KENTUCKY
January - February w w w. k y d a i r y. o r g
Milk Matters Kentucky Dairy Partners Annual Meeting
Supported by
Check out the schedule on page 6
Kentucky Farm Bureau Update
page 11
Let KDDC help you with division of water requirements
page 18
Maury Cox Retiring from KDDC
O
n March 1, 2019 Maury Cox, Executive Director will officially retire from the Kentucky Dairy Development Council after serving as a founding Board Member, Dairy Consultant Director and Executive Director. The KDDC began as an official dairy farmer advocacy organization in March of 2005 after nearly a year of planning and developing. From the beginning, the KDDC Mission has been to educate, promote and represent dairy producers and foster an environment of growth for the Kentucky dairy industry. Maury was hired by the KDDC Board October 1, 2007 as Dairy Consultant Director where he was responsible for oversight of the regional Dairy Consultant Program. In this role, Cox developed and implemented training for the regional consultants to integrate the KDDC KY Dairy Improvement Program throughout the state, working with the UK Cooperative Extension Service and County Extension Agents. The KDDC Board developed other programs such as the Young Dairy Producer Initiative and the Market Incentive Leadership for KY (MILK) Program, one of the most dynamic programs of its kind in the nation. Through collaboration with the multiple milk marketing organizations in KY, the MILK Program has distributed over eight million dollars in premiums to KY dairy farmers since its inception. Cox was named Executive Director by the KDDC Board May 30, 2008 replacing Roger Thomas after he accepted the Executive Director position with the Governor’s Office of Agricultural Policy. Continuing in the leadership example set by Thomas, Cox guided KDDC over the next 10 years working collaboratively in helping KY dairy producers increase production over 5,245 pounds of milk per cow per year while improving milk quality in lowered somatic cell counts. Mr. Cox also was responsible for obtaining grants through
the KY Agricultural Development Fund and other sources such as the competitive KY Division of Water 319(h) grant and the KY Cattlemen’s Association to continue funding for KDDC. He was a regular spokesman before KY Legislative Committees on behalf of the KY dairy industry. Cox wrote articles and updates in several agri-publications as well. As part of his responsibilities he met quarterly with the KY Agricultural Development Board Committee submitting reports and updates of benchmarks and goals of KDDC.
In order to strengthen the Kentucky dairy industry’s position on a national scale, Cox worked to build relationships with other state’s dairy producer organizations. The KDDC hosted the National Dairy Leaders Coalition in 2016, an organization started by the Professional Dairy Producers of Wisconsin and organized a meeting of the Southeast Strategic Steering Committee to seek solutions to the present dairy industry crisis. Maury plans to spend more time helping in the care of his mother, visiting his eight grandchildren, doing special projects planned by his wife and enjoy his favorite hobby, fishing, not necessarily in that order. He wishes to thank all those advocates of livestock and dairy farming, those that support and work for KDDC and the many friends made over a lifetime in agriculture.
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2018 KDDC Board of Directors & Staff
President’s Corner
Executive Committee
s most everyone is aware, Maury Cox, KDDC Executive Director is retiring effective March 1. Maury has been an excellent ambassador for the Kentucky Dairy Industry. His tireless effort and unrivaled passion for Kentucky dairy farmers will be sorely missed. I hope everyone will show Maury their appreciation for his devotion to dairy at the Dairy Partners meeting in February.
Board of Directors
On a related topic, the KDDC Board of Directors continues to search for an Executive Director. We will make every effort to find a qualified leader for KDDC.
President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Member: Freeman Brundige EC Past President: Bob Klingenfus District 1: Freeman Brundige 731.446.6248 District 2: Josh Duvall 270.535.6533 District 3: Keith Long 270.670.1388 District 4: Bill Crist Jr. 270.590.3185 District 5: Tony Compton 270.378.0525 District 6: Mark Williams 270.427.0796 District 7: Greg Goode 606.303.2150 District 8: Steve Weaver 270.475.3154 District 9: Jerry Gentry 606.875.2526 District 10: Richard Sparrow 502.370.6730 District 11: Stewart Jones 270.402.4805 District 12: Larry Embry 270.259.6903 Equipment: Tony Cowherd 270.469.0398 Milk Haulers: Alan Wilson 606.875.7281 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dr. Ron Wendlandt 502.839.4222 Dairy Co-op: Justin Olson 765.499.4817 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Michael Smith 859.619.4995 Former Pres.: Bob Klingenfus 502.817.3165
Richard Sparrow
A
Again, thank you to Maury for a job well done. Enjoy your retirement! .
