Kddcnewslettermarchapr2015

KENTUCKY

March - April 2015 w w w. k y d a i r y. o r g

Milk Matters Kentucky National Show & Sale Results

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KDDC Celebrates More than 10 Years of Serving More info on page 12 Dairy Night at the Ballgames Set Find out more on page 14

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KDDC Comments to the AMS on the Federal Milk Marketing Orders Program

he Agricultural Marketing Service recently offered a time period for the public to make comments on the Federal Milk Marketing Order program. This regular review process will give the AMS a better opportunity to look at the program and see if they need to continue, to be restructured or changed in any way.

The letter below was submitted by the KDDC during the comment period.

Dear Mr. Rex A. Barnes, Associate Administrator of Agricultural Marketing Service: The Kentucky Dairy Development Council (KDDC) appreciates the opportunity to make comments on the Federal Milk Marketing Order Program (FMMO) of the USDA, Agricultural Marketing Service/ Dairy Programs. The KDDC is a 501 (c) 3 non-profit organization representing the nearly 700 dairy farmers and many supportive allied industries in the Commonwealth of Kentucky. Most all Kentucky

dairy farmers would be considered “small business entities” within the qualifications found in the 15 U.S. Code § 632 - Definitions, (a); (1).

Therefore, the FMMO program has a significant economic impact on KY dairy producers.

The KDDC Board of Directors unanimously agreed on March 27, 2015, to develop comments during this period of regulations’ review of the FMMO. The Board acknowledged the importance of continuing the FMMO Program because it is believed the two principle objectives of the program: the classified pricing of products and the marketwide pooling of returns offers a more stable economic environment for Southeast U.S. dairy producers. Although, these two program objectives are the foundation of the FMMO, the rules and processes of determining those returns have significant consequences to the bottom lines of the average dairy farmer in the Southeast.

It is well documented across the U.S. regarding the contraction of the dairy industry not only in Cont’d on page 13

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

2014 KDDC Board of Directors & Staff Executive Committee

President’s Corner Richard Sparrow

Board of Directors District 1: Lesa Elliot Clark 270.210.3743 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 Cowherd 270.469.0398 District 6: Todd Burgess 270.427.6403 District 7: Larry Baxter 859.612.2738 District 8: Charlie Edgington 859.229.0442 District 9: Robert List 606.748.2944 District 10: Richard Sparrow 502.370.6730 District 11: Bill Mattingly 270.699.1701 District 12: Larry Embry 270.259.6903 Equipment: Eric Risser 423.368.7753 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: Fabian Bernal 859.351.0610 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Michael Smith Former Pres.: Bob Klingenfus 502.817.3165

Employee & Consultants Executive Director: Maury Cox 859.516.1129 DC-Central: Beth Cox 859.516.1619 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

March - April 2015 • KDDC • Page 2

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have always appreciated the work our milk haulers do. Like dairy farming, it is a sevenday-a-week/ 365 days a year job, working in all kinds of weather. This past winter was harder than most, with heavy snow and belowzero temperatures on many days. Yet, despite this, my hauler was there on time, as I hope your hauler was.

President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Past President: Bob Klingenfus

The milk hauler probably adds more value to our milk than any one process from cow to consumer. The hauler also performs the valuable task of weighing and sampling our milk for p a y m e n t purposes.

I know we pay for this service.

However, the peace of mind that comes from knowing my milk will be delivered to the milk processing plant without fail, makes my hauling cost a bargain.

In many areas of Kentucky, as dairy farmers become fewer and spread out over a greater area, our haulers, in some cases, have to drive more miles to fill a tank. In the future, we will have dairy farms that may lose market access because of the lack of a hauler.

If you are like me, and have a good reliable milk hauler, don’t take him for granted. Remember to say thank you for a job well done.

Kentucky Proud Legislative Breakfast Dave Roberts On February 10th the Kentucky Proud Legislative Breakfast was held in Frankfort at the Capital Annex. The Kentucky Department of Agriculture, the Kentucky Dairy Development Council along with Kentucky Cattleman’s Association and Kentucky Pork Producers as well as our dairy co-sponsors Dairy Products Association of Kentucky and Bluegrass Dairy & Foods hosted over 350 individuals through the breakfast line.

This annual event gives the different commodity sponsors the opportunity to promote their wonderful products to KY’s Legislators as well as educate them on issues which affect their respective industries.

Several dairy producers from across the Commonwealth, KDDC Board members and staff along with supportive allied industry representatives were present to point out the importance of dairy to the State’s economy to over 50 legislators and their staff. It was mentioned by several legislators and staff that this is their favorite get together of the session. Thanks to all the producers that took time to attend.

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

Executive Director Comments Maury Cox Is the milk you purchase from the grocery safe?

H

ow safe is the milk you purchase at the store? We hear stories all the time from media outlets, the Internet and other sources regarding the safety of milk. Although most consumers are unaware of the stringent protocols in place for testing milk at the farm and processing plants, assumptions persist among some. One of the most repeated concerns has been the false assumption of antibiotics in milk.

Most consumers are unaware; milk is routinely tested for antibiotics at the farm and is always tested before it is unloaded at the milk plant. That’s right, every single load, at every processing plant everywhere in the U.S. If a load is found to be positive, the load is discarded with paperwork specifying where and how. The individual farm samples taken for the load are tested to determine which farm tested positive for antibiotics. The responsible farmer is notified and is charged for the whole tanker load of milk and the disposal.

Milk from that farm cannot be picked up until it is shown to be antibiotic

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free. Typically a 6,000 gallon tanker of unprocessed milk is worth around $10,000.

