PDPW Dairy's Bottom Line -- December 2023

Volume 25: Issue 4 December 2023

BOTTOM LINE Sharing ideas, solutions, resources and experiences that help dairy producers succeed.

Dairy farmers give their all – and then some Page 4 Pediatricians say dairy is good for brains, bones and bodies

Page 7 Save March 12-13 for PDPW Business Conference

Page 12 Prep for tax time

Page 13 Food fanatics share dairy with joy

SHELLY MAYER PDPW

The phrase “giving 110 percent” we hear time and time again without really thinking much about it. We can debate whether it’s mathematically possible but the common understanding is that it means giving everything we have – and then a little more – to ensure success.

If there’s any industry on earth known for giving 110 percent, it’s the dairy industry. The work ethic of dairy farmers to feed, care for and milk cows 24/7 is legendary. And what’s more is so many of them are dedicated to regularly improving themselves and their team members. Staying abreast of the latest research, management practices, and consumer and regulatory expectations can feel overwhelming. Yet it’s critical to the success of our farms and our industry.

At PDPW we’re committed to giving that same 110 percent to provide the best-in-class tools, resources and information to help achieve farm and business goals. As a producer-led organization we rely on board members and dairy farmers to guide our programming. And as the dairy industry changes, so must we – modifying program content and presentation styles to provide information our industry needs in formats that work best.

From live or streaming access, to The Dairy Signal® webinars, PDPW podcasts and Managers Memo emails, to incorporating simultaneous Spanish translation in our most popular in-person programs, we’re always looking for new ways to serve the hard-working members of our industry.

We also create programs that build in opportunities for you to take your foot off the gas pedal occasionally. Some members do so by attending conferences. Others send

Contributed

Giving 110 percent means giving everything we have – and then a little more – to ensure success.

team members in order to develop them into people with skills that afford them more time with family and friends. No matter which learning benefit you appreciate most, our goal is to partner with you in giving 110 percent so you don’t always need to.

It takes lots of hands and minds working together to reach the benchmarks our members have established for PDPW. As your educational organization we owe our collective success to a number of people.

Our board of directors drives the ideas and programming on behalf of PDPW members.

Their vision and insight are vital to the development of relevant programs focused on a sustainable future for our industry – while equipping dairy farmers and their teams with the tools they need to be more successful, efficient and profitable. Consistently reviewing and adding programming to meet ever-changing needs is their priority.

Please see MAYER, Page 2

Professional Dairy Producers™ I 1-800-947-7379 I www.pdpw.org

2 December 2023 • PDPW • Dairy’s Bottom Line

Mayer From 1

Most of our members don’t have a day-to-day view of the diligence and creativity the PDPW staff team puts into their roles.

But I can tell you that giving 110 percent is in their DNA. Developing and producing a caliber of programming that’s professional, on-point and relevant to the current needs of dairy producers of all sizes and industry partners of all genres is no easy feat.

Let me also tip my hat to our incredible sponsors. If it weren’t for their consistent, ongoing commitment, this grass-roots organization would never have made the impact it’s been able to deliver – and that influence is being felt around the globe.

We’re also fortunate to work with some of the best vendors, consultants and industry professionals in the world. Time and again they help ensure that every step of our process is professional – from offering simultaneous-translation services to securing comfortable training facilities, producing printed promotional materials and creating convenient methods to register for programs.

In 2023 alone, hundreds of people helped deliver content at in-person workshops, business-conference sessions and Dairy Signal episodes. We’re grateful for their commitment to the dairy industry and willingness to share their talents, experience and knowledge.

The heartbeat of this organization is our membership. We consider it a privilege to serve each and every one of you – and we thank you! Your support, commitment and engagement encourages us to perform at maximum output to support your future and the industry we are all passionate about.

Best wishes for a happy and healthy holiday season. I look forward to seeing you in 2024 as we work together toward an even stronger future.

Shelly Mayer is the PDPW executive director and a dairy producer from Slinger, Wisconsin. Email smayer@pdpw.org to reach her.

Partnerships promote dairy’s story LISA RAMATOWSKI

Dairy farmers have an important story to tell, but preparing talking points can be a challenge amidst an already-full plate of day-to-day demands. That’s why Dairy Farmers of Wisconsin works in partnership with PDPW to help members gain the courage and confidence to contribute their voices as industry champions.

To build and maintain public trust in the dairy industry we must emphasize how dairy farmers produce quality milk by taking care of their cows, stewarding their land and working with their local communities. We collaborate with PDPW to cut through the noise of the multimedia landscape – via spokesperson training, video work and positioning across platforms.

We work together to support farmers – We want dairy farmers to feel excited, not intimidated, when the opportunity arises to give an interview or appear on camera for a marketing campaign.

December 2023 • PDPW • Dairy’s Bottom Line 3 Consumers have questions when they see a 15-second reel about robotic milking or drive by a field where tires hold down massive tarps covering silage piles. Working together to empower farmers as storytellers creates educational opportunities and gives producers another point of pride as they receive positive feedback.

Highlighting consistent themes within unique farmer stories also makes a significant impact on overall dairy-industry perception. Consumer trust in dairy is connected to driving demand and volume for dairy. Sharing on-farm practices helps consumers appreciate how milk is produced. We share a goal to position Wisconsin producers as suppliers of choice within the food industry, including to multinational companies. That’s why working together on initiatives such as June Dairy Month provides powerful opportunities. Playing to each organization’s strength, we can more-effectively reinforce ideas without replicating efforts.

We showcase sustainable farm practices – Consumers are increasingly conscious of how consumption affects the planet. Sustainably marketed products grew 2.7 times faster in their categories from 2015 to 2021, according to research

from the New York University-Stern Center for Sustainable Business. Market research indicates more than 80 percent of Wisconsin consumers trust dairy farmers – but there’s an opportunity to showcase sustainability practices that occur on-farm, bringing those stories forward to consumers and decision-makers more broadly.

The Dairy Farmers of Wisconsin and PDPW are currently working with Wisconsin dairy farmers to produce a video series promoting future-focused farm practices. Our communications expertise helps farmers convey appropriate messages in a way that’s authentic to who they are. Supported by a PDPW grant from Wisconsin Initiative for Agriculture Exports, each segment brings viewers to a different family-owned farm to show how sustainability is built into the infrastructure of the Wisconsin dairy industry. The Wisconsin Initiative for Agriculture Exports aims to boost the export of dairy, meat, crops and other agricultural products by 25 percent by June 2026.

We strengthen demand for exports – It’s no secret that much of the growth potential for Wisconsin dairy lies beyond our borders. Ninety percent of the milk Wisconsin produces is made into cheese – and 90

percent of that cheese is sold outside the state’s borders. The value of our exports has increased by 78 percent during the past decade and revenue continues to increase.

Helping consumers and buyers in Canada, Mexico, southeast Asia and the Middle East understand what makes Wisconsin “America’s Dairyland” is crucial for capturing emerging markets. Currently 15 percent of Wisconsin dairy is exported to more than 140 countries, with 5 percent of that growth occurring during the past two years. Dairy Farmers of Wisconsin market research informs messaging across all audiences.

As our focus regarding exports grows, it’s more important than ever to align messaging to the interests of increasingly international audiences. We tailor-proof points to the timely topics that matter most to them, such as sustainability within the supply chain. By sharing stories, and humanizing facts and figures, we build consumer trust. It’s only through real stories from real dairy farmers that we can bring the industry to life.