Employee & Consultants Executive Director: Maury Cox 859.516.1129 DC-Central: Beth Cox 859.516.1619 • 270-469-4278 DC-Western: Dave Roberts 859.516.1409 DC-Southern: Meredith Scales 859.516.1966 DC -Northern: Jennifer Hickerson 859.516.2458
KDDC
176 Pasadena Drive Lexington, KY 40503 www.kydairy.org KY Milk Matters produced by Carey Brown
January - February 2019 • KDDC • Page 2
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Executive Director Comments Maury Cox
T
his will be my last article as Executive Director of Kentucky Dairy Development Council. I am officially retiring March 1, 2019 after dedicating 14 years with the organization. Although my wife and I have been planning this new chapter in life for some time, it comes at a difficult juncture with regard to the industry. Even so, I have the utmost faith and trust in the KDDC Board and leadership and the Dairy Consultant team to do what is best and always fight to serve the dairy farm families of KY. I am truly grateful for being allowed to work with outstanding people throughout all of agriculture and especially dairy farmers. My heart has never strayed much from the love of dairy farming and for those people that do it every day. They
are a special breed of folks, with strong character, unmatched work ethic and a quick willingness to help others in times of need. They love their cows and the life they’ve made working on the farm. It is the passion they have for what they do that has helped me connect with so many over the years. I know that passion, because it has been a part of me since my younger days being reared in a dairy farmer family on my grandfather’s farm. As Charlie Cox, my grandfather would often say, “It’s just something that gets in your blood.” I suppose this nut didn’t fall too far from the tree. I again would like to convey my thanks to so many people that have been instrumental in helping me over the years. Thanks also to those that have participated in making KDDC the great organization it is and will continue to be. All the best and I hope to see many of you at the KDDC Young Dairy Producers Conference or the KY Dairy Partners Meeting coming up February 26 and 27. It has been my pleasure.
Maury
POSITION AVAILABLE The Kentucky Dairy Development Council, a 501 (c) 3 non-profit dairy advocacy organization is seeking candidates for the position of Executive Director (ED). The primary role of the ED is to promote, represent, and further enhance the Kentucky dairy industry for the profitability of dairy producers. This person will speak on behalf of the dairy industry for KDDC. The ED shall have charge of the general business operations of KDDC and will supervise all part time, full time and contract personnel as deemed necessary by the Board of Directors to accomplish the goals of KDDC. Skills and Qualifications Needed: • Managerial • Administrative experience preparing and evaluating financial statements • Ability to recruit, motivate and coordinate volunteers • Ability to hire, train, and manage employees General skills and experience: • College degree or equivalent experience • Strong communication, training, and interpersonal skills • Working knowledge of computer technology • Ability to work effectively in an unsupervised environment • Willingness to travel Candidates should submit resumé to: Richard Sparrow, President P.O. Box 432 Owenton, KY 40359 Email: mabirdie@yahoo.com Phone: (502) 370-6730
January - February 2019 • KDDC • Page 4
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Kentucky Dairy Partners Annual Meeting February 26 & 27, 2019
Sloan Convention Center, 1021 Wilkinson Trace, Bowling Green, KY
TUESDAY, February 26 (All times are Central Time) 8:30 Registration for KDDC Young Dairy Producers Conference
9:00 - 11:30 Trade Show Setup 9:30 10:15
“Today’s Management Practices Impact Future Milk Production” Dr. Donna Amaral-Phillips, University of Kentucky “Mastitis Protocols: Detection, Treatment, Prevention” Dr. John Laster, DVM
11:00 Break 11:15
“Look, listen and feel- Life$aving and day-to-day milking machine maintenance” Dr. Leo Timms, Iowa State University
12:00 - 1:30 Lunch and Trade Show Opens
1:00 - 5:00 ADA of Kentucky Board Meeting 1:30 2:30
“Calves Survive & Thrive in Group Housing & Mob Feeding” Scott Pralle and Pam Selz-Pralle, Selz-Pralle Dairy
“Know Your Numbers, Considerations for Increasing your Farm Margins” Matt Davis, Farm Credit Mid America
3:15 Break 3:45
“FSA Update”
Brian Lacefield, FSA
4:30 - 6:00 Visit Trade Show 6:00 - 8:00
Dairy Awards Dinner
Keynote Speaker -”Keeping the Next Generation on the Farm” Doug Ackerman, The Dairy Alliance
WEDNESDAY, February 27 (All Times are Central Time) 8:00 Registration & Trade Show Open 9:00 9:10 - 9:40 9:50 - 10:35 10:45 - 11:30
Welcome
Dr. Richard Coffey, University of Kentucky
Grant County School Nutrition Services - “MOOving More Dairy!” Kathy Craven Food Service Director, Grant County Schools
“Don’t forget the basics when troubleshooting milk quality” Dr. Leo Timms, Iowa State University
“Give Cows Your ‘A Game’ Everyday”
Scott Pralle and Pam Selz-Pralle, Selz-Pralle Dairy
11:30 - 1:30 Lunch - KDDC Annual Business Meeting – Trade Show Exhibits (Bidding Ends on Silent Auction Items) 1:30 - 2:00 2:05 - 2:35 2:40 - 3:10
“Deciding what to do with problem cows” Dr. Leo Timms, Iowa State University
“Dairy Fuels the Body, and Professors!”