In November, 2010 the Food and Drug Administration’s Center for Veterinary Medicine (CVM) announced it would conduct a Milk Drug Residue Sampling Survey with the purpose of determining if dairy farms with a previous tissue residue violation (cows sold to slaughter with antibiotic residue in their tissue) have more drug residues in raw milk than other dairy farms. To get a perspective on the number of tissue violations occurring in the U.S., Dr. Michael Payne, a veterinarian at the Western Institute for Food Safety and Security, a center within the University of California’s School of Veterinary Medicine, states, “In spite of precautions, a small number of the three million dairy cows slaughtered each year are found to have drug residues in their tissues. A real estimate of the prevalence of such positive cows is difficult to glean from government data, but the rate can probably be measured in the hundredths of a percent…”

The dairy industry, from farm to processor waited for the FDA, CVM report as 1,900 plus tests were run on random samples of milk. The doubleblind study included over 900 samples from targeted farms, (those farms which had an animal previously testing positive for tissue residue) and 900 random farms and included testing for 31 different drug residues. The much awaited and delayed report finally was released in March of 2015.

The results reported in the Survey’s Executive Summary: A total of 15 milk samples were confirmed positive out of the 1912 analyzed. Eleven confirmed positive out of 953 for the targeted milk samples and four samples were confirmed positive from the 959 non-targeted samples.

This is less than one-tenth of one percent. But we must recognize these samples were taken from “unprocessed milk” meaning the milk had not been received at a processing plant therefore was not available to the public.

Secondly, tolerance levels established by the FDA are in parts-per-billion range and are considered inconsequential to human health even if exposed everyday over the course of a lifetime. The FDA concluded: “These findings provide evidence that the nation’s milk safety system is effective in helping to prevent drug residues concern in milk, even in those limited instances when medications are needed to maintain the health of dairy cattle.”

Still, consumers aren’t too interested in “tolerance levels” of antibiotics.

They want to be assured the milk they drink is completely safe and “free” of antibiotics. Another FDA report in 2014 involving consumer-ready finished products showed NO POSITIVE RESULTS for animal drug residues in more than 40,000 samples of pasteurized milk and milk products in the U.S. The report can be accessed at the link below. http://www.dairyreporter.com/Regulation-Safety/US-pasteurized-dairydrug-residue-free-FDA-report These studies demonstrate the high level of importance the dairy industry places on providing safe, wholesome quality dairy products to consumers every day. It also illustrates the accountability and oversight of the FDA as well. The protocols in place are working and as reported by Dr. Payne, “The FDA, state regulators and the dairy industry have already committed to working together to improve an already excellent history of [dairy] product safety…”

So, the next time you hear someone say I’m not sure I trust what’s in milk you can confidently tell them, it’s full of the best nature has to offer and one of the safest products available to consumers. Milk the official drink of Kentucky.

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

The 53rd Annual Kentucky National Show & Sale

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ou know spring is here in the Bluegrass state and show season is emerging when the Kentucky Nationals transpire in Louisville, KY. 2015 was no different than the years before the barn was full of heifers, cows, buyers and sellers from all over the country on April 9, 10 and 11, representing the six breeds of dairy cattle. All five sales combined sold 198 lots of dairy cattle grossing $ 474,025.00.

The Holstein sale once again this year provided the option of online bidding.

Holstein Summary: Sale Managed By: KY Holstein Cattle Club; Jeremy Kinslow Grand Champion: Lot # 20, Inspired RB Mascara; Consigned by Shane Nodolf of WI and purchased by Christy Lawless, Russell Springs, KY for $4000.00.

Res. Grand Champion: Lot # 27, KA-Geo BarbroseRed-ET; Consigned by KAGEO Farms, Stanford, KY and purchased by Donald Yoder, Barnesville, GA for $5500.00.

Jr. Champion: Lot # 22, Ray-Jo Sid Oreo; Consigned

by Donald Bickel, New Vienna, OH and purchased by Jay Goodwin, Daleville, IN for $5300.00.

Res. Jr. Champion: Lot #31, Stan-Mar-Dale Quatara; Consigned by Stan-Mar-Dale Holsteins, Urbana, OH and purchased by Makenzie Pedigo, Smiths Grove, KY for $3600.00.

Number of Total Lots Sold= 48 Sale Gross=$112,025.00 Average=$2,333.00

Sale Gross= $89,050.00 Average=$2,800.00

Guernsey Summary Sale Managed By: KY Guernsey Breeders’ Association; John Fudge Grand Champion: Lot # 33, Jastes Vinny Shadow; Consigned by StephenTerhune, Harrodsburg, KY and purchased by Roland Dicke & Alan Spoltman of Ohio for $3700.00.

Reserve Grand Champion: Lot # 26, Fish Creek Silver Norm Lindy; Consigned by Darlene Moser, Pleasant Lake, IN and purchased by Jeremy Kinslow for $3450.00.

Jr. Champion: Lot # 21, Jastes Hayden Def rost; Consigned by Stephen Terhune, Harrodsburg, KY and purchased by John & Bonnie Ayers and Dr. Kenny Manion, Mechanicsburg, OH for $3750.00.

Res. Jr. Champion: Lot # 19, Briarpatch Geos Hope; Consigned by Jillian Swafford, Eatonton, GA and purchased by Darlene Moser, Pleasant Lake, IN for $1600.00.

Number of Total Lots Sold= 30 Sale Gross= $70,800.00 Cont’d on page 16

“Give Your Cows The Advantage...”

Friday was a full day with the Brown Swiss, Guernsey, Ayrshire and Milking Shorthorn shows and sales taking place.

Brown Swiss Summary: Sale Managed By: Richard Sparrow Grand Champion: Lot #21, R-Hart Pepper 903; Consigned by Abby Rinehart, Wapakoneta, Ohio and purchased by Richard Sparrow, Owenton, KY for $5700.00.

Reserve Grand Champion: Lot # 26, Happy-M Soldir Paloma; Consigned by Luke McCoy, Glasgow, KY and purchased by Kevin Benter, Brownstown, IN for $2450.00.

