Arizona immigration law: no effect on dairies so far

The firestorm of public opinion that has erupted since Arizona Governor Jan Brewer signed her state’s controversial new immigration law a week ago appears to be occurring everywhere but in Arizona.

Hollywood celebrities are disgusted, convention business is canceling, and San Francisco politicians are urging a total boycott, but things are much different in Arizona. For one thing, Brewer’s approval rating in the first public opinion poll after signing the bill skyrocketed from 40 percent to 56 percent. Also, lawmakers in at least 10 different states have either expressed support for some or all of the Arizona law or are outright considering similar legislation in their own states.

On Arizona dairies, meanwhile, the handful of producers we spoke to said not a single thing seems to have changed at their places. Employees are still showing up for work, cows are still getting fed and milked, and no one has come to them expressing any concern. All of them agreed that the situation is very much business as usual.

Most said they believe a degree of political career building by a few local officials is at work behind the legislation and wonder whether any enforcement will ever actually occur, given the potential feeding frenzy lawyers could have arguing civil rights violation claims against the state and/or counties.

In addition, they wonder if arresting illegal immigrants is actually the objective of the bill at all. Instead, they believe its passage was intended to create enough public furor and debate to light a fire under the U.S. Congress to finally make immigration reform a top legislative priority.

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Making the corn crop wager at the Hoard Farm

Trying to guess the corn market in the months ahead was among the topics when the financial management team for the Hoard's Dairyman Farm met yesterday. The good news was that our cows just finished eating up the $4.69 per bushel corn that we had contracted for over a year ago. When corn was between $6 and $7, booking corn at $4.69 seemed like a good idea. And, of course, it might have been. Now, we are feeding some banked corn which will improve our cash flow picture by about $10,000 per month.

That still leaves us looking ahead beyond this fall to what our corn and other feed needs will be for the next five quarters. In the past few days, corn futures have been on a roller coaster. Corn futures prices for May and July at the CBOT dropped 5 to 6 cents Tuesday following Monday's crop progress report. By April 25, about half of the corn was planted in the 18 states that grow about 92 percent of the corn. The five-year average is 22 percent planted. Never before has so much corn been planted so early.

Just about the time you think it might be good to lock in some corn, the market shifts the other way. Yesterday, China confirmed a rumored corn purchase of 115,000 metric tons, and the market responded accordingly. Corn futures ended up sharply.

We didn't make any decisions on booking corn (energy) needs at our meeting. But we did work on the information we needed to have in place when it comes time to take some action.

Through the feed management software we use, we have a running inventory of supplies for our various feeds. Working with our feed man, Matt Kooiman of Vita Plus, we will make sure our inventory numbers feel right. Then we will begin to project what our hay silage and corn silage needs are for the next 15 months. Knowing our corn silage needs will give us an idea of how many of our corn acres will be going for silage and how many acres will be left to combine. Then we will have an idea about how much corn and other energy feeds we will need and can begin to look at locking in some supplies.

We also will be looking at our cost of growing and storing corn silage and hay silage on a per-ton and per-acre basis. Will have seed, fertilizer, herbicide/pesticide, and custom field cost by crop. Without knowing that, we are putting much in the dark on what purchased ingredients are worth to us.

Finally, forage is a big part of the feed supply puzzle, of course. We have an abundance of hay silage in bags because we were not able to enlarge our herd as much as we wanted, and we had a good hay year. In fact, we have been selling hay silage to a couple of dairies in the area. And, while we are behind normal for moisture so far this year, the hay looks good, and first cutting will come early . . . perhaps as soon as May 20 is our guess.

In another month or so, we will blog about what position we have taken on energy and protein feeds . . . if any.

Genomics rapidly evolving; unanswered questions remain

The latest USDA genetic evaluations ushered in numerous changes just three months after January's major base change. Among them were imputed female evaluations and cow evaluation adjustments which put genomically tested female evaluations on a more even playing field with genomically tested male counterparts.

While all these changes might have been scientifically sound, they came as a surprise to most breeders since there was little advance notice regarding the changes prior to the April release. The lack of notice combined with the fact that the majority of genomically tested females dropped due to the corrections caused a great deal of frustration for owners of elite cattle. On top of that, cow adjustments created a multiple currency system which now sees genomically tested cows on a different genetic scale than those with traditional genetic evaluations. In our May 10 issue, AIPL scientists answer some questions regarding imputed proofs and cow adjustments. We are attaching a PDF of that article to help answer these questions.
hdm-2010-05-10-0-343.pdf

At the latest Council on Dairy Cattle Breeding meeting in Baltimore, Md., on April 27 and 28, genomics continued to be a leading topic of conversation. Information shared with industry partners included:

• Full sibling do not share equal amount of genes from parents. In the past, it was thought that 50 percent of the genes came from the dam and 50 percent came from the sire. Genomic testing tells us that the number of genes in common between full siblings can range from 35 to 65 percent.

