The Hinton Agency (859) 351-6559 thehintonagency@gmail.com
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Dairy Leaders Commend USDA for Expanding School Milk Options
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he nation’s two leading dairy organizations applauded Agriculture Secretary Sonny Perdue on Wednesday for allowing school districts to offer low-fat (1%) flavored milk as part of the National School Lunch and School Breakfast programs. An interim final rule implementing the regulatory changes needed to reinstate low-fat flavored milk in schools was announced today on the Federal Register site and goes into effect for the 2018-2019 school year. The regulation implements changes that Secretary Purdue proposed earlier this year to streamline the process by which schools can serve low-fat flavored milk without first obtaining a special exemption. In 2012, the U.S. Department of Agriculture eliminated low-fat flavored milk as an option in the school meal and a la carte programs, which resulted in a large drop in milk consumption in schools. Students consumed 288 million fewer halfpints of milk from 2012-2015, even though public school enrollment was growing. "We appreciate the Secretary’s understanding that the regulatory process needed to move quickly so schools may include low-fat favored milk in their menu planning and procurement processes,” said Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association (IDFA). “Today’s action will help reverse declining milk consumption by allowing schools to provide kids with access to a variety of milk options, including the flavored milks they enjoy.” “Secretary Perdue’s willingness to provide greater flexibility to schools recognizes that a variety of milks and other healthy dairy foods is critically important to improving the nutritional contributions of child nutrition programs in schools,” said Jim Mulhern, president and CEO of the National Milk Producers Federation (NMPF). “The math here is quite simple: More milk consumption equals better nutrition for America’s kids.” Earlier this year, Congress passed the FY 2017 omnibus appropriations bill that included provisions to allow schools to offer low-fat flavored milk. In addition, Reps. Glenn Thompson (R-PA) and Joe Courtney (D-CT) have introduced legislation, the School Milk Nutrition Act, to expand the ability of schools to offer various milk options. Their ongoing efforts in Congress have led to a greater awareness of the milk shortfall challenge in schools that today’s USDA action begins to address. In a joint letter last June, IDFA and NMPF urged Secretary Perdue to quickly finalize plans for low-fat flavored milk’s return to school menus for the 2018-2019 school year. The publication of the interim final rule will allow school districts to solicit bids for low-fat flavored milk next spring before the 2018-19 school year begins, giving milk processors time to formulate and produce a low-fat flavored milk that meets the specifications of a particular school district. The USDA action now allows schools to offer low-fat flavored milk during the next school year without requiring schools to demonstrate either a reduction in student milk consumption, or an increase in school milk waste.
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November - December 2017 • KDDC • Page 11
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
CERCLA and EPCRA Reporting Requirements for Air Releases of Hazardous Substances from Animal Waste at Farms Source: On-line, Environment Protection Agency.Gov
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n November 22, 2017 the DC Circuit Court of Appeals granted EPA’s motion to further stay the mandate until January 22, 2018.
Farms with continuous releases do not have to submit their initial continuous release notification until the DC Circuit Court of Appeals issues its order, or mandate, enforcing the Court’s opinion of April 11, 2017. No reporting is necessary until the mandate is issued. To expedite your initial continuous release notification to the National Response Center, you may use the temporary email option. This option avoids potential large call volumes and delays. It allows one email notification for owners/ operators with multiple farms. •Notify the NRC. This may be done by email (NRCCERCLA-EPCRA-REPORT@uscg.mil). Please identify your reportable release as an “initial continuous release notification.” •Submit an initial written notification to the EPA Regional Office; and •One year later submit an additional follow-up written notification to the EPA Regional Office. For additional information on continuous release reporting, see: How do I report a continuous release under CERCLA? Email should be used by farms for the initial continuous release notification. For other types of releases that
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November - December 2017 • KDDC • Page 12
require immediate response, please call the NRC at 1-800-424-8802.
Overview
The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and Emergency Planning and Community Right to Know Act (EPCRA) require facilities to report releases of hazardous substances that are equal to or greater than their reportable quantities (RQ) within any 24-hour period. Following a hazardous substance reportable release, a facility owner or operator must notify federal authorities under CERCLA and state and local authorities under EPCRA.
