KDDC Newsletter JulyAugust2017

KENTUCKY

July - August 2017 w w w. k y d a i r y. o r g

Milk Matters Federal Issues Updated

Supported by

Find out more on page 6

FDA Approves First Pain Control Medication for a Food-producing animal Find out more on page 9

Milk Program : 2017 Find out more on page 18

Old-fashioned road-rally feel for well-attended tour of progressive dairies in the South-Central Kentucky

By Sherry Bunting

T

wo days. Seven dairy farms. One dairy plant. 150 attendees, including nearly 50 farms represented. It had the feel of an old-fashioned road-rally, but every stop featured progressive dairies and innovative ideas—along with great food and fellowship—during the KDDC Summer Dairy Tour May 25-26 in southcentral Kentucky.

The tour was sponsored by the Kentucky Dairy Development Council (KDDC) and made possible with the support of Alltech, Burkmann Feeds, Owen Transport, Prairie Farms as well as the Kentucky Ag Development Fund and Kentucky Department of Agriculture.

We kicked off in the Glasgow area at Crist Dairy, where Bill Crist was proud to say that his son Bill, Jr. is the first-generation dairy farmer, and he and his wife were drawn in as the second generation. “We’re a reverse generation deal,” said Bill, Sr. “Our son developed a passion for dairy and bought a herd and leased a farm before buying this farm and

growing the dairy.”

Today, 550 cows are milked with a 3x RHA of 27,000 pounds. Dry and prefresh cattle are housed in a compost bedded pack barn built last year. The Crists farm 550 acres of mostly corn silage with haylage and ryelage in the forage base.

“We like the bedded pack for cow comfort,” said Bill, Jr., noting they add shavings once a week this time of year and till the pack twice a day.

In winter, shavings are added twice a week.

At Long Dairy, two 200-cow sand-bedded freestall barns with flush system offered a different housing look. The 412 cows are milked 3x and were producing 93 pounds/cow/day before the current heatwave dropped them 6 to 8 pounds, according to Brian Long, who operates the dairy with his parents Keith and Connie. “In these barns with the fans and the sand, we don’t lose what we used to lose in summer production,” said Brian, noting somatic cell counts stay below 200,000.

The first barn was built with posts for freestalls but started out as a pack barn. When the second barn was completed, they switched everything to freestalls, sand and flush, reclaiming most of the sand and finding it more cost-effective due to Cont’d on pg. 16

March-April 2017 • KDDC • Page 2

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

2017 KDDC Board of Directors & Staff

President’s Corner Richard Sparrow

Executive Committee

T

he Kentucky State Fair is fast approaching. As a little boy, there were two nights where I was too excited to sleep. One was Christmas Eve, and the other was the day before I took show calves to the Kentucky State Fair Brown Swiss Dairy Show. I still have a special feeling when I walk into the West Wing and soak in all the sights and sounds (and smells).

I hope you and your family can attend the Kentucky State Fair while the dairy cattle are there. Many of our youth work all year to get their dairy cattle ready to exhibit.

It is encouraging to see the next generation and witness their love of working with dairy cattle. I think any dairy farmer would enjoy looking at the quality cattle on display. It is also a great time to visit with dairy families from Kentucky and the surrounding states.

Our fair provides a unique

opportunity for us to showcase our industry. Dairy promotion staff man educational booths and visit with hundreds of consumers. If you are hungry, the University of Kentucky Dairy Club makes delicious milk shakes and grilled cheese sandwiches.

In addition, the family farm exhibits put a face to the producers of our product.

I hope to see you at the fair, where there is something for everyone, and we can share our love of dairy with others.

Your Input Is Needed Most are aware of what The Kentucky Dairy Development Council mission statement is “To educate, promote and represent dairy producers and foster an environment for growth of the Kentucky Dairy Industry.” What better way to do this than listening to the producers! We are dedicated to helping dairy producers in any way that is possible and continually strive to better our services to you. That’s why we are seeking input for your newsletter. What would YOU like to see covered in each issue.

Your input and opinions are a valuable resource to us and we would enjoy hearing from you. Please take a minute to share with us what you would like to see included in the newsletter. Responses can be sent to KDDC at 859-516-2458 or email @ kddc@kydairy.org

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

Board of Directors District 1: Freeman Brundige 731.446.6248 District 2: Josh Duvall 270.535.6533 District 3: Don Kinslow 270.646.0086 District 4: William Crist Sr. 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: Jerry Gentry 606-875-2526 District 9: Dwight Leslie 859.588.3441 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

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

July - August 2017 • KDDC • Page 3

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Executive Director Comments Maury Cox

L

abor on the dairy farm has been a problem for as long as I can remember. Whether it involved having full-time employees to help in the milking rotation or part-time people to fill in during certain times of the year, having an adequate number of employees when needed or finding dependable people have been an ongoing problem in operating a dairy farm.

The H-2A guest worker program simply is not structured for the needs of dairy farmers. Today producers are forced to utilize undocumented foreign nationals as a means to fill their labor needs simply to stay in business. It is estimated that over half the agricultural workforce is filled by undocumented workers. This has been an ongoing issue and the rules presently in place set up an ever increasing situation that causes employers and employees alike to be put in bad positions. This creates fear, anxiety and a poor working environment.

This topic was thoroughly discussed at the National Dairy Leaders Coalition Meeting earlier this year in Madison, WI. Kentucky dairyman, H. Barlow voiced his thoughts

by requesting the National Dairy Leaders Coalition along with other dairy farmer advocacy organizations draft a letter and sign on to tell our representatives in Washington D. C. this situation needs addressing as soon as possible. There is absolutely no reason this issue shouldn’t be resolved. It should not be a partisan matter. Dairy farmers need qualified, reliable help to continue milking and caring for their cows.

The message was heard and the Professional Dairy Producers of Wisconsin sent a draft letter from their Board of Directors asking for support and signage from other dairy farmer groups. The KDDC leadership will be drafting a similar letter to send to the KY Legislative Delegation as well.

Also, draft legislation has been proposed by Rep. Bob Goodlatte, Chairman of the powerful House Judiciary Committee on a bill called; The Agricultural Guestworker Act (AG Act). This proposal would replace the cumbersome and very limited H-2A program. It recognizes the variations of labor needed for all types of agriculture and more adequately addresses the needs of livestock producers. A summary of the proposed legislation is presented in this publication.

We will update you on this proposal and any other development regarding this Ag Labor as it becomes available.

Your thoughts are always welcomed, especially regarding issues that affect so many KY dairy producers. This is just one more way the KDDC is working to represent KY ’s dairy farm families.