Lisa Ramatowski is the senior marketing director of Dairy Farmers of Wisconsin, a mission sponsor of PDPW. Email hello@WisconsinDairy.org to reach her.

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Checkoff strengthens dairy message We’ve seen an especially receptive response to iodine, which dairy delivers.

Iodine is recognized by the medical and nutritional communities for its role in brain health yet there’s a growing decrease in its consumption by expecting mothers.

Severe iodine deficiency is linked to increased risks for miscarriage as well as perinatal and infant mortality.

SALLY CUMMINS

Parents face a lot of uncertainty and have questions about how to give their children the best care possible. Nutrition is certainly at the top of the list as they wade through a sea of information and opinions on how to properly nourish their children.

Many parents understandably turn to pediatricians for dietary advice. But most of those doctors lack nutritional education and training. Despite their education and position they may not be qualified to provide the most accurate guidance.

The National Dairy Council recognized an opportunity to help fill that gap by becoming a go-to resource for pediatricians. The information then ultimately reaches our key audience of early parents, with a message of how dairy foods offer a variety of benefits for their children.

We began by conducting research to discover what aspects of nutrition resonated the most with pediatricians and families. We found most important are healthy brains, bodies and bones.

National Dairy Council in partnership with five state and regional checkoff teams launched in 2022 the Pediatric Care Specialist pilot program. It reached out to pediatricians, and pediatric dietitians and nutrition directors as well as educators associated with the Special Supplemental Nutrition Program for Women, Infants and Children. The pilot program included in-depth nutritional education for pediatric-care specialists regarding how dairy foods nourish brains, bones and bodies – as well as educational materials to share with families. Those materials are also available in Spanish.

The response showed a positive impact and increased the likelihood that dairy would be recommended. It led us to expand our strategy in 2023 with more state and regional participation.

Strategies can be customized The beauty of the program is that local checkoff teams can customize it to best fit the unique needs of each territory.

• ‌Midwest Dairy is partnering with rural healthcare organizations to deliver digital resources with an emphasis on pediatric content, including a storybook and character cards oriented for the pediatric age group.

• ‌D airy MAX and the United Dairy Industry of Michigan conduct in-office educational programs, not unlike what

New year increases momentum Contributed

Representing Dairy Management Inc.’s National Dairy Council at an industry event are, from left, Sally Cummins, vice-president of nutritional affairs with the council; Sandy Sellers, health and wellness senior manager with United Dairy Industry of Michigan; Lewis Martin, director of nutrition at the Oregon Dairy and Nutrition Council; and LaChell Miller, director of health and wellness at American Dairy Association North East.

representatives from pharmaceutical companies do when they visit doctor offices.

• ‌American Dairy Association Mideast conducted a TED-talk-style presentation with faculty at The Ohio State UniversitySchool of Nursing as well as co-created materials with the West Virginia Women, Infants and Children staff to empower families to pair dairy with fruits, vegetables and whole grains.

Our collective efforts resulted in outreach to more than 55,000 pediatric-care providers nationwide. It’s been inspiring and invigorating for the checkoff federation to come together and carry forward our unified message of dairy’s benefits related to brains, bones and bodies – in ways that resonate with practitioners. We keep the momentum going with a working group, sharing best practices and creating shared materials to avoid duplication and additional costs.

Our strategy has allowed us to set the record straight regarding dairy’s many benefits compared to non-dairy alternatives, as well as allergies and intolerances. There’s been a positive response to the important role dairy foods play in the first 1,000 days of life from conception to a child’s second birthday. That period is critical for setting a foundation of brain development that could impact the quality and success of life.

An American Academy of Pediatrics policy statement recognizes 14 nutrients important for early brain development – and dairy foods provide seven of them.

We head into 2024 looking to strengthen our focus on national relationships and partnerships, including with key organizations like the American Academy of Pediatrics. We’re building our outreach to connect with medical students and share science-based information with a Gen Z audience who may have been exposed to anti-dairy opinions.

We’ll continue to educate at key health-professional meetings as we recently did at the American Academy of Pediatrics national conference and at Mayo Clinic’s Pediatrics Days. Being present at such meetings allows us to myth-bust in person.

We can connect with professionals eager for more information about dairy. We can encourage them to use the National Dairy Council as a resource.

Many understand dairy’s value and we have dairy champions in place. The American Academy of Pediatrics is among organizations that list plain milk, not alternatives, among beverage recommendations for children from birth to age 5.

Joining in that policy statement are the Academy of Nutrition and Dietetics, the American Academy of Pediatric Dentistry and the American Heart Association.

Such support helps fuel what is one of the most exciting and invigorating efforts the National Dairy Council has undertaken. Our team has many registered dietitians as well as other health and wellness professionals who work every day to help set children on a path to success through healthy eating choices, including dairy.

Our mission is being reinforced by the people whom parents count on for advice – pediatricians.

Sally Cummins is vice-president of nutritional affairs at Dairy Management Inc., a corporate sponsor of PDPW. Visit www.usdairy.com/forfarmers or email TalkToTheCheckoff@dairy.org for more information.

December 2023 • PDPW • Dairy’s Bottom Line 5

Feed cows carefully on robotic dairies BRENDA MEYER AND JAMES DOWNEY

All cows love consistency in every facet of their lives. That’s true whether the subject is housing, milking, feeding or management. In robotic-milking systems, consistency can be delivered from the milking machine. The feeding of cows must also be consistent to maximize milk production.

While total-mixed ration is the complete feed a cow eats each day, robot systems entail a modified approach – consisting of two separate components to the total ration. A partial-mixed ration is fed in the bunk and an additional portion is fed to the cow when she’s in the robotic milker.

There are several best practices for all robotic dairies, regardless of size or milking system.

• ‌Utilize excellent-quality forages to formulate high-energy rations.

• ‌Feed quality ingredients through protein mixes and robot feed to maximize palatability and nutrition delivered to the cow.

• ‌Keep on-farm feeds fresh, and free of mold and other nutrition-mitigating factors.

• ‌Limit shrink when producing, storing and feeding feeds.

• ‌Ensure feed is delivered in a timely and accurate manner.

• ‌Work with a qualified nutritionist to drive success of the dairy.

Feed push-up is key on all dairies but even more important on robotic dairies. Because a large portion of the ration is fed at the robot, slug feeding should be limited. Feed distribution is also important because more partial-mixed ration will need to be fed at the high-traffic areas in the pen, located where cows exit the robot.

As we talk about consistency we’re often asked whether a farm should feed a grain mix or pellets in the robot. Pellets offer much more consistency for several reasons.

• ‌They are manufactured with consistent particle size.

• ‌Whether at the beginning or end of the load or feed bin, pellet size and shape are generally the same throughout – and a quality pellet formula should deliver the same consistency batch after batch.

• ‌Cows get the best utilization out of concentrates with the greatest amount of exposed surface area for rumen microbes to digest.

But because cows don’t like to eat finely ground feeds, pressing those feeds into a pellet presents those high-energy feeds in a more-desirable particle size.

• ‌Flowability through the feeding system and specifically feed tubes is generally much better with pellets than a grain mix.

• ‌It takes less time for a cow to eat a pellet versus a grain mix, which can help maintain a reduced box time and allows more cows to be milked through the system.

