KDDC Milk Matters, March/April2014

KENTUCKY

March-April 2014 w w w. k y d a i r y. o r g

Milk Matters New KDDC President, Richard Sparrow

Supported by

Find out more on pages 5

Spring Into Farm Safety More info on page 10

The 52nd Annual KY National Dairy Show & Sale

By Katherine Wheatley, KDA he 52 nd Annual KY National Dairy Show & Sale proved to be successful once again. The time honored event was held April 3-5 at the KY Fair and Exposition Center with over 200 head of cattle from over 12 states.

The event was sponsored in part by the KY Department of Agriculture, Commissioner James Comer, KDDC, KY Cattlemen’s Association, Southern States, SUDIA & DFA. The event included six breed shows and sales along with a sale social and silent auction on Friday evening. A new addition to the sales series was the introduction of online bidding for multiple breeds. The Jersey Show and Sale has used this successful and popular marketing tool since 2012 and this year, the Ayrshire/Milking Shorthorn and the Holsteins, achieved the same success and positive feedback.

The event kicked off with the Holstein sale on Thursday with a total of 44 lots grossing over $112,000. The sale averaged $2,550 with the Grand Champion cow topping the sale at $8,500. She was Lot #1, Lylehaven Licour-ET, consigned by Bree & Mallory Russell, Knob Lick, KY. She was purchased by Brian Stump & KY Bluegrass Genetics of Eminence, KY.

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Cont’d on page 17

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

2014 KDDC Board of Directors & Staff Executive Committee

President’s Corner Tony Cowherd

President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Past President: Bob Klingenfus

Board of Directors District 1: Lesa Elliot Clark 270.210.3743 District 2: 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: Open 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

March - April 2014 • KDDC • Page 2

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appreciate the confidence that the board has put in selecting me as the President of KDDC, however as I have mentioned before, I have many responsibilities at home that must be tended to on a daily basis. I feel that these responsibilities prevent me from being the President that each member of KDDC deserves. Although I was excited and appreciative of being named President of this

organization and felt I could handle the responsibilities, after reflection with my family, I believe there may be others who could handle the challenge and lead KDDC to even greater opportunities.

The KDDC is such an important organization, which represents all Kentucky dairy farmers, that requires an excessive amount of time both for meetings and decision making of serious issues. My family and I feel as though I cannot adequately complete these duties as needed, due to my current responsibilities as a dairyman with multiple employees and the owner of an equipment, supply and service business. The mandatory time away from my operation will place

an extra burden on my family if I maintain my position as the KDDC President.

I sincerely apologize for having to step aside from the position so soon in the year. However I wish to continue serving at some level in the organization. I can do so through my support of advertising in the Milk Matters Newsletter, participation in trade shows, and as a member of the Executive Committee or wherever the board needs me. I truly hope everyone understands that I want the very best for KDDC while I attempt to maintain the demands I have at home.

Thank you for your consideration and I look forward to our next gathering.

Thank You Letter March 13, 2014 Re: 2014 Young Dairy Producer Conference Thank you for including us in your recent YDP Conference. How timely, as we prepare to visit bankers this month.

Your speakers were excellent. We truly enjoyed all the presentations especially Gary Sipiorski speaking on improtant topics in the financial sector.

Kevin Ferguson’s presentation was also informative. We passed along our comments to Dr. Peter Krawezel, UT Dairy Specialist. Dr. Peter assured us he will follow up with Kevin.

Thank you for the opportunity to network and educate.

Sincerely, Michael and Kathy Stiles Cottage Grove, TN

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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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lthough spring officially arrived March 20th, old man winter evidently wanted to make certain we all remember his antics with one last gasp of snow in April. It certainly has been one of the longest winters I can remember and hopefully one that will soon be forgotten.

That being said we all look forward to green grass and getting started on a new cropping season. This time of year always makes me think about farm safety. It is often said that farmers want to “make hay while the sun shines” and sometimes may want to hurry and cut corners on safety. We ask everyone to take your time and be careful.

The experts on this subject with the KY Department of Agriculture submitted an article on farm safety. Please take time to read and reflect. Remember why you as a farmer do what you do… and enjoy the freedom and process of farming the land so you may also enjoy the fruits of your labor.

Shifting gears some, the KDDC held its bi-monthly board meeting April 11, 2014 at the Nelson Co. Extension Office. There was a large crowd on hand with 39 in attendance. The meeting kicked off with Tony Cowherd, Taylor County dairyman and allied industry equipment dealer, making a heart-felt announcement that he believed there were others on the board which could give more time to the office of KDDC President. After reading a prepared statement, Mr. Cowherd stepped down as President. Tony’s parting thoughts as KDDC President can be read in this issue’s President’s Corner. Tony has always done whatever he could to help make KDDC a better organization. We appreciate his desire to serve and understand that the commitments one has to his dairy farm business and family comes first.

