October 2024

THE VOICE OF ONTARIO DAIRY PRODUCERS

FUTURE for the Planning

Understanding what’s involved in having a solid succession plan can help ensure your farm’s long-term success

Stay Connected Stay Supported

•

•

•

•

•

•

•

• Johne's

• Leukosis

• GestaLab

• Genetics

PUBLISHED BY

DAIRY FARMERS OF ONTARIO

6780 Campobello Road

Mississauga, ON L5N 2L8

MANAGER, COMMUNICATIONS

Sharon Laidlaw sharon.laidlaw@milk.org

ADVERTISING

Pat Logan pat.logan@milk.org 519-788-1559

GRAPHIC DESIGN

Katrina Teimo

CONTRIBUTORS

ACER Consulting, Steve Roche, Jeanine Moyer, Dr. Tom Deans, Mark Fournier, Andy Leach, MNP, Simon Jetté-Nantel, Alex Hamilton, Amanda Hammell, Veal Farmers of Ontario

Canada Post Publications Mail Sales Product Agreement No.40063866.

Return postage guaranteed. Circulation: 8,000. ISSN 0030-3038. Printed in Canada.

SUBSCRIPTIONS

For subscription changes or to unsubscribe, contact:

MILK PRODUCER

6780 Campobello Road

Mississauga, ON L5N 2L8

Phone: (905) 821-8970

Fax: (905) 821-3160

Email: milkproducer@milk.org

Opinions expressed herein are those of the author and/ or editor and do not necessarily reflect the opinion or policies of Dairy Farmers of Ontario. Publication of advertisements does not constitute endorsement or approval by Milk Producer or Dairy Farmers of Ontario of products or services advertised.

Milk Producer welcomes letters to the editor about magazine content.

*All marks owned by Dairy Farmers of Ontario.

WEBSITES & SOCIAL MEDIA

www.milkproducer.ca

www.milk.org

Facebook: /OntarioDairy

X: @OntarioDairy

Instagram: @OntarioDairy

LinkedIn: dairy-farmers-of-ontario

www.milkproducer.ca

Focus on Finance

Start your succession planning early to ensure a smooth transition of your farm

By Steve Runnalls, Board Member, Region 12, Districts of Northern Ontario and Haliburton. Steve serves as Chair of the Transportation Committee and is on the Quality Assurance Committee.

Succession planning is a task many of you are either undergoing on your farm or may have already completed. As a fourth-generation farmer who took over my father’s farm in 1998, I understand first-hand what’s required to get the process started and some of the pitfalls to avoid that can easily derail a plan.

When it comes to mapping out the future of your farm, it’s important to start the process early and continue refining and building on your plan as your farm needs change. I recently heard some great tips on succession planning I think are worth passing on, such as realizing the benefit of starting early so you can choose a suitable successor and the terms of transfer because waiting too long can limit your options. The session also highlighted the three types of transfers to consider in your plan, which include:

1. Operational transfer—sharing or transfer of the day-to-day work;

2. Management transfer—transfer of leader-

ship roles and decision-making responsibilities;

3. Ownership transfer— transfer of business entity to successor.

Other areas to consider are having a will and insurance policies to protect the business. On our farm, we are slowly transitioning the operation to our son, Scott. Transferring the day-to-day responsibilities has been relatively easy. For instance, Scott has been taking over managing our new robotic milking systems and making all decisions on cropping.

In terms of transferring management, we have started down this path, but these responsibilities are harder to give up and sometimes require us to step back. Relinquishing our ownership is something we’re still preparing for. This part of the process isn’t always easy, especially as the outgoing generation, and it can have the highest emotional toll. Though I’d like to continue being involved in the farm in some capacity, it’s important to have these discussions and communicate openly and

freely so everyone is on the same page. I have seen how the older generation can benefit from feeling like they have something to do after they retire. Though I bought out my dad completely, he was still involved in the farm for years and came to the barn daily to do a few chores until he passed in 2023. He said it gave him a reason to get out of bed and feel involved with the farm and family. I feel much the same way, dairy farming is in my blood.

We’re fortunate to have a succession plan in place. Having one is the best way to ensure everyone is treated fairly.

At its core, a succession plan should give the future generation the ability to take over and chart their own path. Don’t rush the process and do your due diligence. Talk to different experts and get many points of view to analyze all aspects of your plan. Also, talk to other farmers who have gone through succession. You want to ensure everyone is comfortable with the plan and how you’ll move forward.

Steve Runnalls

WHAT IF

sTRESSING ABOUT FUTURE PRODUCTIVITY WAS

A THING OF THE PAST?

ASK A PURINA DAIRY ADVISOR HOW HL+ CAN HELP YOU ACHIEVE PEAK EFFICIENCY.

Thanks to Herd Lifetime Productivity (HL+), our team can use in-depth data to identify new opportunities for your farm. Whether we’re finding ways to better nurture your youngest calves or make the most of your most mature cows, we’ll show you how to maximize the profitability of your entire herd.

Face tomorrow with greater confidence. Contact your local Purina Dairy Advisor today.

focus on finance Planning FUTURE for the

Understanding what’s involved in having a solid succession plan can help ensure your farm’s long-term success

On the following pages, Milk Producer taps into leading experts to share their insights on the strategies farm families need to consider as they plan for their farm's future and how best to transition the operation to the next generation.

How can generations BRIDGE the GAP to prepare for transition?

By Dr. Tom Deans, Intergenerational wealth expert, and Mark Fournier Instructor at the Werklund School of Agriculture & Technology, Olds College

SILENCE CAN PUT A FAMILY FARM IN JEOPARDY

It must be disconcerting to be in your seventies or eighties and not have a farm succession plan in place. However, conversations and family meetings will help you realize the best path forward, particularly with the rising generation.

Many farmers struggle to relinquish control. Some think post succession, they must simply sit down on the couch and start watching afternoon TV. That’s simply not the case. This idea one must stop farming after retirement is a misconception.

Farm operators often live with extraordinary financial risk for decades. It can be liberating for them to fully realize they can continue to have employment income after they transition their farm ownership.

The senior generation can let go of the ownership, and truly start to engage the next generation and encourage them to risk their capital to purchase the family farm. This doesn’t have to be overnight, nor should it be. Successful farm operations share financial information with the next generation, teaching them about financing early and those conversations are held often. A perfect time to start is when the next generation is in their late teens.

Ideally, you want to bridge the gap incrementally, though. Attempting an overnight transition is ill-advised and seldom works well. Start with the most obvious area – the physical work. From there, if the rising generation is successful,

gradually add additional responsibility to their job description. Even though you will have to adjust your plan as time unfolds, the reality is that getting ready for a farm transition can feel satisfying. A major burden will be lifted off the shoulders of the senior generation, who have often carried the stress of providing for their family for decades.

It would be unrealistic for the outgoing generation to expect the incoming generation to do the same thing they did on the farm. It’s just not going to happen. The first thing both generations need to do is discuss where the similarities and differences lie. For younger farmers, there is commonly some fear, frustration and confusion about farm succession.

Many young people I know would like to take over the family farm, but grandma and grandpa are still farming, and they don’t know if the farm will go to an aunt, uncle or their parents. This ultimately drives young people to be confused. In this case, I encourage them to take action.

Tips to help you through the transition process

ADVICE FOR SENIOR PARTNERS:

Continue to contribute

Senior farmers are still able to greatly contribute to the next generation. Think of yourself as an in-house consultant with all the knowledge and experience to help those managing the farm.

Be proactive

It’s the only way forward. Build the life you want for yourself, and for the incoming generation, by creating and acting upon plans now. When life unfolds, both families will be ready.

ADVICE FOR JUNIOR PARTNERS:

Build a career

Don’t wait for the farm. Yes, it may be a lifelong dream to run the family farm, but how long can you wait? Are you prepared to wait patiently until 40? 50? 55? Start a value-added business or find a related off-farm job. This way, you have ownership of something that integrates into the farm business when and if you do take over.

Be proactive

It’s OK to ask for answers. After all, if you want to run the farm one day, you’ll need to show initiative. Be proactive if your parents aren’t and ask to hold regular family meetings. Don’t expect all your questions to be answered overnight but know that this is a logical starting point.

Farm

operators often live with extraordinary financial risk for decades. It can be liberating for them

to fully

realize they can continue to have employment income after they transition their farm ownership.

Too often, a transition happens when something happens to mom or dad and they’re physically unable to farm. That’s not a proactive solution. To get around the disillusionment of being an adult child with zero input into farming operations, you must cultivate options for yourself. They could be on-farm options or they could be off-farm options, value-added or otherwise.

Create your own experience and create your own life because taking over the farm may or may not work out. Farmland is expensive, and margins are tighter. Sometimes the only choice is to go out and create off-farm careers in addition to farming. If things don’t work out as planned, then there is less pressure on you and different avenues you can take.

It’s not bad for the next generation to look at other, more attractive options, especially if a situation becomes unhealthy and starts to tear at family unity.

I would say by the time somebody in the incoming generation is 30, they should have a plan in place, almost to the year, when the outgoing generation will hand over the operation. That doesn’t mean the outgoing generation won’t be involved in the farm anymore. It just means they don’t necessarily own the farm any longer.

This article is reprinted by permission of the author and Farm Credit Canada. It was originally published in FCC's magazine, AgriSuccess. For subscription information about AgriSuccess, see www.fcc.ca/agrisuccess.

Share the load in your succession journey

By Sharon Laidlaw, Communications Manager, Dairy Farmers of Ontario

A lot of emotion can be attached to a family operation and by extension, a farm succession plan, says Audrée Morin, a business adviser with Farm Credit Canada.

“It can be challenging to get everyone in the same room sometimes when discussing succession plans with farm families,” Morin says. “It’s important to keep the momentum going, however, and help families see the bigger picture.”

Morin says farm families need to share the load when it comes to planning their succession journey. Both generations need to feel like progress is being made. She says before farm families begin to put thoughts on paper, they should seek the help of outside expertise. Consulting with advisers and dedicating separate meetings to explore long-term planning and options for growth, expansion and transition planning can go a long way to alleviating common issues. Families should consider building a multidisciplinary team of advisers who all work together to achieve the same goals for the farm’s future. Using professional farm business advisers can provide much needed insight to the discussion and planning process and help keep everyone on track, she adds.

An adviser can also conduct an analysis of the farm business, determine ownership structure and if there’s room to add family members, develop a will and estate plan, help craft the family’s vision for the farm, assess the operation’s current and future financial situation, and even figure out how new members taking over ownership of the farm will be trained.

"Dairy farming is time consuming and sometimes leaves little brain space to tackle the big topics, but if families surround themselves with the right technical partners and if they keep working away at it, they will continue to make progress" Morin says. "There is a lot of value in sharing why we all want to be in business together and what we all value about one another. Mediation is sometimes what is necessary to open up the dialogue if there are communication challenges."

