KDDCNewsletterMarchApril

KENTUCKY

March - April 2017 w w w. k y d a i r y. o r g

Milk Matters

Supported by

Using Embryo Transer to Combat the Summer Fertility Slump?

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National Policy Information Find out more on page 16

2017 - Dairy Awards Banquet

By Maury Cox

T

wo years ago it was decided to hold the Dairy Awards Banquet during the first evening of the Young Dairy Producer conference and the Kentucky Dairy Partners Meeting. The meetings held in February every year has proven to be a good decision, based on the full dining room.

Award recognition includes the top official DHIA milk production herds for the state and the 12 districts of the KDDC. A special proficiency award is also given which incorporates multiple factors calculated through DHIA. The 2016 Milk Production winner was Scenic View Dairy, Kenneth and Matthew Horst, Waynesburg, KY with 33,061 lbs. of milk and 1,160 lbs. of fat. The top herd RHA Milk for a non-Holstein herd was Fairdale Farm, the Richard Sparrow Family from Owenton, KY with 26,346 lbs. of milk

Live Auction bidders and members of the Spencer County FFA dairy Judging team. Fabian Bernal, Dr. Charles Townsend and Wife Rhonda, Tony Cowherd, David Newlin, Billy Komar, and Larry Aerosmith.

and 1,115 lbs. of fat. The Proficiency Award went to Scenic View Dairy as well. This year’s awards saw two KY herds exceed 30,000 pounds of milk RHA. Special thanks go to Kentucky Farm Bureau for sponsoring the monetary awards every year to the production award winners.

Milk quality is also recognized with 10 producers being nominated for low somatic cell counts and bacteria counts. Monthly official tests for both criteria were calculated and then averaged for the month to decide the winner. Several herds were under 125,000 SCC while the state winner was under 100,000. The 2016 winner was Adam and Angela Ping, Ping Dairy from Eubank, KY. Second place was Roger Lawhorn, Lawhorn Dairy from Columbia, KY. There are many in the dairy industry that brings attention to the promotion of dairy products. Each year the American Dairy Association of KY singles out one person that has spent a lifetime of promoting dairy and dairy products and making a significant Cont’d on pg. 12

Special thanks to the Kentucky Farm Bureau for their sponsorship of the KY Dairy Production Awards. Pictured above is the Top Herd, NonHolstein winner, Fairdale Farm. Richard Sparrow, KDDC President; Joe Sparrow, Fairdale Farm; and Terry Rowlette, KY Farm Bueaeau.

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 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

R

ecently, two events have driven home to me the true cost and effect of the decreasing number of Kentucky dairy

farms.

The first occurred on a Monday morning in March, as I prepared to sanitize the milking system. There was only a terrible silence after

I flipped the switch on the vacuum pump. I checked the electrical breakers, pushed the reset button on the motor, but still nothing. I called my milking equipment dealer at 5:30 a.m., and the service man rolled into the driveway at 8:30 a.m. He installed a new motor, and we started milking about 10:30 a.m. I’m not sure who was more irritable that day, me or the cows.

The same week, my milk hauler told me that my haul rate will increase 26% on April 1. I know it sounds like I am complaining, but I’m not. As more and more Kentucky dairymen have quit, it has put a real economic

strain on the dairy infrastructure in our state. I know we still have some concentrated areas of dairies in Kentucky, but in some locations dairies are isolated. Milk haulers have to drive more miles between stops in order to fill a truck, and many dairy related services have consolidated their operations to reduce costs.

Really, the thing that worries me the most is this situation is only going to get worse. Dairy farm numbers in Kentucky are going to continue to drop, and the businesses that service our dairy farms will face greater hardship and costs in providing that service.

Your Input Is Needed

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

March-April 2017 • KDDC • Page 2

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 859-5162458 or email @ kddc@kydairy.org

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

Executive Director Comments Maury Cox

Dairy Cattle Stewardship

R

ecently, I attended a Dairy Stewardship Seminar sponsored by Dean Foods and Merck Animal Care in Cave City, KY. The National Farmers Assuring Responsible Management, (FARM) Program was presented.

Several topics were discussed including: Euthanasia, Down Cow Care, The Economics of Lameness, Disbudding and dehorning, Developing Standard Operating Procedures (SOPs) for your farm and updates on the Vet-Client Relationship. It was an excellent program and was well attended

by KY dairy producers.