• The genomic evaluations for bulls with 99 percent reliability will change over time because scientists are learning more about the relationships within the Brown Swiss, Holstein, and Jersey breeds every month as more genomic data comes into the system.

• There are 50,119 animals with genotypes as of April 2010.

•North America is no longer in the lead for accuracy of genomic evaluations. A group of European countries (Germany, Holland, France, and Scandinavia — Denmark, Sweden, and Finland) have each contributed 4,000 genotypes for Holstein bulls to create a database of some 16,000 animals. The sharing system has created higher reliabilities — 5 percent higher — than those in the U.S. and Canada. German reliabilities are even a bit higher than other European countries because they tested an additional 1,000 bulls.

• The cow adjustments allowed genomically tested females to contribute to young bull evaluations. In Holsteins, the improvement in reliability went up 2.6 to 3.1 percent for yield traits. The improvement was greater for Jerseys at 7.7 to 9.4 percent. No adjustments were made in the Brown Swiss breed due to smaller population size.

To view the actual presentations from USDA scientists, click on the title to this blog and it will take you to the AIPL presentations.

Lessons learned from digester dairies

Green Bay, Wis., is the site of the 5th national AgSTAR conference. For those of you unfamiliar with AgSTAR, it is a joint program between the EPA, USDA, and the U.S. Department of Energy aimed at encouraging the use of methane recovery systems on America's farms. Their website has plenty of information on methane digestion, so we'd encourage you to look at it if you have the chance. The event started yesterday and will continue into tomorrow. It is being attended by over 200 people mostly from the methane digestion industry. While Green Bay, Wis., may not seem like a central location to host a national conference, it is conveniently located in the state with the most on-farm digesters — Wisconsin. Yesterday, conference participants participated in an optional tour of two farms currently involved in methane digestion: Green Valley Dairy in Krakow, Wis., and Pagel's Ponderosa Dairy, LLC, in Kewaunee, Wis.

In an afternoon session titled "Lessons learned," representatives from those two toured dairies along with others from Chaseburg Organic Dairy which is in the building phase of digester implementation and Vir-Clar Farms which has been operating a digester for several years. Farmers shared their first-hand accounts of what it is like entering the methane digestion business.

John Pagel of Pagel's Pondersa Dairy realized the crowd consisted of people in industries not traditionally tied to dairy (most are in the energy business) and took a moment to educate the crowd about the dairy industry's extreme challenges in the last 18 months. Unfortunately, many in the crowd were not aware.

Each farm representative took 10 minutes to share their experiences. Each one of them were pleased that they had added methane digestion to their dairy. Gary Boyke of Vir-Clar Farms in Fond du Lac, Wis., even said that in 2009, one of the hardest years ever for the dairy industry, "my digester was the only part of my business that made money." He then added, "Am I getting rich on it? No. But I am also not losing money." And while many of the conference's attendees had their eyes focused on energy production, none of the farms said that was why they built and continue to operate a methane digester. "We did it for public acceptance (of our large farm) primarily, and odor reduction," said John Pagel. Gary Boyke shared many of the same sentiments. "It was all worth it when someone came up to me and said 'Oh, you operate that eco-friendly dairy over by the lake, don't you?' Those are things that you can't put a price on," Boyke said.

We'd be lying though if we said these digester farms didn't come without challenges (and some headaches along the way.) Melissa Van Ornum of GHD, Inc., is a methane digestion system developer and reminded attendees to keep realistic expectations of these systems and understand that each digester will be very different and have its own set of challenges.

USDA announces new initiative to improve agricultural energy efficiency

Agriculture Secretary Tom Vilsack announced last week that $2 million will be made available to dairy, beef, poultry, and swine producers for energy evaluations. The new agriculture energy conservation and efficiency initiative, announced in conjunction with a meeting of the Innovation Center for U.S. Dairy and the USDA, will provide funds for on-farm energy audits this year and will cover approximately 1,000 energy evaluations in 29 states. Funding for the program is being made possible through the Natural Resources Conservation Service's Environmental Quality Incentives Program (EQIP). According to the Innovation Center for U.S. Dairy, the Natural Resources Conservation Service conducted a survey of its state offices to determine which states were prepared to participate in the program. The 29 states announced by USDA reflect those states that indicated an ability to participate in this first phase. To find out if your state is one of the 29, click here.

"In these tough economic times, anything we can do to cut energy costs will improve our bottom line and help keep producers in business," said Richard Clauss, vice-chair of the Innovation Center for U.S. Dairy and a dairy producer from Hilmar, Calif.