De Jonge Hoof Trimming LLC With over 8 years of experience

• Livestock Risk Protection (LRP) and Livestock Gross Margin (LGM) Insurance • Pasture, Rangeland and Forage (PRF) Insurance • Federal Crop Insurance • Full Service Commodity Brokerage, including Class III Futures

We use the safest and most Because...cows milk on their feet efficient hydraulic layover chute

Contact:Steve Wade, Agent/Broker Office: (270) 234-6074 Email: swade@wadeassurance.com Web: www.wadeassurance.com

forsafest the cows on theefficient markethydraulic We use the and most layover chute for the cows on the market.

Trimming for the cow and Trimming for the cow and each each cows individual needs cows individual needs.

James DeJonge 270-337-9234 office 606-303-2169 cell “Here for all your Hoof Trimming needs”

July - August 2017 • KDDC • Page 4

Your HERD depends on you.

Performance depends on the right mineral.

Do it right with BIOPLEX® and SEL-PLEX® for better absorption, less waste and optimum health.

Trust the world’s largest producer of organic trace minerals and support your herd’s health and performance with BIOPLEX and SEL-PLEX. Important in all stages of life and lactation, organic trace minerals support the animal’s defense system and growth as well as your profitability. SEL-PLEX® is Alltech’s organic form of selenium yeast and is the only FDA-reviewed form of organic selenium.

Elizabeth Lunsford Territory Sales Manager 859.553.0072 | elunsford@alltech.com

Alltech.com

AlltechNaturally

@Alltech

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Federal Issues Update Kentucky Farm Bureau

C

ongress continues the process to formulate the next farm bill and Kentucky Farm Bureau President Mark Haney was invited to provide testimony concerning farm bill programs to the most recent U.S. Senate Committee on Agriculture, Nutrition and Forestry on July 25. Current baseline projections for writing the farm bill reflect a flat to possibly lower baseline, and President Haney took the opportunity to address a broad spectrum of program recommendations relative to national farm policy that were recently approved by the American Farm Bureau Board of Directors, and specifically addressed dairy programs.

He testified that the Dairy Margin Protection Program (DMPP) must be improved to provide a more effective safety net for dairy farmers across the nation. He recommended the feed ration formula for all producers be increased 10 percent to more accurately reflect the discussion when the DMPP was originally developed. Haney also discussed recommendations for developing a two-tiered approach to

The KY Milk Matters Media Kit

Advertising Rates Ad Size

BW / C – 1X

BW / C – 3X

BW / C – 6X

Full Page $400/450 $380/$428 $360/$405 1/2 Page $300/$350 $285/$333 $270/$315 1/4 Page $200/$250 $190/$238 $180/$225 Business Card

$100/$125

$95/$119

$90/$113

WHY ADVERTISE IN THE KENTUCKY MILK MATTERS NEWSLETTER? • It is the ONLY publication that goes directly to ALL KY DAIRY FARMERS • KY has more permitted dairy farms than any other state in the Southeast • It goes directly to the decision makers on all KY dairy farms • Over 1,400 KDDC Milk Matters Newsletters are distributed • The Newsletter is available through email and KDDC Website

July - August 2017 • KDDC • Page 6

the dairy safety net and other means to improve DMPP that would deliver dairy producers better coverage when they need it most.

Also on the federal front, the most recent effort to address health care concerns failed to garner the needed votes in the Senate. The House has passed their version of health care reform, and it appears the Senate may too reach a consensus to move a bipartisan approach forward later this year. The Administration wanted to move health care reform that included significant reforms to various taxes before moving into a broader tax reform effort. While timing on future Senate action on health care is uncertain, the House has begun work on tax reform that includes lowering the corporate tax

Dairy Margin Protection Program (DMPP) must be improved to provide a more effective safety net for dairy farmers across the nation. rate and simplifying individual tax brackets.

USDA just recently published to the Federal Register a request for information on regulatory reform initiatives within USDA. The comment period is roughly 1 year with comments accepted in four separate batches. The first batch of comments is due by September 15, 2017. This is part of President Trump’s Executive Order that all federal agencies review regulations and initiatives and remove unintended barriers to participation in federal programs.

Finally, on July 27 EPA published to the Federal Register the formal notice to initiate the first step in a comprehensive, two-step process intended to review and revise the definition of “waters of the United States (WOTUS).” The first step is the intention to rescind the definition of WOTUS that was finalized by the Obama Administration that could have significantly broadened the jurisdictional oversight of EPA and the U.S. Army Corps of Engineers to virtually any area because of the overly vague definitions of what would be considered a significant nexus to established navigable waters. Comments in support of rescinding the WOTUS Rule are encouraged, and will be accepted through August 28, 2017. Comments can be submitted via the regulations.gov website to Docket ID No. EPA-HQ-OW-2017-0203.

As always, feel free to contact Joe Cain, Director of the Commodity Division at Kentucky Farm Bureau for more information. He can be reached by email at joe.cain@kyfb. com, or by calling (502) 495-7738.

The transition period is the 3 weeks before freshening and the 3 weeks after freshening. This period is the most critical period in the cow’s life. It can either make or break the cow’s ability to make a profit for that lactation period.

Let’s look at some points that need to be addressed during this time.

Don’t overcrowd the pre-fresh group: The research shows that pre-fresh cows need a minimum of 30 inches of bunk space to keep DMI up. When looking at the free stalls or bedding pack of the pre-fresh group, look at only keeping that space at 80% capacity. This is the factor that affects the transition period the most.

Keep stressors to a minimum: if you plan on vaccinating before freshening or even after freshening, either do it before 3 weeks fresh or 3 weeks after freshening. Don’t move cows between 3 -10 days pre -freshening. Research has shown to either move cows before 10 days or after 3 days to minimize stress on the cow. Group changes is a big stressor, so avoid those changes during this time when possible.

Pay attention to those cows and heifers that are calving: help them when needed, but you don’t need to be too quick to help. Let nature take its place. If the cow is making progress, leave her alone. A rule of thumb is there is no progress for an hour on a cow and 2 hours for a heifer, then it’s time to intervene. Make sure you’re clean and that you take your time helping, using moderate pressure.

Pre-fresh nutrition: with DMI decreasing during this time, the nutrient density needs to be increase.

Keep the starch level below 22% and the MP level between 1100 and 1400 grams/day (depending on if your feeding heifers or mature cows). You may need to look at adding a rumen inert fat to your ration, but maximize the level of these types of fat to no more than a ¼ lb. per head per day. Visit with your nutritionist to balance your ration to fit the forages that you’re feeding.