The National FARM Program was created in 2009 by dairy farmers, cooperatives and processors across the United States. The FARM website explains that the program protects the U.S. milk market by providing proof points to help illustrate the high level of quality care provided to animals and environmental stewardship on our nation’s

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dairy farms. Dr. Karen Jordan, veterinarian, dairy producer and Chair of the Technical writing group for the FARM Program 3.0 update explains that FARM is the vehicle to avoid having to navigate multiple programs for every milk buyer. Well cared-for cows are essential to a farm’s future – only healthy cows produce high quality and quantities of milk, the lifeblood of every dairy. FARM brings together all sectors of the industry -- farmers, processors, veterinarians and more -- with the goal of facilitating a productive and viable dairy industry for years to come.

The National Dairy FARM Animal Care standards are reviewed every three years. These standards make up the Animal Care Manual and are what influence the on-farm Animal Care evaluation. The FARM Program offers third party evaluations on the farm to validate that specific care is provided in a uniform manner. This provides the metrics that companies such as Walmart, Costco, Starbucks, McDonalds and Hershey want to see because the end-users want to know what is happening at the farm. It also allows producers a consistent program while providing accountability to customers and consumers. The Cave City meeting offered an educational module for dairy producers.

Although each topic on the program was beneficial, the developing of SOPs for one’s farm is probably the most important place to begin. This is where the farm owner and family members and even employees can contribute in developing protocols or “what/if/then” steps for specific issues that can occur on the farm. To simulate this at the meeting, the audience of producers was divided into four groups and suggestions and ideas were written on post-it sheets placed on the walls. The SOP topic discussed was how a “down cow” would be handled. Of course, it was evident the dairy farmers in the room knew how to address this situation and exactly what to do. That wasn’t the point of the exercise.

By using the suggestions from the audience and writing them down, a flow chart or “what/then” protocols were established. This formulated a clear plan of action desired by the farm owner. This is especially helpful when hiring and training new employees making the process much clearer and understandable. It also provides a basis for disciplining of the employee in the event the protocol is not followed. By posting these SOPs at the dairy facility, the need for the owner to be present in every situation is minimized and employees know exactly what is expected.

We live in a different world today. As more and more people become removed from the farm and rural life, the need to communicate what happens on the farm and how proper care for livestock is defined becomes even more important. True dairy cattle stewardship is often misunderstood by today’s consumers and even those that purchase the products farmers produce. Dairy Animal Care education is a big deal not just for farmers but for consumers as well. However, as Dr. Jordan commented at the National Dairy Leaders Coalition meeting in Bowling Green, KY in November, “The FARM Program is not a marketing tool; it is the right thing to do.” This is understood by dairy farmers. For most of them, that is exactly what they’ve been doing their entire dairy farming career. Now, there is a program that can communicate in tangible ways, the consistent, excellent care dairy farmers provide to their livestock.

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Six Degrees of Separation

By Jim Dickrell November 28, 2016 | 4:23 pm EST- reprinted from Dairy Herd Management, Online Photo by Wyatt Bechtel

S

tudy finds for every 100,000 increase in bulk tank somatic cells, milk production drops 5.2 lb. per cow per day.

A large, on-going study of Midwest dairy herds show six factors separate top herds from their peers.

Zoetis teamed up with AgStar Financial Services to look at 90 variables in the management and financial records of 90 Midwest herds starting in 2006. The herds range in size from 500 to 4,715 cows, with an average of 1,045 lactating animals. The herds are based in Ohio, Michigan, Wisconsin, Minnesota and South Dakota.

The study found some farmers are consistently better managers, day after day, year after year. But after crunching the numbers, Zoetis statisticians found just six factors account for 85% of variation in farm profitability, says Mike Lormore, Director of Cattle Technical Services for Zoetis.

Findings from the on-going study, now in its 11th year, aren’t rocket science. But herds which perform well in these factors are being propelled forward by healthier cows, higher profits and likely greater staying power.

“Some of the things we always thought were important are being confirmed,” says Steve Bodart, Principal Business

March - April 2017 • KDDC • Page 6

Consultant with AgStar Financial Services. “We’ve talked about some of these things, such as net herd replacement costs, year after year after year. This study gives us the ability to reinforce the message with producers.”

“Even though the study focuses on larger herds in the Midwest, the principles and concepts are applicable everywhere and apply to everyone,” Lormore adds.

So what are the six factors?