Lisa Sheehan Smith, Middle Tennessee State University
“Dairy Farms Cows and Practices in the Future” Dr. Jack Britt, Britt Consulting
3:15 Wrap up and Evaluations 3:30 Have a Safe Trip Home!
January - February 2019 • KDDC • Page 6
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Kentucky Dairy Partners Annual Meeting Exhibit & Conference Reservation Form
February 26-27, 2019 – Sloan Convention Center, Bowling Green, KY
NAME OF COMPANY
REPRESENTATIVE
ADDRESS
OTHERS ATTENDING
PHONE
NAME
NAME
NAME
Allied Industry - Booth & Conference Registration
$400 Booth Space (includes booth space and (1) two day registration – YDP, Awards Banquet & KDP conference) Indicate below if you are a Platinum or Gold KDDC sponsor or if you are government/education group: Platinum KDDC sponsors – free booth space, (1) free two day conference registration Gold KDDC sponsors – $200 booth space, (1) free two day conference registration no booth charge for government, educational, etc. (HOWEVER, does not include attendee registrations) $50/person Tuesday - Young Dairy Producers Meeting/banquet
(February 26) X number attending:
$50/person Wednesday - KDP conference registration
(February 27) X number attending:
Total amount enclosed - Please make checks payable to: KDDC (KY Dairy Development Council) ******(Kentucky dairy producers will be charged $30 per dairy farm for the two-day conference (limit 4 attendees) – separate registration****** Yes, we would like to provide an item as a door prize, or for the silent auction DOOR PRIZE ITEM
SILENT AUCTION ITEM
What type of display do you have? (i.e. full floor, table top, pull ups, other)
My booth is larger than 10w x 6d
My booth will require electricity
Kentucky Department of Agriculture - Eunice Schlappi Return registration & checks (checks written to: KDDC): 111 Corporate Drive Frankfort, KY 40601 eunice.schlappi@ky.gov
Phone: 502-782-4122
Cell: 502-545-0809
January - February 2019 • KDDC • Page 7
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Adding Value to the Dairy Jennifer Hickerson
V
alue added is alive and going strong in the world of dairy. The concept of adding value to the dairy is by no means a new one among the dairy sector. People have been deciding to add value to their dairies for an array of reasons ranging from personal passion, economic advantages, education of the public, expanding to keep the next generation on the farm and many more. It is no surprise that with the current trend in milk prices and supply more interest in this area has started to thrive in the industry. Recently North Carolina held its first Value-Added Dairy Conference this year on January 14 and 15. Over 80 participants from 8 different states filled the conference room in the hope of learning more on the topic of adding value to the dairy. The attendees weren’t disappointed! The conference covered all areas from obtaining grants to marketing the final product. A producer panel was included and offered the attendees a chance to get personal with each panel participant and ask questions. This provided a unique opportunity to learn. The panel discussed about common mistakes or those things that they would have done differently. A great opportunity for those interested in getting started on a value-added adventure of their own. If interested, the proceedings can be found on the NC Dairy portal, https://dairy.ces.ncsu.edu.
The Kentucky Dairy Development Council and Kentucky Department of Agriculture is already set to partner up this summer for a value-added dairy conference in Kentucky. The conference is scheduled for July 9th and 10th in Bowling Green, Kentucky. Watch for more information if interested. Don’t miss the opportunity to learn more about value-added dairy. As we plan and coordinate this event for KY producers, please provide us with ideas you would like to see covered. Submit to www.ky.dairy.org or contact your regional KDDC dairy consultant.
SAVE THE DATE
JULY 9, 2019
JULY 10, 2019
KENTUCKY VALUE ADDED DAIRY CONFERENCE BOWLING GREEN, KENTUCKY January - February 2019 • KDDC • Page 8
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
“How Long You Been Farming?”