Post-fresh nutrition: in a perfect world, we would like to have a separate group for the fresh cows. If you can have such a group, then we would like to balance that ration to fit that group. Keeping the nutrient level high but safe is the key, so high quality forages with ample starch and metabolizable protein is needed. Again, we should look at adding a rumen inert fat to help with immune function and overall energy metabolization. Keep the vitamin and trace mineral levels at the NRC level with some of those trace minerals coming from organic forms to will help the immune system function properly.

These questions and answers should be discussed with your nutritionist.

In Glasgow: 1-800-589-2174

On The Web: www.burkmann.com

In Danville: 1-800-786-2875

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Guestworker Act of 2017 THE AGRICULTURAL GUESTWORKER ACT H.R. 1773, the Agricultural Guest worker Act (AG Act) scraps the current seasonal H-2A agricultural nonimmigrant visa and replaces it with a new H-2C visa program that significantly expands the scope and duration of “temporary” agricultural work.

Summary by Bob Gray, Editor – NDFC Newsletter July 28, 2017 Edition Admittance into the U.S.: A grower must petition for H-2C workers before the worker can be admitted to the U.S. An H-2C worker may switch to another grower as soon as the other grower files its own petition for the worker (or hires the worker “at-will”, as described below. In addition, if an association of growers petitions for an h-2C worker, the worker may be transferred among the association members.

At-Will Employment: Under the “at-will” component of the H-2C program, growers can employ H-2C workers without first having to petition for them. To do so, growers must be designated as registered agricultural employers by USDA and must agree to abide by the terms and obligations of the H-2C program as if they had filed petitions. H-2C workers can only seek at-will employment if they have already been admitted to the U.S. through an H-2C petition and have completed the agreed-upon period of employment with their initial employer or have been terminated by their original employer.

Registered agricultural employers and H-2C workers may voluntarily terminate at-will employment at any time. The H-2C workers must then find additional at-will or petition-based employment within 30 days or leave the U.S. In order to ensure that at-will H-2C workers do not seek unlawful nonagricultural employment, the at-will component will only become available once all U.S. employers are required to use E-Verify and the system is able to indicate whether a worker is eligible to be employed in all occupations or only to perform agricultural labor.

Length of Stay: The maximum period of stay for H-2C workers in temporary or seasonal jobs is 18 moths after which they must remain outside the U.S. for a period equal to at least 1/12 of the duration of their stays on H-2C visas. H-2C workers in jobs that are themselves permanent can initially work for up to 36 months before having to leave the U.S. If a worker’s absences from the U.S. during the period of admission accumulate to 45 days, they will be considered to have met their obligation to remain outside the U.S. following their stay.

Sheepherders are exempted from the requirement to leave the U.S. periodically (as they are under the H-2A program), as are commuter workers who return to their home country each day.

Enforcement of Program Conditions: Attestation – based. USDA will be responsible for ensuring grower compliance.

Non-Seasonal Employers: Dairies, food processors and other agricultural employers may use the H-2C program to fill jobs that are not temporary or seasonal.

July - August 2017 • KDDC • Page 8

Recruitment of U.S. Workers: An employer must place a local job order with the state workforce agency serving the local area where H-2C workers will be employed, which shall post the job order on its website for a minimum of 30 days (and the Department of Labor shall include links to the official websites of all state workforce agencies on its website).

Wages: Employers must pay H-2C workers’ wages of not less than 115% of the Federal minimum wage, or the State of local minimum wage, whoever is greatest.

Social Security and Unemployment Insurance: Employers of H-2C workers in jobs that are not temporary or seasonal shall pay to the Federal government an amount equivalent to the Federal Social Security and Unemployment Insurance taxes on the wages paid to H-2C workers that the employer would have been obligated to pay had the H-2C workers been eligible for these programs. The funds shall be provided to USDA, DHS and DOS to reimburse them for expenses incurred in administering the H-2C program.

Transportation Expenses: Employers are not required to reimburse H-2C workers’ transportation expenses.

Housing: Employer is not required to provide housing to H-2C workers.

Family Members: H-2C workers cannot bring accompanying spouses and minor children unless they are themselves H-2C workers.

Numerical Limitations: The total number of aliens who may newly receive H-2C status each year is limited to 500,000 except for that: • Under an automatic escalator, if the yearly allotment is exhausted, the allotment for that and subsequent years shall be increased by up to 10%. If that higher allotment is itself exhausted in a subsequent year, the allotment for that and following years shall be increased by up to 10% and • Under an automatic de-escalator, if the yearly allotment is not exhausted, the allotment for subsequent years shall be increased by up to 5% (or a percentage representing the unutilized portion of the original allotment). If that lower allotment is itself not exhausted in a subsequent year, the allotment for following years shall be further decreased by up to 5% (or a percentage representing the unutilized portion of the original allotment) – except that the allotment for ay year can never fall below 500,000.

To the extent that agricultural employers use the H-2C program to hire: • Farmworkers unlawfully present as of the date of introduction, or • workers they had previously employed under the H-2A or H-2B programs, such workers will not be counted against the numerical cap.

Federal Public Benefits: As non-qualified aliens, H-2C workers are ineligible for most Federal public benefits. In addition, they will be ineligible for Obamacare subsidies and refundable tax credits (the Earned Income Tax Credit and the Child tax Credit).

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

FDA Approves First Medication for Pain Control in a Food-producing anmial July 25, 2017

T

he U.S. Food and Drug Administration announces the approval of Banamine Transdermal (flunixin transdermal solution), an animal drug approved for the control of pain associated with foot rot and the control of pyrexia (fever) associated with bovine respiratory disease.

Banamine Transdermal is the first new animal drug approved in the U.S. for controlling pain in a food-producing animal (cattle). Foot rot is a painful disease of the foot in which the interdigital surface (the skin in between the two toes) becomes irritated, inflamed, and starts to decay. Affected cattle can become severely lame and the disease can affect deeper structures of the foot and leg if not treated. Although other therapies are available for treating foot rot, there was no approved drug to control the pain associated with this disease until now.

Banamine Transdermal is also approved for the control of pyrexia (fever) associated with bovine respiratory disease in cattle. Bovine respiratory disease can be caused by bacterial, viral, fungal and/or parasitic pathogens. Bovine respiratory disease affects the lower respiratory tract and lungs (pneumonia) or the upper respiratory tract (rhinitis, tracheitis, and bronchitis)

and cattle typically present with fever.

The topical formulation of Banamine Transdermal provides a new way to administer flunixin to cattle. Banamine Transdermal is approved for a single application of a dose of 3.3 mg flunixin per kilogram body weight topically in a narrow strip along the back (dorsal midline/spine from the withers to the tail head).

