Monday, September 28, 2009

The dairy industry's busiest week?

We suspect the week of World Dairy Expo is the busiest week of the year for many people in the U.S. dairy industry. Just based on our little corner of the world, preparations for and presence at Expo is one of the most demanding, yet fun and productive times of the year.
Our planning for each Expo actually starts a full year ahead of time. At the show, we begin to gather information and photos for our guide to World Dairy Expo which is part of our September 10 issue. There are meetings here during the summer about what themes and materials we will feature in our two booths at the show (Booths 213 and 217 in the lower level of the Coliseum building and 4323 in the Exhibition Hall). Our marketing people meet ahead of time to map out the advertising and promotion programs that they can offer potential advertisers and their agencies during the year ahead.
Expo week itself really gets going for us on the Sunday before the Tuesday-through-Saturday show when we provide practice classes for all of the judging teams at the Hoard’s Dairyman Farm. On Monday of Expo week, we and others in the Fort Atkinson area host the National 4-H Dairy Conference.
After the show closes on the first day (Tuesday) it is all hands on deck as Hoard’s Dairyman and World Dairy Expo co-host a party for all commercial exhibitors at the show. Throughout the week, the editors have a full schedule of meetings and events to cover. These include meeting with companies about new products and services, attending seminars, getting together with writers for the magazine, and just visiting with dairy industry friends and acquaintances from across the country and around the world.
In addition, the editors fulfill a number of industry volunteer roles such as the National 4-H Conference, judging contests, National Dairy Shrine, the Klussendorf Association, and several others.
At the Hoard’s Dairyman Farm, there is a steady flow of scheduled and drop-in visitors before, during, and after Expo.
Even before the show is over, the magazine is hard at work putting together Expo reports, results and photos for our October 25 issue . . . and planning for how we can do things better during next year’s show.
If you can't attend Expo this year, you still can stay connected with what's happening there. Our Hoard's @ Expo blog will feature several posts each day about what is happening, photos, videos, all the big winners, and much more. Plus, you'll find coverage on our Facebook fan page. Just go to Facebook, search Hoard's Dairyman, and become a fan!

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Friday, September 25, 2009

Greenhouse gas reporting rules start in 2010, including big dairies

Very large dairies, such as those often found in the West and Southwest, will be required to collect and report greenhouse gas (GHG) emission data starting January 1, 2010, according to the Final Mandatory Reporting of Greenhouse Gases Rule adopted September 22 by the U.S. Environmental Protection Agency.

Under the rule, facilities whose GHG emissions total 25,000 metric tons or more per year must submit annual reports about them to EPA. Gases specifically covered are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and other fluorinated gases including nitrogen trifluoride and hydrofluorinated ethers.

EPA says 25,000 metric tons is approximately equivalent to the annual exhaust emissions from 4,600 passenger vehicles. According to Paul Martin, director of Environmental Services for Western United Dairymen in California, early examination of the new program indicates that 25,000 metric tons is also approximately equal to the greenhouse gases produced by 3,200 mature cows.

Emission data must be gathered during calendar year 2010 and submitted to the agency in 2011. The new reporting system will provide a better understanding of where GHGs are coming from, and help in the development of policies and programs to reduce emissions.

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Wednesday, September 23, 2009

Is conventional milk getting a new stigma attached to it?

If a dairy farmer could stand by every dairy case in America, we would have some really educated consumers. They would know exactly what each label on the many gallons of milk meant. But since dairy farmers are usually too busy working around the clock, grocery shoppers read the label and make their own assumptions as to what happened to the milk before it got there. Unlike 10 years ago when milk was skim, 1 percent, 2 percent, or whole; today we still have those options in addition to organic, rBST-free, and likely more.