Producers will select an independent, certified consultant who will conduct the audits. Energy savings recommendations identified in the evaluations may be implemented by producers at their discretion. When looking at energy on your farm, the first step is to determine where energy can be conserved, so be sure to not skip ahead to large, capital intensive renewable energy projects.

The U.S. dairy industry has committed to reducing greenhouse gas emissions by 25 percent by 2020. Energy efficiency is one way we can work towards achieving this target. Contact your local utility to find out if it participates in assistance programs for updating equipment for greater energy efficiency.

Cow with gas mask irks Californians

People in the California dairy industry were understandably upset when it was discovered that there was a large model cow wearing a gas mask in an exhibit at the Monterey Bay Acquarium. According to Western United Dairymen's newsletter, Weekly Update, WUD field rep Dennis Miguel visited the exhibit and reported what he saw.

The exhibit, which focused on global warming, was titled Hot Pink Flamingos: Stories of Hope in a Changing Sea. The model cow wearing a gas mask was accompanied by a recording: "Buurp! I can't believe I'm saying this, but what the world needs now is less methane, and that means fewer cows." The exhibit also stated, according to the WUD newsletter, "The best way to reduce methane is to eat less beef and drink less milk."

Western United reports that the exhibit sparked a controversy that resulted in creation of a Facebook Fan Page called "People avoiding Monterey Bay Acquarium until they take the cow down!" The page had 2,550 fans when the April 16 WUD newsletter went to press.

The one positive aspect of the exhibit was that it pointed out that methane from cow manure can be used to generate electricity.

Stan Andre, CEO of the California Milk Advisory Board, in a letter to the Monterey Herald, explained that the dairy industry has reduced the carbon footprint of dairy products by 63 percent over the past 60 years. He also spelled out the economic impact that the dairy industry has in California.

In its blog, the acquarium defended the cow and gas mask as a way "to dramatize the point." And it didn't seem to indicate that the exhibit would be changed.

Another California cow courtship is underway

Big dairies are big business, so big that it only takes a few of them to have a huge financial impact on an area’s economy.

While California politicians and regulators appear to have grown deaf, dumb, and blind to this reality, their counterparts elsewhere apparently “get it” in a big way. Earlier this month the Associated Press even reported that several states are once again openly courting California dairies to move to their more hospitable regulatory environments.

This is by no means something new. Throughout the 1970s, ‘80s, and ‘90s out-of-state Economic Development Corporations almost lined up to visit southern California and hold luncheons or dinners to pitch the virtues and opportunities of their areas. Off the top of our head we can recall Utah, Texas, Idaho, New Mexico, Kansas, Oklahoma, Missouri, South Dakota, and Iowa.

This time the message is different. Instead of being about low feed costs or quality of life, the focus is on less red tape and a willingness to work with producers in the permitting process. Besides being a breath of fresh air to California dairy owners, this message is also attractive to the states. Some estimates peg the local economic impact of a new dairy as high as $1,500 per cow. For a modest 2,000-cow dairy, that means a $30 million ripple effect – a gigantic number that’s virtually impossible for a rural community to duplicate from another single source.

Urban encroachment is an integral part of California’s dairy history. Regulating cows in new and more stringent ways seems destined to be a neverending part of its future. Inevitably, every dairy in the state is likely to reach a point where continuing to do business there simply becomes untenable.

Milk production was up again

There was a 0.9 percent rise in milk production during March in the top 23 dairy states, according to USDA's Milk Production report released earlier this week. That was the second month in a row that milk production was above year-earlier levels despite the cost-price squeeze that's affecting dairy operations across the nation. USDA revised upward its estimate of the February rise to 0.3 percent from the original report of plus 0.1 percent.

The March jump of 0.9 percent in the top states came from a 1.9 percent drop in cow numbers and a 2.8 percent rise in milk per cow. There were 162,000 fewer cows in the 23 states than there were last March. Nationally, there were an estimated 193,000 fewer cows on dairy farms this March with the national dairy herd estimated at 9.09 million head.

California was down 0.7 percent in milk during March. Milk per cow was up 2.6 percent, but there were 63,000 fewer cows in the Golden State than a year ago, a 3.5 percent drop.

Wisconsin had the big jump with milk being up 6.3 percent in March. Nearly all of that gain came from the 6 percent rise in milk produced per cow.

The Number 3 dairy state, New York, was up 0.2 percent in milk, while Number 4, Idaho, was up 3 percent.

Other notable changes included Arizona which was down 7 percent in milk with 10 percent (19,000) fewer cows. Colorado was down 8.3 percent in milk with 9.4 percent (12,000) fewer cows. Missouri was down 8.4 percent in milk with 6.5 percent (7,000) fewer cows. Washington shot up 6.3 percent in milk with 4.2 percent (10,000) more cows and 3.6 percent more milk per cow.