• ‌The variation in a grain mix is impacted by the crop year, the moisture of corn, how hard the corn grinds, varying particle size and other ingredients in the mix. In addition, to optimize flowability and palatability, even fine-rolled corn particles are too large for maximum nutrient utilization and therefore maximum milk production.

• ‌Cows are more apt to detect pleasant flavors in a pellet than a grain mix. The two most popular flavorings among cows in northeast Wisconsin are blueberry and cherry. While farmers sometimes change the flavor in an attempt to draw cows to the robot when visits are reduced, increased visits are typically a result of other necessary adjustments and not solely the change in pellet flavor.

Contributed

There are several best practices for all robotic dairies, regardless of size or milking system.

Feed tables are programmed in robot software to feed cows based on production and stage of lactation. They can also include parameters based on age so mature cows can be fed differently than first-lactation heifers. Consultants and farmers can also monitor lactation curves alongside feed tables to analyze if production changes when the amount of pellet or grain mix is reduced or increased. Such information gives real-time data to make decisions that can determine management practices going forward.

Robot software can also regulate how many ounces of feed per minute and how many pounds per visit are dispensed. The cow’s total robot-feed allotment is divided by her projected visits in a day.

Any feed left over is called rest or remainder feed; it can show gaps in the current program. If the amount of rest feed is large, the cow could be signaling something is wrong with the palatability of the robot feed, there is too much or too little energy in the bunk feed, there are mechanical or software issues with the robot, or there’s been a change in her health status.

Analysis of a robot-dairy ration is no different than analyzing a ration on any other dairy. The robot-dairy ration just has a large ingredient being robot-fed with different feed-delivery mechanics and palatability compared to the rest of the ration. Reach out to a nutrition consultant to review options and consider current feeding systems in robots. Fine-tuning the ration and ensuring it’s delivered consistently will help maximize production and farm profitability.

Brenda Meyer and James Downey are nutritionists at CP Feeds, a corporate sponsor of PDPW. Email bmeyer@cpfeeds.com and jdowney@cpfeeds.com to reach them.

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6 December 2023 • PDPW • Dairy’s Bottom Line

Strategies support financial resilience AARON TIGERT

In the ever-evolving landscape of dairy farming, financial resilience is paramount.

As we approach the end of 2023 and the beginning of 2024, dairy farmers are facing myriad uncertainties. But dairy farmers can employ key strategies to help navigate challenges and build resilience in their operations.

Diversification – Diversifying revenue streams is a crucial strategy for financial resilience in the dairy industry. Beyond traditional milk production, dairy farmers can explore value-added opportunities. They can also look at more-common approaches such as grain sales and steer-raising as well as direct-to-consumer sales of meat, vegetables, fruits or other products. Diversification mitigates risks associated with market fluctuations and also opens doors to new consumer segments.

Risk Management – Effective risk management is a linchpin in financial resilience. Dairy farmers must identify and mitigate risks related to market volatility, weather events and disease outbreaks. Utilizing insurance products, futures contracts and hedging strategies can provide a financial safety net against unforeseen circumstances.

Liquidity – Maintaining liquidity is a buffer against unexpected challenges.

Liquidity is calculated by subtracting liabilities due in the next 12 months from assets easily converted into cash. Having accessible funds provides flexibility in responding to market shifts or emergencies. Farmers should balance investments with liquid assets, ensuring they have the financial agility to seize opportunities and weather financial storms. When contemplating capital expenditures, knowing the short-term and medium-term impact to liquidity can help guide the decision. Liquidity can be impacted not only by using cash for the purchase but also by adding a new financing payment.

Cash Flow – Managing cash flow is imperative for day-to-day operations and long-term viability. Farmers should create detailed cash-flow projections, accounting for seasonal variations and potential disruptions. Timely invoicing, negotiating favorable payment terms and judicious spending contribute to a healthy cash flow.

Income Over Feed Costs – Assessing income over feed costs is essential for dairy farmers to gauge the profitability of their

Robust financial strategies will help dairy farmers be financially resilient in an everevolving dairy industry.

livestock. Income over feed costs is income from milk minus the cost of the lactatingcow feed. Calculating the revenue generated relative to feed expense provides insights into the efficiency of feed management, helping the producer make informed decisions to enhance overall financial performance. Consideration should be given to the production levels of the lactating herd compared to the fed ration.

Enterprise Accounting – Implementing robust enterprise-accounting practices is helpful for financial transparency and informed decision-making. Doing so empowers producers to identify profitable ventures, allocate resources efficiently and make strategic decisions. An example of this is retaining bull calves to feed and fatten out.

While the sale of the finished steers provides nice cash flow to the operations, without enterprise accounting the profitability for that specific enterprise is unknown.

Cost-Control Measures – Controlling costs is essential for maintaining profitability not just at the farm level but to the entire dairy sector. Farmers should scrutinize operational expenses, optimize feed efficiency and explore sustainable practices.

Implementing cost-effective technologies such as precision farming and automated systems can contribute to long-term financial stability. Consider the view that costs will continue to increase; seeking areas in which to reduce waste or to gain efficiency is critical to profitability. Hired labor and depreciation can be big-ticket items for any dairy operation. Managing those with a keen eye can keep them in check and ensure they are not eroding already-tight margins.

While the cost associated with retaining quality labor is not a new challenge for the dairy industry, ensuring workers are

efficient and working without injury or waste can add to profitability.

Capital Expenditures – Strategic management of capital expenditures is essential for financial resilience. Farmers should prioritize investments that yield long-term benefits and align with their overall business goals. Assessing the cost-benefit ratio of capital projects ensures that resources are allocated judiciously. A different view should be taken when considering replacement expenditures versus expansionary expenditures.

There are a couple ways to consider the benefits of such an expansionary expenditure, including examining return on investments, return on assets and cashflow perspectives. Return on investments is calculated by subtracting the initial cost of the investment from its final value, then dividing that number by the cost of the investment and multiplying by 100. Farmers should assess the profitability of new ventures, equipment purchases or technological investments. A calculated approach to return on investments ensures that resources are allocated efficiently, maximizing financial returns.

On the other hand, return on assets is a key metric in gauging the efficiency of resource utilization. Return on assets is calculated by dividing net income by total assets. Dairy farmers should analyze how effectively their assets – including land, livestock and equipment – generate returns.

Optimizing asset utilization enhances overall financial resilience and sustainability.

In the face of uncertainties in the dairy industry, adopting robust financial strategies is not just prudent; it is essential for long-term success. Diversification, effective risk management, stringent cost-control measures, careful cash-flow management, maintenance of liquidity, optimization of returns on investment and assets, and judicious capital expenditures all contribute to the financial resilience of dairy farmers. By embracing these strategies, dairy farmers can navigate challenges, seize opportunities and cultivate a financially robust future for their operations.

Aaron Tigert is the regional vice-president of agricultural lending and crop insurance at Compeer Financial, a vision sponsor of PDPW. Email aaron.tigert@compeer.com to contact him.

December 2023 • PDPW • Dairy’s Bottom Line 7

Plan for 2024 Business Conference Make plans to attend the 2024 PDPW annual business conference, set for March 13-14, 2024, at the Kalahari Resorts and Convention Center, 1305 Kalahari Drive, Wisconsin Dells, Wisconsin.

“Dairy’s premier educational event will once again feature two days packed full of opportunities to learn, connect, network and drive innovation for a world that’s experiencing some upheaval,” said John Haag, PDPW board president and a dairy producer near Dane, Wisconsin. “Business Conference always marks an exciting time of coming together and refueling after a long winter.”