Somatic Cell Counts

One of the biggest drivers of profitability found in the study was milk quality and somatic cell counts. The differences among herds weren’t large. The highest one third of profitability herds have bulk tank SCCs that average 196,000 cells/mL while the lowest one third of profitability herds had SCCs that averaged 239,000 cells/mL. But the high herds average 91 lb/cow/day of energy corrected milk versus 72 lb/cow/day for the low herds. On an annual basis, that translates to $1.14/cwt in more profit, or for the average size herd in the study, $115,000 more net income.

And here’s the stunning finding of the study: For every 100,000 increase in bulk tank somatic cell count, milk yield declines 5.2 lb. Work done in the 1980s by George Shook at the University of Wisconsin showed milk loss was about 1.3 lb. for every 1 point increase in linear score for individual cows.

But this new data suggest the effect is much greater. That’s probably because milk production per cow is nearly double that of 30 years ago, and we know mastitis also impacts other aspects

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

of health, reproduction and culling. “The death rate is much higher in high cell count herds, and you get more milk with lower cell counts because your cows live longer,” Lormore says.

“Managing SCC for profitability has nothing to do with SCC premiums,” he emphasizes. “The premiums you get from the co-op are irrelevant to the profit truly achieved through aggressively managing cell counts.”

Energy-corrected milk

It seems a given that more milk per cow means more profit. Achieving that higher production, however, is correlated with healthy cows.

Lower cell counts, death losses, feed costs and days open are all hidden but important drivers of milk per cow. In other words, healthy cows produce more milk. The profit difference between the top and bottom third of herds is $1.44/cwt, or some $85,000 of profit per year.

This is largely due to production efficiency, commonly described as ‘marginal milk.’ All cows must eat a certain amount of feed simply for body maintenance. Once that requirement is met, this maintenance requirement becomes a smaller portion of her total feed bill as she produces each pound of additional milk.

Death Losses Cows die. That’s a given on dairy farms, but the study shows their risk of dying varies from farm to farm. “Death loss is really a proxy for animal health and husbandry skills,” Lormore says.

The top one-third of herds with the lowest death losses were 86¢/cwt more profitable than the lowest one-third of herds. That translates to $70,000 per year more income.

Heifer calf survival rate is an important factor. “Everything you do early in life, from vaccinating the dam to getting colostrum into calves, is important,” says Lormore. Then, transition cow management is critical to cow survival in the first 60 days of lactation. There is also a high correlation with death loss and net herd replacement costs.

Net herd replacement cost

The net herd replacement cost (NHRC) is defined in the study as number of cows removed from the herd times their replacement value minus the salvage value of culled cows (including dead cows) divided by the amount of milk shipped during this time period. As NHRC increases, profits decrease.

The herds with the lowest NHRC were seeing $2.04/cwt more profit than herds with the highest NHRC, or some $60,000 more profit per year. The herds with lowest NHRC were also seeing 10

lb. more milk per cow.

Herein lies another important lesson. Herds with high culling rates have a higher proportion of first and second lactation animals.

But these younger cows don’t produce nearly as much milk as mature animals. A second lactation cow will produce 15% more milk than a first lactation heifer, and third lactation cow will produce 10% more milk than a second lactation animal.

By culling cows early, farms are giving up tremendous volumes of milk each and every day, says Lormore. “You’re making a ton more money if you have more aged cows in your herd,” says Lormore. “As an industry, we need to move from an average age of 2 ½ lactations in herds to 3 ½ lactations to get to more optimal profitability levels.”

Some will argue that when cull cow prices are high, it doesn’t cost anything to replace cows because high beef prices offset heifer raising costs. “That’s wrong,” says Lormore. “Every time you cull an aged cow, it costs you a lot of money and time to get her replacement to the same point of production.”

Lower prices for cull cows are now reinforcing that point, says AgStar’s Bodart. Those herds that have a lower culling rate and a higher proportion of older cows in the herd are not feeling the loss of lower beef prices nearly as much as herds reliant on cull cow income.

“The message is that we want more of the right kind of heifers in the first place, and we need to keep them in the herd as long as possible,” he says.

Pregnancy rates

The data on pregnancy rates is limited, but preliminary results show higher pregnancy rates drive higher profits to the tune of about $50,000 per year or $50 per cow per year.