Reporting Exemption for Animal Waste and Resulting Litigation
On December 18, 2008, EPA published a final rule that exempted most farms from certain release reporting requirements in CERCLA and EPCRA. Specifically, the rule exempted farms releasing hazardous substances from animal waste to the air above threshold levels f rom reporting under CERCLA. For EPCRA reporting, the rule exempted reporting of such releases if the farm had fewer animals than a large concentrated animal feeding operation (CAFO). In short, all farms were relieved from reporting hazardous substance air releases from animal waste under CERCLA, and only large CAFOs were subject to EPCRA reporting. A number of citizen groups challenged the validity of the final rule in the U.S. Court of Appeals for the District of Columbia Circuit. On April 11, 2017, the Court struck down the final rule, eliminating the reporting exemptions for farms. EPA sought additional time from the Court to delay the effective date so that EPA could develop guidance materials to help farmers understand their reporting obligations. No reporting is required until the Court issues its order, or mandate, enforcing the April 11, 2017, decision. EPA will update this guidance to provide farmers with notice of when the mandate issues and reporting requirements begin. Please check this website frequently. Once the mandate is issued, farms should submit an initial continuous release notification to the National Response Center for qualifying releases that occur within a 24-hour period. Source: https://www.epa.gov/epcra/cercla-and-epcrareporting-requirements-air-releases-hazardous-substancesanimal-waste-farms
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
UK Dare to Dairy 2017 By Larissa Tucker Participants from sixteen Kentucky counties gathered on October 21, 2017 for the eighth annual “Dare to Dairy” at the University of Kentucky Coldstream Dairy. The University of Kentucky Cooperative Extension Service and the University of Kentucky Dairy Club hosted the event. This program gives 4-H age youth the opportunity to experience some of the science behind dairy farming in a hands-on environment. The day was filled with educational sessions on a variety of topics. The participants discussed how a cow’s four stomach compartments function at the dairy cattle nutrition station. The automatic calf feeder was the highlight at the calf health station. An udder dissection took place at one station to illustrate the importance of correct milking procedures. The participants visited the compost bedded pack barn to learn how composting works. The milking procedures station gave everyone the opportunity to try his or her hand at proper milking techniques. Everyone had a chance to identify the correct name of the parts of the cow by using a live cow and labeling a cow diagram. Finally, participants learned about the components of a total mixed rations for dairy cows and then had the opportunity to
Nutrition Station make their own version from pretzels, M&Ms, Cheerios and other tasty ingredients to enjoy. Attendees were given an opportunity to
Classified Ads Advertising starts at $25 per issue for classified ads and $100 for business card ads. Call Carey at 859-948-1256 for more information
CNMPs
Comprehensive Nutrient Management Plans - Livestock manure management and water quality BMPs - Financial assistance available through NRCS and Ky Division of Conservation. Ben Koostra - NRCS Technical Service Provider and Professional Engineer - 859-559-4662
John Deere 6400/4wd/ Ldr/$26,000
John Deere 332 skid Ldr/ $27,500 STOLTZFUS SPREADERS Lime/Chicken Litter/Fertilizer Leo TMR Mixers - Manure Spreaders www.redbarn and associates.com Call Charlie @ 859-608-9745
November - December 2017 • KDDC • Page 14
Reach All KY Dairy Producers
Don’t miss your chance to reach dairy producers all across the state of Kentucky. There is no other publication that reaches all dairy producers. Call Carey today for more information at 859-948-1256.
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Calf Station
Dairy Foods Station
taste test different varieties of cheeses they may never have tried before. The 80 youth participants were divided into groups by age, so the instructors could make the activities age appropriate. The instructors were University of Kentucky Department of Animal and Food Sciences faculty and graduate students. Their help and support is the only way we can provide this educational opportunity for our youth and adults
to attend. The UK Dairy Club prepared lunch and assisted as group leaders for the day. Special thanks go to Dairy Farmers of America for providing the milk for lunch and Southeast United Dairy Industry Association for providing the door prizes. All the participants who attended received up to three 4-H livestock educational hours. Plans are in the works for the 2018 event. More Udder Dissection information will be available through your local UK Cooperative Extension Service office.
