All dairy farms have pet cows

We don’t know whether it will go anyplace or not, but there is a bill in Congress that gives a tax break for pet owners. The bill labeled HAPPY (Humanity and Pets Partnered Through the Years) has been introduced by Rep. Thaddeus McCotter (R-Mich.). It would give taxpayers a deduction for pet care expenses of up to $3,500 per person.

The bill defines a pet as a “legally owned, domesticated, live animal”. Hey, maybe that would work for cows. If not for the whole herd, it should at least work for pet cows. Every farm has at least one.

“It is the special cows that bring a personalization to the farm that makes dairy farming a life-style rather than a job,” says Marilyn Hershey in her Common Threads column on page 27 in the January 10 issue. That’s so true. There’s no denying that cows have personalities and some have a lot of personality. They are ones that will lick the stocking cap off your head. They are the ones that can master gate latches. They are the ones that can give looks that kill.

And what’s interesting to us is that there are pet cows on farms of all sizes. Sure there are special cows on farms where every one knows every cow’s name, birthday, and family tree. But it also is true on larger farms, as well. For example, Marilyn and Duane Hershey have about 600 cows on their farm in Pennsylvania. Marilyn’s January 10 column is about “Feliz."

A few weeks ago we toured Shiloh Dairy at Brillion, Wis., where we were reminded of Patsy Cline, the matriarch of Gordon and Cathy Speirs 1,300-cow operation in northeast Wisconsin. Patsy is so special that Gordon and Cathy chose to be photographed with her when they were recognized as Platinum Winners in the National Dairy Quality Awards competition in 2007.

It does our hearts good to know there are special cows on all farms, regardless of size. They speak to the unique relationship that America’s dairy farm families have with their cattle. It’s a bond that few outside of our industry have any appreciation of.

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Dairy aid program once again focuses on small herds

USDA delivered details about its $290 million Dairy Economic Loss Assistance Payment program package last week. Those details clearly show that it is yet another federal program which does not focus on fairness or equality, or on helping the entire industry. Instead it focuses on helping just certain parts of it.

In a nutshell, dairy producers who have bigger herds are once again getting the short end of the stick.

Details about the $290 million in direct payments that will be made to producers next year start to look like a lump of coal for anyone who milks more than about 294 cows. That’s approximately where the annual production limit of six million pounds during 2009 kicks in that will be used to calculate payments. Dairies producing under that amount will receive a single lump sum from USDA of about 32 cents per hundredweight. But for any dairy that made over six million pounds – and no matter how much more – the payment limit is $19,200.

Thus, the program is a stinging slap in the face to larger herd producers everywhere, and to the West in general. That’s because the payment cap has the effect of saying, “Your financial loss during 2009 was not as painful as small herds’ losses. Your suffering didn’t matter as much. You don’t need our help as much.”

In New Mexico, for instance, where the average dairy produces over 49 million pounds per year, the Loss Assistance Payment will be about 4 cents per hundredweight. In Arizona it will be about 5.3¢. In California, Colorado, Idaho and Nevada it will be about 9¢. In Florida it will be about 13¢.

The gift of higher milk prices ahead

Feed costs have fallen substantially in 2009 but are unlikely to fall as much next year, according to the latest USDA Economic Research Service outlook report. The benchmark 16 percent protein ration value is projected to average in the mid-$7 per hundredweight range this year compared with over $9 in 2008.

The U.S. dairy herd is forecast to continue to contract in 2010, with most of the herd reduction coming in early 2010. The U.S. dairy herd is expected to average 8.97 million next year and is expected to average below 9 million cows in each of the four quarters of 2010. The forecast decline in herd size will represent a 2.5 percent decline year-over-year. This decline follows a 1.3 percent decline in 2009. In contrast, milk production per cow is forecast to rise to 20,950 pounds, a 1.84 percent year-over-year increase and slightly ahead of the five-year-trend increase.

Commercial disappearance is forecast to rise by less than half-a-percent next year on a fat basis and to be virtually unchanged from 2009 on a skims-solids basis. World markets and export forecasts remain firm.

Cheese prices will likely average $1.290 to $1.300 per pound in 2009 and rise to average $1.615 to $1.695 in 2010. After averaging $11.30 to $11.40 in 2009, Class III prices are forecast to rise to average $15.15 to $15.95 next year. The all milk price is expected to average $12.70 to $12.80 this year and rise to average $16.35 to $17.15 in 2010.