Higher profit herds are also spending more on semen which makes sense, says Lormore. If cows are more likely to get pregnant at each insemination, farmers are more willing to spend money on higher-value semen. That, in turn, perpetuates their advantage in future generations of the herd.

Heifer survival

All of the herds in the study were doing a good job of raising heifers. The high profit herds, however, were doing a bit better with heifer survival rates averaging 95%. Low profit herds had an average heifer survival rate of 93%.

Note: This story appears in the December issue of Dairy Herd Management.

March - April 2017 • KDDC • Page 7

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

KY Division of Water - No Discharge Permit Renewal Notice

A

ny place where animals are kept for feeding or other maintenance for at least 45 days per year and crops are not grown is considered an animal feeding operation, or AFO. When keeping many animals in one area, their waste can build up. There are many options on how to handle that waste, but it falls into two main types: dry waste handling systems and liquid waste handling systems. Dry systems include covered stack pads for beef manure, barns containing horse muck, and chicken houses that store litter. Liquid systems may include manure storage pits below hog barns, holding ponds for cow waste and milk house wastewater, or exposed stack pads for beef cattle manure.

All AFOs that use a liquid waste handling system are required to get a Kentucky No Discharge Operational Permit (KNDOP). Any AFO using a dry system, or not using an animal waste handling system at all, does not have to get this permit.

Under the KNDOP, an AFO cannot release wastewater into the Waters of the Commonwealth. This includes all rivers,

streams, creeks, lakes, ponds, reservoirs, springs, wells, marshes, or other bodies of surface or underground water.

Since all small and medium AFOs have similar wastes and handling systems, they are covered by a general KNDOP. This permit was renewed in October, replacing the one that expired last February. Large AFOs with liquid handling systems are not covered under the general permit; they must get individual permits that are specific to their operation.

While renewal does not change anything about the permit, all AFOs covered by the old permit must reapply to be covered under the new permit. Any AFOs that use a liquid handling system and were not under the old KNDOP should also apply for coverage under the new permit. This should be done as soon as possible to avoid operating without a permit.

To apply or reapply for the KNDOP, an AFO must submit a completed Short Form B to the Division of Water. The form is available online at www.water.ky.gov. The Short Form B asks for general information about the facility, the types and number of animals, and the methods of waste storage used. There is no fee for a KNDOP. If you have any questions, please contact the Division of Compliance Assistance at 502-564-0323 or envhelp@ky.gov.

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Using Embryo Transfer to Combat the Summer Fertility Slump

by Dr. George Heersche

University of Kentucky - Dairy Extension

H

igh producing dairy cows experience heat stress at a much lower temperature than most other animals so Kentucky dairy cows spend many days of the year somewhat heat stressed regardless of all our efforts to keep them cool.

One of the costly impacts resulting from heat stress is decreased reproductive performance. Heat stress hinders reproduction in several ways: 1) reduced intensity of standing heat, 2) changes in follicle development over time which negatively influences oocytes, 3) lower fertilization rates, and 4) lower embryo survival.

An interesting question is: Can we work around this negative impact by collecting embryos from donor cows or creating embryos by in vitro fertilization in cool months to freeze and transfer in the summer instead of inseminating cows?

Research results have been variable, but generally have shown that embryos collected from non-heat stressed donor animals result in a higher rate of pregnancy when placed in heat stressed cows compared to the conception rate achieved for cows inseminated in the summer.

Embryo transfer is more expensive than artificial insemination so the next question is: Is it a good investment to use frozen embryos

instead of artificial insemination to get cows pregnant in the summer?

Experts at the University of Florida have done some number crunching to answer this question. They compared the net return per milking cow in the herd for AI with conventional semen at $20 per straw to embryos produced with sexed semen and costing $60 or $90 for each embryo transfer.

When the cost of embryo transfer (ET) per cow is $60 and the fertility for ET is 150% of AI (30% for ET and 20% for AI), the return is $11. When the fertility for ET is 200% of AI (40% for ET and 20% for AI), the return is $42. At an embryo cost of $90, the return is -$10 when the fertility is 150% of AI and $21 when the fertility is 200% of AI. These returns do not include the increase in net merit that can be expected when using sires with high estimated breeding values.

A good bit of the economic advantage came from keeping mature cows in the herd which produce more milk than first lactation cows.

The bottom line is using ET in the summer instead of AI is not currently a big economic boom for most Kentucky dairy farmers.