Jr. Champion: Lot # 2, Top Acres Peppy Snow; Consigned by Wayne E. Sliker, St. Paris, Ohio and purchased by Chris Durbin, Leitchfield, KY for $9600.00.

Res. Jr. Champion: Lot # 3, Blessing August Paige; Consigned by Blessing Farms, Ft. Wayne, IN and purchased by John Major of TN for $3150.00.

Number of Total Lots Sold= 32

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

Managing Your Dairy Cows’ Forage Program - What’s New?

By Donna Amaral-Phillips, Extension Professor and Dairy Nutritionist, University of Kentucky

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orages are the cornerstone for building diets for not only the milking herd, but also dairy heifers and dry cows. The quality and quantity of forages fed impact rumen health, milk production, yields of milk components, heifer growth, feed cost, and overall profitability of a dairy operation. Today’s forage crops are not those raised by your grandparents or parents. Improvements in the genetics of forage species along with changes in forage harvest and post-harvest management have transformed how we utilize these forages in diets and the ultimate performance and profitability expected when feeding these forages. Feeding these higher quality forages does not guarantee higher profitability, but like improved cow comfort, is a piece toward optimizing profitability for dairy operation.

Genetics of Today’s Forages

Improvements in forage genetics have resulted in increases

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Feeding these higher quality forages does not guarantee higher profitability, but like improved cow comfort, is a piece toward optimizing profitability for dairy operation. since stover yields and NDF digestibility of stover without corn grain have not changed much over this time frame. Today, the grain component accounts for 40 to 45% of total yield and contributes over 60% of the energy of the corn plant. Besides improvements in total yield and grain content, today’s corn hybrids are bred for improved stress tolerance, tolerance to

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in both yield and quality of forages. For example, DuPont Pioneer has replanted corn varieties from the past and shown that grain yields have increased by 1.5 bushels per year under normal growing conditions since 1963 and these improvements in yield show no signs of plateauing. Improvements in corn silage yield have mainly resulted from improved grain yield

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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund higher plant populations, composed of more upright leaves, staygreen better, and have deeper roots than older hybrids. The incorporation of the brown midrib (BMR) gene has resulted in forage which is more digestible resulting in improved dry matter intakes for early lactation, high producing dairy cows.

Yields of BMR crops continue to improve and nutritionists have learned how to use them more effectively in diets for early lactation, high producing or heat-stressed cows.

Seed companies continue to develop new varieties of many traditional forages with nutritional profiles which better match those needed by high-producing dairy cows. At the 2014 World Dairy Expo, the first varieties of low-lignin alfalfa were introduced by two companies. These alfalfa plants are reported to contain less lignin and fiber and have improved fiber digestibility compared to current alfalfa varieties harvested at the same stage of maturity. These changes improve the amount of energy available to the cow, often the limiting nutritional factor for milk production. Development of forage varieties which are more drought tolerant and thus require less water for growth is another area of emphasis as irrigation and rain water is becoming limiting in parts of the US.

Weather Impacts Forage Quality

Although genetics of forages sets a baseline for yield and quality, the growing environment and management at harvest determines the actual yield and quality of forage harvested.

A high-yielding corn plant requires 20 to 24 inches of water.

Weather conditions, i.e. rainfall, at different stages of plant

development affect the plant differently. For corn silage, wet weather before silking results in a taller corn plant with higher yields per acre, but has a lower fiber digestibility resulting in cows not milking as well as expected. Weather conditions after silking through the blister stage generally impact grain yield versus the stover portion of the plant resulting in lower starch content seen in years of drought. The bottom line is with adequate rainfall at ear development, genetics controls the starch content of corn silage. But, the growing environment determines the digestibility of NDF and a dairy cow’s intake and milk production potential while consuming that forage.

For alfalfa, generally lower temperatures result in less lignin, a higher NDF digestibility and better forage quality after harvest.

Higher quality alfalfa is generally seen with longer day length but grown when nights are cool. The poorest quality alfalfa is harvested during warm, wet weather. Weather conditions are beyond the growers’ control, but making adjustments in feeding programs is not. Routine forage testing and use of the results to modify rations being fed is very important.

Harvest Management

Developments in forage harvesting equipment and harvest management have improved the quality and yield of forages fed. Mowing alfalfa and other grasses into wider swaths has decreased wilting and drying times. These wider swaths allowed for quicker wilting and forage can be harvested quicker, thus decreasing rain damage and increasing the amount of Cont’d on page 9

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

Let It Snow, Let It Snow, Let It Snow Dave Roberts

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k, at first it was a pretty sight, floating down from the sky covering that manure pile and everything else with a clean white blanket. But then it kept coming and coming and coming, some areas getting 18-24 inches. Alright, now it’s become a down right nuisance. Everything from feeding to scraping manure to keeping snow from blowing all the way through your free stall or compost bedded pack barn is darn near impossible. The forecast is for below freezing weather for the foreseeable future and its evident the snow is going nowhere except where the wind blows it or you push it.

Now that the days are in the 65-80 degree range for highs and lawns are green and need regular mowing, snow is far from our thoughts.

But I think we may need to take a brief look back and assess how we did dealing with that snow.

Taking a survey of all milk markets in the state of Kentucky I found that a total of 925,000 lbs. or 18.5 tanker loads of milk had to be dumped because of impassable roads. Most all producers to my knowledge got paid for the milk dumped, but it cost someone somewhere. During winter’s two snows I worked with our local hauler and market field personnel to locate cleared roads and driveways so milk could be picked up. With that and my past experience with snowy weather while dairying in New Jersey, helping friends dairy in New York State while at college and some large snows while dairying in Livingston County, Kentucky I came up with some recommendations. By the way we were lucky enough to have never had to dump milk because of snow.

Clear your driveway and around milk house so hauler can get around and situated to pump out milk.

Don’t leave anything in the way of hauler picking up milk.