I
t’s a common question when farmers get together. Farming is a product of the soul: the love of nature, enjoying the beautiful sunrise and sunsets, working with animals, being able to use your ideas for progress and the satisfaction of a long, tiring day when you rest knowing you have given it your all. Jack Martin, who farms in Jackson and Rockcastle counties, has enjoyed the good, bad and ugly of being a farmer for 57 years, 50 years a dairy farmer. He began with a tobacco crop and a small beef herd when he was eighteen years old. Jack partially left farming for a year and worked at a factory in Lexington. The pay was more consistent and the hours not so long but that desire to be back on the farm was too strong. In 1969, he and his new wife moved to the farm which had been in his family for three generations. They took a leap of faith, bought the family farm and decided dairying would be the most profitable and enjoyable life they could have. It all began with the purchase of one cow. A simple milking area was built in an existing barn. The milk was sold in cans to a local creamery. Cows were added one by one and 30 Holstein heifer calves were bought and shipped from New York. The herd size increased and a new milk parlor, free stall barn and stack-pad were added. Martin Dairy sold milk to Southern Belle until the buyout by Prairie Farms. In 1987, the oldest son Grant joined his dad as partner in the dairy business. Grandchildren helped with calf feeding and hay harvest. Jack, 75, and his family have weathered many storms and enjoyed years of satisfaction in the dairy business for 50 years. They have witnessed many changes in that time. When they first began farming on their own, they continued with tobacco, hay, silage, pepper and other experimental crops to grow their profit. Several local young men and families were willing to work seasonal jobs and that was so important. A couple of young men learned to maintain the milking responsibilities allowing for some vacations for Jack, Darlene and their sons. Those were good years. Over the years Jack has served in the National Guard, as the Young Farmer Representative with Farm Bureau, Farm Credit Services Advisory Board member, member Supervisor of the District Soil Conservation Board, and Farm Home Administration Board (FHA now FSA). Martin Dairy has received several Quality Awards from both Southern Belle and Prairie Farms; the Goodyear Conservation Award of Merit for outstanding
January - February 2019 • KDDC • Page 10
accomplishments in Resource Management from both Rockcastle and Jackson County; Master Conservationist award from both Jackson and Rockcastle County; Two FHA District V Farm Family of the year awards; and Jack was inducted into the Rockcastle County Agriculture Hall of Fame in 2017 “for lifetime dedication and service in the promotion and advancement of agriculture in Rockcastle County”. In 2017 Martin Dairy was chosen Small Business of the Year by directors of Peoples Rural Telephone Cooperative. Jack served as Youth Pastor and was ordained into the Christian ministry in 1989. He has served as pastor of Three Links Christian Church since that time and as Co-Pastor with his son, Grant since Grant’s ordination in 2007. He says, “There have been more biblical discussions and questions answered sitting on upturned buckets in the milk parlor than anywhere.” Jack and Darlene have two sons and five grandchildren. Their youngest son, Andrew and his family live in Columbus, Ohio and cherish every opportunity to spend time on the farm. After a bout with cancer, three joint replacements, and back issues, Jack faces each day proud to be a farmer. So fair warning, if you ask Jack Martin, “How long you been farming?” you might want to prepare to set a spell, there’s quite a story.
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
KY Farm Bureau Update Joe Cain Addressing the current dairy situation was a major focus of policy debate at the 2019 American Farm Bureau (AFBF) delegate meeting in January. As a result, AFBF will convene a Farm Bureau member and producer-led coalition to review methods to restructure and modernize the current federal milk marketing order system. With the 2018 farm bill now behind us, and significant improvements made to the dairy safety net through the Bipartisan Budget Act of 2018, and improved in the 2018 Farm Bill, AFBF and its grassroots members will now turn their attention to Federal Milk Marketing Orders (FMMOs). At a high-level FMMOs facilitate the orderly marketing of milk by using end-product pricing formulas and revenue pooling to determine the regulated minimum farm-level price of milk and milk components. However, deep in the system are a number of areas that may warrant reconsideration. Is Class I beverage milk still the golden goose of the dairy industry when domestic and foreign consumers are gobbling up manufactured American dairy products in record numbers? Should milk be priced using commodity price formulas or be priced in a free and competitive market? What are transportation credits, make allowances, diversions and differentials, and are they necessary? Are our Federal Orders really farmer-regulated when we often never cast a single ballot? These are just a few of the questions the coali-
tion will explore. Also, Congress failed to address agriculture’s pressing farm labor needs. However, legislation is circulating on Capitol Hill that would provide legalization and a path to citizenship for agricultural workers, their spouses and children. The legislation may be introduced in the near future. We expect Rep. Zoe Lofgren (CA) and Sen. Feinstein (CA) to introduce legislation similar to the Ag Jobs legislation that has been proposed in the past. The draft proposal is not expected to address reforms to the current H-2A program, but Rep. Lofgren’s staff has indicated that discussions on potential guest worker provisions, either based on the current H-2A program or some other proposal may occur once the bill is offered. There is also a rumor that the U. S. Department of Labor (DOL) may soon propose new rules that would reform parts of the H-2A program (including how the Adverse Effect Wage Rate (AEWR) is calculated) to provide a more simplified and realistic worker program for farm employers to utilize. However, it will take a legislative fix to secure a longer visa for nonimmigrant workers that would be more efficient for dairy producers to utilize. There is also a lawsuit in North Carolina seeking to freeze the AEWR at 2018 levels. Otherwise, Kentucky employers in the H-2A program face an increase in the AEWR rate of $.41/hour making the H-2A wage rate in Kentucky $11.63/hour. Feel free to contact Joe Cain, Commodity Director at Kentucky Farm Bureau for more information. He can be reached at (502) 495-7738.