Being honest about milk contracting

Milk prices have already started to climb, and we're guessing that the cautious dairy farms out there are already starting to think about what to do if milk prices take another turn for the worse. We attended the Midwest Dairy Expo recently and had the opportunity to listen to Phil Plourd of Blimling and Associates. Plourd works with dairy producers and end dairy product users (buyers) to contract milk purchases. Plourd says that interest in contracting milk right now is pretty high. It's unfortunate though, Plourd says, because milk prices are still expected to climb. He does give some advice, however, “right when you’re not thinking about contracting milk is probably the right time to think about it," Plourd says. While that might seem pretty vague, he means that right when milk prices seem pretty good you tend to forget about a down-turn.

Plourd is pretty realistic and admits that milk contracting is not a get-rich-quick scheme. He says that contracting milk allows a clear budget to be formed— something attractive to the highly leveraged dairies of today. Plourd says, “It’s not about capturing the highs, but managing the volatility.” If you think you'll rest easier knowing exactly what you'll be paid, and are interested in watching markets closely, maybe this is something for you.

Plourd also shared a note of humor with the session attendees. "Why do dairy producers always root for their contract to be higher than the market price when they only contract 30 percent of their milk?" He's got a point; wouldn't you want to make more on the other 70 percent of your milk? It must be something about "being right."

Win free groceries for a year

Yeah, that title caught our attention, too; and it is catching the eye of consumers in states like Michigan and Ohio. That’s because in collaboration with The Center for Food Integrity, consumers from those states and in others who engage in conversation with a real farmer on the Farmers Feed Us website are entered to win free groceries for a year — courtesy of many of the state’s farm groups. It’s a great idea, we think, because it puts a local face to the food consumers are eating every day. Right now, the program is only in effect in some states. That’s because money needs to be raised to make the project happen. Right now, a project is in the works in Indiana, Missouri, and Iowa. There are also groups in Wisconsin that are working towards another program here.
Several local farmers allow consumers to get to know them and their farm. The farmers represent many areas of agriculture, including dairy, lamb, beef, egg, vegetables, pork, apples, corn, and soybeans. To sign up, you must visit the website and learn about one type of farmer. From there you can take a tour of the farm and read about the farm family. To increase your odds in winning, you can learn more about other farmers. To learn more about the site, visit it for yourself!

Comment period on Roundup Ready alfalfa begins December 18

This is a guest blog by Dan Putnum
Forage Extension Agronomist and Agricultural Program Leader
Department of Plant Sciences, the University of California

The long-awaited decision on the deregulation of glyphosate-tolerant (GT) alfalfa (Roundup Ready or RR alfalfa) has been made.USDA-APHIS, which regulates biotechnology traits, has completed a Draft Environmental impact Statement (EIS) and posted this on its website. This was required by a legal decision in March of 2007 due to a lawsuit brought by Center for Food Safety.

Their decision:
“ APHIS has made a preliminary determination that action should be taken, and that action will be to grant nonregulated status to GT alfalfa lines J101 and J163, in whole. The introduction of these GT alfalfa lines has no significant impact on the environment. These GT alfalfa plants, lines J101 and J163, are not plant pests and are unlikely to pose plant pest risks.”

It is time for you to weigh in and provide comments to APHIS on their preliminary decision – should they be supported in this decision to allow commercialization of this trait (nonregulation), or should it continue to be regulated (not allow commercialization)? Have they addressed the important issues associated with this technology?

There are a range of issues associated with this, but primarily it comes down to:
• The claim that this trait causes excessive gene-flow to organic or conventional alfalfa fields which will prevent organic or conventional growers from farming as they wish and lead to eventual contamination of all alfalfa fields.
• The claim that the introduction of this trait causes much larger development of Roundup-resistant weeds which will have an impact on the environment.

These were the two most critical issues in the lawsuit and the important issues that APHIS needed to address, along with market impacts.

Those who disagree with these claims argue that:
• Gene flow is primarily an issue with seed production (<1% of the acreage), and can be (and is) managed with isolation requirements in seed production. In hay crops, gene flow is largely prevented, since hay is mostly harvested before significant bloom. Techniques such as managing feral alfalfa and testing products using a simple test strip can assure customers of the non-GE status of hay or seed.
• Weed resistance to herbicides is an old problem with agriculture and not unique to RR alfalfa and can be managed through diverse weed management strategies that have been developed over many years by weed scientists. If it occurs, it will primarily have an impact on the effectiveness of Roundup, not the environment.

UC (University of California) and other universities have detailed publications on both of these issues, on gene flow and on weed resistance; see link below.

APHIS has extensive documentation of their study of these issues, plus related market issues in the EIS statement. Please see their website below. The EIS alone is 1,476 pages long, with documentation, but the critical issues can be easily found.