This non-steroidal anti-inflammatory medication is approved for use in steers, beef heifers, beef cows, beef bulls intended for slaughter and replacement dairy heifers under 20 months of age.

It is not for use in beef bulls intended for breeding; dairy bulls; female dairy cattle 20 months of age or older (including dry dairy cows); and suckling beef calves, dairy calves, and veal calves.

As this is a prescription medication, it can only be used by or on the order of a licensed veterinarian.

The application for Banamine Transdermal is sponsored by Intervet, Inc. Contact FDA 240-402-7002 240-276-9115 FAX Issued by: FDA, Center for Veterinary Medicine 7519 Standish Place, HFV-1 Rockville, MD 20855

Cowherd Equipment & Rental, Inc.

Cowherd Dairy Supply For chemicals, supplies and more Roto from our dairy to Grind yours,1090 Cowherd’s has all of your dairy needs.

Jamesway Pumpeller

Tire Scraper Penta 4130

J and D Fans

Chemicals • Chore-Boy Parts

7, 8, 9, 10, and 12 foot silage bags available, and bunker covers from 25 x 100 all the way up to 100 x 200.

J&D Head Locks

• Boumatic Milking Equipment and

• BouMatic Coolers • J&D Manufacturing • IBA Chemicals Baggers for Rent

• Mueller Milk Tanks

For More Information:

For More Information:

Cowherd Equipment & Rental, Inc. 1483 Old Summersville Rd. Campbellsville, KY 42718

Cowherd Dairy Supply 1483 Old Summersville Rd. Campbellsville, KY 42718

270-465-2679 270-469-0398

270-465-2679 or 270-651-2643 Tire Scraper

July - August 2017 • KDDC • Page 9

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Dairy Situation and Outlook August Class I Mover mixed. On a 3.5% butterfat basis, the August Class I Mover was $16.72/cwt. up $0.13 from July. However, on a 2.0% butterfat basis (approximate average butterfat content of milk used in Class I) the August Mover was $0.25/cwt. lower than July, $12.36/cwt. versus $12.61/cwt. When butter prices increase relative to cheese and nonfat dry milk powder, as they are now, this happens.

significantly wider than the historical three to five cent spread. It will be some time before the spread returns to the historical norm.

The July AMS butter price (used to calculate federal order prices) is $2.60/lb. This is $0.20/lb. higher than June, and almost $0.30/lb. higher than a year ago. On the skim side, the July AMS nonfat dry milk powder price was $0.90/lb. up a penny from June. Dry whey continues to decline, dropping four cents to $0.45/lb.

On the international market, the Oceania butter price has climbed every month since October. June Oceania butter was $2.63/lb. A year earlier it was only $1.27/lb. For the past three months the Oceania skim milk powder price has inched up. The June average was $0.95/lb., a dime more than last June. As a sign

The Mover on a 3.5 basis increases, but declines on a 2.0 basis. Likewise, when butterfat prices are declining, the reverse can happen.

Due to butterfat contributing more of milk’s value (62% of August Class I Mover was from butterfat) this is widening the difference in raw milk costs of processed fluid milk.

As shown above, the raw milk cost of a gallon of 3.25% butterfat milk is the almost same for August, as it was this past February in Orlando. While the raw milk costs of lower fat milks declined. The difference, between the raw milk cost of a gallon of 3.25% and skim, is now $0.78 at Orlando.

At most conventional retail grocers the shelf price of fluid milk is the same, regardless of butterfat content. If this trend continues, which we project will widen over the coming months, it may open the door to different retail prices based on milk’s fat content.

Dairy commodity prices. During the past month block and barrel cheese advanced at the CME. Block cheddar began July at $1.53/lb. and closed at $1.73/lb. on August 3. Barrel cheese advanced from $1.35/lb., the beginning of July, to close at $1.54/ lb. on August 3. The block to barrel spread continues to be

of strengthening world milk prices, Fonterra (New Zealand dairy cooperative) recently announced a price forecast of NZ$ 6.75 per kilogram milk solids for the upcoming season. This equates to a U.S. price of about $15.80 per cwt. The announced forecast price is about $1.40/cwt. higher than last season.

May fluid milk sales up slightly. Conventional fluid milk sales for the month of May were up 0.1% compared to a year ago.

Organic sales in May were up a strong 4.1%. However, for the year-to-date fluid sales are 2.6% lower than the same period last year. Whole milk sales remain the bright spot with sales 2.1% higher than last year. In the three southeastern federal orders, fluid milk sales for the first five months of the year compared to a year ago are: Florida down 0.6%, Southeast down 1.4%, and Appalachian down 2.5%.

Class I utilization down. As shown in the table below, total Class I utilization in the three southeastern federal orders is 1.5% lower for the first six months of this year compared to the same time frame a year earlier. Class I utilization is 1.0% higher in the Appalachian order, but down 5.9% in Florida and down 1.2% in the Southeast order. Total milk pooled on the orders is down 1.1% for the first half of the year.

By Calvin Covington, ccovington5@cs.com, 336-766-7191

August 2017

July - August 2017 • KDDC • Page 10

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Milk Prices FMMO 5

www.malouisville.com July 2017 Class I Advanced Price (@ 3.5% BF) $19.99 August 2017 Class I Advanced Price (@ 3.5% BF) $20.12

FMMO 7 www.fmmatlanta.com July 2017 Class I Advanced Price (@ 3.5% BF) $20.39

Milk production up 1.4% for the first half of 2017. Milk production for the first quarter of 2017, compared to the same period a year earlier, was up 1.1%. During the second quarter, milk production was 1.8% more than last year. Cow numbers continue to increase. At the end of July, USDA estimates the nation’s dairy herd at 9.404 million head. This is 78,000 more head than a year ago. The increase in milk per cow is slowing with the average cow in June only producing 13 more lbs. of milk compared to last June. Thirty (30) states increased milk production during the first half of the year led by Texas (+15.0%) and New Mexico (+9.3%). Milk production declined in the three of the nation’s largest milk producing states, California (-2.1%), Idaho (-0.2%), and Washington (-3.3%). Note all three of these states are west of the Rockies. Production was only up 0.1% in the number two milk producing state, Wisconsin. Michigan (+3.6%) and New York (+2.5%) continue to produce more milk.

Southeast production down slightly. For the first six months

August 2017 Class I Advanced Price (@ 3.5% BF) $20.52

of 2017, milk production in the ten (10) southeastern states is estimated at 5.0 billion lbs. This is 0.6% lower than the first six months of 2016. Only one southeastern state showed a production increase, Georgia (+1.5%).