That said, as the success rate for pregnancy from embryos produced by in vitro fertilization continues to improve and the cost of those embryos decreases this is a strategy we should keep on our radar screen.

March - April 2017 • KDDC • Page 9

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

Dairy Situation and Outlook

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

April 2017 Sixth consecutive month production increases more than 2%. February milk production (adjusted for Leap Year) was 2.3% higher than a year ago. February marks the 38th consecutive month, month over month, production has increased. This is the sixth consecutive month the increase exceeds 2%. The nation’s dairy herd, at the end of February, was 56,000 head greater than a year ago and 4,000 head more than last month.

Texas and New Mexico show the greatest production increases, up 17.8% and 13.5%, respectively, for the first two months of this year compared to the same period last year. Both states appear to be recovering from the “Goliath” winter storm. Both the Northeast and Midwest continue to produce more milk. For the first two months of 2017, production is up 3.8% in New York, 2.4% in Pennsylvania, and 4.3% in Michigan. The nation’s number one dairy state, California, continues to produce less milk than a year ago. In number two, Wisconsin, production is slowing, only up 1%.

The ban on use of rBST, by most of the state’s milk buyers, could be lowering production.

For the two southeast reporting states, Florida and Virginia, February 2017 production was almost the same as last February. For most of 2016, month over month production declined in these two states.

At the end of February, both butter and nonfat dry milk powder inventories were 20% higher than last February.

American cheese inventory is up 8%. The February butter inventory is the highest February inventory in over 20 years.

All indications point to more milk for the foreseeable future. Average margins above feed cost are running $3-$3.50/cwt. higher than a year ago. Through March 11, about 45,000 less dairy cows were slaughtered. The flush season is yet to come. Lack of markets may be the one item that slows milk production. In many parts of the country no cooperatives or plants are adding any new milk, and some are discouraging milk production increases from current

March-April 2017 • KDDC • Page 10

producers. In Wisconsin, a major milk buyer gave thirty day termination notices to 75 producers. Loss of a major customer was the reason given for the terminations. .

Commodity prices. The past six weeks saw up and down movement in CME cheese prices. Block cheddar began March at $1.49/lb., but declined to $1.36/lb. by the middle of the month. Now it is back up to $1.49/lb. Barrels saw a similar pattern dropping from $1.46/lb. to $1.35/b. then back up to $1.435/lb. Reports indicate buyers saw opportunities at these relative low prices to build inventories, thus pushing prices back up. More than ample cream supplies have pushed the CME butter price down about a dime during the past month.

On the powder side, the March AMS nonfat dry milk powder price was $0.85/lb. This is the lowest price since last July. Heavy milk volume and the large European Union powder inventory are putting downward pressure on powder.

Plus, Mexico, who in 2016 purchased about 20% of the total U.S. skim/nonfat milk production, has been “quiet” in the market, according to Dairy Market News. To date, dry whey is a different story. Since last July the AMS dry whey powder price has almost doubled, averaging $0.52/lb. for March.

Demand has been strong, and inventories tightening. We have to go back to January 2015 to find a higher whey price.

Each penny increase in the whey price increases the Class III price about $0.06/cwt. The higher Southeastern blend prices.

As shown on the attached spreadsheets we project March blend prices in the three southeastern orders to be similar to February. However, April blend prices are projected to drop about $0.75/cwt. f rom March with a further decline in May. We project blend prices to start inching up in June, then peaking in September and October.

Florida not the highest mailbox price. Since mailbox prices were published, Florida always had the highest annual mailbox price. This was not the case last year. The New England States with a 2016 average mailbox price of $17.27/cwt. are at the top of the list. Florida was second with $17.23/cwt. The Appalachian States were third and Southeast States eighth. The following table shows the top five mailbox prices in 2016 compared to their prices in 2015:

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

Milk Prices FMMO 5

www.malouisville.com March 2017 Class I Advanced Price (@ 3.5% BF) $19.85 April 2017 Class I Advanced Price (@ 3.5% BF) $19.45

FMMO 7 www.fmmatlanta.com March 2017 Class I Advanced Price (@ 3.5% BF) $20.70

Blend prices versus mailbox prices. Comparing blend prices to mailbox prices provides a good indication of what is happening in a marketing area in regards to over-order premiums and marketing costs. A greater positive difference between mailbox and blend prices indicates strong over-order premiums and lower marketing costs. A negative difference indicates the opposite. The following table compares annual average mailbox and blend prices in the three southeastern federal orders from 2010 to 2016 to the mailbox reporting area best corresponding to the respective federal order.