Morin’s key pieces of advice are for families to discuss the transfer of labour, management decisions and ownership, including tax implications, early in the process. Understanding what’s involved in having a solid succession plan can help ensure the farm’s longterm success.

complete peace of mind for lasting happiness.

Let us show you the quality of our GEA DairyRobot R9500 milking robot by providing complete peace of mind - a Full 5-Year Warranty*!

From now through December 13th, 2024, when purchasing the DairyRobot R9500, GEA is offering its very own attractive 5-Year Warranty* as a proof that GEA is undoubtedly standing behind its equipment. This offer is applicable on each DairyRobot R9500 that’s purchased.

Get in touch with your authorized GEA dealer for all details, terms and conditions.

GEA’s proven In-Liner Everything technology performs every step of the milking process in a single attachment.

BRITISH COLOMBIA

Pacific Dairy Centre Ltd.

Chilliwack — 604 852-9020

ALBERTA

Dairy Lane Systems Alberta

Leduc: 780 986-5600

Blackfalds: 587 797-4521

Lethbridge: 587 787-4145 Lethbridge Dairy Mart Ltd. Lethbridge — 888 329-6202 Red Deer — 403 406-7344 SASKATCHEWAN Dairy Lane Systems Saskatchewan Warman — 306 242-5850

Emerald Park — 306 721-6844

Swift Current — 306 203-3066

MANITOBA

Tytech Grand Pointe — 204 770-4898

ONTARIO

Conestogo Agri Systems Inc. Alma — 519 638-3022

Dairy Lane Systems Komoka — 519 666-1404

Lawrence’s Dairy Supply Inc. Moose Creek — 6 13 538-2559

McCann Farm Automation Ltd.

Seeley’s Bay — 613 382-7411

Performance Dairy Centre Inc. Embro — 519 423-9119

Wood’s Dairy Source Keene 705 295-3247

ATLANTIC PROVINCES

Atlantic Dairy Tech, Inc.

AMS Sub-dealer for Sheehy Entreprises Ltd. Charlottetown, PE — 902 368-1719

Sheehy Entreprises Ltd.

Shubenacadie, NS — 902 758-2002

Lower Queensbury, NB — 506 478-4878

focus on finance

What makes a successful farm succession plan?

There are five key considerations farm families need to consider

By Jeanine Moyer

“There’s power in the process. A succession plan is more than a tax plan—it sets a farm up for success in the future and fosters the development of the next generation of farm leaders.”

Maggie Van Camp, Founder of Farmers' Bridge

NEVER UNDERESTIMATE THE POWER OF A SUCCESSION PLAN. That’s the advice Maggie Van Camp offers to every Canadian farmer, no matter what stage of their farming career or how old they are.

Founder of Farmers’ Bridge, a service that focuses on a people-focused approach to help farms efficiently and professionally transition between generations, and director of strategic change at Loft 32, Van Camp combines her first-hand experience with her own farm’s succession planning with practical advice for fellow farmers.

“There’s power in the process,” she says. “A succession plan is more than a tax plan—it sets a farm up for success in the future and fosters the development of the next generation of farm leaders.”

So, what makes a successful farm succession plan? Van Camp offers five key considerations for farm families.

1. Set goals

Every succession plan should start with a set of aligned family goals. The first one should be to create ‘famliness,’ in other words, a goal in which everyone can still comfortably enjoy thanksgiving dinner together throughout the succession planning process and upon the transition outcome.

“I believe farm families can do it, because as farmers, we do tough stuff all the time,” says Van Camp. “Building a succession plan is one of the most challenging things we can do, because for many of us it’s never been done before, and we don’t have the skill sets required to do it ourselves.”

One of the most common questions Van Camp gets asked is, ‘who should be at the table’ when creating a plan. Her response is the same for everyone, no matter what type or size of farm – whoever is impacted by the transition needs to be informed consistently about the progress. This could include family, staff or farm advisers. “But remember, having a voice and having a vote are very different. So, be sure to establish who has the authority to make decisions early in the process,” advises Van Camp, who also reminds farmers the role of the decision maker(s) may change as the transition process evolves. That’s another reason why aligning goals everyone agrees with is so important.

2. Start early

The best advice Van Camp can offer is to start early, prepare ahead and communicate. She points out that if a farm family can start the work themselves—asking questions ahead of the planning process, establishing regular meetings, a code of conduct for meeting behaviour and a farm governance structure—they can save a lot of time and money.

“Building these behaviours and open lines of communication into a family farm dynamic early will help with all major decisions,” says Van Camp, noting that establishing effective communications and governance structures can help with emotional situations like illness or death, not just farm succession.

Sharing expectations of the next generation is important too. “If parents expect their children to work off the farm, develop skill sets or attend post-secondary school, these things need to be communicated early,” says Van Camp. “But it’s also important for parents to be willing to see things from the younger generation’s perspective too and be open to compromise.”

Van Camp reminds farmers a succession plan is more than a shareholders agreement or will. Even the most robust plans need to consider family dynamics and the farm business itself is constantly evolving. That’s why a succession plan should be viewed as a living document.

Starting early and building plans and milestones into the larger succession process can help with flexibility. For example, Van Camp says a transition plan may include housing agreements,

compensation plans and designated roles and responsibilities. “Use these plans within the larger plan to inform and build on the transition.”

Realistically, multiple plans are being established and implemented throughout the transition process, so changes and surprises are bound to happen. Van Camp also reminds farmers, “this isn’t a quick turnaround, famers need to build time into the plan, too.” She points out proper tax planning can take time to establish and execute, so starting early is always the best strategy.

3. Establish a timeline

As entrepreneurs themselves, many farmers tend to want to jump ahead to a solution and dive into implementation, making working through the succession planning process one of the hardest things to do.

“Succession planning is not a linear process,” reminds Van Camp. While the goal is to develop a plan that can be followed, she says, for every step forward, farmers can expect to take two to the side and one back. “Some of the strongest lessons come from going back a step, and there is power in the lessons everyone learns through the process.”

The process of transitioning roles and responsibilities to the next generation can be divided into three stages – assuming task and labour responsibilities, management roles and shift of ownership.

In each stage, the exiting generation can give up control incrementally, allowing the incoming generation to build trust. This process also ensures the younger generation has time to learn first-hand while they still have support. Van Camp is currently in the second stage of transitioning farm management roles to her son on her own family farm, Redcrest Farms near Blackstock, Ont., and says it’s been an amazing experience to watch him grow and learn from a team of advisers and mentors he’s built to help him along the way. “Succession can be an empowering process for everyone,” she notes.

Assigning a timeline to each stage may or may not work for individual families but establishing if the next generation is interested in taking over the farm, or not, is an important milestone in every farm transition. Open communication

Farm succession can be one of the greatest challenges your farm and family have ever faced, or your greatest opportunity.

is key to answering this question, but personal interests and circumstances can always change, that’s why Van Camp advises farmers to give their children a deadline of intent. In fact, she proposed this to her own family, explaining they didn’t have to commit to taking over the farm, but for her own retirement and tax planning purposes, she needed to know one way or another.

Farm succession can be daunting for both generations. Van Camp says in some ways the exiting generation has spent the first two-thirds of their life building their farm business and are faced with making decisions about how to spend the next third. “The speed and process will be

As entrepreneurs themselves, many farmers tend to want to jump ahead to a solution and dive into implementation, making working through the succession planning process one of the hardest things to do.

different for every farm and every family.”

4. Communicate

Ask questions and listen. Van Camp says communicating isn’t about talking, especially during the succession planning process, it’s about listening.

Advisers can help guide discussions and prompt with questions, but everyone involved needs to be willing to communicate. Once initial goals and governance have been established, there may come a point when planning meetings can be divided, but determining who should be in each meeting room, how decisions are communicated and establishing who is entitled to various levels of information is the next step.

Van Camp likes to organize a farm’s communication and decision-making structure by ‘rooms,’ suggesting farm families clarify who should be involved within each room – family, operations management, ownership and transition. For example, every family member involved in the transition should be in the room for family meetings, but when it comes to ownership meetings, it could involve a farm’s board of directors, or those who are (or will be) named on partnership or corporation agreements. Then there’s the operations management meetings where farm owners, staff and managers may all be in the room together, but with varying levels of decision-making abilities.

focus on finance

Meeting your animals’ needs... with precision

Trouw Nutrition is a pioneer in precision nutrition. For over 35 years, we have been balancing rations to amino acids with our NEWTON® formulation program.

This means more accurate and cost-efficient diet formulations that meet the needs of your herd and are in line with your goals.

No more, no less, just enough.

To take advantage of the power of NEWTON, talk to your Dairy Nutrition Advisor.

5. Create an advisory team

“Developing a team of trusted and knowledgeable advisers and supporters that surround the next generation is essential,” believes Van Camp, who notes the team may differ throughout the various stages of succession. For example, an accountant may be brought in during the early stages to help with tax planning, while a human resources consultant may not be needed until the later stages when responsibilities and labour are divided and assigned.

Van Camp recommends farm families remain open and flexible to consulting the right professionals at the right time, and when they are needed.

The right mix of professional advisers is necessary to build the right plan and keep the process moving, and consistently working with a succession planner will be a farm family’s rock. “You don’t know what you don’t know, so bring in people as your plan evolves to help inform and guide you, but most importantly, establish a working relationship with a professional succession planner who will ask you hard questions and help you navigate the process,” says Van Camp.

Every farm situation is different, and advisory needs will vary depending on each family, so Van Camp recommends three key criteria when selecting advisers. The first is to pick someone you (and everyone involved) can trust. The second is to select someone with agricultural knowledge, like an accountant who understands the tax implications of a farm transition or a lawyer who knows about lot line adjustments. And the third is perspective. “Don’t just choose an adviser who’s historically worked with your farm business; a successful succession plan needs someone who shares a newer perspective, knowledge and goals and can benefit the next generation. Find someone who can advise your farm team for the long-term, not someone who is likely to retire along with the exiting generation,” says Van Camp.

Kickstart success

Succession is the greatest labour and leadership issue agriculture has ever faced. In fact, by 2033, 40 per cent of Canadian farmers will be retiring.

“The most strategic farm succession plans are co-created bit by bit with each generation and their advisers,” says Van Camp. “This process may take longer, but the outcome will be stronger and more sustainable.”

Working with a team of trusted, knowledgeable advisers is key. But without open and clear communications, even the best succession plan will be tested. To help farm families get started, Van Camp has created a transition readiness survey through Farmers’ Bridge (farmersbridge.ca) to help farm families understand where they are now, identify their needs and what’s required to navigate between generations.

Funding equalization

Figuring out how best to equalize your nonfarming children without jeopardizing the farm business or causing conflict in the family

By Andy Leach, Transition and Succession Planning Coach, FarmLife

SINCE THE MID 1980s, we’ve seen a steady increase in Ontario’s farmland value. On paper, the inflated value of farm properties sounds like a benefit to farm families as the overall asset base of the family is growing. However, when it comes to the future of agriculture in Ontario, the value of farmland poses a variety of threats to the industry.