The 2024 business-conference sessions will be presented in a variety of formats.

They will cover topics such as succession and tax planning, negotiating for big wins, team building, sustainability, and herd and heifer management. Featuring top researchers and progressive dairy producers from around the country, the program will also showcase learning lounges and hands-on-hub sessions. One series will

give attendees an opportunity to learn and practice crisis-communication strategies to navigate potentially negative on-farm incidents as well as larger-scale media events. Simultaneous-Spanish translation will be available for all sessions except for the Nexus and youth presentations.

The 15- to 18-year-olds attending will have an opportunity to attend two “Future of Success” sessions created specifically for them. Those courses will introduce them to important concepts in communication, self-awareness and becoming a person of influence. High-schoolers are also encouraged to participate in other conference sessions of their choice Wednesday and Thursday.

More networking time has been built in to connect with attendees and vendors in the Hall of Ideas. And Wednesday evening’s entertainment has a few surprises in store.

Also new is a peer-group-style session that will bring together dairy producers and other industry professionals for a facilitated time of idea sharing and problem solving.

The Nexus stage will showcase five companies whose novel ideas, products and services offer innovative solutions to forward-thinking producers. Following a 15-minute presentation, representatives from each company will engage in question-and-answer sessions with attendees.

Exhibitor information and applications for the Hall of Ideas and Equipment show are available. Visit www.pdpw.org/businessconference and click “Exhibit” for more information.

As part of the conference, PDPW members will elect new dairy-farmer members to the board of directors. Ballots and candidate information for 2024-2025 PDPW board nominees will be sent soon.

More details about the agenda and sessions will be finalized in the coming weeks.

Visit www.pdpw.org/businessconference for registration, hotels, speakers and more information.

Dairy Wellbeing Workshop coming soon With a focus on form, function and responsibility, the 2024 PDPW Dairy Wellbeing Workshop will offer two separate oneday workshops – Feb. 6 and 7, 2024, in Green Bay, Wisconsin.

Participants will learn protocols to more-proficiently offer optimal care to dairy cattle through various stages of life as well as tour an American Foods Group processing plant. As attendees trace backward from the cooler to the harvest floor, they’ll see firsthand how animal-care choices impact cull-cow quality.

Farm owners, managers, cowside farm employees and veterinarians will then hear from leading experts about management strategies that most influence dairy-cattle form and function.

Afternoon sessions will explore genomics, new genetic predictors for health traits and ethical approaches to decision-making regarding animal welfare. They’ll also highlight the role genetics

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Pre-registration is required.

Visit www.pdpw.org or call 800-947-7379 to view the program flier and to register.

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8 December 2023 • PDPW • Dairy’s Bottom Line

Foundation programs develop leaders DAIRY’S FOUNDATION

We’ve all heard the phrase “you learn something new every day;” the old adage certainly rings true for the current dairy industry. There’s updated research that impacts management practices and new technologies to make operations more efficient. There are changing consumer trends and evolving regulatory policies as well as innovations in sustainable-farming practices. Dairy professionals are constantly learning to improve their operations as well as the industry as a whole.

“We celebrate the completion of formal education programs such as high school, trade school and college,” said Natalie Glumm, director of development for Dairy’s Foundation. “But rather than closing the book on learning, those graduations commemorate the beginning of a lifelong commitment to ongoing education. For more than 20 years Dairy’s Foundation has supported programs that give the next generation of dairy professionals and today’s leaders the tools they need to thrive and grow.”

Dairy’s Foundation supports several programs focused on introducing the next and current generations of dairy leaders to industry opportunities. The programming aims to build attendee leadership and communication skills in order to be successful at every career stage.

PDPW Mentor Program – Students at four-year universities, technical schools and short courses have the opportunity to grow their networks, share ideas and learn through hands-on experience. The annual program is underwritten by Dairy’s Foundation and the Alliant Energy Foundation.

A student submits an application in the fall to be matched with a mentoring dairy producer whom they job-shadow for a day.

The on-farm experience allows students with varying levels of farming experience to work in modern dairy-production systems. It encourages career planning with production agriculture as an option.

Once students meet program requirements they receive complementary registrations to the PDPW Business Conference the following March. Each registration includes a one-night hotel stay as well as an invitation to a mentor-program breakfast to reconnect with mentors, and meet industry leaders and other students.

PDPW

Students in the influential-leadership pillar of the 2023 Cornerstone Dairy Academy engage with one another to practice concepts they’ve learned.

“The PDPW Mentor Program has given me insights on how today’s dairy farms are run,” said Chloe Knieling, student at the University of Wisconsin-Platteville. “I would like to go into the calf side of the industry, so learning and seeing firsthand about the maternity pen and protocols for processing calves was very interesting.”

Interaction with students and on-farm visits are valuable opportunities for the mentors.

“I was a mentee for three years and found it really valuable,” said Brooke Trustem, BouMatic marketing and events coordinator, and a dairy producer from Evansville, Wisconsin. “I think it’s cool to now be able to see the value from the mentor side as well. Our goal in the program is to show students the diversity of positions and opportunities on a larger dairy farm – whether that is breeding, monitoring maternity pens or helping with the work that goes into keeping cows comfortable.”

Applications for the PDPW Mentor Program are due each year in mid-November.

Visit www.pdpw.org for more information.

Cornerstone Dairy Academy – Dairy producers, industry professionals and college students build leadership and communications skills at Cornerstone Dairy Academy®. It’s a dynamic professional-development training program held in conjunction each year with the PDPW Business Conference.

The application-based program features three training pillars, each focused on a different aspect of leadership.

• ‌influential leaders • ‌visionary leaders • ‌servant leaders Sessions in each pillar are facilitated by world-class trainers focused on key elements of leadership.

• ‌u nderstanding generational differences and communication methods • ‌mastering first impressions • ‌integrity and ethical decision-making • ‌value of organizational focus • ‌working as a team and more All sessions are simultaneously translated into Spanish as needed.

“It was extremely eye-opening to see that people in other industry roles, from dairy farming to broadcasting, all face similar challenges,” said Allison Hahn, marketing executive at Filament Marketing. “We collaborated to find solutions to grow individually and take back home to our own teams. It’s a vigorous two days – and well worth it for the connections and skills gained.”

The first day of the program includes a full day of workshop sessions in each pillar. Participants will begin day two by attending a networking breakfast, discussing how they’ll use what they’ve learned in their workplaces and personal lives. They’ll also implement their new communications skills in real time by attending sessions during the first day of the PDPW Business Conference.

“The Cornerstone curriculum and format is impressive because it provides participants a chance to connect with others from across the industry, while exploring the finer points of important leadership topics,” Glumm said. “Dairy’s Foundation is proud to underwrite this program to make it accessible to a range of participants – including collegeage students, recent graduates and individuals wanting to enhance their leadership skills.”

Applications for the 2024 Cornerstone Dairy Academy are due by Jan. 31, 2024.

Accepted dairy-producer applicants will pay a $200 registration fee. Industry applicants pay a $500 fee, with the remaining funded by Dairy’s Foundation and State Farm Insurance. Visit www.pdpw.org for more information.

December 2023 • PDPW • Dairy’s Bottom Line 9

Proper practices can prevent lameness ELIZA RUZIC

Lameness continues to be a focus on dairies as we look for ways to continually improve cow comfort and productivity.