Training our industry's leaders

Advocacy for the dairy industry and agriculture isn't always easy. It takes courage to stand up to what might not be the popular majority. But, one program for dairy industry enthusiasts is teaching the skills necessary to become a positive advocate for our way of life. The Young Dairy Leaders Institute (YDLI) is a nationally recognized three-phase leader and communication skills development program for young adults (ages 22 to 45) working in the dairy industry with all breeds of cattle. You can learn more about how the three-phase program works by visiting their website. And you can apply to become apart of the program's next class by applying before August 2, 2010. Patti Hurtgen of Hoard's Dairyman recently sat down with Brad Scott, a YDLI graduate and California dairy producer, to ask him about his experiences with the program.




Don't forget! Today is Tuesday, so we've updated Bonnie's Brush with Hoard's.

Embryo and semen thief on the loose

If continued low milk prices weren't depressing enough, there is now an embryo and semen thief in our midst. Based on information that Hoard's Dairyman has learned from four of the five victims, the thief or thieves know exactly what they are looking for — high-priced semen and embryos. At one farm, the thief even passed on the opportunity to take a brand new computer and a pair of new I-pods to take a five-finger discount on a new semen tank filled with high-end semen.

All five victims are prominent registered Holstein herds that regularly open their doors for tours and actively market genetics. Even though many of the thefts took place over Easter weekend, some unsuspecting herd owners are just learning that they were hit because the crooks didn't always take nitrogen storage tanks at all farms — in some cases canisters were pulled from tanks. At one Illinois herd, the herd owners just learned embryos were stolen last Friday when they went to implant eggs.

Talking to some of the victims, it is clear the robber or robbers know the herd owners' patterns. It is suspected that two of the herds were hit while the families went to Easter church services. One herd owner went on to say it is so frustrating that this crime took place, "One of my family members is in the barn all but six hours of the day." That herd owner now has locks on his office doors and a security camera in place.

Since this crime occurred over state lines, it is a federal case. However, catching the crook will not be easy since frozen semen and embryos are difficult to track. The thieves could move the stolen semen quite easily by peddling it or using it on their own cattle. The embryos are a different story as North American herdbooks and most in Europe require genetic testing before registration can occur. Meanwhile, countries outside these regions seldom record lineage which means embryos could be headed to those markets if the suspects can smuggle them out of the country without proper health papers.

The herds involved in this case are scattered across Wisconsin's Jefferson, Rock, and Waushara Counties; Kane and Stephenson Counties in Illinois. In some cases, there are over 200 miles between thefts. These victimized herd owners urge others to lock their tanks and consider installing security cameras. And, if you're victimized, call authorities so these crooks can be brought to justice.

Eye-popping beef prices should last a while

They’re black and white (or brown) on the outside, but these days there’s also a golden glow to cull dairy cows.

Even as milk prices continue to slip, beef prices have been moving steadily higher most of the year, so much so that culling lists today may have never been a source of as much income for dairy producers. Beef industry forecasts and USDA say it’s a situation that should last through summer.

Continued tight supplies are part of what’s behind the price run-up, and futures prices even briefly topped the magic $1 per pound mark during trading on April 9. Ample supplies and modestly lower prices are another reason. The trickle-down effect on cull dairy cow prices has been welcome news for producers during what has been a disappointing financial year so far.

It wasn’t so long ago that springers cost $2,000+ and beef prices were in the high 30s (cents per pound), making the beef-to-replacement-heifer ratio insanely high at nearly 4:1. But now, with beef prices beginning to creep into the low 70s in some areas and heifers costing about $1,300, the ratio is getting close to 1:1.

In fact, sometimes it’s even less. Earlier this week a southern California dairyman showed us his beef settlement sheet that was full of $1,000+ prices for individual cows and sprinkled with several in the $1,200s, $1,300s, and even a couple in the $1,400s.

With prices like those there may never be a better time for dairy producers to clear out problems from their herds and upgrade to newer genetics.

Midwest policy positions vary widely

Interest in some type of policy to control milk production or manage milk supply growth continues to gather steam. Even some people and some organizations that have been categorically opposed to the concept at least are keeping a more open mind.

However, a panel discussion on dairy policy options at last week's Wisconsin/Minnesota Dairy Policy Conference revealed that there is a wide range of opinions on policy options. Here is a brief report of presentations made at the conference which was co-sponsored by the Cooperative Network and the Universities of Wisconsin and Minnesota.

According to Ed Welch, general manager of AMPI, the co-op favors supply management, but no specific plan. It is not anxious to throw out the dairy price support system. The co-op liked MILC and has not supported CWT. Welch, a member of the USDA Dairy Advisory group, said that he was afraid DPIPP (the Dairy Producer Income Protection Program), being developed by National Milk Producers Federation, would be too expensive. If enacted, AMPI would say that it definitely would need to have per farm caps and payment limits.