We should keep in mind that this decision will impact the use of all genetically engineered crops in general, for alfalfa in the future (not just RR alfalfa), and perhaps for other crops, as well.

Time to make your voice heard.

You may review the APHIS documents by starting here:
http://www.aphis.usda.gov/biotechnology/alfalfa.shtml

Several University of California Documents related to biotechnology, coexistence of alfalfa types, and weed resistance can be seen at:
http://alfalfa.ucdavis.edu/+producing/index.aspx?cat=Biotechnology%20and%20Roundup%20Ready%20Alfalfa

The National Alfalfa & Forage Alliance documents on coexistence and seed stewardship, which came out of workshops over the past three years are at: http://www.alfalfa.org/CSCoexistenceDocs.html

To SUBMIT COMMENTS TO USDA-APHIS, SEE
http://www.regulations.gov/search/Regs/home.html#submitComment?R=0900006480a6b7a1

To see a longer listing of previous comments (2008), which includes the recent entries, see:
http://www.regulations.gov/search/Regs/home.html#docketDetail?R=APHIS-2007-0044

Young Producer Committee elections held during Accelerated's YP Summit

Two open positions were filled on the Accelerated Genetics Young Producer Committee by Charlie Knigge, Omro, Wis., and Ben and Elle Tibor, Minnesota City, Minn. Tim Bowers, Marion, Wis., was re-elected for his second term on the committee. This year Jeff and Tammy Styczynski, Pulaski, Wis., and Jamie and Amy Larson, Evansville, Wis., retired from the Young Producer Committee. Other Young Producer Committee members include: Tom and Katie Grady, Oregon, Wis.; Joe and Donna Parrell, Cross Plains, Wis.; Jerry and Kelly Gimler, Watertown, Wis.; Brian Koch, Waunakee, Wis.; and Dan and Tricia Solum, Spring Grove, Minn. Shown in the photo are: back row from left: Ben Tibor, Tim Bowers, Jerry Gimler, Charlie Knigge, Joe Parrell, Brian Koch, and Tom Grady. Front row from left: Elle Tibor, Kelly Gimler, Donna Parrell, and Katie Grady.

The Young Producer Committee selects, organizes, and coordinates the yearly activities of the Accelerated Genetics Young Producer Program. Individuals and couples throughout Wisconsin, southeastern Minnesota, northeastern Iowa, and northern Illinois make up the committee. This dynamic group encourages producer involvement, plans annual events, and provides leadership to facilitate a prosperous program.

The committee elections took place during the annual YP Summit held this year in Tomah, Wis., December 5 to 6, 2009, at the Holiday Inn and Conference Center. The theme this year was "Innovate, Integrate, Motivate" and producers were able to attend a variety of sessions by: Michele Payn-Knoper, Cause Matters Corp.; Joel Groskreutz, president and CEO of Accelerated Genetics; Dan Schreiner, product specialist for Accelerated Genetics; Nigel Cook, associate professor at the University of Wisconsin-Madison; and George W. Twohig, an agricultural attorney. The event was capped off with a special evening, the "Cream of the Crop Dinner and Ball."

Upcoming Young Producer events include the Winter Get-Away – January 30 to 31, 2010, at the Kalahari Resort and Waterpark in Wisconsin Dells, Wis., and the Leadership Conference – March 20 to 21, 2010, at the Wintergreen Resort and Conference Center in Wisconsin Dells, Wis.
The Accelerated Genetics Young Producer Program is open to young producers (owners and herdspeople) between the ages of 18 and 45, individuals and couples, some events are for the entire family. Anyone interested in becoming involved in the program is encouraged to contact Accelerated Genetics at 1-800-451-9275, email kstanek@accelgen.com or check out our website at www.accelgen.com.

World Dairy Expo honors outstanding volunteers

Four "Friends of Expo" were recognized at a special, baseball-themed volunteer appreciation dinner on December 10 at the Alliant Energy Center in Madison, Wis. Nearly 150 volunteers gathered to acknowledge their contributions and celebrate a successful 2009 show.

Honored for their years of support and outstanding service to World Dairy Expo, these individuals were selected from among the nearly 400 volunteers. The 2009 honorees include: Connie Kolpin, Gary Kolpin, Lynda Yates, and Gordon Marquart.

Connie Kolpin was presented a Friends of Expo Award for the warm reception she provides to World Dairy Expo’s international visitors. Kolpin has managed World Dairy Expo’s International Lounge since 2001, providing snacks and maintaining a comfortable meeting place for guests to conduct global business transactions. During this time, 21,701 individuals from more than 100 countries have enjoyed her hospitality. Over the years, she’s prepared 128 bushels of apples, 1,352 pounds of sausage, over a ton of cheese, and a countless baked goods for the appreciative travelers.