Richard Sparrow, having been elected as District 10 KDDC dairy farmer director and KDDC Vice-President stepped in to conduct the

meeting. Although Robert’s Rules of Order states the Vice-President is to complete the term as President, it was the request of Mr. Sparrow to have the board express its will in the matter. Therefore nominations were opened from the floor with Richard being nominated and then nominations ceased. The new KDDC President is Mr. Richard Sparrow, dairy farmer from Owenton, KY. Charles Townsend, DVM, and KY Medical Veterinarian Association representative to the KDDC board was elected as Vice-President.

Tom Hastings, Burkmann Feeds, was elected as Secretary/Treasurer with past President, Bob Klingenfus and member at large Tony Cowherd completing the Executive Committee. Eunice Schlappi, KY Department of AG is an Advisor on the Executive Committee also.

Alan Wilson, the Milk Hauler representative on the KDDC Board gave a report on the rising cost of hauling milk. I had requested Mr. Wilson to provide the board with an update and information on hauling cost after hearing conversations ongoing in the field regarding this matter. It seems that everyone across the state has been or will be affected by increases in hauling charges. Accessibility of milk haulers is one of the largest concerns to dairy producers into the future.

Bill McCloskey, Governor’s Office of Ag Policy advisor spoke on the KY Ag Development Funds and how the cigarette companies’ lawsuit will affect the amount of funds going forward. It appears unless changes occur funds will be available for 2015 at present levels for the KDDC and others but then decrease drastically going into 2016. The KDDC Board and those of other organizations will need to begin planning for that time, if it does arrive. It is good to consider it anyway, if the KDDC is to be a viable, sustainable entity. I hope though, all involved in KY’s dairy industry takes an honest look at what the KDDC has accomplished since its beginnings in 2005. It would not have happened had we not been blessed to have the KY Ag Development Funds. It has been spoken of as remarkable, by those in other states whenever the conversation involved funding for the KDDC. The KY General Assembly’s decision to move 50 percent the Master Settlement Funds to jump-start programs, agricultural projects and ideas has given the dairy industry an opportunity to show what it can do and how it can work well with others. There is more to do.

Scott County Ag Adventures Day By: Teri Atkins Promotion is a part of the KDDC mission and what better way to promote milk and dairy farming than to talk with kids. The spring usually brings about opportunities for KDDC to collaborate on school based activities. On April 8, the Scott County Farm Bureau held their annual Ag Adventures Day at the Alltech Arena, in Lexington. This event continues to grow with more and more agricultural groups participating.

This year, it was non-stop all day for Ms. KY Kate. There were 19 stations available

March - April 2014 • KDDC • Page 4

for the kids to view and learn, with 10-15 minute time slots. There were over 800 third graders that had the opportunity to discuss dairy farming, safe handling of milk and receive a hands on milking lesson.

For most of these students, this was a first.

Several of the kids had some agriculture background, but most have never even been on a farm. The statistics show that we are now three to four generations removed from farming and that will continue to grow. Therefore, it is more important every day that we educate the community on the importance of where their food comes from.

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

New 2014 KDDC President, Richard Sparrow

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ichard and his wife, Renelle, have three sons, Joe, Ben and Kirby, and reside in Owenton, KY where they are in partnership of Fairdale Farm, LLC, milking 40 registered Brown Swiss. Richard received a degree in Animal Science from the University of Kentucky in 1978. He has worked with producers, processors and 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 is returning to the KDDC Board having been involved in the founding of the organization. When interviewed and asked what his vision for KDDC would be, Richard was quick to hit on three major points: 1.

First and foremost, to make the KDDC sustainable. Everyone knows the KADFs will eventually diminish. We will need some sort of a method going forward to sustain the organization. We do not know what that will look like at this time, but we must start the

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conversation.

2.

KY dairy farmers must work toward compliance with the KY Ag. Water Quality and Nutrient Management Plans. KDDC needs to continue the education process for farmers and secondly it must continue speaking on behalf of KY producers to minimize over-reaching regulations and excessive paperwork.

3.

On the short-term: The Dairy Title; Margin Protection Insurance in the Farm Bill has been passed into law. However, there are still a lot of questions which are unanswered.

The KDDC Consultants need to be equipped to answer dairy farmers’ concerns and to help in making better decisions to insure them against potential disastrous margins. The KDDC in cooperation with milk marketing organizations and/or others need to develop a Margin Protection Tool to help producers determine the best levels of coverage for their operations.

We welcome Richard back to the KDDC Board and look forward to working with him as he leads this organization in the next chapter.

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

Managing Poo Begins With You By: Teri Atkins

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n March, there was a series of meetings held across Kentucky called “Managing Poo Begins With You”. The “Poo” meetings were sponsored by the KY Dairy Development Council, KY Farm Bureau, UK College of Agriculture, Food and Environment, Division of Compliance Assistance, and the Soil Conservation Districts of Kentucky.

Dr. Steve Higgins, from the UK College of Agriculture, Food and Environment, was the featured speaker.