Wisconsin Farmers Union also supports supply management, but backs no specific plan at this point, according to President Darin Von Ruden. On DPIPP, WFU would support caps and payment limits.

Wisconsin Farm Bureau supports MILC and CWT, according to President Bill Bruins. It, too, is concerned about the cost of DPIPP. WFB supports competitive pay pricing as opposed to the current product-formula pricing. It would be against any form of supply management that involves the government and prefers tax-deferred savings accounts for farmers.

Foremost Farms cooperative believes in the free market system, said Joe Weis, vice-president of member services and milk marketing. The co-op is against supply management but would look at new plans. "Deregulation is where we need to go," said Weis. "The question is how to get there from where we are." Foremost believes the dairy price support system has outlived its usefulness and that the price support program and MILC are in direct conflict with each other.

No new plans would be needed if dairy cooperatives, with 80 percent of the milk supply under their control, would just work together so processors and retailers didn't have all the power. That was the assessment of Richard Levins, professor emeritus at the University of Minnesota.

Another member of the USDA Dairy Advisory Group, Bob Wills, president of Cedar Grove Cheese, believes that there are signs of movement in dairy policy such as a willingness to eliminate the dairy price support system. He is interested in supply management but realizes how difficult it will be to get the right supply and the right milk price so the best interests of the most people would be served.

Clearly there is going to have to be a lot of give and take to reach any sort of consensus in the Midwest, let alone the nation, as a whole.

Copies of the PowerPoints from the conference are available on the Cooperative Network website.

McDonald's board urges "no" on HSUS and PETA proposals

Walmart, Wendy's, Burger King, and Subway have all jumped on the cage-free egg bandwagon. Each of these food retailers has made some sort of commitment to providing food products made with eggs from chickens not raised in cages. In fact, making the boldest move of them all, Subway is now implementing a plan to go completely cage-free. But the golden arches won't jump off that cliff because everyone else has — on Friday their board of directors recommended that company shareholders vote against a proposal that would require 5 percent of the chain's eggs to be cage-free.

“As we have examined this issue over the years, we have deter­mined that there is no agreement in the global scientific com­munity about how to balance the advantages and disadvantages of laying hen housing systems,” was the statement from the board.

The requirement was pushed on the chain by the Humane Society of the United States (HSUS) that owns 101 shares of the company's stock. Another proposal is being made by the People for the Ethical Treatment of Animals (PETA) that owns 79 shares of the company's stock. They are advocating that McDonalds suppliers adopt Controlled Atmosphere Stunning (CAS), a slaughter method, within five years instead of Low-Voltage Electrical Stunning (LVES.) The board is urging a "no" vote on this proposal, too. Their statement on this issue was as follows:

"While the proponent presents CAS as a less cruel method than LVES, the reality is that there has not yet been consensus among animal welfare scientists that CAS is a better or more efficient form of rendering chickens insensible before slaughter."

If you'd like to read the entire details of McDonald's board response to the proposals, we've posted the document below. While these proposals would not directly impact the dairy industry, proposals that food retailers take a regulatory stand on how food is produced is certainly becoming more common. While it may be eggs today, milk may be tomorrow. It is nice to see that one major food retailer is standing up and saying no to animal welfare activists without a scientific backbone.

MCD_Proxy2010.pdf

Cal Poly, Cornell, Ohio, and UW-Madison take home top honors at Dairy Challenge

America's top dairy county was host to 30 teams from Universities across North America last week at the annual North American Intercollegiate Dairy Challenge. In the end it was the home-field advantage Cal Poly along with Cornell, Ohio, and the University of Wisconsin-Madison that were honored with top platinum awards and are shown in the photo below.
Back row (L to R), Cornell University; Mike Van Amburgh, coach; Brett Feldpausch; Breanna Fulper; Chad Wall; Shane Reynolds; University of Wisconsin-Madison; Lydia Hardie; Ashley Sprengeler; Melvin Zenner; Robb Bender; David Combs, coach; Lizzy French, coach. Front row (L to R), California Polytechnic State University, Stan Henderson, coach; Brian Medeiros; Anthony Martin; Michael Wesselink; Katherine Rector; The Ohio State University; Amanda Paulhamus; Annie Eilenfeld; Heather Moff; Ryan Conklin; Maurice Eastridge, coach

The 30 four-member teams were divided and sent to four outstanding Tulare county farms to conduct a whole-farm evaluation on Friday. Team members had only a few hours to evaluate the entire farm on-site. Plenty of farm records were also made available to each team in addition to having a short amount of one-on-one time with the farm's owner. The teams critiqued and complimented each of the dairies strengths and areas with room for improvement. After an entire afternoon of work time on Friday, teams presented to the farm owner and a panel of judges for 20 minutes on Saturday. Teams were then awarded based on their presentation.