Production was down slightly in Florida and Virginia, 0.1% in each state.

Higher July blend prices, then steady through the remainder of the year. July blend prices are projected about $1.00/cwt. higher then June. All of the increase is due to higher butterfat prices with July butterfat about $0.30/lb. higher than June. For the remainder of the year we project blend prices to remain steady on a per cwt. 3.5% basis.

However, the producer butterfat price per lb. is projected to average about $0.50/lb. higher for the last half of the year, compared to the first half. The following table shows projected monthly producer butterfat and skim prices through the end of this year.

July - August 2017 • KDDC • Page 11

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Southland Dairy Farmers Lends Support to Special Olympics Games in Kentucky

T

he Kentucky Special Olympics Summer Games were held this year on the Eastern Organic Valley Veterinarian Workshop Kentucky University Campus in Richmond on June 2-4. The statewide Summer Games are Special Olympic Kentucky’s largest event of the year, with more than 1,400 athletes competing in five sports.

Hundreds of coaches and volunteers also took part in the games. And Southland Dairy Farmers were there each day to make sure these Special Olympic Games were truly special for participants, their families, and visitors.

The Summer Games got underway with Opening Ceremonies that included the Parade of Athletes and the lighting of the Special Olympics cauldron. The main competition began with athletes competing in track and field, swimming, bocce, soccer, and gymnastics.

All activities included the popular Olympic Town area, and Southland Dairy Farmers were there to distribute ice cream sandwiches to the athletes, coaches, parents, and volunteers. The group also gave away Southland Dairy Farmers canvas bags and plastic cups, all featuring a memorable reminder: “Milk. A part of everything that’s good.” Southland Dairy Farmers’ popular Mobile Dairy Classroom also had a presence in Olympic Village, with a live cow and milking demonstrations given by Megan Bailey-Komar, Southland’s Mobile Dairy Classroom Instructor in Kentucky.

The Special Olympics Kentucky State Summer Games are made possible through the generous support of sponsors. Southland Dairy Farmers has been recognized as a Silver Sponsor of the Kentucky Special Olympic State Summer Games, with annual support since 2015.

Southland Dairy Farmers is proud to be a part of the Special Olympic Games in Kentucky, and proud to represent Kentucky and Southland Dairy Farmers with on-the-ground participation and direct messages promoting milk and the dairy industry.

July - August 2017 • KDDC • Page 12

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

What’s the Deal

By Dave Roberts In the past the Sam’s Clubs in Bowling Green and Paducah had their dairy cases stocked with milk bottled at the Borden plant code #54 in London, Kentucky.

About a month ago a friend that had stopped at the Sam’s Club in Bowling Green told me the milk there was in a different container with plant code #39 stamped on it. I

®

International Stock Food

•I VISIT US AT

WORLD DAIRY BOOTH decided to drop by the Sam’s in Paducah and see if they were carrying different milk and sure enough the same containers with the plant code #39 filled their cases.

These gallon containers are designed to stack on pallets at least three high, get shrink wrapped, loaded on trucks and shipped to stores. This method of packaging eliminates the need for milk crates and allows for more efficient use of space and labor. Plant code #39 is milk processed at the Superior plant in Canton, Ohio. So, what’s the deal? There was local milk produced by Kentucky dairy producers processed by a local processor (Borden) that supplied local Sam’s Club stores; what’s more efficient than that? And the beauty of it all was most all that money stayed in Kentucky and supported Kentucky communities and jobs. I’m not trying to put Sam’s Club down. I’m guessing there is a logical business decision here somewhere, maybe the new packaging. What I’m wondering is, with all the raw milk that pours south over the Ohio River into the southeast is the practice of processed dairy products flowing from other areas into the southeast a new trend? Can we not process what we need? Is there nothing to be said for local products and efficiency in the shorter distance traveled? What does this all hold in store for southeast dairy producers? Time will tell.

EH4303-4304

July - August 2017 • KDDC • Page 13

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Obituary: Dr. Danny Britt Dr. Danny Britt, who served on the EKU faculty from 1975 to 2006, passed away on Thursday, July 6. He was 70.

Dr. Britt taught in the Department of Agriculture, serving as chair 1991-2003 and helping to bring the department national respect and recognition. For the 18-plus years he advised pre-vet majors, Eastern enjoyed one of the highest acceptance rates in the Commonwealth. As chair, he helped secure more than $2 million in outside funding, including critical state support for EKU Farms and the horticulture complex.

Always a strong advocate for agriculture, Dr. Britt was a member of the Kentucky Agriculture Council and was particularly active in the state’s dairy industry. In 2001, he received the Distinguished Service Award from the National Food and Energy Council in recognition of his support for

agriculture, the utility industry and the rural community. Dr. Britt served for approximately 15 years as a board member of Blue Grass Energy. In 2002, he was elected president of the American Association of State Colleges of Agriculture and Renewable Resources.

Dr. Britt’s wife, Carolyn, is also an EKU retiree, having served Eastern many years as an administrative assistant.

Visitation was Sunday, July 9, from 2 to 8 p.m. at Oldham, Roberts and Powell Funeral Home, Richmond. A second visitation was held on Tuesday, July 11, from 4 to 8 p.m. at the Hatcher and Sadler Funeral Home, 801 N. Race St., Glasgow, Kentucky, with funeral services there on Wednesday, July 12, at 1 p.m.

Classified Ads Advertising starts at $25 per issue for classified ads and $50 for business card ads.

Call Carey at 859-948-1256 for more information Thinking about Buying or Selling Real Estate?

CPC Fall Field Day

Make sure to attend the CPC Fall Field Day on Thursday, September 7th at 9 AM. It will be held at the CPC Production Facility in Fountain Run, KY. See the ad for more information on page 2.

Let Kentucky Prime Realty help!

We represent Kentucky’s finest farms and lands. If you are looking to buy or sell your current land or farm, we are the best choice for your real estate needs. Visit kentuckyprimerealty.com or call 859265-511

Hoof Trimming

Stoltzfus Spreaders

Lime/Chicken Litter/Fertilizer Leo TMR Mixers - Manure Spreaders John Deere 3950 Silage Chopper John Deere 6400/4wd/loader/canopy www.redbarnandassociates.com Call Charlie @ 859-608-9745

Reach All KY Dairy Producers

Don’t miss your chance to reach dairy producers all across the state of Kentucky. There is no other publication that reaches all dairy producers. Call Carey today for more information at 859-948-1256.