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January - February 2019 • KDDC • Page 11
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Kentucky Production and Quality Awards – How they are determined.
T
he Dairy Awards Banquet held in Bowling Green at the University Plaza Holiday Inn has become an exciting and well-attended event. The highlight of the evening is when the milk production awards based on DHIA records are presented. The top three production herds from each KDDC District are named, with a plaque and $100 presented to the top herd. Then the top three herds in the state will be named with the top KY herd receiving a special plaque and $250 award. A producer proficiency award is presented based on 10 efficiency factors established by Dr. Jack McAllister, retired UK Dairy Extension. The monetary awards are provided by KY Farm Bureau. The top three producers with the highest milk quality numbers based on somatic cell counts and standard plate counts will be recognized with the top farmer receiving a large sign designating them as Kentucky’s Top Milk Quality Herd for the year. Milk haulers are also recognized for the hard work they do, and the top hauler is awarded with a plaque and $200. The production awards have been based solely on the DHIA pounds of milk produced in a year and did not consider the
butterfat pounds. The problem with this option is the winner will nearly always be a Holstein herd or at the very least, it is highly probable for obvious reasons. Because of this, there was a secondary award for “Herds not Holstein”. After discussion on this matter, the KDDC Board unanimously made the decision to change the production awards by utilizing a formula based on 3.5 percent Fat Corrected Milk. This will standardize the production of herds and level the playing field for all breeds. By doing this, the category, “Herds not Holstein” will be eliminated. Special thanks to Mark Witherspoon, Mid-South Dairy Records for calculating the information for KDDC. Producer milk quality awards are determined by entering Health Department test results for SCC and SPC over the course of 2018 on producers that were nominated by their milk marketing organization. The results are calculated by each producer being blind listed by a number on a spreadsheet with their information. The two tests are totaled and averaged, and the lowest number wins. It is not until the calculations are complete that the winning producer is revealed. The Dairy Awards Banquet is a favorite event for everyone. It is a time set aside during the year to recognize and celebrate a job well-done. Thanks to everyone for your participation.
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January - February 2019 • KDDC • Page 12
SELZ-PRALLE DAIRY
February 26th and 27th at the 2019 Kentucky Dairy Partners Annual Meeting
Join us as Pam and Scott gives invaluable insight into the day to day success of their dairy operation!! Selz-Pralle Aftershock 3918 365 days with 78,169 pounds, 4.0 3094 fat and 3.1 2393 protein Earning her status as the current world record-holder
FEBRUARY 26TH – Calves survive and thrive in group housing and mob feeding
Healthy calves are the building blocks to a successful dairy. Pam Selz-Pralle took their calf program to
new heights with mob feeding and positive pressure ventilation. She will share tips and tricks she uses
to help her calves thrive as well as share her experience transitioning from individual calf care to group feeding. Be ready for an upfront, honest approach to raising calves with an eye on every penny spent!
FEBRUARY 27TH -- Give cows your “A Game” every day
Selz-Pralle Dairy in Humbird, Wisconsin is home to 475 Registered Holstein cows and the current
world-record holder for milk production. Selz-Pralle Aftershock 3918 produced 78,170 pounds of 4.0% fat milk in 365 days living in a free stall environment. The dairy averages over 100#/day and seven
pounds combined fat and protein. As early adopters of new technology, this herd was one of the first
to begin using activity and rumination technology, shredlage processing for brown midrib (BMR) corn silage, and incorporating Berga (Palm) Fat into their ration. Scott and Pam Selz-Pralle will give us a
virtual tour of their farm and detail their strategies for successful large herd management one cow at a time. It works for them; it can for you too!
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
I Mover is lower under the new method. But, when the difference is less than $1.50/cwt. the Mover is higher under the new method.