Teams receiving a Silver Award included the University of Alberta, California State University — Fresno, Kansas State University, Louisiana State University, University of Maine, North Carolina State University, University of Vermont, Washington State University and University of Wisconsin — Platteville.

Teams receiving a Gold Award included Alabama A&M University, Delaware Valley College, University of Florida, Iowa State University, University of Kentucky, University of Minnesota, Mississippi State University, Purdue University, Virginia Tech, and the University of Wisconsin-River Falls.

Teams receiving a second place Platinum Award included the University of Guelph, University of Idaho, Penn State University, and South Dakota State University.

One other remarkable aspect of the contest was the overwhelming support and presence of industry. Contest volunteers and representatives from countless dairy companies were all on hand to assist with the contest and meet contest participants. You can find a list of the Dairy Challenge's sponsors on their website. Next year's contest is set to be held in North Carolina. Be sure to watch here for the results of next year's contest in early April!

And remember, today is Tuesday! That means you can head over to the Bonnie's Brush with Hoard's blog for an update on the Foster Mothers of the Human Race painting.

Over $40,000 in scholarships available from National Dairy Shrine

The National Dairy Shrine is again looking for applications for its annual awarding of scholarships. Applications must be completed by May 1, 2010. Official scholarship application award forms are available on the NDS website, www.dairyshrine.org. Available scholarships include:

• The Dairy Student Recognition Program recognizes and rewards graduating seniors planning a career related to dairy production. There will be a $1,500 cash award given to the winner, a $1,000 reward for second place, and three to seven $500 cash awards, depending on the number and quality of applicants.

• The National Dairy Shrine/Dairy Management, Inc. (DMI) Milk Marketing Scholarships are available to encourage students to pursue careers in the marketing of dairy products. The winner receives a $1,500 scholarship while the other winners receive $1,000 scholarships. Six to nine winners are recognized annually. DMI provides scholarship dollars for scholarship and several other NDS scholarships.The Kildee Scholarships are offered in two categories. Graduate study applicants may include the top 25 All-American contestants in one of the past three National Intercollegiate Dairy Cattle Contests, plus the Platinum winners in the North American Intercollegiate Dairy Challenge National contests, and these students are eligible to apply for two $3,000 scholarships. Undergraduate students may apply in their junior or senior year of college for one $2,000 Kildee Undergraduate scholarship. Applicants for this scholarship must have been one of the top 25 contestants at the National 4-H or FFA Dairy Judging Contests.

• Two NDS/McCullough scholarships of $2,500 and $1,000 are awarded annually to high school seniors intending to enter a four-year college or university and major in: Dairy/Animal Science with a Communications emphasis or Agricultural Journalism with a Dairy/Animal Science emphasis.

• The NDS/Iager Dairy Scholarship awarded in the amount of $1,000 to a second-year college student in a two-year agricultural college. This scholarship is sponsored from a fund created by Mr. and Mrs. Charles Iager of Fulton, Md.

• A NDS/Core Dairy Scholarship awarded in the amount of $1,000 to a freshman college student in a four-year agricultural college. This scholarship is sponsored from a fund created in honor of Maurice E. Core long-time industry leader and past Executive Director of National Dairy Shrine.

• There are four NDS/Klussendorf scholarships and two NDS/McKown scholarships given in the amount of $2,000 each to students in their first, second, or third year at a two- or four-year college or university. Applicants need to major in career that will help them enter the dairy cattle field.

Dairy exports pipeline flowing again, but risk remains

Anyone who milks cows wants demand for their milk, and the more the better. But as producers saw all too painfully in 2008-09, expanding to meet that demand comes with risk. Recent news from the U.S. Dairy Export Council is encouraging for dairy producers – and a reason to be cautious.

On the encouraging side, USDEC reported that the total value of dairy exports posted a double-digit gain in January, the first time since the fall of 2008 when the world crashed into financial recession and buyers drastically cut back purchases of U.S. dairy products.

The caution is, it was robust export demand that gave U.S. dairies the incentive to expand – which put them in the risky position of having to rely on export sales to keep supply and demand in balance. With foreign buyers taking more than 10 percent of all U.S. milk production, the sudden slowdown in exports caused an immediate and impossible surplus of products here at home that collapsed milk prices.

As the world begins to claw back from recession, USDEC points out the U.S. is perhaps best positioned to meet renewed demand for dairy products and build strong relationships with buyers before several new emerging competitors arrive in 10 to 15 years. Topping that list are Brazil, Argentina, Belarus, Ukraine, and Uruguay.

Tim Hunt, a senior analyst at Rabobank, says the point probably isn’t to guess which one looms as the biggest competitive threat, but to understand that at least one of them will. “The key is that those wishing to build a sustainable footprint in international trade need to get peddling now because be it 5 years or 10, these guys are coming.”