Introducing • Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) Insurance • Pasture, Rangeland and Forage (PRF) Insurance • Federal Crop Insurance • Full Service Commodity Brokerage, including Class III Futures
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November - December 2017 • KDDC • Page 15
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2018 Kentucky Dairy Partners and 2018 KENTUCKY DAIRY PARTNERS AND Young Dairy Producers Conference YOUNG DAIRY PRDUCERS CONFERENCE
KDDC YDP Conference Agenda Tuesday, Feb. 27
Ky. Dairy Partners Agenda Wednesday, Feb 28
8:30 Registration for KDDC Young Dairy Producers Conference
8:00
Registration & View Trade Show
9:30
Dr. Townsend, DVM – Burkeman Feeds
9:00-9:10
Dr. Richard Coffey - Welcome
10:10
Dr. David Mc Clary - Elanco
9:10-9:40
ADA of Kentucky/The Dairy Alliance
10:45
Break
9:50-10:35
Dr. Jeff Stevenson
11:00
Dr. Larry Tranel
10:45-11:30
Dr. Larry Tranel
12:00-1:30
~ Lunch and Trade Show ~
1:30
Dr. Joao Costa – University of Kentucky
1:45
TBA
11:30-1:30 Lunch - KDDC Annual Business Meeting and Trade Show Exhibits (Bidding Ends on Silent Auction Items)
2:30
Ice Cream Break
1:30-2:00
ADA of Kentucky/The Dairy Alliance
3:00
Nathan Upah – TechMix Nutrition
3:40
Dr. Jeff Stevenson
2:05-2:35
TBA
4:30
Adjourn - Trade Show
2:40-3:10
Dr. Joao Costa
6:00 - 8:00
~ Dairy Awards Dinner ~
9:00 AM-11:30AM
Trade Show Set up
November - December 2017 • KDDC • Page 16
3:15
Adjourn
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Kentucky Dairy Partners AnnualAnnual Meeting (2018) - Exhibit Conference Reservation Kentucky Dairy Partners Meeting (2017) – Exhibitand & Conference Reservation Form Form Name of Company: Representative: Address:
Phone: Fax: Cell Phone: Email: Others Attending: (Name & Email)
Allied Industry - Booth & Conference Registration: = $350 Booth space* – includes booth space, (1) YDP/Awards Banquet w/ meals & (1) KDP conference registration w/ meals *Platinum KDDC sponsors – free booth space, (1) YDPI/Awards Banquet & (1) free conference registration * Gold KDDC sponsors - $200 booth space, (1) YDPI/Awards Banquet & (1) free conference registration _________= *no booth charge for government, educational, etc. (does not include attendee registrations)
= $30/person Tues - registration - Young Dairy Producers Meeting
Feb 21
x
_____ (number attending)
= $30/person Wed - KDP conference registration
Feb 22
x
__________ (number attending)
= Total amount enclosed - Please make checks payable to: KDDC (KY Dairy Development Council) *************(Ky dairy producers will be charged $25 per dairy farm for the two day conference*******************
****************************************************************** Yes, we would like to provide a door prize - list item: Yes, we would like to provide an item for the silent auction– list item: Please answer the following questions to help us better accommodate you. What type of display do you have? (i.e. full floor, table top, pull ups, other) Is your booth larger than 10 w x 6 d? Do you need electricity?