The first barrier is the entry point for new, prospective farmers. Starting fresh and at a scale significant enough to be successful is unlikely for most young farmers today, specifically for those in the dairy sector. The initial capital needed, and the continued cash flow needed to service debts, puts the farm on the back foot from day one and leads to financial uncertainty. The same problem applies to existing operations looking to expand. Purchasing land remains a competitive environment, with less and less under-valued properties being found on the market. This issue is amplified in the dairy sector by the limited opportunity to increase quota allotments, and by the acquisition cost of quota that is available. This climate places increased emphasis on the need for efficient transition between generations and highlights the need for formal succession planning on our dairy farms today.

Equalization should consider family’s unique characteristics

Almost every day in our work as succession planners, a new dairy family will reach out looking for guidance. Despite each farm and family being unique, almost all share a common concern – how do we equalize the non-farming children without jeopardizing the farm business or causing conflict in the family?

The reality is there is no right or wrong answer to this question. Each family should have an approach to equalization that fits the unique characteristics of their specific situation. The farming assets, personal financial resources, goals and ambitions of children and the perspectives of the entire family should be considered when building a solution. Families spend time and resources trying to solve problems that don’t exist on their farms. A desire to create equality for non-farming children is often confused with the need

to create fairness. If there is one key takeaway from this article, it is that fair and equal don’t have to be the same thing. What is considered fair can differ between each of your children, and leaving assets, gifts, inheritance, etc. to your children should be measured by the positive impact it makes on their lives, not the dollar value attached to the gift.

We often get asked questions like, “What do other families do to create equalization and how much is the right number?” It’s great to get inspiration from those around us, but we must remember each family’s financial resources is unique, and what works for one family may not be as successful for the next. The key to a strong succession and equalization plan is to open the doors to communication. By including the family in the process, we can refine what we are trying to solve and reduce the number of surprizes that may cause future conflicts to help protect the relationships within the family unit.

From a financial perspective, there is almost always a need for some kind of monetary value to be placed on equalization. Whether you wish to leave farming assets, such as land, quota and equipment, or non-farming assets, such as cash and real estate, it always has some form on monetary value to consider.

When it comes to equalization, there are different ways to fund it and find the combination of methods that best fit the situation. Some of the most

Andy Leach,

Transition and Succession Planning Coach

1) Asset division approach

This approach involves splitting farming assets. The main benefit to this approach is it requires no up front capital to complete and is easiest to solve for true “equality.” However, there are some serious downsides to this approach if it is not managed correctly. First, you are now changing the relationship between your children from family members to business partners. This opens the door to conflict, especially when one side of the equation builds their livelihood off the use of the land, and the other doesn’t. Conflict of interest often leads to dispute and eventually a desire for business partners to divide. This is a common, historical approach to succession. Many succession plans we’re involved with involve cleaning up these sibling partnerships that were created in the past, and unfortunately, often results in farming children purchasing farms from their siblings and experiencing significant tax consequences as a result.

2) Borrowing approach

This approach is similar to the first bullet but skips the asset division phase.

•

•

•

This requires borrowing money from a lender to “buy-out” the non-farming siblings for an agreed-upon value. This is often a clean cut, simple solution for farm families but comes with one huge problem - can the farm afford it? With the value of farmland today, these buy-out scenarios often have a sizeable price tag that can still cause feelings of resentment between farming and non-farming siblings, with a feeling that the hard work and risk of one sibling is going to create comfort and ease for another. Even if both parties agree on a fair value and cash flow is strong, the cost of interest and borrowing means it often isn’t the most efficient use of resources.

3) Save-for-it approach

In a perfect world, this would be an efficient solution for many farm families. Each month, you would set aside a portion of income and create a “sidepot” for your non-farming children they can either access while you’re still alive or receive through your eventual estate. This approach would create a clean separation between siblings, place less burden on the next generation to help fund equalization and give flexibility on timelines. However, we do not live in a perfect world. This approach often takes years to achieve. It also depends on consistent funding, stable interest rates and a long lead time to create significant savings. Take any of those pieces away and the effectiveness of the solution diminishes. Time is the biggest factor here, with many families waiting until the farm owners are in their senior years to start thinking about equalization. All being said, if conditions remain favourable, this approach does indeed result in a more efficient funding mechanism than previous options but isn’t achievable for all.

4) Insurance approach

Looked on unfavourably by many, life insurance has a bad reputation when it comes to succession planning and often deemed as too expensive. However, when used correctly, it is often the most efficient approach to equalization funding when measured dollar-for-dollar against other strategies. When we measure against a savings approach, not only does life

insurance guarantee a defined benefit from day one of ownership, it also has the advantage of a tax-free payout to the beneficiaries. With proper education and guidance, life insurance can become an investment tool for succession and estate planning, as opposed to a tool to simply cover risk management needs.

Don’t rely on just one strategy

In summary, there are numerous other ways farm families can approach funding their equalization efforts. The important thing to consider is you don’t need to use just one strategy. Many families work with a combination of methods to find the approach that best suits the individual needs of their family members. Having structured, proactive conversations with all involved leads to the best results and exploring each opportunity with an open mind allows each family to make informed decisions about how to best tackle the equalization conundrum.

focus on finance

Crunching the numbers

LIKE IT OR NOT, FINANCIAL PLANNING IS AN ESSENTIAL PART OF FARM SUCCESSION.

Why? Because the exiting generation needs money to retire, and the incoming generation needs to be financially set up for success.

“Farmers are unique because you can’t look at personal financial planning without looking at the farm business, too,” says Scot Bolton, a certified financial planner with Good Redden Klosler Wealth Management in Tillsonburg, Ont. Raised on a dairy farm in Oxford County, Bolton understands just how interconnected finances are on the farm, but he believes that doesn’t limit farm families from establishing financial plans that serve their personal needs too, like retirement and risk management.

Bolton says, “too often farmers ignore personal savings options because they are so invested in putting every dollar into the farm.” This tendency can result in unexpected challenges when it comes to cash flowing a farm succession and retirement.

Build a financial plan that works for everyone involved in your farm’s succession

By Jeanine Moyer

Scot Bolton, Financial Planner Good Redden Klosler Wealth Management

For example, if a farm owner’s investments are all tied to farm assets, is it up to the incoming generation to cash flow the exiting generation’s retirement?

Financial planning advice

Building a financial plan that works for everyone involved in a farm succession requires open, honest conversations, leveraging financial tools and consulting a trusted financial planner.

Bolton shares financial planning tips and tools for everyone on the farm to consider:

Exiting generation – Ask yourself what you want to do in your retirement and what off-farm assets you can use to fund retirement. These assets could include RRSP, TFSA, non-registered savings, additional homes, vacation properties, etc.

Incoming generation – Determine your debt comfort level. You likely don’t want to mortgage your entire future to take over the farm, so be sure to understand how the transition will impact your finances now and in the future. Ask yourself what you need to save for – your own retirement, post-secondary education for children, etc. Consider personal investments outside of the farm to fund these savings goals. Understand the viability of your farm operation and the implications of having family members (young

children or possibly the exiting generation) rely on you, and don’t hesitate to manage these risks with financial planning tools like life insurance.

Financial planning tools

Once all considerations have been assessed and a plan has been developed, there are four key financial tools Bolton advises farmers use to implement a financial plan.

1. Investments and money management – The best advice Bolton can offer farmers is to allocate a percentage of net profit annually to investments outside the farm. “The more assets you have, the easier it is to have choices,” notes Bolton, who recommends farmers start investing as early as possible with a savings plan that can be developed to help young farmers realize their investment goals. For the exiting generation, investment and money management tools can include investing profits or income from the farm transition. Bolton advises working closely with an accountant to ensure tax implications are as efficient and effective as possible.

2. Life insurance – This is a tool that can be used by the incoming generation for risk management and protecting dependents, and as part of an estate plan for the exiting generation. Life insurance is also an effective succession tool for outgoing generations looking to even the field with nonfarming children.

3. Banking and financing – No matter the farming generation, working closely with a lender and financial adviser to ensure you are utilizing the best rates and product offerings is important.

4. Estate planning – Again, no matter the farming generation, having an updated will, including powers of attorney, trustees and guardians (where necessary) is a fundamental part of a robust financial plan.

Building a financial plan that works for everyone involved in a farm succession requires open, honest conversations, leveraging financial tools and consulting a trusted financial planner.

DairyTrace, alongside Dairy Farmers of Canada, is working with governments, provincial veterinary offices, and industry organizations to use the traceback system in the event of an animal health emergency. “

All reported events submitted to DairyTrace since October 2020 have built the foundation of a traceability system that will benefit farmers when it’s needed. The work you have done by submitting your traceability events to DairyTrace has helped to lay this foundation.

Brian Van Doormaal, Chief Services Officer, DairyTrace–Lactanet

focus on finance

questions to assess the financial health of five

Evaluate

your financial stability, employee satisfaction, innovative practices and more

By Amanda Hammell, Senior Manager, Farm Management Consulting, MNP

THIS ARTICLE WILL LEAD YOU THROUGH evaluating your financial stability, employee satisfaction, innovative practices, and more.

Imagine a financially healthy, successful farming operation. Is it composed of leased or owned land? Does it stick to the same ol’ ideas and traditions? Does it struggle to keep staff? Does it look like your farm?

Understanding the overall health of your farm is critical for its long-term success and growth. By self-assessing your operation, you can identify strengths and weaknesses, make informed decisions and adapt to challenges.

Here’s how you can use five key questions to self-evaluate your farm:

If the land I lease comes up for sale, could I buy it?

Buying your leased land can be a significant step in maintaining the growth of your operation. After all, if someone else buys it, it’s likely you’ll no longer have access to it, which decreases the size of your operation. But consider the big picture. When it comes to achieving sustainable, long-term success, does the purchase make sense?

Evaluate your financial health and determine if buying the land is a wise investment. Sometimes renting may be more economical than owning.

Ask yourself:

• Does it align with my long-term plans? Consider whether the land purchase fits into your strategic goals and crop rotation requirements.

• Is the rate of return high enough? Evaluate how much you could potentially

get back from the investment.

• Can I financially manage the purchase? Assess your financial health, debt servicing ability and overall capital structure to determine if buying the land would hurt your financial health.

• Can I manage more debt? Reflect on your ability to handle increased debt without jeopardizing your farm’s stability.

Do my employees and/or shareholders enjoy working on my farm?

This question digs into the heart of your farm’s culture and operational efficiency. A happy team is more productive and less likely to look for opportunity elsewhere, which is vital in an industry facing a shortage of qualified workers.

An unengaged team can hinder many aspects of your operation—making it hard to achieve meaningful growth. It can also be discouraging for the younger generation. A motivated, valued workforce will encourage the next generation of farmers, as well as attract top talent to your farm.

Similarly, satisfied shareholders are more likely to support long-term growth and investment plans. By regularly assessing their contentment, you can identify areas of improvement and implement changes that foster a positive work environment.