National Ag Day Essay Winner!

The 37th annual National Ag Day was held throughout the country on March 20 to celebrate the importance of agriculture in our country. As part of the celebration, seventh through twelfth grade students across the country were encouraged to write a 450-word essay based on this year's topic: American Agriculture — Abundant, Affordable, Amazing. The Agriculture Council of America coordinates the contest and recently announced state winners in addition to one national winner. That lucky student is Christine Vanek, a high school senior from Ann Arbor, Mich. Vanek was awarded during an Ag Day event held in Washington, D.C. At the event, she read her essay to industry representatives, members of Congress, federal agency representatives, media and others. Below is her essay:

As we drive west with the setting sun through the last miles of Iowa, I stare out my window in awe. The fields stretch uninterrupted to the horizon, and the sky is a beautiful abundance of fading blue. I know that I am almost home.

Although my family lives in Ann Arbor, Michigan, our roots are anchored deep in the Nebraska soil. My appreciation for the importance of American agriculture comes from my experience out at my grandparents' farm. I remember as a small child riding in the tractor with my grandpa as he disked a field in preparation for planting, folding the old corn stalks from last year's crop into the dirt. I remember going along with him one fall in the combine, fascinated at the machine's ability to get the ears off the stalk and the corn off the ears, shooting the kernels into the storage space and spitting out the unusable remainder.

At the age of seven, my mind could not grasp the abundance that is American agriculture. I could not comprehend the space of even one field, which itself was granted my awe. At seventeen, I have come to admire the work that my grandfather and all American farmers do. It is thanks to the abundance of American agriculture -- from the corn, soybean, and wheat fields of the Great Plains to the expansive fruit orchards in the South -- that I, along with the rest of the country, have access to a wide variety of affordable, safe, nutritious foods.

I am thankful as well for the affordability of agriculture in America. My ancestors came to America less than two hundred years ago to escape forced service in the Czechoslovakian army. They did not have a large amount of wealth, but due to the affordability of American agriculture, they were able to build a small house and begin their own modest farm. Living frugally and working the land with dedication, they built up a life and livelihood for themselves in America.

I am a product of American agriculture, and I can testify to its greatness. This spring, I was walking to the pivot in the field on my grandparents' farm, when I stopped to tie my shoe. As I stood back up, I looked at the scene around me, taking it in in a way I hadn't while I was walking. I have experienced no more perfect a moment in my life than standing there with the sun warming my back, looking out at that vast, intensely blue sky with the deep green corn plants stretching for miles beneath it.

Don't forget to stop over at Bonnie's Brush with Hoard's to hear from Bonnie on how the Foster Mothers of the Human Race Painting is coming!

Dairy icon, Jim Cavanaugh, passes away

One of the most successful leaders of the purebred dairy cattle industry passed away April 6 just eight days shy of his 93rd birthday. James F. Cavanaugh joined the American Jersey Cattle Association in 1947 and went on to become the longest-serving executive secretary in Association history, heading the organization from 1956 to 1985. Under his leadership, Cavanaugh helped guide the 1953 purchase of the Jersey Journal, the 1957 formation of National All-Jersey, the 1967 creation of the AJCC Research Foundation, and the 1971 addition of the Jersey Marketing Service. Truly a pioneer, Cavanaugh pioneered the adoption of the USDA sire summary for recognition of bulls and was a vigorous campaigner against using minus bulls. Additionally, he was a vocal supporter of the multiple component pricing movement. There is no doubt that today's popularity of Jerseys can be traced directly to Jim Cavanaugh.

Born and raised on a Kansas farm, he graduated from Kansas State University. In 1939, he was selected by the Borden Company to work at the company's exhibit at the 1939 New York World's Fair where he cared for the famous "Elsie" the Borden cow. Cavanaugh is shown in the photo during a 2007 reunion of the Borden Boys in New York. During World War II, he flew 50 missions as a bomber pilot. Cavanaugh joined the Hoard's Dairyman editorial staff prior to entering military service and remained on the staff until 1947 when he joined the national Jersey association as assistant secretary. And it was Jim Cavanaugh who encouraged Eugene C. Meyer to join the Hoard's Dairyman editorial team when he left the Hoard's staff for his new position at Jersey.

Soon after Cavanaugh's retirement from the American Jersey Cattle Association, Cavanaugh was persuaded to accept an 18-month appointment as secretary-treasurer of the American Guernsey Association on January 1, 1986. Then Cavanaugh was named acting secretary of National DHIA in April 1987 and stayed on until March 1, 1988.

Cavanaugh served as President of National Dairy Shrine in 1962. In 1975, he received the Distinguished Service Award from the American Dairy Science Association, and, in 1977, was World Dairy Expo Industry Person of the Year. The very next year he was honored as the National Dairy Shrine Guest of Honor.