“It’s all just marketing!” you might say. But are these niche-marketing labels best for the greater dairy industry? In the July issue of the American Journal of Agricultural Economics, researchers from the University of Wisconsin and Cornell published an article titled “Does Production Labeling Stigmatize Conventional Milk?” Read it here. In short, the article says yes it does. The group set up an experiment to measure consumer’s willingness to pay for variously labeled milk. Citing the paper, results “indicate a substantial stigma effect” from both organically labeled and rBST-free labeled milk. The report says that the net economic result for producers can be negative since consumers may decrease their willingness to pay for the conventional product that dominates the market, while products with other labels have a relatively small market share. What do you think?

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Tuesday, September 22, 2009

Grab a 32-ounce cup and check your kernel processing

Last week, we learned of a new use for a 32-ounce cup: checking your corn kernel processing. You know, one of those extra-large plastic cups you get from your local convenience store when purchasing a slushy or soda? We were in Johnston, Iowa, last week for the Pioneer Media Forage Day. During the mock “Forage University,” Pioneer’s Nutritional Sciences manager Bill Mahanna discussed the importance of corn kernel processing as it relates to feed efficiency.

Today’s top-producing dairy cows are no longer peaking at 90 pounds of milk per day; they are making much more milk. This larger volume of milk means that feed is passing through the rumen at much faster rates. This increased rate of passage makes feed processing more important to facilitate faster microbial access. To check your kernels, grab a 32-ounce beverage cup and fill it with corn silage. Next, dump the sample of corn silage onto a table and sort out the corn kernels. If you find 2, 3, or more whole or half kernels, kernel damage (processing) is not optimal.

The USDA says that over 70 percent of kernels damaged is optimal. While this might not be completely feasible, Mahanna recommends producers target the mid to high 60s. To achieve this, you’ll need to set the roller mill gap on your corn chopper anywhere between 1 to 3 mm. If corn silage is already harvested, it is possible to get your corn silage reprocessed, but it will take a considerable amount of time and money. So, be sure to keep these targets in mind for next year, and track the difference it can make.

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Monday, September 21, 2009

August milk report a repeat of July

Continued cool weather throughout the Midwest led to a near photocopy of the July milk production data for this August as states in that region again ranked near the top for milk production gains. This time, Illinois led all states, up 5.4 percent. It was followed by neighboring Indiania, up 4.9 percent. Meanwhile, fellow Midwestern states including Michigan, Minnesota, and Wisconsin were up 4.6 to 3.7 percent.

Even with the Midwest's growth in milk production, overall output for August was down 0.2 percent compared to a year ago when looking at the top 23 dairy states. Like last month, Arizona again posted the largest drop, down 7.4 percent. It was followed by California, down 4.5 percent. Other Western states including Idaho, Colorado, Utah, New Mexico, and Washington were down 3.1 to 1.1 percent.

Compared to a year ago, milk production per cow was up 25 pounds. Meanwhile, there are 143,000 fewer cows compared to last year for the top 23 dairy states. When all states are included, there are 174,000 fewer cows compared to last December.

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Friday, September 18, 2009

Bill would exempt farms from estate taxes

Death may stop being one of the biggest threats to U.S. agriculture if legislation in the House of Representatives becomes law.

H.R. 3524, the Family Farm Preservation and Conservation Estate Tax Act, would exempt farms and ranches from Federal estate taxes after death of the owner, as long as their ownership stays in the family. The bill’s objective is to keep more farms in production for more years by eliminating their forced sale by heirs to pay estate taxes.

The measure was introduced July 31 by Rep. Mike Thompson of California and is co-sponsored by Rep. Kevin McCarthy of California, Rep. John Salazar of Colorado, Rep. Henry Cuellar of Texas, and Rep. Cynthia Lummis of Wyoming. It is currently in the House Ways and Means Committee.

The bill has been endorsed by a diverse coalition of 28 farm groups, including California’s largest dairy producer organization. In addition, it is also supported by the Environmental Defense Fund and the Public Lands Council.

Outlook for passage of the bill appears good. Josh Rolph, director of national affairs for the California Farm Bureau Federation, believes it is a near certainty that Congress will act on estate tax legislation before the end of this year because current law will phase out the estate tax entirely in 2010, but then reappear in 2011 at pre-2001 levels. Farm groups say returning to old tax levels would severely damage farmers’ ability to pass on a farm or ranch to the next generation.