Ask yourself:

• Do I have a formal process to evaluate their satisfaction? Implement formal evaluation processes and HR systems.

• How do I gather feedback? Ensure you have mechanisms to get honest feedback from your team.

your farm

• What HR systems are in place? Develop systems to enhance employee engagement and address concerns.

Has my farm breached any bank covenants more than once in the past 10 years?

Farming can be a volatile endeavour, and bad years can happen. When you experience a year of loss, it may result in breaching a covenant. Breaching once is quite common. But breaching year after year can be an indication you need to examine the financial well-being of your operation.

Monitor the following ratios over time and, if necessary, take corrective actions to avoid recurring breaches. Having a healthy farm doesn’t mean you may not ever breach your bank covenants — it means you understand why it happened and can attempt to fix the problem.

Focus on understanding these key ratios:

Debt to equity: This measures total debt against asset value. A healthy ratio can vary depending on which stage of your farm’s lifecycle you’re in. For instance, a growing farm may have a debt-to-equity ratio of $1 of debt to $1 of equity, while an established farm may have a ratio closer to $1 of debt to $3 of equity.

Working capital (current ratio): This assesses short-term obligations. A ratio of $1.50 of current assets to $1 of current liabilities may be considered healthy.

Debt serviceability (cash flow): This evaluates available cash flow against debt repayments. A ratio of $3 of cash flow to $1 of expected debt repayments may be considered healthy.

focus on finance

What is the average age of decision-makers on my farm?

Balanced decision-making involves perspectives from different people from different age groups. A healthy mix of experience, insight and modernity can help drive your farm forward.

How you incorporate younger and older people into your organizational structure can bring an energizing mixture of modern ideas and wisdom. Mentorship and knowledge transfer are imperative for sustainable growth and continuity.

Consider this:

Incorporating younger and older generations into your decision-making process: Leverage the enthusiasm of youth and the knowledge of older generations.

Exploring business structures like joint ventures, partnerships, and corporations: Use structures that keep the older generation engaged, while allowing the younger generation to step up. A business adviser can help you determine the best business model for your farm.

Am I always testing new ideas?

Innovation and experimentation are key to continuous improvement.

Generally, farmers are proficient at trying new techniques and different

ways to improve their operation.

To maintain a healthy farm, you may want to consider new ideas to enhance productivity and efficiency. To do this, you and your team need to embrace change and be open to trying new methods. Farmers who innovate are better positioned to adapt to industry changes and enhance their operations.

Ask yourself:

• Am I staying informed? Use trade shows, podcasts and industry publications to stay up-to-date on the latest innovations and approaches within the agricultural sector.

Am I implementing new techniques and technologies? Experiment with new methods to improve your farm’s productivity and efficiency.

How does your farm stack up?

Based on the five questions above, how would you rate your farm’s financial health? A self-assessment can be a powerful tool to gauge the health of your operation. Don’t hesitate to ask yourself the right questions and take actionable steps toward improvement. By regularly assessing your financial well-being and making the necessary adjustments, you can engage your team, embrace innovation and understand how to best navigate the challenges and opportunities that lie ahead.

GEA Super Pump on trailer or on 3-point hitch

That’s what needs to be

hitched to your tractor.

• Reinforced pump head

• Gate valves all around

• Twin short agitation nozzle with position indicator

• Stainless steel nozzle ball joint

• Thicker sprocket and motor mount

• Inline cooling pump (no more belt)

• New oil cooling reservoir bolted on the housing

• Remote control

Trailer model features:

• Can reach up to 4’ in pit depth difference

• PTO stays connected on the trailer

• Transport mode locking mechanism on trailer

BRITISH COLUMBIA

Mountain View Electric Ltd.

Enderby — 250 838-6455

Pacific Dairy Centre Ltd.

Chilliwack — 604 852-9020

ALBERTA

Dairy Lane Systems

Leduc: 780 986-5600

Blackfalds: 587 797-4521

Lethbridge: 587 787-4145

Lethbridge Dairy Mart Ltd.

Lethbridge — 888 329-6202

Red Deer — 403 406-7344

SASKATCHEWAN

Dairy Lane Systems

Warman — 306 242-5850

Emerald Park — 306 721-6844

Swift Current — 306 203-3066

MANITOBA / NW ONTARIO

Penner Farm Services Ltd.

Blumenort — 204 326-3781

Thunder Bay ON – 800 461-9333

Tytech

Grande Pointe — 204 770-4898

ONTARIO

Claire Snoddon Farm Machinery

Sunderland — 705 357-3579

Conestogo Agri Systems Inc.

Drayton — 519 638-3022 1 800 461-3022

County Automation

Ameliasburg — 613 962-7474

Dairy Lane Systems

Komoka — 519 666-1404

Keith Siemon Farm Systems Ltd.

Walton — 519 345-2734

Lamers Silos Ltd.

Ingersoll — 519 485-4578

Lawrence’s Dairy Supply Inc.

Moose Creek — 613 538-2559

McCann Farm Automation Ltd.

Seeley’s Bay — 613 382-7411

Brockville — 613 926-2220

McLaren Systems

Cobden — 613 646-2062

Melbourne Farm Automation

Melbourne — 519 289-5256

Watford — 519-876-2420

Silver-Tech Systems Inc.

Aylmer — 519 773-2740

Dunnville — 905 981-2350

ATLANTIC PROVINCES

Atlantic Dairy Tech.

Charlottetown, PE — 902 368-1719

Mactaquac Farm Equip. Ltd.

Mactaquac, NB — 506 363-2340

Sheehy Enterprises Ltd.

Shubenacadie, NS — 902 758-2002

Sussex Farm Supplies

Sussex, NB — 506 433-1699

Maintaining quality milk

Understanding how DFO administers the raw milk quality program

By Alex Hamilton, Executive Director, Regulatory Compliance (DRC) and Quality Assurance, Dairy Farmers of Ontario

Along with conducting inspections and assisting on quality matters, FSRs also continue to be producers’ first point of contact for quota matters and handling proAction questions. Other responsibilities include ensuring DFO’s policies are being met, problem-solving on-farm issues, as well as providing guidance on policy protocols and the use of DFO’s services and programs.

FSRs are not only the first point of contact for producer needs, they are also a vital partner in helping relay important industry information to their producers and enabling the organization to continue supporting them while ensuring uncompromising commitment to producing high-quality milk.

However, inspecting farms also requires compliance from producers. Under Regulation 761, the onus is on producers to respect the authority of the DRC’s role and provide access to their farms for inspections.

Milk testing

IN LAST MONTH'S COLUMN, I covered the importance of the Director of Regulatory Compliance’s (DRC) role to administer the raw milk quality program in Ontario. In this issue, I’m going to delve into how DFO administers the raw milk quality (RMQ) program in Ontario, which includes inspecting dairy farms, testing milk and overseeing bulk tank milk graders (BTMGs).

Inspecting dairy farms

DFO administers the RMQ through on-farm inspections. The DRC appoints 13 field services representatives (FSRs) to conduct rigorous inspections on farms across the province at least once every two years. Our FSRs evaluate the status of each farm and work proactively with farmers to help them achieve and maintain continued Grade A compliance with regulatory requirements.

Each day, about 8.5 million litres of milk are moved from Ontario dairy farms to plants for processing. That works out to about 3.1 billion litres a year.

All milk collected on farms must undergo testing at the University of Guelph lab. Laboratory testing plays an important role in ensuring safe, quality dairy products. In today’s standards, it is essential to ensure dairy products are free of microbial agents, antibiotic residues and other contaminants.

All milk collected on farms must undergo testing at the University of Guelph lab. Laboratory testing plays an important role in ensuring safe, quality dairy products.

Milk testing provides analytical test results for payment, regulatory and research purposes. The DRC uses results for penalty purposes as outlined in Regulation 761. It’s important to note DFO does not have the prerogative to apply penalties, but rather it is the regulation that gives the DRC the authority to enforce these regulations and not override them.

Samples taken from the farm are considered to be a regulatory sample. As such, DFO does not have the right to not recognize a legitimate sample for testing, payment and penalty purposes.

BTMG program

The BTMG has a very important role in the dairy industry. Just as the plant milk grader is the critical link from transportation to processing, the BTMG is the critical link from production to transportation. Before transporting a producer’s milk to market, the BTMG has the responsibility and authority to accept or reject milk in a farm bulk tank based on visual and odour quality grade determination. The BTMG is also responsible for sampling and measuring milk in a producer’s bulk tank and transporting raw milk.

All raw milk in Ontario is graded by a BTMG on farm before being transferred to a truck tank and transported to a processor. BTMGs are certified by DFO, under the DRC, which appoints these examiners to conduct the aforementioned duties with care and diligence. Under Regulation 761, the DRC also has the authority to ensure all BTMGs adhere to the policies and regulations set out with respect to carrying out their duties and responsibilities. Each driver must first apprentice to obtain a BTMG certificate, work for a milk transport company recognized by DFO and pass a written exam. The certification process, as outlined in regulation 761 of the Milk Act, ensures drivers develop an expertise in ensuring milk quality. Drivers must recertify every five years.

BTMGs are important to the process of ensuring milk safety and give legitimacy to the samples collected by following strict procedures. Their role and responsibilities are far reaching. The grading, sampling, measuring and recording of the volume of a producer’s milk shipments affects many people in the dairy industry chain. If these duties are not properly performed, poor quality milk could be marketed, incorrect payment could result to the producer and the transporter, and incorrect charges could be assessed to the processor receiving the milk shipment.

From field experience to producer relations to legislative compliance, Alex Hamilton has it all, says DFO CEO Cheryl Smith. It’s through that comprehensive lens our Field Services have evolved, adds Smith.

Executive Director, Regulatory Compliance and Quality Assurance

DFO is the regulator and sole delegated authority for the production, quality, and marketing of raw cow’s milk in Ontario. DFO is account able to the Ministry of Agriculture and Food and Agri-Business, and Ontario Farm Products Marketing Commission.

Ontario maintains high milk quality by enforcing standards at the farm level across the province. Overseeing and managing the safe production of milk in Ontario largely relies on the Director of Regula tory Compliance (DRC) and the team of highly trained Field Services Representatives (FSRs) and Bulk Tank Milk Graders (BTMGs).

Over the past three decades, Alex Hamilton has been an instrumental force in ensuring producers are producing high-quality milk on farm while being supported by DFO. In the past four years, Alex has led the production division in implementing significant changes that have helped streamline services and ensure DFO is engaging FSRs in the most effective ways possible.

Producers had been expressing their desire for increased support on farm and DFO wanted to deliver on that request. By moving the administration of the proAction program to independent validators, FSRs now spend more time supporting producer needs and focusing on the Raw Milk Quality (RMQ) program. These changes enable FSRs to respond to producers more efficiently and provide better assistance to producers altogether. Alex’s guidance helped make this transition a smooth process.