These meetings were designed to educate dairy farmers on the importance of the Ag Water Quality Plan (AWQP) and the Nutrient Management Plan (NMP), but also to let producers know how to be prepared for a visit with the Division of Water (DOW).

All of the meeting partners’ had an identical goal: to start the process of educating farmers about their environmental responsibilities. The eight meetings brought in around 10 percent of the total dairy farmers in KY. There were over 80 attendees representing 67 farms, from 32 different counties. It was identified by a post-meeting survey that those 10 percent of dairy farmers now have a much better understanding of how and why the plans were established, how to write their plans or find resources to help them write them write their plans, and how to be prepared for a visit from the DOW. The meetings may not have had the attendance that was initially desired; however, the positive responses from the farmers were more than could have been anticipated.

The meetings covered an enormous amount of material, in a short four hours. There is no way to put all of the information into an article, but here are a few of the take home points.

1.

AWQP a.

The Agriculture Water Quality Act states that landowners with 10 or more acres in agricultural production must develop and implement an AWQP. b.

The AWQP is mandatory; however the best management practices (BMP) in the AWQP are voluntary. There are multiple BMP selections within the AWQP so that the individual can choose what best fits their operation. This document was not designed to hamstring farmers, but to actually help them. Producers do not need to feel like they have to implement every BMP in the plan because the BMP may not pertain to their farming practices. c.

The BMP’s are designed to protect water quality from excess nutrients, sediment, and pathogens. If used correctly, the BMP’s can also help producers be more productive. d.

The AWQP will be one of the first items the DOW inspector will ask for. It is very important to update your AWQP regularly and have it readily available.

March - April 2014 2014 • KDDC • Page 6

2.

NMP (CNMP or KyNMP) a.

If you dispose of animal waste, which all dairy farms do, you also need to have a NMP. i.

There are two types of NMP’s available to producers: a Comprehensive Nutrient Management Plan (CNMP) and a KyNMP. ii.

The CNMP has to be written by a technical service provider (TSP). There is financial assistance available through State Cost Share and NRCS programs to help with the cost of the CNMP’s. You must get a CNMP if you want to participate in federal cost share programs. iii.

The KyNMP can be written by the producer. It is not as detailed as a CNMP, but it will give you the same information in a shorter version. The KyNMP will not cost the producer a penny unless you hire a professional to help you with this plan. b.

A NMP, no matter the size or price, is designed to help the producer manage their manure in a profitable and environmentally friendly method. The NMP also needs to be updated every five years and needs to be within reach if an inspector were to show up.

3.

KNDOP a.

A KY No Discharge Operational Permit (KNDOP) is required if you use a liquid manure storage system or generate milk house wastewater. The no discharge means just that, no discharge. b.

To obtain or renew a KNDOP the producer must submit a Short Form B to the DOW Central Office. c.

It is very important to check your permit and see when it will expire. It is up to each producer to make sure the permit is renewed.

4.

Maintaining Records a.

Records, records, records! It cannot be mentioned enough, make sure you are keeping adequate records. b.

The AWQP does not actually require any records, but the NMP and the KNDOP both do. a.

When you spread manure, write down when, where and the weather. b.

When you have a mortality, document the mortality and method of disposal. Keep a receipt if you paid for someone to remove the dead animal as proof. c.

Soil Samples d.

Manure Samples e.

Freeboard on manure pond-at minimum of once per week f.

Depending on the operation there could be others. c.

This seems like a lot of paper work; however the record keeping is a must. It can be the “make you or break you” part of the inspection.

We have all heard “a picture is worth a thousand words” and I believe that is so true. The presentation that Dr. Steve Higgins gave was primarily photos. He was able to show how BMP’s had been implemented on farms and how the changes were improving the production. We are already working on the next step to continuing education outreach to dairy farmers on these same topics. If you have any questions about what you need to do at your operation to be in compliance, please contact your local KDDC dairy consultant and we will assist you. Remember the first step to being prepared is getting started.

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

Can It Still Be Done?

By Dave Roberts There are some folks who grow up with a love of cows and dairy farming who have no easy way to enter the industry.

Not growing up on a family dairy and trying to begin in the dairy business can prove challenging. Or, you may have grown-up on the family dairy and because of other siblings there’s no room for more partners. Whichever the case may be, starting out in the dairy business on your own is a monumental challenge, some say impossible. As hard as it is to begin dairying with few or no dairy assets, there are people doing just that.

You’ve heard the saying, “there’s more than one way to skin a cat.” Well when entering the dairy business on your own you better sharpen “that Ole Skinning Knife.” This article is the first in a series of articles where young men and women share the stories how they started in the business from scratch.

These articles will also attempt to point out pit falls to avoid and practices to embrace for a better chance of success. These practices may apply to all dairy producers, not just beginners.

There are many resources available to young producers just getting started and the key is not to be afraid to use them.

Entering the dairy industry with an open mind and a willingness

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to learn new things is a must. Asking questions and looking for help is not a weakness; it’s smart business. Also, there are many tried and true methods in running a dairy but don’t be anchored to outdated ones. Dairying is an ever changing business and keeping informed is a key to success.