Connie’s husband, Gary “Kope” Kolpin, was also recognized for his many contributions to the show. His meticulous attention to detail and organization skills led to assisting with World Dairy Expo’s “big move” each fall. While the show is held at the Alliant Energy Center, World Dairy Expo’s business office and warehouse are located nearly four miles away. This necessitates physically moving the entire office and much of the warehouse’s contents from one location to the other and back again each year. Kolpin has coordinated the move for the past 14 years, assisting the UW-Madison Badger Dairy Club members with the moving process and carefully inventorying, cleaning, and repairing equipment and returning it to storage in an orderly fashion.

Lynda Yates, a sales associate with Ascentives Corporate Specialty Solutions of Madison, has a long-standing relationship with World Dairy Expo. Since 1991, she’s assisted staff with procuring special, customized awards for the show’s prestigious dairy cattle shows. In addition, she’s sourced promotional materials including, lanyards, season passes, souvenir pins, identification ribbons, sponsor awards, exhibitor hats, souvenir mugs, judging contest folders, and numerous other items used to promote and facilitate the world’s largest dairy show. From the first meeting, it was apparent that Yates had World Dairy Expo’s best interest at heart, always seeking to find bargain prices and working tirelessly to make sure the items were of utmost quality and that they were delivered on time.

Gordon Marquart received a Friends of Expo Award for his work with World Dairy Expo’s trade show. Recently retired from Nasco, Inc., in Fort Atkinson, Wis., he managed the company’s booth at World Dairy Expo for many years. A long-time member of the Commercial Exhibitor’s Committee, he assisted with drafting rules that are fair to the show’s 750 plus exhibitors, and he also helped the show transition from a Wednesday through Sunday to a Tuesday through Saturday format. In addition to his work with the trade show, Marquart spearheaded Nasco’s donation of 600, five-gallon milk buckets for use at the dairy show each year.

Emergency payments from the USDA — just in time for Christmas and the New Year

Just yesterday, the USDA announced that the Dairy Economic Loss Assistance Payment (DELAP) program is now being implemented. The 2010 Agricultural Appropriations Bill authorized $290 million for loss assistance payments to eligible dairy producers. Our local FSA office says that those in Washington hope local offices can begin distributing money early next week — just in time for Christmas. Dairy Producers who have production records on file with the USDA Farm Service Agency (FSA) and are eligible to receive payments will not need to apply for the program.

We now know more about how the money will be divided, too. FSA will use milk production information from February to July of 2009 (six months) and multiply that number by two, with a maximum of 6 million pounds per dairy operation, roughly the milk from 300 cows. The $290 million will then be divided equally per cwt. The estimated rate is about $0.32 per cwt. As an example, if a dairy farm produced the maximum allowable milk production of 6 million pounds and the payment rate is $0.32 per cwt, the dairy operation would receive $19,200. Like MILC payments, those with an annual adjusted nonfarm income of $500,000 or more will not be eligible.

We’d like to thank the University of Wisconsin-Madison Department of Agricultural and Applied Economics for sharing this simple question and answer sheet that is posted below (.pdf format). In this document you will find answers to many other questions you might have regarding these emergency payments.

DELAP Question and Answer pdf.

California dairies get temporary price hike

Late is better than never, and something small is better than nothing at all.

Long after the worst has passed, and far too late to help those dairy families who have already gone out of business, California milk producers were granted a three-month “hardship” price increase in all five milk classes by the state’s Department of Food and Agriculture on December 16.

The increases which begin January 1, 2010, and end March 31 are largest for Class 1 products (35 cents per hundredweight) and smallest for manufactured dairy products (10 cents per hundredweight). Overall, they are estimated to translate into an average blend price increase of 15.5 cents per hundredweight.

January 2010, however, is light years after the fact when milk producers struggled with 20-year low milk prices during the first half of 2009 and forced some operations out of business. For all of 2010, milk prices are currently forecast to be at or above $15.

For the average California dairy (which last year produced just over 1.8 million pounds of milk per month), the temporary increase works out to $2,794 in extra income per month.

In making the announcement, the Department noted that the California dairy industry lost approximately $1.4 billion during the first nine months of 2009. By our calculations, the three-month temporary price increase will generate about $16 million in total additional income.

Sustainability landmark links dairy industry and USDA

Amid all that's going on at the U.N. climate conference in Copenhagen, the U.S. dairy industry got its moment in the spotlight, and in a positive way.