Understanding producer needs was a foundation of the work Alex performed for a number of years. He collected valuable producer input that helped shaped the RMQ program to what it is today. Alex is responsible for implementing the RMQ program, sample testing, organizing field services and overseeing DFO’s research program. He has brought much needed structure and refinement to these areas.

Alex’s important role on DFO’s executive team is accountable not only for carrying out require ments under the Milk Act, but also managing the programs and people that enable our farmers to continue producing safe, high-quality milk in Ontario.

P5 PRODUCTION HAS RESPONDED POSITIVELY TO RECENT QUOTA INCREASE

P5 markets have increased by 2.3 per cent over the last 12 months ending in July and are slowly narrowing the gap with the Canadian Dairy Commission’s (CDC) optimistic scenario of 2.6 per cent for 2024. P5 production has responded positively to the signal sent by P5 boards recently with production level reaching more than 19.5 million litres per day on average during August 2024.

“The key here is again, and with no surprise, our capacity to process all the milk we put into the system everyday, which can pose a challenge until we get more processing capacity,” says Patrice Dubé, Dairy Farmers of Ontario’s chief economics and policy development officer.

P5 incentive days fill rate was over 26 per cent for August. P5 butterfat tests in milk for the fall period are expected to be lower than last year but higher than where they were two years ago. Therefore, for a given quantity of quota, there should be more volume of milk shipped.

If the markets remain as strong as seen recently, butter stocks can be expected to be reduced. This could put the butter stocks at closer to 25,000 tonnes in December, which is historically the quantity of stock expected for that time of year. The P5 quota committee and P5 boards will further discuss the supply-demand situation at their October meetings to determine the appropriate production signal for the period

following the fall incentive days.

In August 2024, butter stocks reached 33,843 tonnes, down from July by 3,577 tonnes. August butter stock levels are similar to the August 2023 level.

The cheese stock level for August 2024 was at 102,078 tonnes, which is higher compared with July by 1,807 tonnes, and higher than they have been for the same month in at least three years.

For the 52-weeks ending Aug. 3, 2024, sales for fluid milk, fluid cream, yogurt, ice cream, cheese and butter increased/ decreased by -0.3, 0.7, 2.6, 1.7, 2.0 and 2.2 per cent, respectively, compared with Aug. 5, 2023.

A monthly recap of markets and production trends in Canada and Ontario

CANADIAN REQUIREMENTS AND PRODUCTION

Canadian butterfat requirements in kilograms and actual butterfat production across the P10.

12-month production (in millions of kilograms)

12-month requirements (in millions of kilograms)

Canadian production has increased by 1.5 per cent over the previous 12 months, and requirements have increased by 3.1 per cent over the previous 12 months.

Ratio

NATIONAL RETAIL SALES

Average increase in retail sales for dairy products sold in Ontario and the dairy product’s share of the total market sales, including at hotels, restaurants and institutions.

This graph shows Ontario’s SNF-BF ratio for the last 12 months.

As of March 26, 2022

* Source: AC Nielsen & StatsCan NOTE: There is a two-month lag in the national retail sales data.

SEPTEMBER HIGHLIGHTS

• P5 markets have increased by 2.3 per cent over the last 12 months ending in July and are slowly narrowing the gap with the Canadian Dairy Commission’s (CDC) optimistic scenario of 2.6 per cent for 2024;

• If the markets remain as strong as seen recently, butter stocks can be expected to be reduced. This could put the butter stocks at closer to 25,000 tonnes in December, which is historically the quantity of stock expected for that time of year;

• The cheese stock level for August 2024 was at 102,078 tonnes, which is higher compared with July by 1,807 tonnes, and higher than they have been for the same month in at least three years.

202408

ONTARIO UTILIZATION

Percentage of the total milk produced in Ontario that was used to produce dairy products.

P10 UTILIZATION BY CLASS

For August 2024 (kg of butterfat/kg of solids non-fat)

*There is a two-month lag reporting these figures

Fluid Milk & Cream

Butter & Powders

Yogurt and Ice Cream Cheese

Skim Milk Non Marketed

August 2024

Class 5c Confectionery products % Butterfat % Solids non-fat

Class 1a1 (includes Classes 1a2, 1a3, 1c and 1d for confidentiality reasons) Fluid milk and beverages

Class 1b Fluid creams Class 2a Yogurt, yogurt beverages, kefir and lassi

Class 2b4 (includes Classes 2b1, 2b2 and 2b3 for confidentiality reasons) Fresh dairy desserts, sour cream, milkshakes and sports nutrition drinks

Class 2b5 Ice cream and frozen yogurt

Class 3a1 Specialty cheese

Class 3a2 Cheese curds and fresh cheeses

Class 3b2 (includes Class 3b1 for confidentiality reasons) Cheddar cheese and aged cheddar

Class 3c1 Feta

Class 3c2 Asiago, Gouda, Havarti, Parmesan and Swiss

Class 3c4 (includes Classes 3c3 and 3c5 for confidentiality reasons) Brick, Colby, farmer’s, jack, Monterey jack, muenster, pizza cheese, pizza mozzarella and mozzarella other than what falls within 3d

Class 3c6 Paneer

Class 3d Mozzarella used strictly on fresh pizzas by establishments registered with the Canadian Dairy Commission

Class 4a Butter and powders

Class 4d (includes Classes 4b1, 4b2, 4c and 4m for confidentiality reasons) Concentrated milk for retail, losses and animal feed

Class 5a Cheese for further processing

Class 5b Non-cheese products for further processing

ONTARIO

MONTHLY PRODUCER AVERAGE GROSS BLEND PRICE

A total 3,177 producers sold milk to DFO in August compared with 3,217 a year earlier.

ONTARIO

DEDUCTIONS, PER HL

For August 2024

* These figures are based on Ontario’s average composition for August 2024 of 4.1563 kg butterfat, 3.1772 kg protein and 5.9233 kg other solids, rounded to the nearest cent.

P5 AND WESTERN MILK POOL BLEND PRICES

The graph below shows the 12-month blend price for the P5 provinces and Western Milk Pool (WMP).

*There is a two-month lag reporting these figures

U.S. CLASS PRICES

The September 2024 Class III Price, US$23.34 per hundredweight, is equivalent to C$71.60 per hectolitre. This equivalent is based on the exchange rate US$1 = C$ 1.35132 the exchange rate when the USDA announced the Class III Price.

The Class III Price is in $ US per hundredweight at 3.5 per cent butterfat. One hundredweight equals 0.44 hectolitres. Canadian Class 5a and Class 5b prices track U.S. prices set by the U.S. Department of Agriculture.

Source: USDA

Co-ordinated by Dairy Farmers of Ontario’s communications and economics divisions. Questions? Please email questions@milk.org.

STAY UP TO DATE!

Weekly Update email newsletter every Friday for Ontario dairy producers.

Milk Producer magazine is the voice of Ontario dairy producers. Subscribe for free or read online at www.milkproducer.ca.

Dairy Farmer Update provides updates with the monthly milk cheque.

Producer Dashboard , a secure platform behind your password on MMS that contains important news, updates and forms.

www.milk.org

Dairy Farmers of Ontario brings you the latest updates on marketing in this section. Learn more by visiting milk.org

DFO marketing launched a variety of marketing initiatives in the back half of the year, reaching audiences across Ontario. And while the activations span across three strategic pillars, the objective is the same – to drive consumption of milk in Ontario.

Summer

One of the strategic pillars focuses on reaching the Gen Z and younger millennial audiences to help them reembrace milk and dairy. During the summer, DFO marketing leaned into the cowboy trend and launched Cownty Fair, a county fair-inspired experience full of tasty dairy treats, milk-forward merchandise, interactive activities and fun photo opportunities. The event took place in Ottawa for 10 days to reach a wider demographic in eastern Ontario and fulfil that community’s requests to host more events in their city.

Back to School

The Cownty Fair attendance reached an all-time high

9,600 attendees

6,800 new followers on social media 12M impressions

In support of the strategic pillar to increase milk and dairy’s relevance, this fall, DFO’s marketing initiatives leveraged the back-to-routine consumer sentiment to remind consumers of the integral role milk plays in their everyday wellness. With a fully integrated marketing campaign, the messaging of this campaign highlighted the 15 nutrients in every glass of milk that support your health. Along with the proved Milk Glass TV commercial, this integrated campaign featured the right combination of video, social, digital and out-of-home media tactics, as well as a PR event at a local gym that reached consumers with more than 83 million impressions.

Fall

Another campaign in support of increasing milk and dairy’s relevance is the Milk Masters campaign. This three-part content series showcases chefs' love of milk and dairy products in a cooking competition streaming to audiences on CTV.ca (watch at: https://ctv.ca/shows/milk-masters.) The cooking series captures audiences and draws them into the culinary world where they can watch along as top chefs whip up delicious dairy-forward dishes and compete for a donation to their favourite local food charity. The main messaging woven throughout the cooking series is the irreplaceability of milk and dairy products in delicious dishes. This message is brought to life as the chefs use a variety of local dairy products to create dishes that impress the judges in each of the three rounds of cooking, ultimately with the title of Milk Master being earned by one of the competing chefs.

Milk Masters by the numbers:

top local chefs

3 celebrity judges

3 intense rounds of competition

Late Fall

10 delicious dairyfilled recipes

+ + + = 5

1

As the late-fall season approaches, consumers are in the harvest mindset and it’s the perfect time to launch a campaign to strengthen industry perceptions with mass audiences, which is the last of our three strategic pillars.

The integrated campaign was anchored by the successful Set the Table TV commercial supported by social, digital, out-of-home and PR tactics. This robust mix of tactics ensures the messaging reaches the audience across multiple touchpoints. This campaign launched on Oct. 21 and is expected to deliver more than 87 million impressions.

Creative content aims to reinforce an emotional connection between Ontario dairy farmers, milk and consumers, reminding Ontarians of the shared love for milk and everything dairy farmers put into making high-quality milk for everybody.

MILK MASTER

DFO to unveil its new School of Moo experiential educational tool at Royal fair

Dairy Farmers of Ontario will be unveiling its new School of Moo, a hands-on experiential education learning opportunity for students, at the Royal Agricultural Winter Fair, taking place Nov. 1-10 in Toronto, Ont. Covering topics such as dairy farming, dairy nutrition, processing, careers and technology, the educational tool enables students to expand their knowledge of the world around them, understand the origins of their food and make healthy choices. Students can become a School of Moo graduate and even receive a ‘diploma.’

Featuring a freestall cow enclosure with live cows, and a custom-built milkhouse, visitors to the Dairy Education Centre at The Royal will get an up-close view of dairy cow care, dairy calves and the entire milking process. Scheduled milking demonstrations conducted by expert Ontario dairy educators will create an interactive learning experience for all attendees. After viewing live cattle milking demonstrations, visitors will be encouraged to explore inside the School of Moo where they can participate in hands-on learning with support from the dairy educators. Exhibits and activities are focused on dairy farming technology, environmental innovations and animal care, as well as local milk production, nutrition and dairy processing. Visitors can also learn more about local dairy by exploring agricultural careers, testing their dairy knowledge to win cool prizes and signing up for online games and learning resources.