The Kentucky Dairy Development Council’s consultants have access to a vast amount of dairy information, and can also point producers in the direction of those with specialized knowledge.

The University of Kentucky’s Dairy Department and Extension program are excellent resources for beginning dairies and existing ones. In a joint effort UK and UT are finishing up the updating of their Sustainable Dairy Systems Manual. This manual is a virtual all in one reference book including facts on farmstead planning, manure management, facilities, forages, heifer rearing and much more.

Other resources for new producers may be an established and successful dairyman in the community, a local banker or someone from an agricultural loan company, a local large animal vet or dairy nutritionist. Beginning producers have credited these types of go to people as partial reason for their success in the dairy business.

We look forward in following newsletters to bring you the success stories of KY producers that have begun in the dairy industry with little more than a love for cows and the dairy business.

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

UK Dairy Challenge Team Wins Second Place at National Contest By: Teri Atkins

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he University of Kentucky Dairy Challenge team won second place on Farm B at the 13th North American Intercollegiate Dairy Challenge Contest held April 35, 2014 in Fort Wayne, Indiana. This year’s team consisted of Meghan Grone from Kenton County, Patrick McCoy from Powell County, Kara Bekebrede from Louisville, KY and Emily Morabito from Long Island, NY. Team members are seniors graduating this May with degrees in Animal Sciences. The team was coached by UK graduate students, Barb Wadsworth, Lauren Mayo and Derek Nolan, and Dr. Donna Amaral-Phillips.

The National Dairy Challenge Contest is a three day event where students evaluate a dairy operation and get to apply concepts they have learned in the classroom to actual farm situations. On day one, students receive information regarding the host farm’s management practices, financial information, and production records. Day two starts with a visit to the dairy itself and concludes with four hours to develop a presentation for this host farm. This presentation includes the strengths, opportunities for improvement, and a prioritized plan for their host farm based on the farmer’s goals, production and performance records, and observations on farm. On day three, the team presents and defends their recommendations to a panel of five industry judges including a dairy farmer, animal health industry representative, reproductive industry representative, nutritionist, and financial advisor.

Dairy Challenge Academy participants also took part in this event in Fort Wayne, IN. These students are usually preparing for next year’s National Dairy Challenge team. For the Academy, students participate in mixed-university teams and analyze a host dairy with the help of industry advisors. They also develop a set of recommendations for their host farm. This year, Savannah Meade (Pike County), Mickayla Myers (Vermont), Yu Zang (China), and Katie Wolf (West Virginia) participated in this educational event and look forward to being part of a team in future years.

In preparation for both the National Dairy Challenge Contest and Academy, the students visited multiple dairy farms across the state of Kentucky. The team would like to thank those Kentucky

March - April 2014 • KDDC • Page 8

dairy farms for allowing them to visit and learn from their operations. Thank you for your patience and willingness to answer their questions, help teach them about the day-to-day management of a dairy, and most importantly, to gain a true understanding of the passion you have for dairy cows and the industry.

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

Leading Beginning Producers Forward and Surpassing the Vision

By Jennifer Hickerson, KDDC Dairy Consultant That’s exactly what the KY FarmStart Program has done for the many beginning dairy producers that have taken advantage of the opportunities made available since its implementation in 2013. The KY FarmStart Program is a hands-on program that teaches the basics of the core concepts involved in dairy management focusing on the cow as well as the business.

You say you are not a new or young producer and can’t benefit from the KY FarmStart Program?

STOP!! You may actually qualify to participate in this unique program. Beginning doesn’t mean inexperienced or new but the KY FarmStart program defines a beginning farmer or producer as a person who has had the primary responsibility of making financial decisions for the operation for less than ten years.

The KY FarmStart Dairy Short Course held on March 11th thru 13th at the UK Coldstream Dairy in Lexington, KY is a prime example. This event had 21 producers eager and willing to gain knowledge of dairy management. This group ranged from teens to 50+ years in age coming from diverse situations. Some were new to the industry, others were returning back to the farm from careers, while others were in

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the process of handing down the family operation to the next generation. In these three days this group got to experience hands on learning and core concepts that can be taken back and applied to their dairy operation. During the course topics such as Housing, Mastitis, Nutrition, Reproduction, Health, DHIA, Transitioning Cows, Economics and Technology were discussed along with transitioning the farm and/or operation to someone else; all which can provide a basic foundation for successful management of a dairy operation.

The KY FarmStart Program will continue leading beginning producers forward and surpassing the vision of the program. Don’t miss the next opportunity to benefit. Mark your calendars for the upcoming second KY FarmStart Dairy tour this June 30th thru July 2nd as they head to Missouri to visit diverse dairies from New Zealand style grazing systems to robotic milking. This is an immeasurable opportunity to gain useful knowledge and learn from other dairy producers as well. If you are interested please contact your KDDC Dairy Consultant for forms and information.