July - August 2017 • KDDC • Page 14

We use the safest and most efficient hydraulic layover chute for the cows on the market. Call DeJonge Hoof Trimming today at 606-303-2169.

Try Before You Buy

Used TMR Mixers for Sale.

Many to choose from Call us today at 270-465-2679

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

*All Units Located in Smiths Grove, KY* -2008 Trioliet 1600L VLS

-New Augers/Knives -LHS Discharge -$19,500.00 -2013 Penta 4020-SD -Newer Knives -RHS Discharge -Great Auger -$16,500.00 -2008 Trioliet 1200L VLS -Works Well -LHS Discharge -Priced to Sell -$9,500.00 -1999 NDE Stall Bedder -New Hoses and Belts -Reinforced Skid Steer Mount -$2,500.00

July - August 2017 • KDDC • Page 15

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund competition for sawdust from wood pellet makers. Stalls are groomed and the flush system runs three times a day while the cows are milking.

They recently started AI, and the cows have activity collars that also monitor how much and how long a cow eats. In the parlor, they also get data on each cow’s production and can automatically sort cows for deviations and management.

Cows are fed once a day with an automatic feed pusher running periodically through the day to keep it pushed up.

At the Peden Dairy Farm, activity monitors are also used, and they have been breeding AI for over 40 years. The 270 cows are housed on bedded pack and milked 3x with an RHA over 28,000. Brian Peden noted that the herd was making 90 to 95 pounds in March and April and dropped to 87 pounds four days before our visit. Heat abatement includes intermittent soakers over the feedbunks and fans.

Tour-goers were interested in the calf facility at Peden Dairy, where wet calves are fed via Lely automatic feeder, maxing out at 3 gallons a day for 40 days before the 7-day tapered weaning. Brian keeps his calf groups a little smaller than the recommendations because he finds they do better when they transition.

At Malvern Hills, Richard and Sharon Mattingly and their daughter Stephanie led the tour of their new robotic dairy facility featuring three DeLaval VMS robots for up to 180 cows. Four months into the transition, they still operate the herringbone parlor for around 70 cows and have 120 in the robot facility as cows transition from bedded pack to freestalls and from manual to voluntary milking.

“This is truly a one-man operation,” said Richard. “I can work with the special needs and transitions, but it is set up so one person can do the work because I’m really the only one here feeding and taking care of the cows.” He has noticed production up “a little” already as cows are milked more frequently.

The tunnel ventilated facility is a guided-flow set-up with smartselect gates that read tags to judge if cows heading to the feedbunk need milked first. “They are all in here making their circles to eat, lay down, groom and milk,” he added.

You could say we had our appetizers during the last stop of the day at Kenny Mattingly’s dairy farm where Kenny’s Farmhouse Cheese has grown from using two cows’ worth of milk 19 years ago to using 70% of the milk from 140 cows today to make 25 varieties of cheese.

In fact, several delicious varieties were sampled, and everyone went bonkers for the bowls of cheese curds put out by Kenny’s wife Beverly.

Kenny’s father moved the family from suburban Indiana to the dairy farm in Kentucky in 1976 because he always wanted to do this.

July - August 2017 • KDDC • Page 16

Kenny was 19 and fell in love with dairy farming. He became active in a group representing dairy-farmer interests and developed a concern for the loss of family farms.

While traveling in Europe, he said he will never forget what a Dutch dairyman said: “We don’t want our neighbor’s farm, we want our neighbor.”

The cheese end of the business began in 1992 as the popularity of artisan cheeses was on the rise and no one in the area was doing it. “The bank thought we were crazy so the woman we bought the equipment from financed us,” said Kenny. “Mom and dad made the cheese and I took care of the cows.”

He said this business is about relationships and that his mother had a real knack for it. He also noted that the “mistakes” he has made in the cheese room often end up the unique signature cheeses people seek.

A year ago, a storm destroyed Kenny’s barn, so they rebuilt with a robotic facility, and two Lely Astronauts were commissioned in April. He has also seen a production increase with robotics.

On day two, Kevin Williams took us through the Bluegrass Dairy and Food plant in Glasgow, where he grew up working at the plant where his dad was a manager and at his grandfather’s farm. When the plant closed in 1995, his parents Billy Jo and Debbie brought together some investors and their own resources to buy it.

Since then, the family has worked hard to take it in the direction of value-added, and tour-goers were amazed to hear about the 300 dairy and food products that are made here and at the Springfield plant.

We saw huge vats for large batches of cheddar pressed into 640lb blocks in wooden crates and aged to various flavor specifications before being rehydrated and put through the dryer for cheesy snack food coatings and meal ingredients.

The plant also makes yogurt and sour cream on-site that is turned into powder for coatings and ingredients as well as handling dry commodities like bulk dry whey, nonfat dry milk, whole milk powder, condensed skim, and ice cream mix.

They employ a diverse workforce, including food scientists and have a great working relationship with the University of Kentucky with potential for students seeking careers in dairy foods.

The next stop was Kinslow Dairy Farm, where Don and Gail and their son Jeremy and his wife Kelsey and their daughter Lindsie and her husband Adam are involved.

Jeremy gave a history of the farm started by his grandparents in 1953, and credited his father for the opportunities their generation has today through the expansion to milking 930 cows. He showed appreciation for each member of the family and their roles in the business and the 18 employees who are so vital, as well as Burkmann Feeds for their help along the way. The dairy went Grade A in 1996,

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund milking 100 cows, and by 2000, the phased expansion was well underway with the first new barn.

“If anyone tells you it’s easy to expand a little at a time, it’s not,” said Jeremy, explaining the process of slowly progressing after the first freestall barn was built. “It has been a long journey.”

The freestall barns have mattresses with shavings, groomed three times a day and feed is pushed up 7 to 10 times a day.

The 930 cows have a 3x RHA of 26,000. They row crop 2200 acres of ground with a high forage ration base of mainly corn silage with grass hay and straw.

The tour finished up with a great meal at Elkins Grove followed by a tour of the dairy which is part of the Elkins family’s diversified partnership. Owned by Tim, Chad and Bradley Elkins, they milk 780 cows with an RHA of 26,200. They have begun construction for a robotic dairy facility, which will have eight Lely robots.

The Elkins’ believe having both freestall and pack barns is a good thing. “There are pluses and minuses to both,” said Tim. “When they calve they go to a pack barn until they are ready to breed at about 50 days in milk.” Older cows also stay in the pack barn, and Tim says they are getting one or two more lactations out of their cattle this way.

(Look for more insights and highlights in a future edition.)