Dixie Dairy Report January 2019
Other Farm Bill provisions. The 2018 Farm Bill contains a number of other dairy provisions which include changes in the Dairy Margin Coverage (DMP) program, formerly the Margin Protection Program. The Farm Bill also allows dairy producers to simultaneously participate in DMP, Livestock Gross Margin (LGM)Dairy, and the relatively new Dairy Revenue Protection Program (DRP). Our initial analysis of these government programs is threefold: 1) Smaller dairy farms may receive, proportionally, greater economic benefits from these programs than larger dairy farms. 2) Dairy farmers will need to devote more resources to studying these programs in order to maximize potential economic benefits. None of the above mentioned programs are automatic; a dairy farmer must enroll, and decide at what level to participate. 3) Federal dairy policies are attempting to slow the decline in number of dairy farms by offering programs which provide cash payments when margins or anticipated revenue falls below a specified level. Time will tell if these policies do slow the decline.
Calvin Covington
ccovington5@cs.com (336) 766-7191
Change in the Class I Mover calculation. The Agriculture Improvement Act of 2018 (Farm Bill) requires USDA to change the method of calculating the Class I Mover, the Class I base price in all federal orders. Since January 2000, the Class I Mover is the “higher of” the advanced Class III or IV skim price, plus the advanced butterfat price. The Farm Bill changes the skim calculation to the average of the advanced Class III and IV skim prices, plus $0.74/cwt. There is no change in the butterfat calculation. The reason behind the change is to make it easier for Class I processors to use the futures market. The change was supported by both producer and processor trade associations. The Farm Bill allows USDA to implement this change without following the Administrative Procedures Act, which requires a public hearing. However, USDA may seek comments or have a hearing regarding how the change may impact other order provisions. The Farm Bill states implementation of this change shall take place the first day of the first month after 120 days from enactment of the legislation. We have seen no official implementation date from USDA. What is the impact of this change? In 2018, if the new method was in place, the Class I Mover (3.5% fat) would average $0.34/cwt. higher than the current method. See graph below. The range was from $0.21/cwt. lower in January to $0.70/cwt. higher in August. As a rule of thumb, when the difference between the advanced Class III and IV skim is greater than $1.50/cwt., the Class
Milk production growth slowing, but only in the East, and especially the Southeast. November milk production was only 0.6% higher than a year ago. The slower growth rate was due to 38,000 fewer cows. Of the 23 reporting states, production was up in 11 states with all but one of those states west of the Mississippi. The exception is Wisconsin, with production only up 0.1%. Florida production was down 4.8%. Virginia showed the
DAIRY PRODUCT SALES REPORT PRICES – Selected Months in 2018 $16.50 $16.00
$/cwt.
$15.50 $15.00 $14.50 $14.00 CURRENT
NEW
$13.50 $13.00 JAN
FEB
MAR
APR
January - February 2019 • KDDC • Page 14
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
AVG
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices
DAIRY PRODUCT SALES REPORT PRICES – Selected Months in 2018 Month - 2018
Butter
Cheese
Nonfat Dry Milk
Dry Whey
FMMO 5 www.malouisville.com
($/lb) January
$2.1972
$1.5175
$0.6966
$0.2755
April
$2.2452
$1.5737
$0.7134
$0.2592
July
$2.2596
$1.4868
$0.7824
$0.3372
October
$2.2814
$1.5686
$0.8739
$0.4470
December
$2.2425
$1.3742
$0.9020
$0.4685
January 2019 Class 1 Advanced Price (@3.5%BF) $18.52 February 2019 Class 1 Advanced Price (@3.5%BF) $ 18.70
SOUTHEASTERN FEDERAL ORDERS DAILY CLASS I UTIIZATION Federal Order
Nov 17
Oct 18
Nov 18
(million lbs. average per day) Appalachian
12.86
12.76
Nov vs Nov
FMMO 7 www.fmmmatlanta.com
(%) 13.19
+2.64%
Florida
6.55
6.29
6.55
+0.04%
Southeast
11.72
11.39
11.69
-0.24%
Total All
31.13
30.43
31.44
+1.01%
January 2019 Class 1 Advanced Price (@3.5%BF) $ 18.92
PROJECTED BLEND PRICES–BASE ZONES – SOUTHEASTERN FEDERAL ORDERS Month
Appalachian
Florida
Southeast
($ /cwt. 3.5% butterfat) November (actual)
$18.12
$20.12
$18.71
December
$17.50
$19.94
$18.18
January 2019
$17.68
$20.13
$18.11
February
$17.57
$19.69
$17.80
March
$17.59
$19.79
$17.80
February 2019 Class 1 Advanced Price (3.5%BF) $19.10
greatest decline of any state, down 10.7%. Florida reports 6,000 and Virginia, 15,000 fewer cows than a year ago. Dairy commodity prices. It was a mixed bag for the four dairy products that establish milk prices in 2018. As shown below, butter remained relatively flat throughout the year. Cheese ended up the year, down over $0.25/lb. from its September high with the December cheese price the lowest since December 2009. A heavy inventory and sluggish sales are keeping a lid on cheese prices. Both nonfat dry milk powder and dry whey moved upward in 2018. Increasing prices for these two products are why we project higher milk prices in 2019. November strong month for Class I sales. November was a positive month for Class I sales, by pool plants in the three southeastern federal orders. As shown above, November sales were up over 1% in all three orders compared to a year earlier, and up over 1 million lbs. per day compared to October. Blend prices. December prices are projected lower than November. January blend prices are projected similar to slightly higher compared to December. In 2019, we project blend prices to average about $1.00/cwt. higher than 2018.