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

The Kentucky Cheese Guild By: Maury Cox Ahhh, the power of Cheese! Microprocessing of milk into value-added dairy products has been growing in interest over the past several years. New artisan and farmstead cheesemakers are developing very unique and flavorful delights for hungry cheese enthusiasts across the Commonwealth.

As more folks have started experimenting in the trade, utilizing milk f rom sheep, goats and cows, several cheesemakers and supportive groups have suggested the development of a trade group. This organization would be devoted to education in best management practices of cheese making while also focusing on production and marketing of these delicious valueadded dairy products.

The Kentucky Cheese Guild would do just that and more. Presently in the development stage, Sarah Fritschner,

Coordinator for Louisville Farm to Food approached KDDC to help get the organization up and going. The KDDC Board unanimously approved the idea and voted to cover the initial cost of developing a website and logo along with setting up and administrating an account until the Guild can begin operating on its own.

It is a natural fit when one looks at the Vision, Mission and Goals of the KDDC. They are: Vision: To create a vibrant and sustainable dairy industry in Kentucky.

Mission: To educate, promote and represent dairy producers and foster an environment for growth of the Kentucky dairy industry.

Goals: To increase Kentucky dairy farmers’ profitability.

To improve Kentucky dairy producers’ competiveness.

To enhance Kentucky dairy farm families’ quality of life.

To assist in the sustainability of Kentucky’s dairy industry.

The future plans of the KY Cheese Guild are to meet during the KY Milk Quality Conference in August to set up a leadership structure of officers, establish a three year strategic plan, develop plans for four meetings for the next 12 months and provide programming on marketing and production.

The KDDC looks forward to seeing this organization develop and grow and is willing to help how it can. Look for information in the near future as a logo and website is designed to feature some of the very best cheese one can find anywhere! Ahhh, the power of Cheese!

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

Milk Prices FMMO 5 www.malouisville.com April 2014 Class I Advanced Price (@ 3.5% BF) $27.04 May 2014 Class I Advanced Price (@ 3.5% BF) $27.87

Dixie Dairy Report Calvin Covington, ccovington5@cs.com, 336-766-7191 March saw many record prices and look for more in April. March 28 at the CME was the first time cheese, butter, and nonfat dry milk powder all traded above $2.00/lb. CME block cheddar set a record price of $2.4325/lb. on March 24. March saw both the Class I Mover and Class IV price, again, at record prices. All three southeast federal orders saw record blend prices announced in March for the previous month. Look for more record prices in April, but based on commodity prices starting to decline at the CME, April will the last month of record setting prices, at least for some time.

Southeast blend prices going higher. The Florida blend price is projected over $28.00/cwt. The Appalachian and southeast blend prices are projected over $26.00/cwt. We project blend prices to remain at these levels for April as well. May prices are projected to decline slightly from April. Look for June blend prices to drop about $2.00/cwt. from May, then for the decline to continue the remainder of the year.

However, these “lower” prices will remain above previous years’ averages.

For all of 2014 we project southeast blend prices to average at least $2.50/cwt. higher than 2013.

U.S. milk production remains steady. February milk production was up 1.1% compared to a year ago. Cow numbers remained steady, so the

FMMO 7 increase was due to more milk per cow. California production www.fmmatlanta.com was up 5.3%, while production April 2014 in Wisconsin was down 2.0%.

Class I Advanced Price Outside the U.S., January saw (@ 3.5% BF) milk production in the European $27.45 Union and New Zealand up 5.1% and 7.4%, respectively, compared May 2014 to last January.

Class I Advanced Price Higher prices not yet reflected (@ 3.5% BF) at retail. February, Bureau of $28.27 Labor statistics, show the average retail price of a gallon of whole milk is only $0.08 higher than last February. On the other hand, the raw milk cost of a gallon of milk this February compared to last February is over $0.30 per gallon higher. The average retail price per lb. of cheese is actually down $0.40/lb. compared to a year ago, while the CME block cheddar price is up $0.55/lb. So far retailers are not passing on higher raw prices.

Fluid milk sales continue to decline. Average daily packaged fluid milk sales in the three southeast federal milk marketing orders was 29.6 million lbs. in 2013, down 2.7% from 2012. As seen in the chart below, fluid milk sales peaked at 32 million lbs. per day in 2009, and have declined each year since.

We estimate southeast per capita fluid milk consumption at 143 lbs. per capita in 2013.

In 2000 it was 182 lbs. per capita. Hopefully, generic milk promotion efforts emphasizing “milk protein”, increasing fluid milk export opportunities, more protein fortified and specialty fluid milk products, along with some increased interest in fluid milk brands will turn around or at least slow down fluid milk sales declines.

March - April 2014 • KDDC • Page 11

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

Spring Into Farm Safety

By Ted Sloan, KDA Assistant Director, Division of Public Relations

tractor or ATV accidents and calls in local emergency responders — often including medical helicopters — to treat the “victims.”