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Thursday, September 17, 2009

Cattle vets focus on industry challenges

THERE likely were some less-familiar faces handling emergency vet calls on farms last week. The reason is that a good many vets were in Omaha for the annual meeting of the American Association of Bovine Practitioners. Right at 1,000 veterinarians attended the meeting. There were scores of seminars, workshops, and research reports on topics ranging from effective clothing and footwear for vets to ultrasound basics and from BVD transmission between wildlife and cattle to how to deal with neck, shoulder, and arm problems. Herd checks are hard work.

Many of the general sessions at the AABP meeting this year dealt with issues surrounding responsible drug use. A major focus was on the need for veterinarians and producers to follow drug labels carefully and to be very diligent when using extra-label drug treatments with special emphasis on the need for a valid veterinarian, client, patient relationship.

We heard at the meeting that there are dozens of organizations, most well-funded, but misguided, that want to shut down the U.S. livestock industry. Passing laws banning or severely restricting use of antibiotics is one way they are trying to do that. Never mind that there is no conclusive evidence linking food animal antibiotic use with antibiotic resistance in humans. Those groups also don’t seem to be concerned about how inhumane it is to not treat a sick animal just as it would be unthinkable to not treat a sick person.

A lot of what groups like AABP and the American Veterinary Medical Association do is to go to bat for the food animal industries on issues such as antibiotic use and animal welfare.

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Wednesday, September 16, 2009

They didn’t take a summer hit this year

Summer was quite bearable in the Midwest this year. We didn’t have those long stretches of hot and humid weather that are expected annually. That being said, this past summer was easier on the cows. During a recent trip to South Dakota, we stopped at Crosswind Jerseys in Elkton, S.D., and visited with manager Steve Temperli. The farm milks about 1,000 Jerseys and Jersey-Holstein crossbreds. Steve, along with his parents, moved to their current location in 2004 from Ontario, Canada. While hot summers can usually take a hit to their herd, “the cows are just doing really well right now,” Temperli says. The herd is seeing excellent results in the areas of protein test results, SCC, reproduction, and hoof health.

Temperli attributes this to a few things, not just the unusually cool summer. With higher grain prices this summer, Temperli started feeding a higher forage diet. Because of this, protein test results are now higher than ever. The herd is averaging close to 63 pounds of milk, 4.7 percent fat, 3.75 percent protein, and 120,000 SCC. Cows are bedded with sand (which Temperli swears by) that is recycled in a sand lane. The entire milking herd is averaging about two individual cases of mastitis each week.

Close attention to stocking density is another practice that Temperli gives credit when discussing their herd’s recent successes. “I’m pretty particular about how my pens are stocked,” he added. First-lactation cows are mixed with second- and greater-lactation cows which he knows isn’t always the norm. Temperli is comfortable with this, though, because pens are never stocked beyond 110 percent, fresh cow pens are usually at about 90 percent stocked, and pen moves are always minimized.











Tuesday, September 15, 2009

Help us keep you informed

We want to provide the most useful information to benefit you, our Hoard's Dairyman Notebook readers. With that in mind, could you complete this simple poll to give us an idea of who is reading our blog.

The Hoard's Dairyman Editorial Team


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Monday, September 14, 2009

Bankers still have faith in dairy

After years of planning, Dan and Kari Dvorachek fulfilled a life-long dream of starting their own dairy this month. It took over a decade of hard work, strict financial planning, and lastly a business plan that a banker would approve even in these most difficult economic times. Everything came together this July when the Dvoracheks got financing to go ahead to purchase and renovate an 86-tie stall facility which also features 90 free stalls for heifers and dry cows.