Communicate with your hauler and let him know if the road to your dairy and driveway are passable.

March - April 2015 • KDDC • Page 8

Get to know your Magistrate, County and State Highway Foreman and County Judge Executive. Create a good relationship with these folks and make them aware of the need for your milk to be picked up on time. It doesn’t hurt to explain that even though your dairy doesn’t look like other major industries in the county, each dairy cow contributes over $13,000 to the local economy each year. Let them know most dollars generated on the local dairy farm stays in the community.

Many haulers and milk market field personnel have expressed their appreciation for those that cleared their driveways and helped facilitate milk being picked up in unfavorable conditions. Unfortunately there was some milk dumped because the producers didn’t make an attempt to clear their driveways.

Those producers’ milk was paid for this time, but milk market personnel told me next time may be different.

If the producer doesn’t make an attempt to clear the way for his milk to be picked up there may be no compensation for the dumped milk.

D a i r y producers work extremely hard in snow and cold

weather to take care of their animals, get the chores done and harvest that milk. Let’s not have to dump it.

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from page 7 sugar available for silage fermentation or the microbes in the cow’s rumen.

Kernel processors or shredlage attachments on corn silage choppers allow silage to be harvested at a more advanced stage of maturity which increases corn kernel weight and starch content of the harvested crop. When properly spaced, the rollers cause damage to the kernels which helps increase ruminal starch digestion. Particle size of the forage component of the harvested corn crop is increased (3/4 in versus ½ in), decreasing reliance on long fiber from hay or straw in diets, and decreasing the number of corn cobs left unconsumed in the feedbunk. Research trials where either kernel processed silage or shredlage were fed resulted in 2 to 5 lb increases in milk production over feeding unprocessed silages. Forage testing laboratories are determining kernel processing scores to measure if the processor rollers are set correctly to result in adequate corn kernel damage. Currently, nutritionists are looking for a kernel processing score of 70 at harvest where 70% of the starch passes through a 4.75 mm sieve. Laboratories report that only 40% of the samples met this score. As corn silage ferments, starch digestibility increases, generally increasing 2% per month up to 6 months in storage. High moisture corn or snaplage also increases in starch digestibility for approximately 12 months after harvest. Thus, corn silage or high moisture corn fed shortly after harvest is lower in starch

digestibility than that fed at a later time. Rations need to be adjusted to take this change in starch digestibility into account to prevent ruminal acidosis, milk fat depression, or lameness problems when fed. In some parts of the US, extra inventories of corn silage are planned so that new crop is fed 4 months after harvest (after the first of the year) and allow for a cushion during drought years.

Bottom Line

The quality and yield of forages continue to improve.

Seed companies continue to develop improved varieties of corn, alfalfa, grasses and other forage crops which have lower water requirements, improved fiber digestibility, and plant characteristics for easier harvest and longer stand persistency. Targeted use of fertilizer, herbicides, insecticides, and fungicides have helped improved the quality and yield of harvested forages. However, timely harvest around weather patterns is still and will remain one of the critical pieces to harvesting quality forage and the cornerstone of profitable feeding programs. The best forage genetics cannot correct for late harvested forages and the resulting drop in forage quality, milk production, and dairy profitability. Today’s improvements in harvest management and better understanding of how to use these forages in diets for high-producing cows is part of the puzzle to optimizing profitability on US dairy farms.

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

Dixie Dairy Report Calvin Covington

April 2015 Commodity prices hold in March. March prices for butter, cheese, and nonfat dry milk powder were almost identical to February. At the CME, butter averaged $1.72/ lb. in March, down a penny from February. While the March AMS nonfat dry milk powder price was also down a penny from February at $1.02/lb. The March CME block cheddar price was $1.55/lb. which is up a penny from February.

What’s ahead for commodity prices? Much of the surplus milk production is heading to cheese vats, thus increasing cheese production. February cheese production was 4%

March - April 2015 • KDDC • Page 10

higher than a year ago. According to Dairy Market News, buyers are building cheese inventories, thus supporting the price. However, with increased surplus milk production look for a decline in cheese prices during the next few weeks. On the butter side, it appears retail sales were good during the recent Easter/Passover season. Plus, demand for cream products is strong, which takes cream away from the butter churns. February butter production was down almost 6% from a year ago. As fat percentages start declining, and warmer weather strengthens ice cream sales, look for higher butter prices. Nonfat dry milk powder is a different story. Unless exports improve, powder prices will stay weak.

During the past three weeks, the AMS nonfat dry milk powder declined $0.08/lb. falling below a dollar.

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

Milk Prices FMMO 5

www.malouisville.com March 2015 Class I Advanced Price (@ 3.5% BF) $18.96 April 2015 Class I Advanced Price (@ 3.5% BF) $18.90

FMMO 7

Milk production continues to increase. February marks the 14th consecutive month milk production has increased. February production was 1.7% higher than the same month a year ago. Cow numbers increased slightly to 9.312 million head. Michigan led the way in February with production up a strong 7.8%. Wisconsin saw its production up 4.3%. Out west, California milk production continues to decline with February production down 3.8%. No doubt California dairy farmers are seeing their margins shrink faster than the rest of the country. The national February allmilk price was $16.80/cwt. While the California all-milk price was only $14.72/cwt. In the southeast, Florida milk production remains strong with February production up 4.3%. Dairy Market News reports last week, 140 loads of milk shipped out of Florida compared to 104 loads the same week a year earlier.