Return registration & checks (checks written to: KDDC):
eunice.schlappi@ky.gov
Kentucky Department of Agriculture ‐ Eunice Schlappi 111 Corporate Drive Frankfort, KY 40601
Phone: 502‐573‐0282
Cell: 502‐545‐0809
November - December 2017 • KDDC • Page 17
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
FSA Frees You from MPP by Steve Wade, Wade Assurance
T
hose of you who have desired a good government risk management solution for dairy know that no such thing has been invented yet. We have the Margin Protection Program for Dairy (MPP-Dairy) which is the Farm Service Agency (FSA) solution, and
November - December 2017 • KDDC • Page 18
we have the Livestock Gross Margin for Dairy (LGM – Dairy) which is the Risk Management Agency (RMA) solution. Of the two, it is generally agreed that MPP has done the poorest job of living up to its promises, yet it has the most participation by far. If you signed on to MPP, you probably know that you are committed to it longer than a lot of people are committed to their marriages. Once you sign on to MPP, you cannot exit before the program ends which is at the end of the farm bill which expires in 2018. Like a marriage, the relationship between you and MPP are monogamous. You are not allowed to take a CAT level of MPP and take a better LGM policy at the same time. I have always contended that perhaps the worst feature of MPP is its lack of flexibility. Apparently, somebody at the USDA has finally listened to this concern. On September 11 of this year, it was announced by Richard H. Flournoy, the Deputy Administrator of the USDA that dairy producers can opt out of MPP-Dairy for the 2018 crop year. The intent is that a dairy would transition f rom MPP to
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
LGM which, while not perfect, hosts advantages over MPP including flexibility. A producer who opts out of MPP-Dairy for the 2018 coverage year would be eligible to purchase LGM-Dairy beginning with the November sales period with coverage beginning in January. At the time this article is published, it would mean you could purchase the coverage during the December sales period and your coverage would begin in February. Producers would still not be allowed to participate in both programs at the same time. The FSA and RMA will be monitoring their respective programs to ensure producers are not participating in both programs simultaneously. We are in a different environment today than when MPP was last introduced as a part of the current farm bill passed in 2014. Milk prices had spiked to record levels which is never good in farming because it destroys a cost structure under the commodity. As they say, the solution to high prices is high prices. The high prices brought on a rapid increase in production which eventually sent prices tumbling at the end of 2014. If you are one of the thousands of producers who eagerly signed on to MPP in 2014, you undoubtedly regret that decision today as the environment is so different now. So, what is the best option today in this environment? In the table at left, I will outline the key differences between MPP and LGM, and I will also outline a third choice which are Class III Milk Futures Options. (Bottom left) Besides these three programs, there is always the option of doing nothing. It was Clint Eastwood as the Outlaw Joesy Wales who told the bounty hunter “Die’n ain’t much of a livin boy”. If you are trying to survive producing milk and not protecting price, doin nothin ain’t much of way to make a livin. The December Class III Milk chart makes this point perfectly clear. Why go to the trouble of producing the milk if you are not going to protect its value? Much of this price could have been captured.
Byron Seeds Dominates The 2017 World Dairy Expo Forage Super Bowl Again 3 Grand Champions • Grand Champion Haylage • Grand Champion Corn Silage • Grand Champion Organic Hay Top 5 finalists in the haylage division • Placing 1st through 5th including Grand Champion • Plus, four more finalists in top 20 for 9 of the top 20 Six out of ten finalists in Grass Hay division • 2nd, 3rd, 4th, 5th, 7th, 10th Five out of 10 finalists in the Baleage division • 4th, 5th, 6th, 7th, 10th First 9 finalists in Organic Hay division including Grand Champion Two finalists in the Conventional Silage division including Grand Champion • Byron wins Grand Champion in a division with more than 500 entries submitted 33 out of the 100 finalists • Byron customers dominated with only 93 entries out of over a thousand entrants. One company submitted over 700 entries with only 22 finalists!
Want to join the winning team? Call
855-897-8934
to find your local forage expert.
(Top left) LGM Dairy Insurance and Class III milk options allow you to protect prices f rom moving lower while allowing you to enjoy prices moving higher. There is information available online from the RMA and from the Chicago Mercantile Exchange (CME) to learn how to use these tools. You can also seek out the advice of a licensed crop insurance agent or a commodity broker to learn more. This would be a great New Year’s resolution to make!
November - December 2017 • KDDC • Page 19
Coming this December Be counted. Answers to the Census of Agriculture can help grow your farm’s future, shape farm programs, and boost services for communities and the industry. Respond Online. www.agcounts.usda.gov United States Department of Agriculture National Agricultural Statistics Service
www.agcensus.usda.gov
VMS & Calf Feeder Info Days Presented By:
10:00 AM-3:00 PM Lunch Provided
Glasgow, w, KY
Athens, TN T
Tuesday, January 30 th
Barren County Extension Office 1463 W Main St. Glasgow KY 42141
Wednesday, January 31st AgCentral Co-op 920 Congress Pkwy. Athens, TN 37303
Topics:
• Introducing AgCentral and DeLaval VMS and Calf Feeder Support team. • Barn Design and Cow Traffic. • What’s new with robotics? • Why DeLaval?
• Beyond the Robot: Herd Management, Herd Navigator, Activity, Remote Farm Monitoring.