July - August 2017 • KDDC • Page 17

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Market Incentive Leadership for Kentucky (MILK) Program: 2017

A

fter many months of work, negotiations, starts and restarts, the new MILK Program is finally set in motion and is retro beginning April 1, 2017. The main difference in the new program is the removal of the requirement to increase monthly milk production, the addition of the percent of herd with somatic cell counts less than 200,000 and enrollment in a dairy animal care program through the producers’ milk procurement organization. The program does not replace or affect existing incentives paid by Marketing Agencies in Kentucky.

Details of the program are listed in below: Criteria for Qualifying for KDDC MILK Program Incentive Premiums: $12,000 cap per farm per year • All producers must be enrolled in qualified production testing program (DHIA) and/or equivalent program including installed recording equipment. Non-DHIA producers must be able to validate production records are received and report percent of herd under 200,000 SCC to qualify. Testing must be done 6 times per year and at least once per quarter.

• No Adulterated Milk for the Month • All producers must participate in their marketing organization’s Dairy Animal Care Program and validated by the marketing organization.

• To receive up to $6,000 total per year in quality premiums for herd average, producers must have somatic cell counts of 300,000 or less and preliminary incubation counts of 20,000 or less. (See chart #1) Payments are provided based on a graduated scale.

• To receive up to $6,000 total per year in quality premiums for individual cow performance producers must have a somatic cell count less than 200,000 by at least 65% of the individual cows. Payments are provided based on a graduated scale. (See chart #2) • Producers may qualify for quality incentive payments independent of each other.

Chart #1-Premiums are based on SCC– PIC Average for the month. (Max per producer is $6,000 per year) Total Premium SCC PIC

$0.25/cwt < 200,000 < 20,000

$0.13/cwt 200,001 - 250,000 < 20,000

$0.08/cwt 250,001 - 300,000 < 20,000 Chart #2-SCC cell count by percentage of herd < 200,000 SCC. (Max per producer is $6,000 per year)

Total Premium % of cows SCC PIC

$0.25/cwt 85% < 200,000 < 20,000

$0.13/cwt 75% < 200,000 < 20,000

$0.08/cwt

65% < 200,000 < 20,000 Incentive Premiums Earned on Monthly Basis – Paid Quarterly from the Marketing Agency Milk Produced in month but picked up in following month will be distributed equally for each month Failure to comply with the above requirements relinquishes the producer’s future participation in the MILK Program.

MAXIMUM PER ELIGIBLE FARM PER YEAR $12,000 KDDC Dairy Consultants Will Verify Producer Participation in Management Programs Producers that have dropped out of the MILK Program and are re-entering the program must have no less than 6 tests in the previous 12 month period before they are eligible for any payment.

July - August 2017 • KDDC • Page 18

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

TETRACYCLINE TESTING Details on a new residue screening program

Starting July 1, government regulators will test bulk milk tankers for the tetracycline family of drugs. This is in addition to current beta-lactam testing already being done. Nearly all dairy farms will have their milk tested for tetracyclines.

WHAT IS CONSIDERED A TETRACYCLINE?

=

OXYTETRACYCLINE

WHAT DO YOU NEED TO KNOW ABOUT TETRACYCLINE USE ?

1 2 3 4

Establish a Veterinarian-Client-Patient-Relationship.

With your veterinarian, develop a herd health plan for disease prevention and disease treatment protocols including the use of antibiotics.

Work with your veterinarian and hoof trimmer to develop a treatment protocol, including dose and withdrawal times for meat and milk if using tetracycline powder for digital dermatitis treatment.

Use over-the-counter drugs according to the manufacturers’ directions, including the specific disease condition being treated, amount, route of adminstration, length of treatment, and meat and milk withdrawal times. Any deviation from the label directions requires a veterinarian’s prescription.

TETRACYCLINE

CHLORTETRACYCLINE

COMMON TETRACYCLINE USES ON THE FARM OXYTETRACYCLINE Approved by FDA for use in lactating dairy cattle for treatment of pneumonia, shipping fever, bacterial scours, metritis and topical treatment for certain eye infections like pink eye.

REMEMBER: No tetracycline family drugs are approved for intramammary use for treating mastitis, without a veterinarian’s prescription.

TETRACYCLINE POWDER Administered topically to the hoof with a wrap to treat digital dermatitis. Treatment can create residues in the milk and teats can become contaminated. Applying 2 grams or less of powder per hoof lesion for a maximum of two lesions per cow is enough to successfully treat the lesion, and is less likely to cause violative residues in cows.

REMEMBER: No tetracycline powder is approved for use in lactating dairy cattle for treatment of digital dermatitis without a veterinarian’s prescription.

STOP

WHAT HAPPENS IF MILK IS POSTIVE FOR A TETRACYCLINE RESIDUE? If a bulk milk tanker is found to have a tetracycline residue, a traceback to confirm the dairy farm of origin will occur – just as with beta-lactam residue testing. The offending farm will be responsible for the value of the dumped milk and may temporarily lose its milk license.

It is the responsibility of every dairy farmer to ensure that antibiotic residues do not end up in milk offered for sale. Our customers trust the safety of milk because of your commitment to produce a safe and nutritious product. Contact your milk cooperative or processor if you are concerned about a residue in your milk. When in doubt, keep it out!

June 2017

July - August 2017 • KDDC • Page 19

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Introducing Steve Wade...

Introducing Steve Wade as a contributor to the KDDC Milk Matters Newsletter The KY Dairy Development Council main focus as a dairy producer advocacy organization is on education and enhancing KY dairy farmers’ ability to be more profitable. We believe there are many resources available to help work achieve this goal. During a recent meeting hosted by AgDairy, with Steve Wade and Robin Schmahl, risk management tools were discussed to help protect your bottom line.

I asked the question, “Why aren’t more KY producers using these strategies?” A dairy farmer in the meeting replied, “It is not easy to understand and there is fear that you could lose more than you would gain.”

As I heard one dairyman say, “I don’t want to play in a game if I don’t completely understand the rules.” I then asked how could the KDDC help increase producers’ understanding of these strategies more? The suggestion was to add a dedicated article section in the Milk Matters Newsletter that would explain how to use these tools and offer possibilities for individuals to make better, informed decisions.

I asked Steve Wade if he would contribute a regular article for the Milk Matters and he agreed.

Steve understands that it is not KDDC’s intention to promote his business or the use of his programs more than any other organization or individual, but rather an education tool meant to empower producers to succeed.

The Futures Casino

by Steve Wade

F

armers frequently tell me they are afraid to use the futures market to help manage risk.

Some compare it to a casino. If you become confused with what your purpose is for being in the futures market, it can be like gambling. The key is understanding what your goal is before you take a position.