Look for further declines in southeast blend prices. February blend prices in all three southeast federal orders were down over $1.00/cwt. compared to January. We project the March blend price in the Florida order to decline another $0.75/cwt., and blend prices down about $1.00/ cwt. in the Appalachian and Southeast orders. Our projections show little change in blend prices for the second quarter of the year. We do not anticipate any significant upward movement in blend prices until July.

was $7.9955/cwt. This generates a margin payment of $0.0045/cwt. for those who may have signed up for the top coverage rate of $8.00/cwt.

www.fmmatlanta.com March 2015 Class I Advanced Price (@ 3.5% BF) $19.36 April 2015

Lowest decline in number Class I Advanced Price of dairy farms since 1992. (@ 3.5% BF) Nationally, there were 45,344 $19.30 licensed dairy herds in 2014 which is only 1,616 fewer herds than in 2013. The ten southeast states had 2,655 licensed dairy herds in 2014, which are only 130 fewer herds than the previous year. This is the lowest decline since 1992 when record keeping began for the number of licensed dairy farms. No doubt higher milk prices were a major factor for the low decline between 2013 and 2014. Three southeast states, Florida, North and South Carolina showed no loss of herds from 2013 to 2014. Kentucky continues to have the most dairy farms in the southeast with 720. Virginia is second with 630 licensed dairy herds.

Margin protection program. The JanuaryFebruary margin, under the margin protection program,

March- April 2015 • KDDC • Page 11

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

KDDC Celebrates 10 Years of Serving Kentucky’s Dairy Producers KDDC Young Dairy Producers & KY Dairy Producers Conference 2015

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ere’s to another successful KDDC Young Dairy Producer Conference and Kentucky Dairy Partners Meeting. The annual event was held once again at the Sloan Convention Center in Bowling Green where the accommodations were first rate.

With 276 in attendance, the Young Dairy Producers Conference kicked off Tuesday, February 24 th with University of Kentucky’s Dr. Kenny Burdine addressing “Dairy Outlook, Utilizing the Margin Protection Program and the Livestock Gross Margin Dairy Program.” Next on the slate Dr. Jeffrey Bewley pinched hit for Dr. Jeff Weyers, who was iced in at the Dallas/Fort Worth airport. Dr. Bewley, a sought after speaker on the world dairy circuit talked about Cow Comfort and developing facilities that get the most out of your cows.

This brought us to lunch time and the opening of the Industry Trade Show where a record 58 exhibitors displayed their products and services. The afternoon session started out with Dr. Michelle Arnold, University of Kentucky Ruminant Extension Veterinarian talking about “Mastitis Diagnostic Options.” Known for his many articles in Hoard’s Dairyman and his enthusiastic presentations, Dr. Mike Hutjens, sponsored by Multimin USA, went through “Your 2015 Dairy Feeding Checklist.” The day was topped off with Dr. Victor Cortese, Zoetis, telling us about how to provide “Optimum Calf Management.” What a dynamic group of speakers to kick off the first day.

Tuesday night the Dairy Awards Banquet Keynote Speaker, Warren Beeler (KDA) gave a heartfelt inspiring message “Telling Your Ag Story.” Following Warren the Kentucky Milk Quality Awards sponsored by DPAK, Production Awards and Proficient Dairy Production Winner sponsored by KY Farm Bureau and KDDC, were presented to the top producers in KY. The winner for Top Quality Milk Producer was the Tony Compton Family of Adair County. The Top Production Herd in the State was Robey Dairy, Logan County with over 29,500 Rolling Herd Average per cow. The Kentucky Quality Milk Hauler Award, sponsored by DPAK and KDDC was presented to Mike Owen of Owen Transport Services.

Next the American Dairy Association of Kentucky and the Southeast United Dairy Industry Association presented the Kentucky Milk Promotion Award to life time dairy enthusiast and supporter, Larry Mutter of Barren County.

A special event that commemorated the 10 th Anniversary of the Kentucky Dairy Development Council followed the awards presentations. This part of the evening hosted by Maury Cox, KDDC Executive Director recognized the KDDC Board Members past and present that helped make

March - April 2015 • KDDC • Page 12

this producer organization a success. Roger Thomas, KDDC’s first Executive Director, came to the podium and raised a glass of refreshing cold milk and offered a toast to the future of a strong and vibrant dairy industry in KY. Mr. Thomas was honored for his lifetime of service to the KY Dairy Industry by being presented with a Bonnie Mohr print of “The Foster Mothers of the Human Race”, featuring the beautiful true type cows of each dairy breed. A large cake was also on hand to celebrate 10 years of KDDC’s commitment to the dairy producers of Kentucky. At the banquet’s conclusion the Industry Trade Show was open and enjoyed by all.

The Kentucky Dairy Partners Conference began Wednesday morning with Jeff Deener Pres. ADA of Kentucky/SUDIA with updates. Cheryl Hayn, SUDIA, spoke on Shaping Dairy’s Future: “Building Consumer Trust.” Up next Dr. Victor Cortese spoke on “Calf Immunology” followed by Dr. Chad Dechow, Penn State University whose topic was “Using Genomics and other Genetic Updates.” After lunch Dr. Christopher J. Cifelli, Vice President of Nutrition Research, National Dairy Council gave an interesting overview on “The Future of Dairy Food Research.” Next on the agenda Dr. Chad Dechow returned to talk about “Management Systems and Animal Well-being.” Last, but certainly not least, Calvin Covington, retired CEO of Southeast Milk, Inc. addressed a topic eagerly anticipated by all “2015 Dairy Outlook and Strategies.”

A dairy producer would have to travel a long way and pay a great deal to attend a conference with speakers as good as provided at this event. So if you didn’t attend this year make plans to be with us next year. The accommodations are great, the speakers are unequalled, the price is right while helping your dairy become as competitive as any in the country. Be there, next year.