Generally there are two categories of lesions that cause lameness in dairy cattle – infectious and non-infectious.

• ‌Infectious lesions include digital dermatitis, also known as hairy heel warts, and foot rot. Those are caused by an infection of the skin and inflammation of the hoof. They can be prevented with proper cow hygiene and foot bathing.

• ‌Non-infectious lesions include sole ulcers, white-line abscesses and toe ulcers. They’re caused by internal and external factors such as functional trimming, flooring, animal handling and anatomy. There are a number of management and facility-maintenance practices that can help minimize non-infectious lesions to improve cow comfort and productivity.

Sole ulcers may also be referred to as “standing up” disease because cows that spend too much time on their feet have an increased risk of developing sole ulcers.

Proper stall sizing, neck-rail placement and surface bedding all play a role in the amount of time a cow chooses to lie down. Incorrect stall sizes can lead to perching, which makes the problem worse. When the cow is standing with her front feet in the stall and back feet on the cement, she’s putting more pressure on the pedal bone inside the claw capsule – and ultimately wears an abscess into the sole of her hoof.

Poor heat abatement is another factor that causes cows to voluntarily stand more, so ensuring barns have adequate ventilation is important. Involuntary time away from stalls, including milking time and being in headlocks, also contributes to standing time. It’s recommended that cows spend less than 2.5 hours involuntarily standing.

Functional-maintenance trimming is also important in prevention of sole ulcers.

Hoof trimmers will model out the inner two-thirds of the outside, or lateral, claw to relieve pressure on the pedal bone from the outside. When trimmers remove the excess hoof horn there’s no direct pressure on the point of the pedal bone that would otherwise cause sole ulcers. It’s recommended to maintenance-trim cows at least twice per year.

Maintenance trimming is especially

Contributed

Healthy hooves are the goal for every dairy producer. A few key management strategies play crucial roles in bringing it to pass.

important within a few weeks of calving.

Cows produce hormones that relax their muscles and tendons to be able to give birth to a calf. Those hormones also relax tendons in the hoof, making a cow that hasn’t had a maintenance trim more-susceptible to sole ulcers at calving time. Reducing lameness at the time of calving will promote dry-matter intake and reduce stress on an animal in an already challenging time.

White-line abscesses occur when the hoof wall separates from the sole at the junction known as the white line. Proper grooving and grip in barn floors is important in preventing white-line abscesses.

Slipping and abruptly stopping causes repeated concussion to the white line, sometimes resulting in an abscess. Grooves should be parallel to the curb and 3.25 inches from each groove’s center to the next groove’s center. The grooves should be .75 inches wide and .5 inches deep with 90-degree corners. That design allows manure to have a place to go to prevent slipping, while hooves have access to contact with both a groove and flat concrete.

Concrete will through time either become very smooth and slippery, or the aggregate within the concrete will become too aggressive. At those times maintenance

will be needed; planing and-or re-grooving the concrete may be necessary. Never groove in a diamond shape or roll new cement to incorporate a cobblestone texture. Those strategies are too aggressive on hoof wear and give more opportunities for white-line abscesses to occur.

Aggressive animal handling can also cause abscesses. If animals are running and then abruptly stop, that has the same result as walking on slippery or improperly grooved concrete. Pushing the crowd gate in a holding pen will also result in white-line abscesses in the front feet; cows at the back of the pen will stand parallel to the gate and slip to the side if they’re pushed too aggressively.

Toe ulcers are the least common of the three main non-infectious lesions in a hoof but are also the most difficult to treat and heal. The toe is the strongest part of the hoof because it has support of the horn wall on both sides. When cows walk a long distance, are bedded with recycled-coarse sand or the concrete is abrasive, the hoof sole will become thin at the toe. That thinning can result in a toe ulcer because there isn’t enough hoof horn to cushion the front of the pedal bone. Also if a cow must continuously stand in water, that can cause hoof material to soften and wear faster – further contributing to the problem. It’s challenging to treat toe ulcers while still maintaining the strength and integrity of the hoof.

Blocking the healthy claw to take pressure off the affected claw, and then trimming away all loose horn is necessary for non-infectious lesions to heal. The blocks should be removed after healthy horn material has grown back and completely covered the exposed lesion.

Lameness can be costly to a dairy plus should be considered for overall cow comfort and wellbeing. By ensuring facilities have proper stall sizes for the animals – and taking steps to address heat abatement, flooring and animal-handling issues – and by minimizing hoof wear, lameness can be prevented. Proper maintenance trimming as well as therapeutic trimming when lesions are present are also important.

Eliza Ruzic is the Wisconsin accounts manager at Zinpro Performance Minerals, a mission sponsor of PDPW. Email eruzic@zinpro.com to reach her.

10 December 2023 • PDPW • Dairy’s Bottom Line

Support one true milk SARAH SARBACKER

The dairy industry has for generations had a rich tradition of providing wholesome and nutritious products to consumers. But in recent decades plantbased dairy imitations have become more prevalent in the mainstream and have been allowed to use real dairy terms in violation of the U.S. Food and Drug Administration’s Standard of Identity for milk. That trend is concerning because transparency and accurate labeling are essential for dairy producers and consumers alike.

In addition to plant-based imposters in the market, we’re now seeing the introduction of lab-grown “milk.” The animal-free product isn’t made from plants but instead uses technology similar to that which manufactures lab-grown meat. It’s a process called precision-fermented dairy.

The lab-grown industry promotes its products as “real dairy without the cow” and purports the products to be equivalent to real dairy. But let’s take a look at the ingredients.

A typical lab-grown-milk ingredient list might show numerous items.

• ‌water • ‌animal-free whey protein from fermentation • ‌sunflower oil • ‌sugar • ‌less than 1 percent of vitamin A, vitamin B12 or cyanocobalamin, vitamin D2, riboflavin, citrus fiber, salt, dipotassium phosphate, acacia, gellan gum, mixed tocopherols – an antioxidant – calcium potassium phosphate citrate and natural flavor.

Sounds delicious, doesn’t it?

In contrast, genuine dairy milk consists of just a few components.

• r‌ educed-fat milk • ‌vitamin A palmitate • ‌vitamin D3 Animal-free “milk” uses a simple fermented-whey protein.

Real milk comprises dozens of protein variants and hundreds of different fatty acids – a diversity lab-grown imitations cannot replicate. Genuine dairy milk is a complex product with a rich composition, including various proteins and fatty acids that contribute to its flavor, texture

and nutritional profile. The interaction among naturally occurring ingredients in dairy milk is intricate and not entirely understood by the scientific community. That complexity is acknowledged by honest marketers, scientists and regulators.

Synthetically created options that are allowed to pose as natural foods while being nutritionally inferior to the products they are imitating intentionally misleads consumers. Several companies in the United States are currently selling lab-grown “milk” or other “dairy” products. There are 28 “dairy”-fermentation companies around the world. Without proper regulation the lab-grown industry is likely to expand rapidly, leading to an increase in consumer confusion and mistrust in the marketplace. Consumers deserve accurate information about the products they purchase. And the U.S. Food and Drug Administration has an important role to play in ensuring the distribution of such information to would-be purchasers.

Consumers have a right to clear and truthful product labeling. FarmFirst Dairy Cooperative has been a strong advocate

of preserving the identity of dairy products. We’re committed to upholding the integrity and authenticity of real dairy milk produced by hardworking dairy farmers. Labgrown “milk” cannot be equated with genuine dairy milk given its vastly different ingredients and composition.