New Agricultural Stewardship Initiative, cost-share funding for Ontario farmers

The governments of Canada and Ontario are investing upward of $9 million in the Agricultural Stewardship Initiative. This funding will help farmers complete a variety of on-farm improvement projects that enhance the sustainability and competitiveness of their operations.

The Ontario Soil and Crop Improvement Association (OSCIA) will deliver this programming and will accept applications for the cost-share funding stream’s categories as of Oct. 16 from 9 am., running until Oct. 29 at 5 p.m.

A verified and complete fourth edition environmental farm plan is required as part of all eligible applications. Select project categories offering phosphorus reductions in the Lake Erie and Lake St. Clair watersheds are eligible for enhanced funding with a completed farmland health check-up (FHCU).

Learn more about the Agricultural Stewardship Initiative at: www.ontariosoilcrop.org/agricultural-stewardship-initiative/.

FFCO’s Breakfast on the Farm Draws 2,500 to Hillmanor Holsteins

More than 2,500 guests gathered at Hillmanor Holsteins outside Dublin, Ont., for Farm & Food Care Ontario's (FFCO) Breakfast on the Farm on Sept. 14. Hosted by the Louwagie family, who have managed this farm since

1960, the event enabled guests to tour their state-of-the-art barn and the family to proudly showcase their commitment to animal comfort and care.

The farm, which was one of Canada's top 25 best-managed dairy herds in 2022, demonstrates how Ontario’s dairy farms are blending tradition with cutting-edge technology. The event also reinforced the dairy industry's commitment to sustainability, such as the Louwagie barn, which is equipped with solar panels that supply more than half the farm’s energy requirements.

The event's impact was amplified by participation from more than 50 partners and commodity educators, supported by more than 200 volunteers. Dairy Farmers of Ontario made a significant impact as a guardian-level sponsor, offering engaging educational displays and interactive activities. Perth County dairy producers played a key role as an education partner, ensuring knowledgeable volunteers were on hand to answer questions about the cattle, calves and milking process. Breakfast featured chocolate and white milk donated by Gay Lea Foods, alongside ice cream from Shaw’s Ice Cream.

For information on future FFCO events, visit www.FarmFoodCareON.org.

One of the many volunteers stationed around the barn to answer guest questions about dairy farming in Ontario.

Perth county dairy volunteers with one of DFO’s many activations at Breakfast on the Farm.

Agricultural Excellence Conference: Together Towards Tomorrow

Nov. 19-21, 2024, in Abbottsford, Chilliwack, British Columbia

The Agricultural Excellence (AgEx) Conference serves as an interactive platform for farmers, advisors, academia, organizations, private industry, and government officials to explore emerging trends, share best practices, and foster connections to collectively pave the way for farm management excellence across Canada.

Whether you thrive in hands-on workshops, dynamic group discussions or immersive presentations, AgEx has something tailored for everyone.

At the heart of Together Towards Tomorrow is the recognition that no single entity, organization or individual can resolve the complex challenges and take full advantage of opportunities we face alone. It is in this spirit that Farm Management Canada welcomes the Canadian Agricultural Safety Association and the BC Agriculture Council as co-hosts of AgEx 2024.

The conference will cover a diverse range of farm management and safety topics. Participants can expect an engaging program designed to facilitate meaningful dialogue, collaboration and actionoriented outcomes. For more information, visit www.AgExcellenceConference.ca.

Join the National Farm Leadership Program

The National Farm Leadership Program (NFLP) fits into busy farm life to help farmers identify the critical development areas that will have the greatest impact on their personal and professional lives. Not only is leadership good for business; it’s good for the well-being of the leader and those they work with.

Led by certified executive coach and fourth-generation farmer, Kelly Dobson, LeaderShift combines adult learning research, with neuroscience and IT, enabling leader development at any age.

What can participants expect?

• Gain in-depth insight into your leadership effectiveness against a global benchmark

• Create a personal development plan to increase your leadership effectiveness

• Develop your skills in real-time, while working in your business

• 6 weeks of structured online learning

• Three-day residency training in Victoria, BC

• Nine months of follow-up group and personal coaching

For details, reach out to: farmleadership@fmc-gac.com.

Fall Calendar of Events

December 6: Forage Focus (Marhaven Agri near Drayton)

Forage Focus will return to being an inperson event this year, held in conjunction with the CFGA Conference, Dec. 3-6, in Guelph, Ont. The theme of this event is Hay As a Cash Crop, with attendees learning about hay marketing opportunities for Ontario producers. The event will include a tour of some facilities and a panel discussion. For more details, visit https:// onforagenetwork.ca/ontario-foragecouncil/forage-focus/

December 3 – 6: CFGA Annual Conference (Delta Hotel, Guelph)

Ontario Forage Council is pleased to partner with the Canadian Forage and Grassland Association (CFGA) on its annual conference being held in Guelph this year. The theme is Roots to Success: The Foundation of Resilient Agriculture. During the three-day event, attendees will learn about happenings in the forage sector and gain valuable information for anyone involved in the forage and grassland sectors across the country. For more details, visit https://www.canadianfga.ca/en/events/ conference-2024/.

Are you passionate about soil health?

The OSN Network Challenge is a one-year program with a six-week winter course (five virtual sessions + one in-person) that helps you build real skills to grow your network, connect with other farmers and assist you on your journey to improving your soil. Throughout the year, you’ll share ideas and learn about proven practices that work for your operation. As part of the program, we will also assist you in planning and actioning your own network-building project to make a real difference.

Why the Network Challenge matters:

• Collaborative impact: Forge partnerships that multiply the benefits for everyone involved.

• Community resilience: Learn strategies that help your farm and community stay strong.

• Knowledge sharing: No ivory towers here, just practical, actionable wisdom.

• Collective responsibility: The soil under your boots? It’s our shared foundation.

All farmers interested in improving their soil and learning best management practices can apply. Learn more and apply at https://ontariosoil.net/about-the-challenge/.

How Belmoral Farms Improved Animal Care

Lessons learned from Ontario dairy farmers

LOCATION: TEESWATER, ONTARIO

MITCH KIEFFER IS THE OWNER AND OPERATOR OF BELMORAL FARMS IN TEESWATER, ONT.

At the time of his two animal care assessments, the 80 milking cows were housed in a tiestall barn, but have since moved to a new sand bedded freestall with two robots. Mitch shared his experience making animal care improvements in the tiestall facility.

As an Ontario dairy farmer, Mitch participates in the proAction program and receives regular on-farm assessments like all other farmers across Canada. Belmoral Farms was identified as a farm that showed substantial improvement in reducing hock injuries in their herd over two proAction assessments. Here are some of Mitch’s perspectives on animal care as an Ontario dairy farmer and the on-farm changes he made to improve the health of his dairy herd.

A philosophy for animal care

Mitch’s philosophy on animal care is that you get back what you put in. If you are taking good care of the cows, making sure they are clean, comfortable and healthy, you will reap the benefits. If the cows have everything they need and they’re happy, they will pay you back in the bulk tank.

proAction: the value of another set of eyes

Mitch’s initial thoughts on the proAction animal care assessment were curiosity. Anytime there is something new, he is interested in learning how it works. Mitch thought it was a good experience to get different eyes in the barn and gain an outside look. He appreciated the assessment broke things down into real numbers and percentages, so he could really see the trends that you can be blind to when you are in the barn every day.

of the assessment wasn’t a major shock for him, but seeing the numbers written down was motivating, stating “ok, I need to do something about that to get that score higher.” He said they had always used lots of straw bedding, it was now just a matter of keeping it where it should be. The assessment gave him “that kick to fix it.”

Mitch’s initial thoughts on the proAction animal care assessment were curiosity. Anytime there is something new, he is interested in learning how it works

His first and second assessments were done when they milked in their tiestall facility. Before the first assessment, Mitch knew the hocks weren’t as good as he would like and that it was an area for improvement. The result

A focus on bedding

The solution Mitch came up with was to install a bedding keeper, which is a three-inch piece of steel tube that went on the back of the stalls. It extended above the mats and the straw pushed against the tube rather than getting pushed into the gutter. The bedding keeper was held on with brackets bolted onto the back of the stall. The height was adjustable so it could be raised or lowered as needed, leaving a space for moisture to get out. This solution was all about keeping the straw in place and under the cowsa

Progressive improvement

Mitch notes they were always good stall managers and the changes they made helped further that. He started small by first installing the bedding keeper in half the barn. This gave them time to see if it worked and, once they saw a positive result on the hocks, they then decided to do the entire barn. They also used this initial trial time to figure out the best spacing for keeping bedding in and letting moisture outb. This took some time to dial in, but the time spent was well worth it.

Benefits across all age classes

Mitch noticed a difference right away in first-calf heifers; they didn’t suffer hock injuries when they moved into the barn. For older cows, it took a little longer to see an improvement since injuries take time to heal. After a couple of months, the hock injuries were significantly improved and by the time the next assessment rolled around, the injuries were no longer an issue.

Return on investment

Mitch says they definitely saw a return on their investment. A little more time was needed to keep the stalls clean, but cow comfort was improved. The bedding keeper wasn’t that expensive and they installed it themselves, so it was just the cost of the metal and the welder putting it together. The biggest challenge Mitch noted was no one made a system like this, it is not something you can buy off the shelf at the local dairy supplier. They needed to use a little creativity to make it from scratch.

Lessons learned

Mitch’s advice for other farmers who may be having issues with injuries on their farm is simply to try something, “You gotta try something, you can’t just stay there and do the same thing ... if you don’t want to dive in and do everything right at once, try a small area where you do something different.” With the changes he made in bedding management, Mitch was able to give his cows a well-bedded and comfortable place to rest.

This project was developed by ACER Consulting and funded and supported by the Ontario Ministry of Agriculture, Food, and Rural Affairs, the Dairy Farmers of Ontario, and the University of Guelph.

References

“Decisions supported by science” statements are supported by the Lameness and Injuries section of the Code of Practice for the Care and Handling of Dairy Cattle: Review of Scientific Research on Priority Issues. 2020.

Decisions supported by science. aProviding large amounts of bedding is the best way to improve stalls. It increases lying times and healing of body injuries.

Decisions supported by science. bCows and calves have a strong preference for dry bedding.

WHAT IS THE OPTIMAL SNF RATIO?

Tracking feed margin is both low cost and can offer a higher

return after evaluating the data

By Simon Jetté-Nantel, PhD, Economist, Lactanet

FEED MARGINS ARE OF UTMOST IMPORTANCE, even if they are not the most comprehensive measure of your herd’s financial success. No, it doesn’t include all expenses, but it includes the most substantial expense of all: feed. Based on the 2023 data reported in the most recent report of the Ontario Dairy Farm accounting project (CDC-DFO, 2024), feed accounts for 48 per cent of total expenses. That figure also includes forages and feed for replacement animals and adds up to nearly $10/cow/day. The availability of feed margins makes it a key indicator to understand and track your herd’s progress and enables a herd manager to better understand the impact of feed or production adjustments on production levels and revenues, as well as feed costs.