Over 14 years ago, Dan started out as a herdsman for Manitowoc County dairy producers Randy and Rosalie Geiger (the parents of associate editor Corey Geiger). Two years ago, Dan, and his wife, Kari, became partners in the operation when they purchased 50 milk cows, along with some young stock and continued to house their cattle at the Geiger farm. From that point, the Dvoracheks began to build equity as their herd continued to grow. Late last December, an opportunity to purchase a dairy farm just three miles away presented itself.

That's when the planning went full steam ahead as the Dvoracheks met with a team of advisors who guided the young couple through the many steps needed to develop a workable business plan that would lead to the renovation and purchase of the facility. On Labor Day weekend, friends and family gathered for the final step of the plan which involved moving some 70 head of cows and 50 heifers. Equipped with a pair of trailers that held a total of 10 head per trip, the Dvorachek herd was calmly moved in five short hours. As the herd settles in, the new farm owners will make additional purchases to fill up their barn.

Attached to the blog are a few photos from moving day. The first two photos show the herd leaving their old farm; photo three shows Kari Dvorachek, while photo four shows her husband, Dan, at the new farm. The final two photos show cows at the new operation.

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Friday, September 11, 2009

California tail-docking bill now goes to governor

Tail docking of cattle is poised to become illegal in the nation’s largest dairy state after lopsided votes of approval in both the California State Assembly and Senate. Governor Arnold Schwarzenegger, who publicly derided the measure earlier this summer, must now sign it to become law. If he does, California will be the first state to ban the practice.

Senate Bill 135 was introduced in February by California Senate Food and Agriculture Committee Chairman Dean Florez. It adds cattle to existing State Penal Code Section 597n covering horses which makes it a misdemeanor to cut the solid part of the tail, except in medical emergency. Trimming of tail switches is not prohibited.

The measure was approved by the State Assembly on September 3 by a vote of 58 to 15 and by the State Senate on September 8 by a vote of 26 to 12.

At the height of the state’s lengthy and contentious budget struggle in July, Schwarzenegger derided the bill during a press conference, saying, “In the midst of a budget crisis they’re debating about cow tails, and I think that this is inexcusable.”

Several European countries already ban tail docking, and, since 2004, the American Veterinary Medical Association has had an official policy opposing the practice.

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Thursday, September 10, 2009

Corn crop has people on edge

There was corn being chopped for silage over the Labor Day weekend in southeastern Wisconsin. But chopping still is a ways off for the 191 acres of corn at the Hoard’s Dairyman Farm and for a good many others across the northern tier of states.

Late planting and a record cool summer in many parts of the country have put the corn crop well behind schedule. The last USDA crop progress report put corn at 50 percent dented, compared to a 75 percent average the previous five years.

Still, “don’t jump the gun" after the first frosty night is the warning from Ev Thomas, the (semi-) retired “crops dude” at the Miner Institute in northern New York. Immature corn still has quite a bit of sugar which acts sort of like antifreeze for the plant. Even if leaves get singed by frost (they’re only 10 percent of the dry matter), as long as the stalk is green, the plant continues to mature, says Thomas.

The only way to know for sure if corn is ready for chopping is to chop some and do a moisture test. Chopping at 32 to 35 percent dry matter (34 is ideal) is the goal for bunkers and bags, says Jim Barmore of Five-Star Consulting in Wisconsin. He recommends 5/8- to 3/4-inch TLC (theoretical length of cut) for processed (non-BMR) varieties. His guide: All kernels should be either smashed, rolled, or cracked with no cob pieces larger than a thumbnail after processing. Make sure at least 98 percent of kernels are processed.

Less mature corn silage may be higher in protein but always is lower in starch and energy, says Thomas. Again, a forage analysis is a must.

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Tuesday, September 8, 2009

“Busy Woman” blogger tours a modern dairy and leaves with a fresh perspective

Browsing blogs to see what people are saying about modern dairy farming and production agriculture can be discouraging because, like it or not, both sides of the fence are out there. It was nice to see a health and wellness blogger recently take an open-minded approach to learning more about what we do and realizing there is a lot to learn.