The audience sees a realistic depiction of the consequences of a bad decision and watches their local rescue personnel in action.

The first responders use the opportunity to sharpen their skills.

The Farm and Home Safety Program operates a one-of-a-

Spring in farm country means green grass, colorful flowers, chirping birds, and farm machinery in the fields but also on the roads as farmers move implements from one field to another.

When cars and farm machinery meet on Kentucky roads, it’s everyone’s job to exercise an added level of caution to make sure the meeting is an uneventful one.

“It’s important that farmers and motorists cooperate in order to keep our roads safe,” Agriculture Commissioner James Comer said. “Drivers get impatient with large, slow-moving farm implements. Farmers get frustrated with drivers who don’t understand that they have to move equipment on the roads from time to time in order to make a living. With a little patience and cooperation, we can all avoid accidents and save lives.”

A western Kentucky farm took the initiative to ask its non-farm neighbors for patience and understanding. Davis Brothers Farms of Cunningham in Carlisle County placed an advertisement in the Paducah Sun newspaper explaining that it’s sometimes necessary for farmers to drive farm machinery on the roadways and urging drivers to play it safe when they encounter a tractor, sprayer, combine, or other large, slow-moving farm machine.

Davis Brothers Farms, operated by Jeff and Agriculture Commissioner James Comer, right, said hello to (left to right) Shannon Roger Davis, also posted the content of the Sparks, Whitney Turner, and Dale Dobson of the Kentucky Department of Agriculture during the National Farm Machinery Show at the Kentucky Exposition Center ad on the farm’s blog. in Louisvile in February. (Kentucky Department of Agriculture photo) “Our aim is to lift up the community by providing safe agricultural products,” the ad kind rollover tractor simulator that demonstrates how a rollover states. “And we hope to do this without slowing you down, on the protective structure (ROPS) and seat belt can save a tractor road, if possible. But in the event that we do meet on the roadways operator from injury or death in the event of a rollover. The — and we likely will — we beg for your patience, and we’ll try to program also uses a miniature grain bin and gravity wagon to do all we can to accommodate a speedy pass of the machinery, and show the risk of becoming trapped in grain. Dobson uses signage you’ll be on your way. And hopefully, we’ll all have the opportunity and displays to show how improper use of an ATV can lead to to complete this interaction with smiles on our faces.” disaster.

“Farm safety, of course, is a priority all year, not just during spring Kentucky recorded 16 farming-related fatalities in 2012, down planting and fall harvesting,” said Dale Dobson, administrator of from 22 in 2011 and 50 in 1995. On a percentage basis, farming the Kentucky Department of Agriculture’s Farm and Home remains one of the most dangerous occupations in the nation.

Safety Program.

“Kentucky farmers are exposed to all kinds of hazards — “People make life-and-death decisions every day, whether from machinery, livestock, farm chemicals, and other risks,” operating a tractor, driving to town, going for a ride on an ATV, Commissioner Comer said. “The Farm and Home Safety Program or any number of other activities,” Dobson said. “One careless raises awareness of the need to take extra care at all times — for moment can leave someone permanently injured and even end a yourself but also for your loved ones who depend on you. This life. Many tragedies can be avoided if people will stop and think program is making a real difference in people’s lives. I hope before they act.” everyone will take Dale’s advice and put safety first.”

The Farm and Home Safety Program travels all over Kentucky to talk to students, civic groups, farm organizations, and others about the importance of putting safety first. The program stages mock

March - April 2014 • KDDC • Page 12

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

Center of Kentucky Ag Technology Conference

By Pat Hardesty, Taylor County Agriculture & Natural Resources Agent

O

n March 6, over 150 producers participated in the Center of Kentucky Ag Technology Conference and Trade Show hosted by the Adair, Green and Taylor County Cooperative Extension Services.

The Ag Technology Conference featured a trade show and seminars highlighting beef, dairy and grain technologies used to enhance profitability.

Thirty-five agriculture dealers filled the Ta y l o r County Extension Office conference room displaying their latest technology products. The vision for this conference was to expose agricultural producers to the latest technology available and encourage the adoption of these advancements for increased profitability for their farming operations.

Dr. Les Anderson, University of Kentucky Beef Specialist discussed technologies used to enhance beef efficiency.

Dr. Anderson then demonstrated how to obtain a blood pregnancy test to integrate in one’s reproductive management program. Karmella Dolecheck, University of Kentucky Graduate Assistant, discussed technologies used in the dairy industry and forthcoming technologies that will be

Local producer Lyle Knifley gets an up close look at the features of the Scout UAS drone.

used to enhance efficiencies through a systems management approach. Dr. Tim Stombaugh, University of Kentucky Agricultural Engineer, discussed technology developments of machinery, equipment and total farm communications using GNSS. Concluding the day was a demonstration of a drone (unmanned aerial vehicle) flying pre-programmed coordinates and f ree hand in the lot behind the Extension Office where dealers were exhibiting tractors, spray coupes and spreader trucks.