January - February 2019 • KDDC • Page 15
Anthem of Kentucky has revised their eligibility guidelines for KDDC Association Group Health Plans. Key Changes: • Employer groups of one may be eligible for small group plans. • Husband/wife employer groups may be eligible for small group plans. • Employer groups of 5 or more can choose 2 plan options. • Employer groups of 10 or more can choose 3 plan options. For more information, please contact: Melissa Hinton The Hinton Agency (859) 351-6559 thehintonagency@gmail.com
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Be Persnickety When Managing Your Dairy Herd! Donna Amaral-Phillips UK Extension Professor and Dairy Nutritionist
lbs milk. The Selz-Pralle dairy’s goal is to produce 7 lbs of fat and protein per cow daily. So, what are the Selz-Pralle Dairy’s management strategies to get their cows to milk? To share how they manage their herd and employees, Pam Selz-Pralle and Scott Pralle will be speakers at both this year’s KDDC Young Dairy Producer and KY Dairy Partners Meetings on February 26 and 27 in Bowling Green, KY. As a preview, let’s explore some of the key components of their management program they undoubtedly will be discussing. Be Consistent—Make Doing it Right Every Day a Habit
H
ave you ever owned a persnickety cow that just wanted to do her own thing and did not want to be messed with? During the KDDC Fall Farm Tours and at their virtual tour at World Dairy Expo, Pam and Scott, owners of Selz-Pralle Dairy, described their cow, Aftershock 3918, the current national milk production record holder for the Holstein breed, in this manner. Aftershock 3918 just wants to be left alone to do the things she is good at—eat, rest, ruminate, and produce milk. Only after the rest of the farmers on our bus tour had moved on to look at other cows in the herd, did Aftershock 3918 “pose” and let me get her picture!! Notice, she was eating, not just standing there annoyed at the attention from visitors.
When listening to both Pam and Scott, this message comes through very clearly in how they manage both the calves and cows, what they expect, and the message they foster to their employees. They do not believe in short cuts, but do believe in being persnickety, paying close attention and completing the details associated with each job on the farm. To accomplish tasks, protocols need to be in place to ensure consistency and they need to be followed every day by everyone. Healthy Cows Start as Healthy Calves
This world record holder is housed in a herd of 450 milking cows averaging 35,000 lbs milk, where 11 cows averaged over 50,000 lbs milk and an additional 73 cows averaged over 40,000
Attention to details starts at birth and follows throughout a calf’s young life. Within 15 minutes of life, calves are fed 4 quarts of colostrum of which the antibody concentration always is measured using a brix refractometer. Calves remain in a single pen until they are drinking milk well at approximately 14 days of age. Then, they transition into a new calf barn in group pens, each with 5 calves of the same age and speed of drink-ing milk.
January - February 2019 • KDDC • Page 20
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Ventilation is critical for healthy calves. To ensure the fans were working correctly in the new calf barn, they tested how quickly an introduced smoke cleared from the facility and adjusted the variable-speed fans accordingly. In the group pens, calves are fed with a group or “gang” feeder. Sanitation of the nipples and not just the “gang” milk feeder itself is critical in disease prevention.
necessary, the quicker you can turn them around. They use the SCR system to help monitor rumination times, as well as activity to detect cows in heat, on a daily basis. Cows ruminating less than 200 minutes daily are flagged and then evaluated. Scott attributes this system to helping him detect sick cows 1 to 2 days earlier than previously.
Cow-friendly Environment Helps Recoup Genetics
Pam and Scott very quickly give credit to their employees for helping implement a successful management program on their farm. They believe in motivating their employees to believe in their passion for farming and dairy cows and to take ownership in the successes, and it shows.