U.S. Secretary of Agriculture Tom Vilsack announced that, through a landmark memorandum of understanding, USDA and the Innovation Center for U.S. Dairy will work jointly in support of the dairy industry's goal of reducing greenhouse gas emissions by 25 percent over the next decade. The agreement was signed by Vilsack and Tom Gallagher, CEO of Dairy Management, Inc., which manages the national dairy checkoff program.

DMI was one of the founding members of the Innovation Center, which is an industry-wide group working together on precompetitive strategies to grow sales of dairy products. The Innovation Center is nearing completion of a life-cycle assessment of fluid milk from farm to table.

Under the new agreement, USDA will take a number of steps to help dairy farmers, including support of a relevant, strategic research plan to address emissions issues. Other initiatives would help the industry develop future technologies, advance nutrient management, support renewable energy, and improve energy efficiency. Vilsack called manure-to-electricity technology "a win for everyone."

The Hoard Farm Jerseys get their first score

This October and November we added 71 Jerseys to the Hoard Farm herd. Those cows which came from three Wisconsin herds are settling in quite well in our old tie stall barn which we are operating as a free stall barn. The 68 lactating Jerseys in the group are fed in the existing outside feed bunks and milked in our 2-year-old parlor. They are adapting quite well even with the one foot of snow we received the prior week and the subzero temperatures we are now experiencing. (To read more about the Jerseys, download the PDF with an editorial from our November issue at the bottom of this page).

On the afternoon of December 15, we appraised 68 Jerseys (did not score the dry cows). It took about 2 hours and 15 minutes to put scores on the cows as we milled around the feeding area on the very cold, but sunny, winter day that had temperatures eventually drop below zero later in the evening. The cows had about 10 to 12 hours of milk in their udders as we evaluated them just before milking time.

When we were done, the American Jersey Cattle Association put scores on 68 head. The entire group averaged 80.4 points. When looking at the herd by lactation number, we had:
• 32 first-lactation cows that averaged 80.4 points
• 19 second-lacation cows that averaged 79.9 points
• 14 third-lactation cows that averaged 79.6 points
• 3 fourth- and fifth-lactation cows that averaged 86.7 points

When looking at the three groups of cows we bought, it was quite uniform with Group A's 19 cows averaging 82.2 points (1.95 lactations); Group B's 30 cows at 79.3 points (1.6 lactations); Group C's 20 cows at 80.2 points (2.2 lactations).

Like our Guernsey 2-year-olds, our first-lactation Jerseys have taken to their new environment the best with their 305-day ME (mature equivalent) at 20,142 milk, 1,121 fat, and 773 protein. The second-lactation cows are just shy of 18,000 milk, while the third-lactation-and-greater group is just short of 17,000. By the way, the cow shown in the photo went VG-85.
hdm-2009-11-10-0-704.pdf

Toss the seed corn hat; it’s time to wear the CEO hat

As herds grow, sometimes the manager of a dairy farm finds himself or herself managing people instead of cows, a change not always anticipated. Now, instead of relying on a lifetime of experience — it’s a whole new ball game. Jorge Estrada of Leadership and Coaching International, Inc., discussed how dairy farm managers can “wear the CEO hat” during the Midwest Dairy Expo held last week in St. Cloud, Minn.

One of the main jobs that Estrada says is part of a CEO’s job description is to assemble, inspire, and develop a winning workforce team. Inspiring a workforce may not sound like an easy task (it didn’t to us either, especially as we are facing subzero temperatures here in Wisconsin tonight) and Estrada says you can’t expect to have 100 percent of your workforce fully engaged in their work all the time — it’s just too lofty of a goal. One key to engaging your workforce more fully is explaining the little things such as, “how accuracy in measuring feed helps reach a larger good,” Estrada says. He continues that informing employees that “the decisions they are making are impacting the bottom line and how that decision has a dollar sign attached to it.” One way we’ve heard of accomplishing this is by offering pay incentives for high-quality work such as low somatic cell counts or low calf mortality.

Estrada says to make communication a priority. “You’re communicating when you don’t think you are,” he says. In fact, 80 to 90 percent of all communication is how you say it, not what you say. Also, don’t forget to reward and celebrate your employee’s work. Estrada cited a recent poll of employees in various industries; that survey said that 65 percent say that they have not been recognized for their work in the past year, and 75 percent say that lack of appreciation was a decisive reason in departing their last position.

Daniels named YDLI Distinguished Alumni Leader

Laura Daniels, Cobb, Wis., has been named the recipient of the 2009 Young Dairy Leaders Institute (YDLI) Distinguished Alumni Leader Award. This award is given annually to a YDLI alumni who has used his or her YDLI training to have influence and provide leadership for the betterment of the dairy industry. Daniels is the ninth recipient of this award since the YDLI program began in 1994 and was a member of Class 4. In all, over 600 dairy leaders have graduated from the program.