FarmFirst and our industry partners have been proactive in asking the Food and Drug Administration to act decisively to address the issue and enforce the Standard of Identity rules for dairy products – before they have a situation like with plantbased “milk” and dairy products.

The proliferation of imposters, misleading labeling and the potential risks to public health should not be taken lightly. It’s crucial to protect consumers while also maintaining the transparency of the marketplace – and the reputation of real dairy milk and dairy products.

Sarah Sarbacker is director of communications and marketing for FarmFirst Dairy Cooperative, a corporate sponsor of PDPW. Email ssarbacker@farmfirstcoop.com to contact her.

Cornerstone Dairy Academy teaches leadership skills Dairy producers, industry professionals and college students interested in building leadership and communications skills are invited to submit applications to attend the 2024 Cornerstone Dairy Academy®.

Applications to the program are due

by Jan. 31, 2024.

The program features three tiers of interactive training led by expert and award-winning facilitators within and outside the industry. Presenting specialized content for influential, servant and visionary leadership styles, the program is designed to give dairy producers and industry professionals a strong foundation specific to communication and leadership skillsets. The interactive format allows

students to practice what they’re learning with classmates and presenters. The program also incorporates a full day of participation in PDPW’s annual business conference.

Directly in advance of the 2023 PDPW annual business conference, the two-day training will be held March 12-13, 2024, at Chula Vista Resort, 1000 Chula Vista Parkway, Wisconsin Dells, Wisconsin.

Visit pdpw.org/programs and select “Cornerstone Dairy Academy” for registration cost and more information. Simultaneous Spanish translation will be available. The application form is available online; applicants will be notified of their acceptance by Feb. 10, 2024.

December 2023 • PDPW • Dairy’s Bottom Line 11

Working capital critical BRAD GUSE

The first key to sustainable agriculture is financial sustainability.

Without it no other sustainability initiatives can be successful.

From my chair the biggest change I’ve observed in the financial management of successful operations is attention to and management of working capital. It has quickly become a key to an operation’s financial sustainability.

The Farm Financial Standards Council describes working capital as measuring the adequacy of the business to meet current obligations due, with orderly liquidation of current assets. Working capital is computed as current assets minus current liabilities.

• ‌Current assets are anything that can be turned into cash within 12 months.

• ‌Current liabilities are anything due and payable within 12 months.

But there are some realities we need to consider. For example feed inventories are current assets on a dairy farm’s balance sheet. But turning them to cash via a sale essentially means the dairy business would be unable to operate. For that reason, when calculating working capital I tend to focus more on a true liquidity – that is, taking the feed inventory out of the equation.

I also like to consider line availability – the short-term borrowing commitment that’s already secured from a bank. That gives us a real number of what the operation has available to sustain operations during the next 12 months. That number, the adjusted working capital, is a key source of term-debt repayment during periods of less-thanbreak-even operations. It’s funding for bargain-hunting on capital purchases, maintenance-capital expenditures, and for improving profits by taking advantage of early-pay and prepay opportunities.

And let’s face it, all farming operations are experiencing more volatility. The variations in U.S. net farm income during the past 20 years illustrates just how far things can move on a macro level. For a microlevel example, look at milk prices. In the 1980s the annual average Class III price moved in a range of only $1.47. But during the past 10 years, the swing from its worst to best price has been a whopping $7.01. Simply put, more volatility likely means there are more cash-flow shortfalls that operators need to cover by adjusted working capital. It’s why adjusted working capital has become a key to financial sustainability.

Adjusted working capital – The best but most challenging way to create, build and preserve adjusted working capital is to operate profitably. A producer needs to understand cost of production and what it takes to be most efficient in the operation. Skills need to be honed to manage production costs year-over-year. That will require attention to detail in several areas along with proactive risk management regarding input costs. For a dairy farm, start by focusing on the big three – feed, labor and interest costs – and then dig deeper into all costs.

Refinancing options – Be cautious of refinancing options to improve working capital. Moving short-term debt down the balance sheet to improve working capital is a common practice but it’s a shortterm solution that’s not viable in the long term. Equity is being used to accomplish that. Before considering that option, be sure to understand the underlying cause of the need to refinance. If it’s to cover a specific unforeseen loss, ensure there’s a plan to fix the issue before applying that strategy. If it’s a result of poor market conditions, ensure the risk-management plan is updated – and then proceed. Needing to refinance frequently is an indication of a deeper issue.

It’s wise to reinvest in the operation to improve efficiency but be cautious about using working capital for long-term asset purchases

during the good times. Too often operators will use excess working capital to purchase real estate or machinery. Every operation should focus on funding at least 30 percent of every capital purchase from cash. But doing so can deplete working capital needed to survive weaker market conditions. It may be more prudent to use equity in existing long-term assets to support large-asset purchases up front. Be sure to understand the impact of using cash or debt for capital expenditures on cost of production. A balanced approach will likely lead to the best outcome. A good rule of thumb is to set a goal of maintaining four months of average monthly operating expenses in the form of adjusted working capital, then using the excess to support capital expenditures and investment.

Risk assessment – In the fullest sense of the term, risk management is the single best way to preserve working capital. Risk management is often thought of as a way to ensure net farm income but it’s really about preserving working capital through efficiently managing net farm income. Then when an uninsurable loss occurs, working capital is available to cover the gap in cash flow.

The list of options available is long; each has pros and cons. Risk management is about protecting equity. A solid plan has a producer hitting a lot of singles while popping a home run every once in a while. Merely talking about it isn’t enough; the key is execution.

Adjusted working capital is the short-term shock absorber in an operation to cover losses and ensure financial sustainability in a cyclical commodity industry. Creating, building, preserving and protecting it should be part of every sustainability discussion.

Brad Guse is senior vice-president of ag banking at BMO Commercial Bank, a corporate sponsor of PDPW. Email brad.guse@bmo.com to reach him.

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12 December 2023 • PDPW • Dairy’s Bottom Line

Finish the year off right MATTHEW LOHR

The years come and go, with farmers facing ever-changing challenges and opportunities. Some have excellent years and some have difficult years.

As we come closer to the end of the year, many farmers start thinking about how to minimize tax liability. Tax planning is an important part of ensuring a farmer has a reasonable expectation of the taxes owed.

The planning process includes taking steps to minimize tax liabilities so all available allowances, deductions, exclusions and exemptions work together efficiently to reduce total income tax paid. Effective tax planning also helps businesses achieve financial goals and plan for upcoming needs.

Farmer’s responsibilities many To control the process, producers need to be totally transparent with the tax accountant and clearly communicate financial goals.

Put records in order. An accurate set of financial records is critical for a tax preparer to work with – and that doesn’t mean a shoebox of receipts. At a minimum, print a computer-program report or write out a hand-written worksheet that reconciles with bank statements and debts. If lacking that and the ability to create it, consider securing bookkeeping help.

There are additional benefits of having up-to-date financial records.

• ‌provide clarity for the business and family-living decisions • ‌demonstrate commitment to increasing profitability • ‌shows history of successful farm management to lenders and other capital providers, allowing them to be confident of the accuracy and completeness of records Don’t procrastinate. Waiting until late December to start bookkeeping for the year leaves everyone scrambling to complete activities to help the tax situation.