Eliz Greene is a blogger from Milwaukee, Wis. Her "Busy Woman's Guide" blog and website focuses on strategies to live longer, feel better, and stress less. According to her website, she writes one of the top 100 health and wellness blogs. Greene suffered a heart attack when she was 7 months pregnant with twins. After open-heart surgery and a Caesarian delivery of twin daughters in the same day, she now is a national spokesperson for the American Heart Association, a mother, and professional speaker.

Greene visited a western Wisconsin dairy recently which was home to 800 cows. She admits in her blog that she previously only had the media’s view of “factory farming.” Greene was impressed with just how happy the cows looked — especially when they used the mechanical back scratcher. She also talks about the “soul” that goes into our family farms. After her visit, she is open to learning more about what modern farming is really like. In her blog post, she asks for even more information from farmers about their job and food production. We’d like to thank Eliz for taking time to learn more about our job and seeking out good information in her quest of living a healthier lifestyle.

Do you know of any other bloggers with a non farm background that are learning more about how their food is produced? Comment below; we would love to hear about it.

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Higher milk solids: An idea whose time is still here


Low milk prices have rekindled an idea often favored by milk producers over the years, but so far practiced only in California: Fortification of all classes of fluid milk with small amounts of additional protein and nonfat solids (NFS), including calcium, to increase both nutrient content and taste.

In its August issue of “Equity Newsletter,” National All-Jersey, Inc., urges its members to encourage their milk cooperative boards of directors and members of Congress to support adoption of higher solids standards first adopted in California in 1967. “Consumers will get more nutrition and taste from each glass of milk at a time when the majority of teenagers are calcium deficient. Higher demand for milk solids will also decrease the product surplus being purchased and stored by the government,” it said.

We agree.

Compared to Federal levels, California fortification standards are significantly higher in all types of fluid milk, but especially 2 percent, 1 percent, and skim:

whole milk (Federal) – 8.25% NFS, 7.5 g protein, 261 mg calcium
whole milk (Calif.) – 8.70% NFS, 7.9 g protein, 276 mg calcium

2% milk (Federal) – 8.25% NFS, 7.5 g protein, 261 mg calcium
2% milk (Calif.) – 10.0% NFS, 9.1 g protein, 317 mg calcium

1% milk (Federal) – 8.25% NFS, 7.5 g protein, 261 mg calcium
1% milk (Calif.) – 11.0% NFS, 10.0 g protein, 348 mg calcium

skim milk (Federal) – 8.25% NFS, 7.5 g protein, 261 mg calcium
skim milk (Calif.) – 9.0% NFS, 8.2 g protein, 285 mg calcium

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Friday, September 4, 2009

Add beer to your steak and live longer

As you fire up your grill this Labor Day week, consider marinating your steak in beer and not only have a juicier steak, but you also will cut your risk of cancer. Yes, it's true, according to research conducted at the University of Porto in the country of Portugal.

They found marinating steak for six hours in beer or even red wine prior to frying or grilling reduced levels of two types of heterocyclic amines (HA) by up to 90 percent. Beer was most effective, however, further reducing rates of a third type of HA after just four hours of marinating.

As you may know, cooking food increases levels of cancer-causing HAs. When it comes to fried or grilled meat, high temperatures convert sugars and amino acids found in muscle into HAs. Foods like olive oil, lemon juice, and garlic cut HAs in grilled chicken by 90 percent, while red wine reduces HAs in fried chicken. Thanks to research by the team in Portugal, you can add beer and red wine to the list of cancer fighters for steak. Beer was more effective than red wine on the third HA because it has more water-retaining sugars than wine which may reduce the transport of water-soluble molecules to the steak's surface where heat converts them into HAs, reports the Portuguese research team.

As if you needed any more convincing, two trained sensory panels pointed to beer-marinated beef as having the best smell, taste, and appearance.