Daniels, along with husband Jarred Searls, have owned and operated their dairy, Heartwood Farm, since October 2005. They rotationally graze 280 Jersey cows, as well as raising all young stock on pasture. The farm has a strong commitment to the environment, and because of their conservation efforts, Laura and Jarred received the Conservation Farmer of the Year Award from their local Trout Unlimited chapter. Heartwood Farm welcomes numerous nonfarm visitors to tour the farm each year to learn more about dairying and agriculture. In addition to farm tours, Daniels strives to educate consumers through their farm's Facebook page and blog where she shares stories and pictures about life on a dairy farm. She says it has been an excellent way for her to spread the story of how they care for their animals to those who are not able to visit the farm. (You can view Daniels' blog by clicking on the title of this blog post).

"YDLI was a complete turning point for me. Much of what I speak about today are messages whose origin can be traced to those days with 80 other fully engaged young dairy professionals," said Daniels. "It wasn't really until YDLI that I realized the absolute importance of not only showing up, but also lending my strong voice to the conversation. I have found a passion to spread my message which is really 'our' message in agriculture."

Through YDLI, Daniels developed an understanding of the importance of projecting positive messages to consumers. She urges others to do the same and tell the story of why they are involved in the dairy industry.

Daniels is an active member of several agricultural organizations, including the Wisconsin Dairy Business Association, Professional Dairy Producers of Wisconsin, the Wisconsin Farm Bureau Federation, and American Farmers for the Advancement and Conservation of Technology (AFACT). She is a member of the AFACT National Leadership Team and is an Advocate Trainer.

Testifying numerous times at Wisconsin Senate and House Ag Committee hearings, Laura has been politically active regarding legislation about regulations on dairy farms. She was also involved in policy and message development meetings with the Wisconsin Dairy Business Association and Department of Agriculture, Trade and Consumer Protection.

YDLI, a program of the Holstein Foundation, is a leadership and communication skills development program unique to the dairy industry. Three phases take place over a 12-month period of time to encourage strong retention from the training, as well as personal accountability. Applications will be available soon for Class 7, which will meet between March 2011 and March 2012. For more information about YDLI, or to receive an application when they are available, visit www.holsteinfoundation.org , or contact Jodi Hoynoski at jhoynoski@holstein.com or 800.952.5200, ext. 4261.

Big gulps of water thoughts to ponder

• The United Nations estimates that by 2050 the world’s population will grow by 2.3 billion people (33 percent).

• The U.N. also estimates that those new mouths to feed, plus increased food demand by the current population, means annual worldwide food production by that date will need to increase by 70 percent.

• The U.S. is the currently largest single food-exporting nation in the world ($69 billion in 2006), and is larger than No. 2 Brazil and No. 3 China combined.

• California is currently the largest food-producing state in the U.S. ($38 billion in 2008), and is larger than No. 2 Texas and No. 3 Iowa combined.

• According to the Department of Agriculture, U.S. farmland is a dwindling resource that lost another 1.5 million acres in 2008.

• According to the Family Farm Alliance, America’s ability to meet its own food needs in the future, let alone continue to send vast exports into a world that already suffers an estimated 36 million nutrition-related deaths per year, hinges upon repairing, updating and expanding the crumbling 50-year-old water infrastructure system (dams and canals) in the 17 Western states that together produce one-third of the nation’s food.

• Family Farm Alliance Executive Director Dan Keppen (pictured above) says doing so will require much more than just money and engineering. He points out, for instance, that environmental and social activists, often using the federal Clean Water Act and Native Species Act as wedges, are relentlessly diverting water away from farms and farmers.

“The U.N. says in 40 years the world will need 70 percent more food per year, but how are we going to be able to do that without water?” he asks.

A day in Dairyland

Tuesday found us engaged in one of the more pleasurable things we do as editors . . . driving across Dairyland en route to visiting a couple of dairy farms. We squeezed the 377-mile drive in before a paralyzing blizzard hit the southern half of Wisconsin. The farm families were bracing themselves for the first big storm of the season. Earlier that morning, one had moved bred heifers home for the winter from a nearby pasture. At another farm, workers were nailing plywood sheets to the sides of a new, open-air, free stall barn-to-parlor breezeway to cut down on drifting and protect just-milked cows from winter winds.

An early stop for us was one of the 300 Kwik Trip and Kwik Star convenience stores scattered across the Upper Midwest. Interstate 90 and 94 was slushy so we were getting what seemed like about 10 miles to the gallon of windshield washer solution. As we settled up, the clerk asked if we wanted some string cheese to snack on later. We told her that we appreciated her and Kwik Trip promoting cheese since we were in the dairy business. That store (Mauston, Wis.) sells a lot of cheese, and one of it most popular items is fresh curds supplied by a local cheese plant six days a week.