There are three “players” who have a reason for being in the futures market, and all three play an important role.

Small Producers – This would be you, the farmer. You make up a very small portion of the futures traders.

Large Commercials – This would be the corporations and cooperatives who buy and process the milk. Their interest in participating in the market is to protect profits.

Speculators – This would be the people who take the opposite side of your position purely for the purpose of making money on the trade. They have more resources than you do to know what side of a marketing position to take. This gives them an edge which you will not be able to compete against.

Futures markets are different than stock markets in that with futures, it is a zero sum gain. For one person to make money,

July - August 2017 • KDDC • Page 20

another person must lose money. In the stock market, everybody can make money if the companies they buy are going up in value and making lots of money. In the futures market, prices will always be volatile as the participants take profits or losses.

I wish to focus in on the third group…. the speculators. Most farmers blame this group for their marketing woes. I have heard farmers say many times that speculators should not be allowed to be in the market because they drive prices down. To that, I would say they are only half right. Because speculators fuel large rallies, they also create pricing opportunities for farmers. Whether prices go up or down, most speculators make a lot of money. They have multimillion dollar research departments who are figuring out whether to buy or to sell. This is why I say that you cannot compete with them. You will never have the advantage with these guys. If they are not making money as they trade, they will run out of cash and go out of business. The last time I checked, they all seem to be doing just fine. If you stay out of their arena, you can do just fine as well.

You cannot have price discovery without liquidity. The second important role speculators play is to provide liquidity to the market. This is similar to insurance companies. They need a large pool of customers to improve the accuracy of

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Dairy

their actuarial tables. Without the benefit of this, the insurance companies would not know how to price a fair rate to charge for 16-18 year old male drivers on car insurance, or the fair price to charge for home owners insurance for a beachfront home along the gulf during hurricane season. Volume is critical to price discovery and that is what speculators provide.

My next comment may be disturbing, but it is true. Because you are producing milk, you are already in the futures market with the speculators. You may not have a position at an exchange, but you are participating whether you wish to be or not. The milk check you receive changes almost as much as if you were actually in a futures position at the exchange. Yes, you are already in the arena with the people who have a tremendous advantage with you. This is why every farmer needs to understand the futures market.

I realize that it is a daunting task to be in the futures market when so many of the players wish to take your money. It is so important to understand what your purpose is for being in the futures market and how you can use it; not to increase risk, but to reduce it.

A commodity broker works on behalf of their client in the same way an insurance agent works for their client. A good broker will seek to understand what your purpose is to be in the market and help set some goals. A good broker will define the risk you already have and seek to transfer this risk to somebody else. If you think about it, that is all insurance is. In return for paying an insurance company a premium, you are transferring risk you have to the company. Instead of an insurance policy, a broker will use an option. It literally works just like an insurance policy. When you buy an option, you pay a premium to the person who sold the option to you. The risk you seek to protect is price. If at expiration the price is below the level of coverage (strike price) that you bought, then you can collect the difference. It’s really that simple. Best of all, doing this takes you out of the arena of speculators.

Interlock Rubber flooring by Animat. It feels like natural pasture environment and it can be adapted to all types of facilities. Perfect for center walks in tie stall barns. √ Increased performance √ Safe Environement √ Clean Facilities √ Superior Comfort √ No abrasive concrete Also available

Animattress I & Animattress III The definition of cow comfort

Equine

Stalls - Washbay - Alleys - Trailers Animat horsemat offer superb traction and shock absorption, which helps eliminate stress on legs and joints.

o st e u l l re Ca t a f e g ote! qu

Trenton Farm Supply 2470 Cemetery Rd. Trenton, KY 42286 (270) 466-3180 (270) 881-0605 mh.trentonfarmsupply@gmail.com

July - August 2017 • KDDC • Page 21

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

Another Timed Insemination Update July 2017 Version

By George Heersche, Jr. Dairy Extension, University of Kentucky Ovsynch has been a popular hormone treatment protocol used by dairy farmers to synchronize ovulation so cows can be inseminated at a predetermined time.

Several modifications have been researched and utilized to improve the original protocol. The main improvement has been to preresynchronize cows so they are close to estrous cycle days 6 or 7 when the Ovsynch protocol is started. One of the improved methods used in Kentucky is G6G Ovsynch. This is the G6G Ovsynch protocol

Recent research results indicate fertility is better if an additional PGF2a is given on Day 8. The new results show the luteolysis rate (CL quits producing progesterone) following the Day 7 PGF2a of G6G is improved from 85% to 96-98% by adding an additional PGF2a anytime from 8 to 24 hours after the Day 7 Ovsynch PGF2a. If the CL does not regress and there is still progesterone in the blood 56 hours after the Day 7 PGF2a, cows have a 0% chance of getting pregnant. Therefore, we need to tweak the protocol and add a PGF2a on Ovsynch Day 8. Here is that protocol

Another tweak which decreases the number of times animals need to be handled by one and does not significantly compromise conception rate is to give the first GnRH and PGF2a at the same time. Here is that protocol.

July-August 2017 • KDDC • Page 22

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 Select Sires MidAmerica (KABA)

Silver Afi Milk Grain Processing Corp.

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

July-August 2017 • KDDC • Page 23

Non-Profit US Postage PAID

176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph www.kydairy.org

2017 Dairy Calendar of Events August 2017

October 2017

August 24 KY Farm Bureau State Fair Ham Breakfast August 29-30 Kentucky Milk Quality Conference, Lake Barkley

State Park, Cadiz, KY

October 3-6 KDDC Young Dairy Producer Bus Tour,

World Dairy Expo. Madison WI October 21 Dare to Dairy, University of Kentucky

Coldstream Dairy, Lexington, KY

September 2017 September 6 Organic Valley Veterinarian Workshop – Jake

Beiler Farm – 1041 Mimms Rd.

Trenton, KY – 1 – 4 p.m.

September 07 Organic Valley Veterinarian Workshop – Greg &

Nathan Williams Farm –291 Walters Rd. Campbellsville, KY September 08 Organic Valley Veterinarian Workshop – Sam

Kemp Farm – 6297 Flemingsburg-Mayslick Rd. Mayslick, KY September 7 C P C Fall Field Day, Fountain Run, KY 9:00 A.M. September 22 KDDC Meeting – Nelson Co. Extension Office – Bardstown, KY Milk Matters July- August 2017

November 2017 November 3-7 North American International Livestock

Exhibition, Dairy Louisville, KY November 24 KDDC Board Meeting – TBA

December 2017 December 6–9 Kentucky Farm Bureau Annual Meeting, Louisville, KY