Take, for example, the impact of a solids non-fat (SNF) ratio change. We know the maximum milk value per kilo of butterfat is when you hit the ratio of 2.2 (see Figure 1). At levels above 2.2, you lose revenues because of transportation and marketing costs on unpaid components. But does it mean you should aim for a ratio of 2.2?

In economics, it is well known maximizing revenue can be an optimal strategy, but only when costs are fixed. So, the question is whether feed cost per kilogram of butterfat (BF) changes when you have a lower or higher SNF ratio. It can be a complex question since changes in components can be accompanied by changes in production level, for example. But assuming a constant level of production in terms of kg/BF/cow/day, there could be feed cost changes.

At a 2.2 SNF ratio, cows are expected to produce 2.2 kg of either protein or other solids (OS) for each kg of BF. When producing milk at an SNF ratio of 2.0, cows produce only 2.0 kg of either protein or OS for each kg of BF. Producing protein or OS requires a cow to process it from the protein or energy from their feed. So, feed cost per kg/BF could be affected by the SNF ratio since it affects a cow’s protein and energy needs.

Figure 2 shows the results of a statistical analysis on feed costs collected for 408 conventional Canadian dairy farms in 2023. The results clearly support two key conclusions:

Feed costs, measured in $/kg/BF:

a) Tend to go down as cow productivity increases b) Tend to go down as the SNF ratio decreases

In economics, it is well known maximizing revenue can be an optimal strategy, but only when costs are fixed. So, the question is whether feed cost per kilogram of butterfat (BF) changes when you have a lower or higher SNF ratio.

Figure 1 Impact of different SNF ratios on revenues per kg BF.

Figure 2. Impact of different SNF ratios on feed costs per kg/BF.

Figure 3 Impact of different SNF ratios on feed margins per kg/BF.

If we accept the idea feed costs (in $/kg/BF) are affected by SNF ratio changes, economic theory suggests ruling out the idea maximizing revenues is optimal. Rather, the question is whether it’s worth it to produce those extra 0.2 kg of protein or OS. In other words, do the revenues generated by the extra 0.2 kg of protein and OS (paid at ≈1.85$/kg and 0.63$/kg, respectively) offset feed costs associated with it?

Answering this last question can be rather complex. When surveyed, not a single dairy nutritionist consulted offered a precise answer as to how much it might cost in feed to produce that last 200 grams of protein or OS. It depends on the cows, their genetics, their productivity level, their environment and, obviously, feed source costs. The question remains: can you produce protein for less than $1.85/kg in feed costs? Can you produce OS for less than $0.63/kg in feed costs? If the answer is yes, then 2.2 is your optimal ratio. But if the answer is no, your optimal SNF ratio is closer to 2.0.

Now, if no one can provide a good answer on how much feed it costs, this may not be a very practical way of going about it. Here's where you can go back to your feed margins: if it pays to produce the last 0.2 kg of protein and OS per kg/BF, then feed margins should be higher when the SNF ratio is at or near 2.2.

Figure 3, also based on a statistical analysis of the 408 farms sample, suggests feed margins are higher when the SNF ratio is closer to 2.0.

According to these results, the optimal ratio would, in fact, be closer to 2.0. One should not forget the impact of productivity on feed margins. Yes, a ratio closer to 2.0 seems desirable, but having productive cows remains an important determinant of feed margins. Whether these results will hold for any specific herd is uncertain. What this example demonstrates is how feed margins can be used to track a herd’s performance.

Impact on your bottom line

There are many ways in which fat production and the SNF ratio can be affected, and not all of them will be cost effective. When using nutrition to affect it, tracking the impact on feed margin can be a good way to evaluate the impact on your bottom line. Other strategies may involve investments, like ventilation and cooling, which costs and benefits need to be assessed. And yet other strategies, such as genetics, can be very cost effective but will take more time to yield benefits. Tracking feed margin is low cost and can offer a higher return if you take the time to evaluate the data, which makes it an ideal place to start.

References

CDC-DFO, Ontario Dairy Farm Accounting Project, Annual Report 2023, published July 2024. https://new.milk.org/all_categories/2022-ontario-dairy-farm-accounting-project-odfap-annual-report/.

“We

– Kevin Doeberiener, Lindsay Bowen, West Salem, Ohio

“Ever since it came out, it’s the rst thing we go to. We use

and performance.” – Jeff

Butlerview

Bedding, the simple solution

Learn how to get the most bang out of your bedding buck

By Veal Farmers of Ontario

THE POWER OF BEDDING is often overlooked on the farm, but it’s actually a simple and economical solution to some leading calf health challenges. In fact, deep straw bedding can help farmers minimize respiratory disease, scours and reduced growth—three of the leading calf health problems— and it’s a good place to start if a herd is experiencing health issues.

Veal Farmers of Ontario has released a resource called A producer guide to evaluating nesting scores that offers practical tips and photos for farmers about how to get the most bang out of their bedding buck. It’s based on the nesting score system developed by the University of Wisconsin-Madison to help guide producers in their calf bedding management.

Why does good

bedding matter?

Calves spend up to 20 hours a day or 80 per cent of their time lying and research suggests just like cows produce more milk when they spend more time lying, calves that spend more time resting are also better performers.

It’s important calves use the milk and feed they consume to grow and not to keep warm, especially in winter months. Calves experiencing cold temperatures can become stressed, making them more susceptible to disease and lower growth rates. That’s why clean, dry and plentiful bedding is an important part of ensuring animal welfare and keeping calves healthy.

Good bedding is also critical for newly born calves, especially as their navels are drying out and healing. If navel infections are a particular challenge, evaluating and making changes to calf bedding could be a simple and economical solution to better early calf health.

A bed of straw

Straw provides the best insulation for calves and it’s also very absorbent - both characteristics that are key to encouraging good calf health. Make sure straw bedding is at least three inches (eight centimetres) deep and it is clean and dry.

If the straw looks clean, but you’re not sure if it’s dry all the way through, there’s a quick and easy way to find out: the kneel test. Kneel in the straw for 20 seconds and if your knees get wet, add another layer of bedding or remove and replace the bedding entirely. Do this test regularly to monitor bedding quality.

Add smaller amounts of bedding multiple times instead of putting all the straw out at once. This keeps the top layer from becoming compacted and helps with dryness.

It’s important calves use the milk and feed they consume to grow and not to keep

warm, especially in winter months.

The nesting score

How much straw is required will depend on the time of year and whether the animals are wearing calf coats. Use the University of Wisconsin-Madison’s nesting score system to determine what your calves need:

Nesting score 1: the bedding doesn’t cover any part of a calf’s foot or leg when the animal is lying. This score is not appropriate for winter but is observed in the summer when calves are bedded with sand or wood shavings.

Nesting score 2: the calf is nestled slightly, with the lower leg partially covered by bedding and part of the upper leg remaining visible. In winter, this score would only be appropriate if the calf is also wearing a calf jacket, which increases the nesting score by one. Without the jacket, there is not enough bedding for the calf to nest in and stay sufficiently warm.

Nesting score 3: the calf’s legs are not visible when it is lying down in the straw. The straw is deep enough to allow the calf to nest, trapping warm air around its body. The ideal depth is three to four inches (7.6 to 10 centimetres) of shavings, topped with 12 inches (30 centimetres) of straw.

EFFECTIVE 200 IgG BOVINE DRIED COLOSTRUM

PACKED WITH A HIGHER CONCENTRATION OF IGG, IMMUNOLIFE | 200 IS THE ULTIMATE CHOICE FOR YOUR CALVES' HEALTH AND VITALITY

Good bedding and plenty of it is the most economical way to keep calves healthy. Preventing or minimizing illness means avoiding costly treatments and other losses down the road.

Veal Farmers of Ontario’s nesting score resource can be found here: https://calfcare.ca/ wp-content/uploads/2023/06/Nesting-ScoreVFO-online.pdf.

Calf Care Corner, brought to you by Veal Farmers of Ontario, delivers the latest information to help you improve the way calves are raised on your farm. Follow @CalfCareCorner on Facebook and sign-up for monthly e-newsletters on calfcare.ca.

Future performance starts today.

FIND A LOCAL DEALER

Creating a nurturing environment

Enhancing nutrition and social housing for optimal health and productivity

CALF WELFARE HAS BEEN A KEY FOCUS AREA of Drs. Dan Weary and Marina (Nina) von Keyserlingk’s industrial research chair in dairy cattle welfare at the University of British Columbia. In a recent episode of Dairy Farmers of Canada’s research podcast series, Paths to On-Farm Excellence, Dan and Nina discussed some of the recent science and policy decisions around milk feeding and group housing – two key elements of their research surrounding calf welfare and management. The team also highlighted the importance of researchers, farmers and the industry finding a balance between recommendations and on-farm practices in pursuing practical win-win solutions that benefit farmers and their animals.

Benefits of feeding more milk

Calves have a natural drive to consume milk, which is essential for their growth, immune system development and overall well-being. When reared on higher planes of nutrition, calves exhibit remarkable growth and vitality. Dan and Nina describe how scientific evidence supports the idea calves can consume and benefit from higher milk volumes, contrary to previous practices of limit feeding. Research indicates feeding calves more milk can enhance their growth, health and transition from passive to active immunity. This shift toward higher nutrition boosts calf development and sets the stage for improved outcomes later in life, such as increased milk production in first lactation. Through this podcast episode, Nina and Dan highlight the transition to feeding calves more milk is seen as a win-win situation, benefiting both calves and farmers. By emphasizing the welfare benefits of increased milk consumption for calves, researchers advocate for a shift toward feeding practices that prioritize animals’ needs and natural behaviours.

Impacts of social housing on welfare and management

Individual calf housing has long been the norm in dairy operations, driven by concerns around disease control and ease of management. However, as Dan and Nina highlight, the benefits of social housing far outweigh those of traditional practices. Providing calves with social companionship not only meets their innate need for social interaction but also contributes to their overall well-being. Recent research has demonstrated the significant positive impact of social housing on the social development and mental welfare of young animals. Dan and Nina emphasize social housing offers a host of benefits for calves, including improved socialization, learning ability and stress reduction. By giving calves the opportunity to

By Agricultural Communications and Epidemiological Research (ACER) Consulting, Émie Désilets and Annik L'Espérance, Dairy Farmers

of

Canada

interact with peers, farmers can facilitate a more natural and enriching environment, leading to calmer, more adaptable animals. Moreover, social housing can enhance calves' ability to learn new tasks and behaviours, ultimately aiding in their transition to group settings and other management practices later in life.