Kwik Trip C-stores have a long history of promoting dairy products, and their Nature’s Touch milk has a loyal following. The chain prides itself on the freshness of its milk, much of which is sold in plastic pouches. Kwik-Trip also  was among the first, if not the first, firm to provide milk in pint and half-pint plastic bottles. Visitors to the company’s web site can take a “dairy tour” which goes through 14 steps that milk takes from cow to store.

While we spent a good deal of time on the interstate (driving conditions were best there), we always like the smaller highways. We love to see what kind of activity is taking place on the dairy farms we pass, whether it is a free stall/parlor setup or stall barn setup, is there a farm sign that tells where their milk goes, and form other impressions.

We were in a region of the state with some large cheese plants and cold storage warehouses. Besides the ubiquitous milk trucks grinding their way from hill top to hill top, we saw dozens of refrigerated semis, most of which we envisioned as loaded with cheese as they cautiously made their way on snow-packed state highways and country trunks. Our day in Dairyland served as a reminder of the incredible impact the dairy industry has on the state of Wisconsin.

 

Best performing herds "only" losing purchased feed costs

Whenever the milk-to-feed ratio gets above 3, there is a strong incentive to produce more milk. That was the case in the second half of 2007 when Michigan dairy producers had a $10.66 margin of income over feed costs, reports Chris Wolf, Michigan State University ag economist. Similar profit conditions prevailed throughout the U.S. in 2007. In fact, 2007 represented the best margin ever when not adjusting for inflation.

What followed in just less than a year were all-time low milk-to-feed ratios, ranging below a 1.6 ratio throughout the first half of 2009, reports Wolf. At this time, all dairy farms are suffering great financial stress. The farms that are surviving right now used their money wisely through the good milk price years. “The best performing herds are simply losing their purchase feed costs right now,” says Wolf. “Others are faring much more poorly.” Shown in the table are actual expense and revenue numbers for Michigan farmers this decade. (Click on the above image to ENLARGE it.)

As many know, the 2008 export market (which peaked at 11 percent of all U.S. production) was an all-time record. This helped underpin 2008 milk prices. “Currently, we are exporting half of what we did in 2008 which is causing inventories to build,” notes Wolf. Right now, cheese stocks are over 100,000 pounds over the same time last year. “Unfortunately, the holiday cheese orders are done,” says Wolf. “I believe these high inventories may cause spring futures on the Chicago Mercantile Exchange to retreat slightly due to heavy cheese inventories.”

Milk cartons latest advertising opportunity

A growing number of national brands are reaching children at school and shoppers by placing ads on milk cartons, reports the October 2009 California Dairy Review. The ads on the half-pints that are distributed through school lunch programs are aimed at children, while the larger containers, like gallon jugs, are intended to reach the adults who do the shopping for their households. Here are some examples:

Recently, General Mills promoted Cheerios with stickers on gallon jugs, and Kraft targeted shoppers with ads for Honey Maid graham crackers. In stores in some major American markets this summer, stickers appeared promoting Duncan Hines with a photo of brownies and the text: “Cold Milk, Warm Brownies, mmmmmmmm.”

Even with the availability of television and the internet, the milk jug is still a medium that reaches the masses. Gary Hemphill, of the Beverage Marketing Corporation, says milk is unique in that it is a bottled drink and also an ingredient for baking and cereal. “It finds its way into most refrigerators in the homes of Americans,” he said.

BoxTop Media hired the research company Knowledge Networks to find out whether these ads were effective, using data from loyalty card programs like the Safeway Club Card. Al Halkuff, a senior vice-president of Knowledge Networks, said that for the 25 to 30 campaigns he had studied, there was a “significant improvement in sales.” For a large brand, he said a significant increase could be 4 to 6 percent, and, for a new or smaller brand, sales could double.

"Our program which places ads on milk packages is as much about promoting milk usage and consumption as it is about the advertised products," says Tony Perrotta of Box Top Media."

California “Happy Cows” flap was a flop

Job outsourcing and lost revenue for California were in the news in an odd way last month, when an article in the L.A. Times said filming of the hugely popular “Happy Cows” TV commercials was being moved from the nation’s No. 1 dairy state to New Zealand to save money.

Not so, said the California Milk Advisory board, which adamantly stated in a press release that, “Any ads that show actual California cows have always been – and always will be – filmed and produced completely in California.”