Don’t be on autopilot. It’s not uncommon to see farmers make financial decisions they shouldn’t have because their books are not up-to-date – such as buying the same amount of prepaids as the previous year.

Nothing is irrelevant. Tell a tax preparer about all equipment purchases. If equipment is dealer- or manufacturer-financed, it may not show in bank accounts if

Contributed

Being familiar with tax-mitigation strategies can have a dramatic impact on the amount owed.

no payment was made in the tax year. That can be a sizeable capital expenditure that the tax accountant doesn’t know about.

Meet with a tax accountant. Meet before the end of the year to discuss the current financial situation and likely tax bracket. Allow enough time to bring in additional income if facing a net operating loss or to make additional purchases if the income is too much.

From a tax standpoint, many farmers will be impacted by a change in bonus depreciation rules effective Jan. 1, 2023. One of the most effective tax-minimization planning tools farmers have available to them is the use of accelerated depreciation in the form of section 179 deductions, or the use of bonus depreciation. Those strategies have been around for decades in one way, shape or form.

The 100 percent bonus depreciation begins to phase down effective Jan. 1, 2023, at which point it will only be 80 percent. In other words, a $700,000 tractor is maxed at $560,000 of bonus depreciation in 2023, with $140,000 being depreciated across a five-year period.

The impact will continue in future years as the depreciation percentage decreases.

• ‌60 percent in 2024 • ‌40 percent in 2025 • ‌20 percent in 2026 • ‌0 percent in 2027 It’s important to note that anyone at less than the section-179 thresholds may not see an impact.

Other tax-planning strategies may be applicable depending on each operation’s circumstances.

Methods to decrease taxable income • ‌Farm-income averaging means averaging all or some farm income using rates from the three prior years.

• ‌Common expenditures to reduce taxable income include prepaying inputs and other allowed items, capital expenditures and

retirement contributions. Depending on the farm’s entity structure, retirement-plan contributions can be significant – especially for self-employed individuals via a simplified employee pension plan or other qualified plan. That also establishes retirement assets outside the farming operations – and diversification is a good thing.

Methods to increase taxable income • ‌Electing to capitalize repairs rather than expensing them. That can be adjusted annually.

• ‌If a farm loss is inevitable, common ways to increase income include distributions for individual retirement accounts, conversions from individual retirement accounts to Roth individual retirement accounts, and sale of non-farm capital assets such as stocks.

The conversion of individual retirement accounts to Roth individual retirement accounts will generate taxable income on the tax return, but the future investment earnings are tax-free. Any farm losses may be offset by the income generated from the rollover and no income taxes would be owed on the money rolled into the individual retirement accounts.

Income-tax planning is where tax accountants provide the most value to a business operation. If a producer comes into the tax-planning session with the mindset that nothing is irrelevant and brings good information, he or she can make the best decisions for the operation on a short-term and long-term basis.

This article highlights common strategies, but everyone’s situation is unique. Keep those records up-to-date so as to make educated decisions and receive sound advice.

Matthew Lohr is the tax and accounting manager at Greenstone Farm Credit Services, a corporate sponsor of PDPW. Email Matthew.Lohr@greenstonefcs.com to reach him.

December 2023 • PDPW • Dairy’s Bottom Line 13

Food Fanatics help promote dairy SUZANNE FANNING

What words do you use to describe yourself? Runner, hunter, knitter, cyclist? Are any of those things core to who you are?

Identity encompasses the qualities, beliefs, personality traits, appearance and-or expressions that characterize a person or a group. Dairy Farmers of Wisconsin conducted research to explore the differences between casual cheese consumers and Food Fanatics – and what makes them tick. It comes down to one key thing. Food Fanatics believe food is more than a passion. To them, food is core to their identity. Only 3 percent of people in the U.S. are food fanatics.

That may seem like a small number but their influence has an insurmountable multiplier effect with friends, family and connections; they are the trusted go-to food experts in their circles.

Food Fanatics are responsible for the cultural shift in America’s food scene during the past 30 years. They’ve taken our food landscape from canned meat, chips and basic sandwiches to culinary destinations made famous by unique flavors as well as elevated food concepts and experiences.

Drawing the attention of that consumer group means being in global conversations that are the guiding force of food culture.

Simply put, Food Fanatics drive the food trends.

Why are they important to Dairy Farmers of Wisconsin? Food Fanatics crave knowledge, inspiration and story. They want to know everything and they get satisfaction from telling others about their food finds – like the incredible cheese from Wisconsin.

We work to connect with them, share the love of Wisconsin cheese, tell them the stories of Wisconsin’s dairy heritage and innovation, and give them what they are craving so they can share with others.

Food Fanatics enjoy sharing their personal experiences and food finds as a way of connecting with others. They enjoy influencing others about a new food they cannot stop thinking about and look forward to entertaining with. “The influencers next door” – a term coined by Ed Keller, acclaimed author and CEO of Engagement Labs – are the most powerful. Food Fanatics are the go-to people for advice and recommendations because they keep up with the trends.

Food Fanatics who love cheese may find ways to incorporate cheese into many moments in their lives. They will seek out

Dairy Farmers of Wisconsin

Sarah Wells is a Wisconsin beef producer who also shares her love of Wisconsin cheese as a Food Fanatic.

information or advice on a specific cheese to tell a story about it, its origins or its maker. They want to understand how best to serve or present it, or to help others have a new food experience.

It’s important for Dairy Farmers of Wisconsin to be in immediate view of the Food Fanatics who are constantly seeking food content to inspire, impress and purchase.

We must talk to the people who drive our marketplace. Those fanatical consumers obsessed with food are the most passionate, most involved and most knowledgeable.

And social media and YouTube are amplifying their conversations every day.

Our Dairy Farmers of Wisconsin team works to maximize opportunities to reach the Food Fanatics in multiple ways – including digital targeting, strategic partnerships, events, community involvement and more.

Digitally we target the Food Fanatic audience with our content and messaging by leveraging a localized strategy surrounding key known foodie-centric markets like Charleston, South Carolina, Los Angeles and Denver. We then layer primary, secondary and tertiary interest targets like luxury travel, food culture and cheese to help create a rounded ideal persona.

Research tells us which forms of media

are consumed by Food Fanatics, which enables us to target them through paid media partnerships with relevant and interesting storytelling content. Successful partnerships with Saveur and Food 52 have created tens of thousands of original video views, millions of impressions and thousands of podcast listens.

Our research insights also show that Food Fanatics love to travel for incredible food experiences. We planned our inaugural Art of Cheese Festival with that important target audience in mind – including unique excursions, one-of-a-kind experiences, hands-on learning, and lots of memorable moments of storytelling and inspiration. Even though only 3 percent of the national population identifies as Food Fanatics, 34 percent of festival attendees were Food Fanatics.

Another area where we over-index for Food Fanatics is in Cheeselandia, a community specially created for the Wisconsin-cheese-obsessed. Within the community Food Fanatics stand apart. They are motivated to be seen as good cooks by their friends and are generally more proactive around food and cheese culture. Cheeselandians generate more than 10,000 wordof-mouth conversations monthly about Wisconsin cheese. Those Food Fanatics engage and learn through the community.

They spread their influence with the 91 percent of Cheeselandians who are Food Fanatics, having at least two conversations about Wisconsin cheese with more than 10 people each month.

Dairy farmers who understand more about Food Fanatics and their motivations can deepen their engagement with the group. Remember, that group is more likely to amplify your brand message by sharing what they’ve learned from a cheese monger, your social-media posts or their local farmers market.