Interesting Conference Facts:

276 – Attended Young Dairy Producer Conference 303 – Attended Dairy Partners Conference

Both Days: 100+ - Number of dairy farms represented 190+ - Number of dairy farm family members in

attendance 4 – States represented by dairy farmers 34 – KY Counties represented by dairy farmers 350-375 - Total attendees 16 – Number of States represented 4 – Number of Countries represented Silent Auction proceeds - $1591

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from page 1

manufactured milk associated with the market thereby raising the Class I utilization for the area. However market data from the SE Market Administrator seen below reveals that local milk continued to be displaced by out-of-area milk as suppliers seek to maximize revenues from favorable blend prices in the SE markets. The 2008 Order amendment did not positively influence a change.

numbers but in processing plants and milk handling farmer owned cooperatives as well. However, the Southeast milk shed has experienced a severe decline of dairy producers and raw milk production from inside the geographic boundaries of Federal Orders 5 and 7. Information from FMMO 5, “Producer Milk by State and County”, shows there were 2,678 producers listed as farms located in counties within the Appalachian The pooling of excessive amounts of out-of-area milk on the SE Order which pooled milk in May of 2000. Comparably for May of 2014 Orders will continue as long as diverted milk delivered to distant that number had plummeted by 52 percent to 1,293. An article on page manufacturing plants is priced at the SE market blend price. For 155 of the March 10, 2015 issue of Hoard’s Dairyman substantiates this example, the Federal Order 7 blend price payable for milk qualified point when looking at Federal Orders 5 and 7 together: in Nashville, TN, diverted to Coopersville, MI in Federal Order 33, “Outside of the Midwest, the Southeast was the only other region to for January 2015 was $3.42/hundredweight more than the blend price see the most departures in the past 12 years on a percentage basis leading that category 10 times. Since 1992, the Southeast Appalachian Order 5 Southeast Order 7 has lost more operations than any other area as 2007 Class I utilization percentages 70.25 68.25 farms fell from 12,057 to 2,900 . . . a drop of 9,157 2012 Class I utilization percentages 67.98 66.45 or 76 percent. Cow numbers followed suit; there 2013 Class I utilization percentages 67.12 68.13 are 702,000 fewer cows, a 56 percent drop.”

67.63 67.69 Comparably, according to the USDA/NASS 2014 Class I utilization percentages Annual Milk Production, Disposition, and Income (PDI), from 2009 to 2013, states located around or near the geographic boundaries of the SE Orders or are listed as regularly pooling milk on at the distant MI plant. This is a huge incentive to pool milk on the the SE Orders increased in cow numbers by 37,000 and increased in SE Orders drawing that difference on all diverted milk not servicing milk production by 5,354 million pounds during that time period. These the Class I needs of the SE Order and lowering the value of in-area states include Wisconsin, Illinois, Indiana, Kansas, Michigan, New produced milk. Diverted distant milk for manufacturing use has less Mexico, Ohio, Oklahoma, Pennsylvania and Texas. Why would the value to the qualifying pool market based proportionately to the distance greatest percentage of loss of dairy farmers in the U.S. be in an area that from the market and should be priced with that in mind. Local or presumably has the second highest (behind Florida) “mailbox” price in in-area milk should have one advantage over distant milk… its closeness the nation? Why are states surrounding FMMOs 5 and 7 increasing in to the market. cow numbers and milk production while the SE and Appalachian Orders Transportation Credits. Also amended in 2008, T-Credits were continue to decrease? increased in FMMOs 5 and 7. The SE Order increased to $0.30 per These questions regarding the undeniable facts of the SE milk hundredweight on all Class I milk in the Order. The use of T-Credits market’s sharp decline can be answered by looking at regulatory rules should be limited to securing and delivering needed supplemental Class which directly impact SE producers’ milk checks. They have resulted in I milk.

Even so, they are also being used to subsidize the qualifying of a devaluing of locally produced milk and lowered blend prices for all SE additional producers’ milk on the SE Order allowing them to then draw pool producers. the blend price when and if the milk is diverted for manufacturing use.

Qualifying or “touch-base” standards for pooling milk on the This practice is a double whammy to in-area SE dairy farmers. The Order: This amendment adopted in the 2008 ruling lowered the Class I price is devalued while the blend price is lowered by decreasing standard to one-day’s production for both FMMOs 5 and 7. As a result, the producer revenue pool. it makes it easier to associate more individual producers on the SE These three regulatory issues when combined and used in conjunction Orders and pull dollars from the revenue pool when those producers’ have moved an unbelievable amount of revenue away from the FMMOs milk is diverted to manufacturing plants near them. In essence, one-day’s 5 and 7 in-area dairy farmers. It has adversely affected a region’s dairy production of milk can be moved from a distance, (using Transportation producers (small business entities) which should be flourishing and Credits; to be discussed later) capture the higher price for the whole growing in cows and milk production. This is not a difficult thing to see month’s production and then divert the rest of the month’s milk to a but the remedy would again take the rules’ amendment process. nearby manufacturing plant. These dollars are pulled directly from the The KDDC Board refers to the “complaint” submitted by the Maine SE producers’ revenue pool. While the supposition of tightening milk Dairy Industry Association: diversion standards, (addressed below) could relax the “touch base” days, “In summary, the [MDIA] Board determined that the comment the ultimate result has been the displacement of local milk in Orders 5 should represent that the most significant change that could emerge and 7 with additional distant milk meeting qualifying pool standards. At from this review process is an improvement in Dairy Program’s the least, qualifying standards should return to the pre-2008 decision. procedure for amending the FMMO rules, to allow for more input from Milk Diversion Standards: Milk diversions are a means of reserving producers and for more responsive and timely change.?

Although the MDIA is not addressing specific Order issues, it extra milk over and above the normal daily market demand in case is agreed the rules’ amendment process leaves many small dairy additional milk is needed. It also provides an opportunity to draw farmers disenfranchised from the process. Rulemaking should be the qualifying market’s (SE) blend price on milk diverted to outdone in the open with more transparency allowing more producers of-area manufacturing plants. This item was amended as well in to have input rather than a few determining the outcome for all.

2008, by tightening the percentage of milk pounds a handler could Thank you. divert. The purpose of this amendment was to lower the amount of

March - April 2015 • KDDC • Page 13

Bring your family to

“Dairy Night” at the Ballgames!