The newspaper’s article, which featured an impressive collection of amazingly lame dairy puns, incorrectly gave the impression that the four days of sound stage work that are being done in New Zealand – yes, it is cheaper to do it there – meant all future ads will be filmed there, as well.

Not a chance, said the CMAB. The press release pointed out that the filming in New Zealand is just a fraction of the total cost of a new campaign in which unhappy cows from around the world “audition” to become California Happy Cows. After the footage is shot, the 40 to 60 days of work needed to finish each of the 10 commercials will be done entirely in California.

For years, Happy Cow commercials featuring California cows have been filmed in the scenic coastal foothills of Petaluma, just west of the Napa wine area.

E-mails raise questions about climate studies

The whole global-warming controversy just got hotter. Newspapers and broadcasts have been full of news about e-mails that hackers uncovered at the Climate Research Unit at the University of East Anglia in the United Kingdom. The e-mails published on the Internet reveal some very unprofessional and troubling practices on the part of a number of well-known climatologists who have been at the forefront among those touting man-made global warming.

 According to the e-mails, scientists had warned each other about discussing research results unfavorable to their hypothesis linking human activity and global warming. They also attempted to discredit scientific journals that published articles that ran counter to their viewpoints and shared pointers on how to “hide the decline” of (the earth’s) temperature when the numbers did not support their positions.

This development adds fuel to the global warming controversy. Among other things, it raises questions about the conclusions made by the U.N.’s Intergovernmental Panel on Climate Change's(IPCC) Fourth Assessment Report published in 2007. The scientists in question suggested that certain (unfavorable) e-mails regarding that report be deleted so as to not give critics of the report any substantial ammunition. 

Global warming, especially mankind’s role, has been a tough issue because there has been so much conflicting data and data interpretation. We have had our doubts. There seems to be some evidence of global warming, but the connection with current human activity seems far less certain.

The timing of the released e-mails is interesting. There has been a push by the Obama Administration and some members of Congress to pass energy legislation here in the U.S. prior to the World Climate Summit in Copenhagen this month. Now it looks as if any energy bill will be delayed until spring, at least. Nevertheless, the recent controversy, which has been referred to as “climategate,” may well change the tone of the Copenhagen gathering. A little extra time to look at climate data and the economic impact of stiffer greenhouse gas regulation in the U.S. and around the world will be time well spent.

Getting back the consumer’s trust

We’ve lost some of the trust that consumers have in farmers. It’s a sad fact that has us scratching our heads. After all, most farms are family operated and have been in the same family for generations upon generations. Our deep, unwavering respect towards our animals and the land we grow food on probably hasn’t changed much either. Yet, we, as food producers, are being questioned more than ever, especially when the cold hard facts of a safe, nutritious, affordable food supply is right in front of them (and in their stomachs.) Charlie Arnot, CEO, Center for Food Integrity, discussed recent research about how consumers develop trust during Wisconsin’s Dairy Business Association Annual Business Conference held December 1 and 2 in Madison, Wis. Visit their website to learn more about what was covered at the 10th annual meeting.

The Center For Food Integrity is a national nonprofit organization dedicated to building consumer trust and confidence in the contemporary U.S. food system. They partnered with various ag-based producer groups to research how consumers build trust in farmers. The result: we might be fighting with the wrong sword. I am sure, at one time or another, each one of us has dealt with consumer questions by spouting off data, numbers, and scientific facts. Besides making the nonfarm public feel like they are in upper-level biology at Harvard, science isn’t what consumers trust first and foremost. “Communicating our ethics and shared values is four to five times more effective,” Arnot said. To put things in a different way, Arnot cited Theodore Roosevelt who said, “People don’t care how much you know until they know how much you care.”

The good news is that farmers do care, and we don’t have to lie about it. Its just a matter of sharing our shared values first, science second.

Two online dairy courses available

Advanced Dairy Nutrition (ANSC 423) will be offered by the University of Illinois in the spring of 2010 beginning on January 25. This feeding class (ANSC210) covers nutrient classes, phase feeding, dry cow feeding and health, and forages. The course will be coordinated by Mike Hutjens and taught by a team of four instructors.

Milk Secretion, Mastitis, and Quality (ANSC 435) will begin on January 27 with Dick Wallace coordinating the class, along with two other instructors. All phases of lactation physiology, mastitis, immunity and nutrition, and health will be covered.

Lectures are recorded on CD (class on demand) with an Internet live class held during the 10 weeks of class on Monday or Wednesday nights from 7 to 8 p.m. CST. Enrollees can participate for credit (U of I tuition rate) or for noncredit with reduced tuition. To review the class schedule, topics, and enrollment details, go to: http://online.ansci.uiuc.edu