Share your farm-to-food story. Consider going beyond offering product samples to offering on-site experiences that showcase your farm story and how it ties to specific dairy products. Share your favorite local products with friends and family throughout the holidays and all year long.

Suzanne Fanning is the chief marketing officer for Wisconsin Cheese and senior vice-president of Dairy Farmers of Wisconsin, a mission sponsor of PDPW. Email hello@WisconsinDairy.org to reach her.

14 December 2023 • PDPW • Dairy’s Bottom Line

Work toward dairy’s perfect cow TALIAH DANZINGER VAS‌

The dairy industry’s “perfect cow” has changed dramatically during the past 40 years. Advancements in genetics, management practices and data collection have shaped the cow into a high-performing athlete, making more milk than ever with fewer resources.

Focuses on reproduction and feed efficiency allowed for significant enhancements in the average cow, allowing her to do more with less and be more reliable in producing healthy calves year after year.

As the cow has evolved so too have herd-management tools, allowing producers to manage to a new level of cow performance. Innovations in data collection and analysis during the past 40 years have made it easier to understand what’s happening on the farm and how a cow performs. When we know more about the cow and everything impacting her performance, we can effectively manage her to achieve more.

On average, cows now produce more milk with a higher fat percentage and lesser somatic-cell count than ever before. Data from the Council on Dairy Cattle Breeding shows the national average fat percent hit 4 percent for the past two years, and the average somatic-cell count has been consistently less than 200,000 for multiple years.

Twenty years ago the national average for fat was about 3.7 percent and the somatic-cell count was 322,000.

In addition to increasing production and improving milk quality, we’ve gained a deeper understanding of the impact a cow’s health events have on the dairy. The more health events a cow has, the more resources she uses. That impacts production and overall sustainability of the business.

Herd-management software helps connect health events, production and sustainability. Software can show an overview of herd performance and highlight trends.

With the right data-management tools a producer can quickly identify the health events most impacting the dairy and create solutions to tackle those challenges.

We all understand the importance of maintaining a healthy herd because a healthy cow is a profitable cow, but she is also a sustainable cow. We’ll continue to advance as an industry toward a

VAS

The dairy cow and herd management have both evolved, Taliah Danzinger says. Producers should consider revisiting workflows to find the most effective and efficient way to manage the current cow.

more-sustainable dairy – and herd-management tools will continue to play a role in telling that story.

How we approach reproduction has advanced by leaps and bounds, with developments in genomic research, in-vitro fertilization and the increase in beef-dairy breeding strategies. Technological advancements have also improved how we monitor reproductive performance. New herd-management tools have allowed producers to focus on pregnancy-rate data, helping capture a better picture of what’s happening in the herd. Just a few short years ago the common goal was to reach a 30 percent pregnancy rate. That was a lofty goal then but now the 80th percentile for AgSource herds of more than 500 cows is better than that benchmark. The unattainable is becoming the normal.

In addition to monitoring pregnancy rates across the herd, data-monitoring tools also help evaluate individual cow performance.

We can track the ideal voluntary waiting period and make educated decisions on when to breed a cow back. We can also objectively analyze a cow’s body condition through technology, and review health events to determine if she’s in suitable condition to become pregnant.

Data-management tools make it easy to compare cows within a herd and determine, based on various factors, the bestand least-performing cows. Other tools provide context based on health events, allowing producers to compare benchmarks to similar-sized herds. How we manage, feed and house a genetically well-built cow changes what she can and will do. For 40 years we have evolved how we manage our herds – changing what we feed, how and when we milk, and who we breed and cull. Dairies that take advantage of all data-management tools offered can easily implement changes and push their herds further, faster.

When using data-management tools, the key is to standardize data to the value that makes the most sense for an individual farm. Make management decisions based on the data collected and the current market values.

How we currently manage cows will influence what a cow looks like in the next 40 years. The industry will shape the current average cow to be more-feed-efficient, have fewer health events and holistically move to be better than the current average.

We’ll find new ways to manage her to optimize those genetic advancements, and technology will help us do that. From a data perspective, the profitable cow will continue to be a well-kept cow.

Visit vas.com for more information.

Taliah Danzinger is the senior manager of dairy intelligence at VAS, which offers software and information solutions to help collect and connect a farm’s data – from herd management to feed performance, tracking and more. Visit vas.com for more information.

Dairy’s Bottom Line is published

by PDPW in cooperation with Agri-View.

1901 Fish Hatchery Road Madison, Wisconsin 53713 Toll-Free: 1-888-AGRI-VIEW agriview@madison.com www.agriview.com

December 2023 • PDPW • Dairy’s Bottom Line 15

Learn carbon concepts at conference

To many dairy producers, the topic of carbon and its related jargon – credits, offsets, insets and footprints – remain complex and overwhelming. Farmers aren’t sure which practices to implement or how to make the correct decisions for their businesses. Retailers and other groups along the food-supply chain have made national and international pledges to achieve net zero by 2045. Many are far from the initial goals but are still expected to prevent increases in their total emissions.

If 80 percent of the carbon footprint currently comes from agriculture – namely, the production of raw ingredients – then producers have a vital role in the carbon conversation. To bring stakeholders together for discussions and the latest in carbon-centric solutions, Professional Dairy

Producers® will facilitate Jan. 30, 2024, the PDPW Carbon Conference 2.0 at the Sheraton Madison Hotel, 706 John Nolen Drive, Madison, Wisconsin.

“Carbon Conference 2.0 is designed to bring together all stakeholders so they understand the concepts and can apply the information directly to their business,” said Shelly Mayer, dairy producer from Slinger, Wisconsin, and PDPW executive director. “There are serious positive and negative implications to consider in the carbon conversation. Everyone involved – from the producer to the retailer – must understand the vernacular if the dairy sector is to be sustainable long-term.”

Dairy producers have been hearing for some time they need to “cut their emissions number.”

But producers first need to know

“

what that number currently is before they can employ protocols to reduce it. Experts at the conference will help attendees identify the correct data and understand what it means.

The presenters represent a variety of sectors with expertise in the subjects of carbon and sustainability.

• ‌Mark Inkrott, co-founder and partner of strategy and financial consulting firm UpField Group • ‌Sara Kvidera, a dairy-technical consultant at Elanco Animal Health • ‌Daniel Peerless, Nestlé Global’s sustainable-sourcing lead for dairy, meat, poultry and eggs • ‌Patrick Wood, founder of Ag Methane Advisors “Attendees will have access to these presenters all day,” Mayer said. “The discussion of offsets versus insets is much bigger

You aren’t just a number here. They understand my livelihood and why it’s so important to make sure I’m properly insured while understanding that my dollar needs to go further.

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than mere semantics, yet none of it is important if you don’t know your number.”

The day-long program will explore such topics as incentives offered in trade for a farm’s carbon credits and methods available to farmers to reduce their emissions. Presenters will also emphasize watch-outs for selling credits and other potentially confusing management choices in the carbon space.

“You can only account for carbon one time,” Mayer said.

“If you’ve already sold your carbon you can’t sell it again to your processor. If you don’t understand these concepts you could be without market access.

That’s how serious this is.”

Visit www.pdpw.org to view the program flier and register, or call 800-947-7379 for more information.

16 December 2023 • PDPW • Dairy’s Bottom Line