Mitigating risks through thoughtful management

While the concept of social housing holds immense promise for calf welfare, Nina and Dan caution against hasty implementation without proper preparation and support. Transitioning to group housing requires a phased approach, starting with paired housing before scaling up to larger groups. Effective management strategies, such as providing appropriate milk flow rates and teat designs, are crucial for minimizing challenges like crosssucking and disease transmission in group settings. They further stress the importance of recognizing the individual characteristics and needs of different calves and offering tailored support to farmers embarking on the social housing journey. By acknowledging farmers' concerns and providing guidance on best practices, researchers can help ensure a smooth and successful transition toward more welfare-conscious calf management practices.

Embracing change for the future of calf welfare

As the dairy industry evolves, a greater emphasis on calf welfare is essential for driving positive outcomes and sustainable practices. By prioritizing higher planes of nutrition and social housing, farmers can create a nurturing environment that benefits their calves and the overall operation. With a focus on research-

While the concept of social housing holds immense promise for calf welfare, Nina and Dan caution against hasty implementation without proper preparation and support.

backed solutions and collaborative support for farmers, the industry is poised to make significant strides in enhancing calf welfare and productivity.

The idea of win-win strategies to improve calf welfare focuses on advancements in welfare practices that can lead to positive outcomes for both animals and farmers, promoting a harmonious relationship between animal care and farm management. Focusing on solutions that improve animal well-being, while also considering the practicality and benefits for farmers, is a critical piece in ensuring the longterm success of a sustainable dairy industry.

Scan this QR code to listen to the full podcast.

Key takeaways

• Research demonstrates the benefits of feeding calves more milk, leading to healthier, more productive animals in the long run

• Group housing provides calves with social companionship, promotes better learning and reduces stress

• Win-win strategies harmonize animal well-being with practical farm management practices, ensuring benefits for both animals and farmers, and supporting a sustainable dairy industry

Free Mental Health Training for the Agricultural Community

In the Know is a training tailored to the agricultural community that increases understanding of mental health and wellness, normalizes conversations about mental health, and reduces stigma.

Reduce your farm's cybersecurity risks

University

of Guelph offers cyber security monitoring service for farmers

By Lilian Schaer for Livestock Research Innovation Corporation

HIGH PROFILE CYBERATTACKS ARE INCREASINGLY MAKING HEADLINES

in Canada as criminals target retailers, municipalities, health care providers and critical infrastructure.

The agri-food sector is not immune from such attacks and its vulnerability is increasing the more it becomes digitized and increases its reliance on sensors, data collection and online connectivity.

That’s why Dr. Ali Dehghantanha, Canada research chair and professor in cyber security at the University of Guelph, has developed a security monitoring system available to farms and farm businesses. His work is supported by funding from the Ontario Ministry of Agriculture, Food and Agribusiness.

Agriculture is vulnerable

Unlike most other sectors of the economy, agriculture is particularly vulnerable,

especially at the primary production level, because the sector is made up of many small, independent businesses where IT resources are limited, and cyber security has up until now not registered high on the priority list.

It should be, though, noted Dr. Dehghantanha in a presentation at Canadian Dairy XPO earlier this year organized by the University of Guelph’s research innovation office. He frequently gets called in to help farms and businesses who have become targets of cyber crimes.

“Hackers don’t discriminate, they look for low-hanging fruit and if you have an environment that can be remotely accessed, that means they can find you,” he explained. “If you are vulnerable and it takes them five minutes to hack you, they will. They will place ransomware and demand payment.”

Ransomware – where hackers lock down a system by encrypting its data and only release it when a ransom has been paid – is a common form of cyber attack, as is a data breach, where criminals steal customer, business or financial information.

He cited the case of a ransomware attack on a southern Ontario dairy farm he’d been involved in. The farm became aware of the issue when critical on-farm systems stopped working and their local IT support found ransom notes on several devices on the farm’s network demanding payment.

They’d been attacked previously and had simply paid the ransom, but this time, the criminals were asking for more money, so Dehghantanha was asked for help. His team was able to decrypt the ransomware and get the farm back online, but the farm declined further post-attack monitoring.

“If they have compromised you a few times, they usually come back because they know your network and yes, we were called back. This time, the attackers

DFC IN ACTION

TAKING AIM AT ANTIMICROBIAL RESISTANCE DFC & THE LEGION N ATIONAL FOUNDATION PARTNER TO SUPPORT CANADA’S VETERANS

Antimicrobial resistance (AMR) is a global health risk. Recent data shows that each year in Canada, 18,000 hospitalized patients acquire AMR infections; around the world, such infections have led to the deaths of 4.95 million people annually. In the latter half of 2024, two high-level United Nations (UN) initiatives focus on these concerns: a joint Declaration in September committing signatory countries (including Canada) to strive to meaningfully reduce the quantity of antimicrobials used globally in the agrifood system from current levels by 2030, and World AMR Awareness Week in November.

Ahead of both events, Dairy Farmers of Canada (DFC) ensured policymakers were informed about the progress dairy farmers are making on antimicrobial usage (AMU) and that they clearly understood the importance of increasing Canada’s access to a wide range of veterinary health products, including alternatives to antimicrobials, as part of any approach to reducing AMR.

In July, DFC wrote to the Ministers of Health and Agriculture outlining concerns regarding some of the commitments contained within the draft UN Declaration. These concerns were largely addressed; while DFC is now satisfied with the declaration, it will continue to work with government officials to ensure that any Canadian commitments remain practical for dairy farmers. DFC also joined fellow members of Animal Health Canada (AHC) in a campaign targeting key government officials as September’s Declaration was being finalized. The campaign focused on highlighting farmers’ leadership and progress related to on-farm antimicrobial stewardship through prudent AMU and strict biosecurity measures.

A central concept of the AHC campaign was farmers’ and veterinarians’ role in “One Health,” an integrated approach to infectious disease management stressing the interconnections between human, animal, and environmental health. The reality is that due to various barriers, Canadian farmers’ access to veterinary products is eroding at a significant rate and has reached a crisis point. A lack of product variety means farmers and veterinarians must rely on an increasingly limited number of tools, some of which are also used in human medicine.

Farmers and veterinarians recognize that, in order to best manage the health of their animals and play their parts within a “One Health” approach to reducing AMR, they must have access to the widest, and most varied number of tools possible. It’s why the DFC team also met with Senators, Members of Parliament, and senior officials expressing the need for government to urgently address barriers and provide access to veterinary tools from all categories, including alternatives to antimicrobials.

Along with these in-person meetings, national organizations representing various animal farmers, veterinarians, veterinary product manufacturers, and feed providers have been working for the past year on a joint white paper, which has recently been distributed to key federal officials. This document highlights consensus solutions to improve access to a wide variety of products for Canadian farmers and veterinarians.

If implemented, none of the proposed solutions will solve the problem on its own – however, each of the proposed solutions would increase Canadian access to critical veterinary tools. On top of all the progress farmers are making towards enhancing prudent antimicrobial stewardship and use, with adequate access to these important tools, Canadian farmers and veterinarians will be in a better position to play their part within a global One Health approach aimed at reducing antimicrobial resistance.

DFC has again partnered with the Legion National Foundation (LNF) to help raise money and awareness for their Digital Poppy campaign. The LNF fosters initiatives that enhance the lives of veterans who have served or continue to serve in the Canadian Armed Forces and the Royal Canadian Mounted Police.

For just a $3 donation, Canadians can support the Digital Poppy Campaign and show their support of veterans and their families on social media, in their email signatures, and in other digital correspondence for the period of October 25 to November 11, 2024. What’s more – for every baseball cap sold in the Blue Cow Shop between October 15 and November 15, DFC will donate the entire proceeds to the LNF

Join us in sharing the Remembrance Day Digital Poppy and making a donation to the LNF. To purchase a cap in support of the LNF, visit: dairyfarmersofcanada.ca/shop*

*Offer available while quantities last. Ends November 15 at 23:59 PST

all connected systems,” he recalled. “The biggest lesson here: you need proper security monitoring in place even after an attack.”

Not only does cyber security protect the farm business itself, but it can be useful in preventing lawsuits. Dehghantanha cited another example where a farm was attacked by cyber criminals and their compromised systems were in turn used to successfully target a bank – and the bank ended up suing the farm for not taking adequate steps to protect its digital networks.

“There’s not an expectation that a farm would have the same level of security as banks, but you must be able to show that you have enough security related to the size of your business to protect yourself and your data,” Dehghantanha said.

A usual expectation of a business is to have secure architecture and passive defense: using strong, individual passwords and regularly updating software, as well as having some kind of monitoring mechanism in place to alert to threats.

“When you are seeing something observable like ransomware, that’s the last step. The hackers are done with your system and have already stolen what they want. They could have been in here for weeks or months already,” he noted.

Know what to look out for

Cyber security threats in the agri-food industry come from three main areas:

• Opportunistic cyber criminals. These are the major threat actors who are looking for low-hanging fruit and choosing the targets that will get them the maximum return for the lowest time investment. Victims who choose to pay will likely be targeted repeatedly, he warned.

• State-sponsored hacking teams. Dehghantanha and his team have seen the highest amount of activity from Chinese and Iranian hacking teams who are active in compromising sensors and devices across the entire food supply chain, from farms to food processing and ports.

• Activists. The first case of this nature surfaced in Ontario in 2023, when a hog farm was targeted not for money but to publicly confess cruelty to animals and threatened with the release of video footage of animal abuse (which was not actually related to this farm). This is an area that Dehghantanha sees as a growing risk to the sector.

Dehghantanha’s lab is also actively raising awareness of the issue in the industry through presentations, participating at tradeshows, and offering workshops and tabletop simulation exercises, as well as working with other organizations to build a cyber security framework for Canadian farmers, vendors and service providers.

Most importantly, though, he is helping train the next generation. Cyber security is very different in banking or healthcare than it is in agri-food, so the industry needs trained experts who understand the sector and its needs, he noted.

Dehghantanha’s cyber security services are available by contacting him at adehghan@uoguelph.ca.

Livestock Research Innovation Corporation is funded in part by the Sustainable Canadian Agricultural Partnership (Sustainable CAP), a five-year, federalprovincial-territorial initiative. This article is provided by LRIC as part of its ongoing efforts to report on research, innovation, and issues affecting the Canadian livestock industry.

“With the tools available today breeders can accelerate progress in our breeding programs like never before. The result is higher production from healthier and long-lasting cows.”

--Adam

Zehr, Walnutlawn Farms Limited, Tavistock, ON

FASTER .

The best way to get ahead is to work with EastGen and its suite of solutions. No other company can take you further, faster.

is the genomic platform you’ve been waiting for because one-and-done genomic testing doesn’t work.

LET’S GO FURTHER, Go further, faster

gives you what you’ve been looking for - a genetic solution to herd health.

helps you make your next generation your best generation through advanced IVF solutions.

The best way to find, treat, and manage your cows.

ensures you skip 2-3 generations; progress guaranteed.