With a range of more than a mile and a maximum speed of 45 miles per hour, the Scout UAS demonstration by Drone Systems was one of the most popular features of this year’s Center of Kentucky A g.

Tec h n o l o g y Conference and Trade Show at the Taylor County Cooperative Extension Office on March 6. The GPS navigation and cameras attached to the drone are useful for crop management and monitoring vegetation density, as well as detecting erosion and insect infestations.

Photos provided by Leslie Moore, Central Kentucky News Journal

Local dairy producer David Corbin learns how Cow Kuhlerz can reduce heat stress and ensure optimal milk production in his cows from representative Brent Hershey.

March - April 2014 • KDDC • Page 14

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

Baseball fun for the whole family !!

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Tuesday, June 10 $7.00 per cket

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

The 52nd Annual KY National Dairy Show & Sale Cont’d from page 1 On Friday, the Ayrshire, Milking Shorthorn, Guernsey and Brown Swiss Shows and Sales were held. The Ayrshires hosted the Milking Shorthorn breed within their show/sale for a total of 35 lots grossing $71,000. The Ayrshire sale averaged $2,203 and the Milking Shorthorns were $1339.

The high selling Ayrshire was the Junior Champion of the show, Lot #27, JSB Acres Phoebe, consigned by Billy Branstetter of Hardyville, KY and purchased by Tyler Bruchey, of Keymar, MD for $5,700. The high selling Milking Shorthorn was Lot #41, Lazy M Jekyll Paprika EXP, consigned by Michael Maier of Stitzer, WI. The buyer was Wessel Farms in Seymour, IN for $2,125.

The Guernsey show and sale hit the ground running with a total of 30 lots grossing $57,000 with an average of $2,036. The high seller was the Junior Champion of the show, Lot #13 Coulee Crest Top Notch Jodi-ET consigned

by Kurt Peterson of Cashton, WI. The purchaser was Sydney Willingham of Gamaliel, KY for $3,800.

Rounding out the sales series for Friday was the Brown Swiss show and sale with a total of 38 lots. Their sale grossed $106,050 and the high selling female was Lot #1, Fairdale Supreme Wow, consigned by Fairdale Farms of Owenton, KY. The heifer was purchased by Hills Valley Farm of New York for $10,100.

The sale social and silent auction was a huge success on Friday evening with over 100 breeders, consignors and buyers. The silent auction featured various dairy themed items and all that attended had an excellent time. The event was rounded out by the Jersey show and sale on Saturday morning with a total of 41 lots averaging $2,608. The sale grossed $106,950 and the high selling female was Lot #10, Heartland Santiago Ainsley –ET, consigned by Heartland Jerseys of Seneca, KS. The buyer was Leroy & Martha Sue Miller of Fredericksburg, OH for $5,700.

Overall the event had a total sales gross of $453,000 with an overall average of $2,409.

State 4-H Dairy Jeopardy Contest By: Larissa Tucker and George Heersche, Jr. The 2014 State 4-H Dairy Jeopardy Contest was held March 17 at the Barren County Extension Office. There were thirty-one participants in this year’s event. The 4-H members answered questions related to nutrition, reproduction, cheeses, milking procedures, facilities, and many other topics. The youth have been studying for several months to prepare for this event. They take a written test and everyone participates in one round of toss up questions. The top eight in each division then participate in a second round of toss up questions to determine the winners.

In the junior division the top five were: First: Walter Baker, Adair County; Second: Tyler London, Metcalfe County (missing from picture); Third: Jagger Jones, Barren County; Fourth: Jackson Baird, Spencer County; and Fifth: Mallory Russell, Metcalfe County.

In the senior division the top five were: First: Jacob Barnett, Spencer County; Second: Daniel Cooper, Spencer County; Third: Sam Baker, Adair County; Fourth: Rachel Seibert, Spencer County and Fifth: Ally Jones, Barren County.

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

What’s Known - and not known - about the new Margin Protection Program

By Dairy Today: Know Your Market, Dairy Today Ken Hartzell, Dairy Gross Margin, LLC

T

he most frequently asked question centers around high milk prices and how long will they stick around.

After all, the expression “the cure for high prices is high prices” should be coming into play. And dairies have certainly seen some of the highest milk prices ever.

The futures market continues to show discounts (lower prices) in the farther out months. As each contract nears expiration, the tendency has been for the nearby prices to rally. This seems to tell dairymen not to worry about risk management. However, increases in supply are worrying the market and should provide a tipping point eventually. Add in the toppy look of a farther out futures chart (July or later), and some alarm bells should be going off.

The next question concerns the new farm bill and its effect on the dairy industry. Familiar programs such as MILC and the export provision are gone. A new provision called MPP, or Margin Protection Program, is introduced and demands everyone’s attention. Its purpose is to protect dairies in the event of low milk prices and higher corn/soybean meal/hay prices.

We know: 1. A producer can choose to insure a margin of $4 per cwt. minimum up to $8 in $.50 increments.