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Thursday, September 3, 2009

World dairy prices: Low and recovering slowly

There are some positive signs in the world market, according to USDA’s Foreign Ag Service. New Zealand holds periodic auctions of whole milk powder, and those prices have been rising slowly. But world dairy markets remain “frail”, says FAS, and most major economies are expected to recover slowly. This will mean slow recovery to world dairy prices . . . and U.S. milk prices.
There is no one world price for milk. World dairy trade involves various milk powders, butter, cheese, and a variety of other milk-derived ingredients. You just have to take some world market prices and try to compare them to market values here in the U.S.
For example, the skim milk powder price in Oceania (Australia and New Zealand) is about 96 cents a pound. In Europe, it is about $1.08. This compares to a recent U.S. nonfat dry milk cash price of 99-1/2 cents. Oceania Cheddar is around $1.25 a pound compared to a U.S. barrel price of $1.31. Butter is around $1.50 in Europe, 96 cents in Oceania, and $1.17 here.
After a year of severe drought, New Zealand is boosting milk output 8 percent this season, and Australia’s milk production is recovering as well.
The European Union has reactivated its export subsides, and the U.S. has reactivated DEIP (Dairy Export Incentive Program). Both actions will tend to hold down world prices. Plus, as much as higher dairy price support levels are needed here, nonfat dry milk inventories here and around the world will build, putting a damper on world dairy price recovery.
Unfortunate as the situation is, it seems it is likely to be many months before our economy and other world economies stimulate dairy product prices to any significant degree. And, sadly, Class III milk futures prices confirm this.

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Wednesday, September 2, 2009

When Mom and Dad don’t have a farm to give you

You wouldn’t be surprised to hear that farmers are a growing minority. You also wouldn’t be surprised to hear of a youngster interested in farming, but just doesn’t think it's possible with today’s land prices, interest rates, and economic climate. But we’ve come across some excellent success stories the past few months. While attending a conference this summer, we met Laura Daniels, a young dairy producer from Wisconsin. She started farming along with her husband from scratch and is proud to say that it is possible, when others don’t think it is.

At the same time, we meet dairy producers regularly who do not have children interested in farming to pass the torch to. These farms often sell their animals to another herd and the farm lies vacant. The land might even be sold, later to become a Wisteria Lane-like new subdivision.

We’ve heard of programs like Iowa State’s beginning farmer program. The program matches retiring farmers with those interested in starting farming. Their website lists well over 20 farms in Iowa and the Midwest that are looking for new partners to continue the farm. There aren’t many dairy farms on the list, but many of them look like they could be good opportunities for someone with the farming bug. We’ve also found a lot of starting farmer grants and loans from those in the Ag Credit System and the Farm Service Agency. Maybe it is more possible than you think.

What are other good resources for starting farmers? Do you know of many farmers who have started from scratch?

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Tuesday, September 1, 2009

Cool July made for milk-making weather in the Midwest


Cow comfort was running high as cool weather ushered in some of the best summertime milk-making weather. When reviewing the July milk production numbers in our Friday, August 28, blog, you will note that Midwest milk production was up 3.9 to 5.9 percent in six states which rank among the top 20 nationally for milk production. It just so happens that all six of those states had regions within their state that experienced record lows for the combination of daily highs and lows, making heat stress a nonissue throughout the area.

Only two states in the continental U.S. posted temperatures cooler than Minnesota and Wisconsin. So it came as no surprise that those two states lead the nation for July milk, up 5.9 and 5.8 percent, respectively. The National Oceanic and Atmospheric Administration reports Wisconsin posted the second coolest July on record, while Minnesota had its third coolest July.

Meanwhile, Iowa, Illinois, and Indiana were up 3.9 to 4.8 percent on July milk, and each of these three states experienced the coolest July on record. And neighboring Michigan, with the coolest July on the U.S. mainland was up 4.6 percent. Michigan's combination average of 63.5 for the daily high and low was second coolest on record.

While these cool temperatures have been great for cows, the corn and soybean crop is behind schedule. Cool temperatures simply mean crops are behind on maturity due to the fact there are not enough Growing Degree Days (heat units) compared to the average summer. An early frost could have a huge impact on the corn and soybean harvest.

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