Thursday, June 11 - 7:05 p.m.

(deadline to order �ckets ‐ June 2)

Thursday, June 25 - 7:05 p.m. (deadline to order �ckets ‐ June 17)

- 4 - free tickets per dairy farm family (tickets sponsored by Endovac/IMMVAC)

- 2 - free dairy t-shirts per dairy farm family

(t-shirts sponsored by SUDIA/ADA of Ky)

All other tickets are $7 & payable at the ballgames To order �ckets, contact: Eunice Schlappi at 502‐782‐4122 (leave message) or email at eunice.schlappi@ky.gov

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

Three Ways to Prevent Animal Mistreatment Peggy Coffeen, Editor, Progressive Dairyman It takes only one.

One employee. One video camera. One YouTube post. One minute to destroy a hard-earned reputation.

The risks dairymen face today go far beyond crop failure and commodity market volatility. Producers are tasked with protecting their livelihoods from agenda-driven activists trying to sneak through the door and onto our dairies.

Hiring trustworthy employees who will uphold animal treatment standards is not just a human resources concern. It is truly a “risk management issue,” according to attorney David Crass of Michael Best & Friedrich LLP. He challenged dairymen to re-think their risk management strategies to protect their greatest assets at the Dairy Business Association’s Access Symposium, held in Green Bay, Wisconsin, February 18-19.

“You have many business assets,” he explained. “Your livestock, your employees, your name, your good will and your ability to continue to participate in the industry.”

The reality is that you could be one video away from losing it all.

“You are ultimately responsible for what happens on your farm in the court of public opinion, if not in the court of law,” Crass stated.

These viral videos could potentially open the door for further risks. Crass foresees the Occupational Safety and Health Administration (OSHA) and other employee justice groups latching onto animal mistreatment issues as indicators of an unsafe workplace. Such groups may use these cases as a “regulatory hook” to get into an operation and attack the farm itself.

With so much at stake, minimizing employment risks should be top-of-mind for dairymen. Crass offered three risk management steps for hiring and managing employees: 1. Conduct a thorough interview and screening process for any potential employee that walks through the door.

Take the time to contact past employers, conduct background checks and search court records. If something doesn’t seem right, do not dismiss it.

“Trust your gut,” Crass said.

Don’t stop there. A social media search can open a window to the personal life of an applicant. Check out the individuals and groups the applicant associates with on Facebook and Twitter, keeping an eye out for known activist groups.

While Equal Employment Opportunity Commission (EEOC) laws prevent employers from discriminating employees based on such factors as race, religion, sex and age, they can make hiring decisions based on their association. In some states, it is legal to request an applicant’s Facebook username and password.

Even after an employee clears the red tape and comes on board, continue to routinely check social media activity and criminal history.

2. Establish employee training and policies.

“If you don’t already have an employee training program and an employee handbook, you absolutely need one,” Crass told dairy producers.

These company documents become the standards by which the employer can judge employee performance, and they also become the record against which employers may take termination or disciplinary action without the threat of EEOC. Through training and policies, Crass encouraged dairymen to create a “culture of compliance” by elevating the importance of humane animal handling.

Include a training section specific to the topic, and require mandatory reporting if an employee observes someone else violating the policy. This means that a person who witnessed the unacceptable activity but chose not to report may be deemed as guilty as the perpetrator.

Crass also emphasized a strict “no cell phone” policy among employees.

“There is absolutely no reason, in my view, to have a personal cell phone or recording device in the workplace,” Crass stated.

No cell phone policies are common among companies who want to protect their trade secrets, such as those in the manufacturing industry. Often, cell phones, video recorders and cameras are not permitted, but some employers choose to allow devices in designated areas.

The same cell phone policies may be applied to visitors or vendors on the dairy.

When safety on the job is a concern, two-way radios can be used in place of cell phones.

3. Create a culture of swift and decisive enforcement.

Have a zero-tolerance policy for misconduct and back it up, recommended Crass.

Applying this attitude can mean that a good employee is reprimanded or removed from a position as a result of a violation. While these situations are not easy, they serve to send a message that management takes policy infractions seriously.

The presence of managers in the barn and around the dairy is critical, Crass added.

Human behavior changes when people know they are being watched.

Random walk-throughs are a good way to keep an eye on employees. Some may choose to take it one step further by installing video surveillance. “The fact that cameras are present will have an effect,” he noted.

Crass emphasized that additional rules and policies are not intended to deter loyal and responsible employees, but rather to make it more difficult for activists to find and exploit abusive animal treatment.

“Remember, what we are not trying to do is harm our good employees,” Crass said.

“These people that are infiltrating are doing so with a specific purpose in mind.

They are not going to spend three years in a frustrating situation not getting what they want.”

March - April 2015 • KDDC • Page 15

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from page 5 Average on Females=$2,360.00 Average on Bulls=$650.00

Jersey Summary Sale Managed By: Jersey Marketing Service; Jason Robinson, Craig Padgett Grand Champion: Lot # 44, Joeleebeth Nevada Karmel; Consigned by Brian Call, South Charleston, OH and purchased by Jason Nagel, Panama, NY for $6500.00.

Res. Grand Champion: Lot # 34, Triple S Tequila Limearita; Consigned Samantha Ropp, Strawn, IL and purchased by Dements Jerseys, Kenny, IL for $4000.00.

Jr. Champion: Lot # 11, DKG Tequila Betsy; Consigned

by Greiwe Family, Sidney, OH and purchased by Jason Nagel, Panama, NY for $4000.00.

Res. Jr. Champion: Lot # 12, Showdown Shasta; Consigned by Bonnie Sue Rider, Upton, KY and purchased

by Ann Vostad, Volga, SD for $3000.00.