Speakers:
Nancy Charlton: VMS Herd Management Specialist Brady Catob: Sales Support Specialist/ Calf Feeder Specialist Stephanie Mattingly: VMS Sales Specialist If you are a prospective robotic dairy operator, plan to attend a fun and informative event. Learn about automating your farm and solutions for success
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Checkoff Moves More Milk In Kentucky
F
uel Up to Play 60 is the nation’s largest in-school health and wellness program. It reaches more than 595,000 students at 1,151 schools in Kentucky and encourages lifelong dairy consumption and physical activity. There are 1,005 SUDIA Dairy Everywhere programs in Kentucky. The 87 schools funded in 2016 moved more than 5.4 million pounds of milk. Programs include Breakfast in the Classroom, Grab ‘n Go Breakfast, Smooth & Smart, Summer Nutrition and Yo to Go. Summer Feeding programs continue to grow. During summer 2017, more than 2.8 million meals which included more than 1.5 million pounds of milk. That’s a 13.8 percent increase in meals since 2016!
Above: Make-Your-Own Yogurt Parfait Bars have proven to be a popular, trend-setting option for many school cafeterias across Kentucky. Grant County schools increased yogurt consumption by 1,400 pounds per month after starting yogurt parfait bars in middle and high schools.
November-December 2017 • KDDC • Page 22
Dairy continues to be a foundational element at McDonald’s with total dairy usage increasing by 8 percent in 2016. With the help of Dairy Management Inc.’s on-site food scientists, several new products will launch or relaunch in 2017, including McCafé and Buttermilk Chicken Tenders. May’s osteoporosis awareness campaign, “Bone-Gevity: Bones Built to Last,” reached more than 101 million people! Your local checkoff continues to grow its restaurant partnerships with regional foodservice chains in an effort to expand dairy on restaurant menus and increase pounds of milk moved in the Southeast. Our partnerships include Arby’s, Your Pie and Focus Brands.
Above: SUDIA sponsored a delicious and nutritious chocolate milk toast on behalf of the dairy farm families of the Southeast at the Kentucky Department of Education Summer Meals Celebration. The toast celebrated the record-number 2,879,971 summer meals served throughout the state – a 12 percent increase in meals served over 2016.
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Allied Sponsors Platinum
S P E C I A L T H A N K S T O O U R
Ag Central Alltech Cowherd Equipment CPC Commodities Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Farm Credit Mid-America Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Southland Dairy Farmers Trenton Farm Supply Zoetis
Gold Arm & Hammer Animal Nutrition Dairy Express Services Dairy Products Assoc. of KY Elanco IDEXX Kentucky Nutrition Service Land O’Lakes Mid-South Dairy Records Owen Transport Purina Select Sires MidAmerica (KABA)
Silver
S P O N S O R S
Afi Milk Grain Processing Corp. KVMA Luttrull Feeds Prairie Farms RSI Calf Systems
Bronze ABS Global Advantage Hoof Care Bagdad Roller Mills Chaney’s Dairy Double “S” Liquid Feed Genetics Plus Hinton Mills Lallemand Smith Creek, Inc Wilson Trucking
November-December 2017 • KDDC • Page 23
Non-Profit US Postage PAID
176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph www.kydairy.org
2017 Dairy Calendar of Events January 2018 January 11-12 January 15-17 January 17 EST
February 27 KY Cattlemen’s Association Convention and February 28 Ag Industry Trade show, Convention Center, Lexington Georgia Dairy Conference, Savannah Marriott February 28 Riverfront, Savannah, Ga. Prairie Farms Informational Meeting, Center for Rural Development, Somerset KY 10:00 A.M.
February 2018
March 2018 March TBA
February 14-17 The National Farm Machinery Show, Louisville KY April 2018 February 22 Alfalfa Conference, Cave City Convention April 5-7 Center February 27 Young Dairy Producers Conference, Sloan Convention Center, Bowling Green, 9:30 A.M. CST
Milk Matters November- December 2017
Dairy Awards Banquet, Sloan Convention Center, Bowling green, 6:00P.M. CST KY Dairy Partners Meeting and Industry Trade Show, Sloan Convention Center Bowling Green, 8:30 AM The Dairy Alliance (SUDIA) Board Meeting, Sloan Convention Center, Bowling Green
44th Annual Southern Dairy Conference, Atlanta Georgia
KY National Show and Sale, Louisville KY