Pam and Scott credit their success to providing their cows with a comfortable environment where cows can easily get to the feedbunk, rest, and ruminate. Stocking density is capped at 1.05 cows per stall with stalls groomed daily where new sand is added weekly. They are constantly looking for ways to take cow comfort to a new level. Cows are fed a balanced diet composed of high quality forages where they believe that packing and storage of the brown midrib variety of corn silage is very important. They consider their dairy cows athletes and as such need an environment where they can excel and express their genetics. Be a Cow Whisperer –Look and Listen to Your Cows Even though this herd consists of 450 milking cows, each cow is managed one at a time. Pam and Scott strive to prevent diseases versus treating cows. If issues do arise, cows are treated immediately. The earlier sick cows are detected and treated if
Motivate Your Team to Believe in Your Passion
Pam Selz-Pralle and Scott Pralle love to dairy farm and it shows, not only if you have the opportunity to visit their herd, but also when they speak about their operation. I hope you will take time to come to Bowling Green on February 26 and 27th for the Young Dairy Producer and KY Dairy Partners Meetings. Pam and Scott will be speaking on both days. In addition, Dr. Leo Timms from Iowa State will be another special speaker talking about troubleshooting milk quality issues. Leo has worked extensively with Iowa Dairy farmers in this area, often times being present at the early morning milkings!!! I hope you will come out and hear what these and the other speakers on these programs have to share.
JOIN US IN BOWLING GREEN, KY ON FEBRUARY 26 AND 27, 2019 FOR KDDC YOUNG DAIRY PRODUCER AND KENTUCKY DAIRY PARTNERS MEETINGS.
January - February 2019 • KDDC • Page 21
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Allied Sponsors Platinum
S P E C I A L T H A N K S T O O U R S P O N S O R S
Ag Central Alltech Cowherd Equipment CPC Commodities Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Farm Credit Mid-America Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Southland Dairy Farmers Trenton Farm Supply Zoetis
Gold
Arm & Hammer Animal Nutrition Dairy Express Services Dairy Products Assoc. of KY Elanco IDEXX Kentucky Nutrition Service Land O’Lakes Mid-South Dairy Records Owen Transport Purina Select Sires MidAmerica (KABA)
Silver
Afi Milk DCC W ater Beds Grain Processing Corp. KVMA Luttrull Feeds Prairie Farms RSI Calf Systems
Bronze
ABS Global Advantage Hoof Care Bagdad Roller Mills Chaney’s Dairy Double “S” Liquid Feed Genetics Plus Hinton Mills Lallemand Smith Creek, Inc Wilson Trucking
January - February 2019 • KDDC • Page 23
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Calendar of Events KDDC Young Dairy Producer Conference, FEB 26 Sloan Convention Center, Bowling Green, KY 8:30 A.M. C. T. Registration Dairy Awards Banquet, Sloan Convention Center, FEB 26 Bowling Green KY 6:00 P.M.
MAY 19-21
Alltech Ideas Conference, Lexington Convention Center, Lexington, KY
MAY 24 KDDC Board Meeting 10:00 A.M. TBA MAY 25
KY Dairy Partners Conference and Industry Trade FEB 27 Show, Sloan Convention Center Bowling Green, KY, 8:00 A.M. C.T. Registration
Mercer Co. Dairy Breakfast, Clouds Restaurant, Harrodsburg, KY
JUN 01
Harrodsburg 4-H District Dairy Show, Mercer Co. Fairgrounds, 9:30 A.M. ET
MAR 12 National Dairy Leaders Coalition, Madison, WI
JUN 04
State 4-H Dairy Judging contest, UK Coldstream Dairy 9:00 A.M. ET
Professional Dairy Producers of Wisconsin Business Conference, Madison, WI
JUN 08
Edmonton District Dairy Show, Metcalfe Co. Fairgrounds 9:00 A.M. CT
MAR 14 PDPW Business Conference, Madison, Wi
JUN 10-11
Kentucky Jr. Livestock Expo East. Morehead, KY – Time TBA
MAR 13
MAR 22 KDDC Board Meeting 10:00 A.M. E.T. TBA MAR 28 KY CowSignals Workshop Fleming County 10-2 MAR 28-30 National Dairy Challenge, Tifton, Georgia MAR APR 04-06
State 4-H Dairy Jeopardy Contest, Barren Co. Extension Office, TBA Kentucky National Dairy Show and Sale, KY Exposition Center, Louisville, KY
APR 20 4-H Dairy Cow Camp, Metcalfe Co. TBA MAY 03
Lincoln Co. 3rd Grade Ag. Day, Lincoln Co. Fairgrounds, 10:00 A.M. ET
JUN 11
Dairy Night at Lexington Legends – After 5:00 P.M. ET
JUN 13
Dairy Night at Bowling Green Hot Rods – After 5:00 P.M. CT
Western Rivers Kentucky Jr. Livestock Expo, JUN 21-22 William “Bill” Cherry Ag/Expo Center Murray, KY – Time TBA JUN 29 JUN TBA
Liberty District Dairy Show, Casey Co. Fairgrounds, 8:00 A.M. ET Shelbyville District Dairy Show, Shelby Co. Fairgrounds – Time TBA