Number of Total Lots Sold= 54 (live) Sale Gross= $131,150.00 Average=$2,289.00

Ayrshire Summary Sale Managed By: KY Ayrshire Cattle Club; Billy Branstetter, Jimmy Barlow, Glen Sageser

Kills on contact E.coli

Grand Champion: Lot # 8, Mill-Valley Jester’s Beauty; Consigned by the Greiwe Family, Sidney, OH and purchased by Kaylee & Kenna O’Malley, Ladysmith, WI for $2000.00.

Reserve Grand Champion: Lot # 29, Daltondale Dyno Marcia; Consigned by Kailey Barlow, Scottsville, KY and sold for $2500.00.

Jr. Champion: Lot # 16, Lazy M Free Beer Jazz; Consigned by Michael Maier, Stitzer, WI and purchased by Payton G. Towe, Scottsville, KY for $2600.00.

Res. Jr. Champion: Lot# 14, Emerald-Farms Zippy Rose; Consigned by Fenton Bros., Winchester, OH and purchased by Charles Thomas Branstetter, Edmonton, KY for $1600.00.

Milking Shorthorn Summary Jr. Champion: Lot # 37, Mt. Laurel Chance; Consigned by the Padgett Family, Waynesburg, KY and purchased by Taylor Graves, Parksville, KY for $4200.00.

Res. Jr. Champion: Lot # 38, Lazy M Jekyll Zana; Consigned by Michael and Herman Maier, Stitzer, WI and purchased by Jeremy Kinslow and Kelsey Smith, Smiths Grove, KY for $3600.00.

Number of Lots Sold= 34 (Ayrshire + Milking Shorthorn) Sale Gross= $71,000.00 (Ayrshire + Milking Shorthorn) Average= $2,091.00 (Ayrshire + Milking Shorthorn)

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

Congratulations to all of the winners at the Kentucky National Show & Sale!

March - April 2015 • KDDC • Page 17

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

March - April 2015 • KDDC • Page 18

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

S P E C I A L

Allied Sponsors Platinum Alltech Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Dairy Products Assoc. of KY Farm Credit Mid-America IDEXX Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Mammoth Cave Dairy Auction MultiMin USA Organic Valley Prairie Farms Whayne Supply Zoetis

T H A N K S

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Ag Central Animal Health Management Services Arm & Hammer Animal Nutrition CROPLAN Genetics IDEXX Kentucky Nutrition Service Land O’Lakes Mid-South Dairy Records Neogen Select Sires MidAmerica (KABA)

O U R P L A T I N U M S P O N S O R S

Silver CPC Commodities Dairy Express Services Grain Processing Corp.

Kentucky Veterinary Medical Assoc.

Luttrull Feeds Owen Transport Smith Creek, Inc.

Bronze

Mammoth Cave Dairy Auction

ABS Global Advantage Hoof Care Bagdad Roller Mills Chaney’s Dairy Barn Clark Dairy Supply Cowherd Equipment Double “S” Liquid Feed Genetics Plus Hartland Animal Hospital Hartland Equipment Hinton Mills IMMVAC, Inc. Logan County Animal Clinic Owen Trucking Company STF Consulting Wilson Trucking

March - April 2015 • KDDC • Page 19

Non-Profit US Postage PAID Boelte-Hall LLC

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

2015 Dairy Calendar of Events April 2015 April 25

4-H Dairy Cow Camp, Mercer Co., Time TBA

May 2015 May 3 Derby Show Case, Lake View Park, Frankfort, KY 2:00P.M. May 5 Rockcastle Co. Farm Field Day, Quail Community Park May 16 Dairy U: Know Before You Show, Burley Fields Livestock Center May 17-20 Alltech REBELation Symposium –Lexington, KY May 22 KDDC Board Meeting – Hardin Co. Extension Office – 10:00 A.M. ET May 30 Mercer Co. June Dairy Day Kick-off – Breakfast at

Cloud’s Restaurant, 7:00 A.M. June 2015 June 6 Harrodsburg 4-H District Dairy Show, Mercer Co. Fairgrounds 9:30 A.M. June 8-9 KY Junior Livestock Expo East, Morehead June 11 Dairy Night at the Lexington Legends – 5:00 P.M. June 13 Laurel Co. June Dairy Day June 13 Edmonton 4-H District Dairy Show, Metcalfe Co. Fairgrounds10:00 A.M.CT June15 State 4-H Dairy Judging Contest, U.K. Coldstream Dairy 9:00 A.M. June 17 Liberty 4-H District Dairy Show, Casey Co. Fairgrounds, 10:00 A.M.

Milk Matters March - April 2015

June19-20 Western Rivers KY Junior Livestock Expo, William

”Bill” Cherry Ag/Expo Center, Murray June 25 Shelbyville 4-H District Dairy Show, Shelby Co. Fairgrounds, 9:00 A.M. June 25 Dairy Night at the Bowling Green Hot Rods – 5:00 P.M. June 26 Adair Co. Dairy Appreciation Dinner, Fairgrounds, 6 P.M. June 27 Adair Co. June Dairy Day on the Square , Columbia June29-July 01 KDDC Young Farmers Dairy Tour to Tennessee July 2015 July 10 Kentucky State Fair Livestock Entry Deadline July 11 Horse Cave 4-H District Dairy Show, Burley Fields

Livestock Center,9:30 A.M. CT July 17 Tri-County Dairy Meeting – Trenton Farm Supply, Todd Co. July 22 Tollesboro 4-H District Dairy Show, Tollesboro,11:00 A.M. July 24 KDDC Board Meeting – Nelson Co. Extension Office – 10:00 A.M. July 23-25 KY 4-H Junior Livestock Expo West, L.D. Brown Ag.

Center, Bowling Green July 29-30 Kentuckiana Dairy Exchange- TBA August 2015 August 19 Dairy Skill-a-thon and Pizza party – 7:00 P.M. New Market Hall August 20-30 Kentucky State Fair