His wife, Virginia, preceded Jim in death. Visitation is at the Egan-Ryan East Chapel at 4019 East Livingston in Columbus, Ohio, on April 8, from 2 to 4 p.m., and from 6 to 8 p.m. The funeral will take place at St. Catharine Catholic Church on 500 South Gould Road in Columbus at 10 a.m., Friday April 9. At the request of the family, in lieu of flowers, memorials can be made to The J.F. Cavanaugh Fund of the AJCA Research Foundation, 6486 East Main Street, Reynoldsburg, Ohio, 43068-2362.

He helped bring Elsie to life article.

Nominations being accepted for top repro herds

The Dairy Cattle Reproduction Council (DCRC) is now accepting applications for the 2010 National Reproduction Awards. The one-page nomination form must be submitted by May 3 to be eligible for the awards program. The National Reproduction Awards were started last year to honor dairy producers who have implemented management procedures and protocols to achieve high reproductive efficiency. Producers must be nominated by professionals who serve the dairy industry, such as veterinarians, genetic and pharmaceutical company representatives, DHIA field personnel or extension specialists.

Judges will review the initial applications and select the top nominees, who will be asked to provide additional information about their operation. Winners will be honored at the DCRC annual meeting in St. Paul, Minn.

Visit www.dcrcouncil.org to nominate a herd.

In its inaugural year, 58 dairies were nominated for the National Reproduction Awards. Eighteen dairies from nine states were recognized for their herd’s outstanding reproductive efficiency, and the four Platinum winners were recognized in the November 2009 issue of Hoard’s Dairyman on page 702.

Raw milk: Consumer lives are at risk

It ought to be an old saying by now: Consumers have the right to make choices, but expect some of them to be dangerous or stupid. In the case of raw milk, they're getting both.

Federal law requires all milk sold in final package form for human consumption to be pasteurized for one simple reason: Raw milk poses a health risk, especially for people who are sick or very young or very old or who are immune-compromised. According to the U.S. Food and Drug Administration, between 1998 and 2008 consumption of raw milk in the U.S. was documented to be responsible for 1,614 cases of illness, 187 hospitalizations, and two fatalities.

Yes, in rare cases people can die from drinking raw milk.

Despite repeated warnings to consumers to not drink it – FDA even has a question and answer page on its website at http://www.fda.gov/Food/FoodSafety/Product-SpecificInformation/MilkSafety/ucm122062.htm – raw milk has somehow become the latest sexy government coverup in the minds of nutrition conspiracy theorists who demand to have access to it.

Inexplicably, lawmakers in some states seem inclined to say OK. On March 26, a bill to allow the sale of raw milk was sent to the Wisconsin State Assembly for consideration. That same day, FDA and several state agencies issued yet another warning against drinking raw milk which was prompted by word from Michigan health officials that at least 12 cases of raw-milk-related illness had been confirmed as of March 24.

How many more people have to die – and how many dairy producers will be sued for providing it to them – before intelligence finally takes over?

Both corn and bean acreage could be up

Farmers plan to plant a record 78.1 million acres of soybeans this year, according to the Prospective Plantings report released by USDA yesterday. That would be a 1 percent jump in bean acres.

Corn acreage is expected to be up 3 percent or 2.32 million acres to 88.8 million. That would be the second largest area planted to corn since 1947, behind 2007. One reason for the rise in corn acres is that it was not possible to plant winter wheat in some areas due to wet weather. Corn acreage jumps of 300,000 or more are expected in Illinois, Kansas, Missouri, and Ohio. Biggest drops in corn acres could come in Iowa (-200,000 acres) and Texas (-150,000).

The largest gains in soybean acreage are expected in Iowa and Kansas, up 300,000 and 400,000, respectively, while Illinois, Nebraska, and North and South Dakota each show gains of 100,000 acres or less.

USDA also released its quarterly stock reports yesterday. Corn stocks on March 1 were put at 7.694 billion bushels compared to 6.954 a year ago. Soybean stocks were put at 1.270 billion bushels compared to 1.302 a year ago.

The corn and soybean acreage estimates were slightly higher than what had been expected by the trade. So those numbers should be viewed as favorable for those on the buy side of the corn and soybean equation.

The trade had expected somewhat smaller corn stocks and had expected soybean stocks to be about what they were.

Corn futures at the Chicago Board of Trade dropped about a dime a bushel yesterday after the reports came out. May, July, and September corn closed at $3.45, $3.56, and $3.66, respectively.

May and July soybeans dropped about 30 cents a bushel to $9.41 and $9.50.

Soybean meal futures went down, as well. May dropped $17 to $266; July dropped $14 to $265; August was down $12 to $262; September slid $10 to $257; and October fell $6 to $250.