2. There are different premium levels for producers below 4 million pounds of annual production (as determined by the HIGHEST of their production in the calendar years 2010, 2011, 2012) and those above 4 million pounds.

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3. The premiums are fixed by law and will be based on the producers highest Annual Production History in the years 2011, 2012, and 2013.

4. A producer may insure, in 5% increments, from 25% to 90% of his production history.

5. Production can be increased each year by multiplying production history times 1.02.

6. Losses will be calculated in two-month increments. Example: January and February will be calculated together, March and April together, and payments made, based on those two months.

7. Producers will be able to change their percentage of milk insured and their level of margin coverage at yearly sign-up time.

8. Producers choose one percentage and coverage level for the entire year.

9.This program is “absolute.” It is not about the markets comparing to what is predicted. It is about the markets performing against absolute values.

10. This program is highly subsidized by the government.

We DON’T know: 1. When you will be able to sign up for 2014, or when you will have to sign up for 2015.

2. If a producer signs up for the program, whether he is “locked” into the program until it expires in December 2018 or if he can opt out on a yearly basis.

3. For SURE, if it is on a calendar year basis or fiscal year basis. We assume it is a calendar year basis.

4. When the sign-up period will be in relation to the coverage period (how long in advance of coverage will you decide?)

Other things we know: 1. Premiums are fixed and do not reflect true risk. When futures markets give indications that MPP should pay out, premiums do not increase. In insurance, this is called “adverse selection.” The closer the sign-up period is to the coverage protection period, the more is known and producers can vary their coverage accordingly.

2. It has been said given the “absolute” nature of MPP, this program is “a profit center” rather than risk management.

3. Several economists believe this program, by the nature of support it brings when prices are low, will extend the length of these periods because it will continue to encourage production.

LGM Dairy (Livestock Gross Margin-Dairy) is unaffected in the farm bill in subsidy amounts for producers or overall subsidy amounts. The one stipulation is that if you are involved in MPP, you may not be involved in LGM. Because it is not known if enrollment in MPP is continuous and annual changes are allowed, or if once enrolled, producers must stay enrolled until December 2018, it is hard to gauge the impact on LGM-Dairy Many of the fine points of the MPP program are yet to be determined by USDA and FSA. As one producer stated, it’s kind of like a guy being asked to go on a blind date and not knowing what rules the young lady’s father might impose.

But perhaps more importantly, this provides an alternative, or addition, to current risk management programs. There will be so many choices, it will be harder for a dairy producer to not use some form of risk management.

Ken Hartzell is an agent with Dairy Gross Margin, LLC, an agency that specializes in LGM-Dairy products. Reach him at ken@dairygrossmargin. com or visit www.dairygrossmargin.com.

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

Allied Sponsors

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March - April 2014 • KDDC • Page 19

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2014 Dairy Calendar of Events June 17

May May 1 May 4 May 10 May 17 May 18-21 May 21-22 May 31

June June 7 June 9-10 June 10 June 13 June 14 June 14

Rockcastle Co. Farm Field Day, Quail Park, Brodhead, KY Derby Showcase All Breeds Sale, Frankfort, KY, 2 PM Tweaking Your Grazing Program, Monroe Co. 4-H Dairy U-Know Before You Show Clinic, Horse Cave, KY Alltech International Symposium, Lexington, KY University of Kentucky Spring Grazing School, Woodford Co. Extension Office Harrodsburg June Dairy Day, Cloud’s Country Kitchen, Harrodsburg, KY

June June June June June June June June June June

4-H District Dairy Show, Harrodsburg, KY Kentucky Junior Livestock Exposition, Morehead, KY Dairy Night, Lexington Legends, Lexington, KY Hart County Dairy Day, Munfordville City Square, 9 AM 4-H District Dairy Show, Edmonton, KY Laurel Co. Dairy Day, Farmer’s Market, London, KY

Milk Matters March - April 2014

4-H State Dairy Judging Contest, UK Coldstream Dairy 18 4-H District Dairy Show, Liberty, KY 19 Prairie Farms Ice Cream Social, South KY RECC Building, Jamestown, KY 21 Barren Co. Agriculture Day, Glasgow, KY 21 Forever Farm Sale 21 Tweaking Your Grazing Program, Morgan Co. 24 Dairy Night, Bowling Green Hot Rods, Bowling Green, KY 26 4- H District Dairy Show, Shelby Co. 27 Adair County Dairy Farmer Appreciation Dinner, Columbia, KY 28 Adair County Dairy Day on the Square, Columbia, KY 30-July 2 Farm Start Tour to Missouri

July July 10 July 16 July 23 July 24 July 29-30

Kentucky State Fair Livestock Entry Deadline University of Kentucky Research Show Case 4-H District Dairy Show, Fairgrounds, Tollesboro, KY Kentucky Junior Livestock Exposition, Bowling Green, KY Kentuckiana Bus Tour, Adair County, KY