The above table documents the economic impact to dairy farmers of declining over-order premiums, and higher marketing costs in

April 2017 Class I Advanced Price (@ 3.5% BF) $20.30

these three federal orders. Hopefully, this information will provide encouragement to dairy farmers to develop additional markets, improve marketing efficiencies, and restore over-order premiums.

Dairy farm numbers continue to decline. There were 41,809 licensed dairy farms in the U.S. in 2016, a decline of 1,725 herds from the previous year. Compared to 2000, there are 50% less dairy farms today. The southeastern states had a total of 2,355 licensed dairy farms in 2016.

March-April 2017 • KDDC • Page 11

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

difference by their work. This year’s winner is well known by everyone Baird has won the contest. The KDDC awarded the team $500 for throughout KY’s dairy industry. Eunice Schlappi, KY Department funds they are trying to raise to travel to Scotland this summer for the of Ag’s Dairy Marketing Specialist goes above and beyond as she international competition. Coach Baird was also recognized and given continues to demonstrate her love and passion for the KY dairy a large Hadley Potter Milk Pitcher for his work in coaching. industry.

Immediately following the judging team recognition, three items We also take time to recognize often the unsung heroes of the were auctioned off by famed auctioneer and GOAP Executive industry, our milk haulers. These folks work tirelessly starting early Director, Warren Beeler. Before the auction began, the KDDC in the morning and often not getting back home till late. These announced the proceeds from the auction would go to the Spencer drivers face may obstacles such as setting in delivery lines at the milk Co. FFA Team. The first item a KY Proud basket of goodies reached plants and driving in snow covered roads to pick up milk. They are over $900.00 and was bought by David Newlin, of AgCentral Coop. responsible for all dairy producers’ milk samples and making certain He immediately yelled, “Sell it again!” This went on for two more their equipment always meets inspection standards. This year’s winner sales before the bidding stopped. Total amount raised was $1,560.00. has hauled milk for over 43 years and has an immaculate quality I must say it was exciting and appreciated that the dairy industry record both with the KY Milk Safety Branch and the UK Regulatory responded so wonderfully.

Service. The 2016 KY Quality Milk Hauler is Richard James, with Warren Beeler gave closing thoughts on the strength and future Slayback Milk Transport, Williamstown, KY. The second place award of agriculture and dairy farming in KY. His words were inspiring as went to another 43 year milk hauling veteran, Alan Wilson with he pointed out we are doing more with less than we have ever done.

Alan Wilson Trucking from Somerset, KY. Only a couple of points Agriculture has a great future in KY, but we need to be telling our separated the two haulers’ record. Thanks for a job well done! story and sharing how much we care and do with others.

All award winners can be seen at the end of this article on page 13.

Kentucky dairy producers have come a long way in many aspects.

The KDDC also recognizes individuals that have dedicated The dairy industry has many special people involved that are a lifetime of work to the dairy industry. Dr. Jenks Britt, well- hardworking, upright folks making a difference in their communities know and beloved veterinarian, WKU professor and mentor to every day. It is good to take the time to recognize those achievements many was recognized for his service and dedication to KY’s dairy and celebrate together. industry. Likewise, Mr. Gordon Jones, owner of Stockyard Farm and Dairy in Louisville and Glasgow was recognized for his lifetime impact on the KY dairy industry. Known for their equipment and supply service, Stockyard Farm and Dairy installed many milking parlors over the years in KY and Southern IN. Also recognized for their achievement were the Spencer County FFA Dairy Judging Team which won the National FFA Dairy Cattle Judging and Management competition for 2016.

Top Quality Award presented by Richard This is the seventh time a team from Lifetime Dairy Promoter Award Presented by Denise Jones and Bill Sparrow to Adam Ping of Ping Dairy.

Spencer Co. FFA under coach Bland Rowe, Recipient Eunice Schlappi.

Quality Milk Hauler Award presented by Richard Sparrow to Richard James with Slayback Milk.

Lifetime of Dedication to the Dairy Industry Recognition was presented

by Richard Sparrow to Dr. Jenks Britt.

March-April 2017 • KDDC • Page 12

Lifetime of Dedication to the Dairy Industry Recognition was presented by Richard Sparrow to Mr. Gordon Jones owner of Stockyard Farm and Dairy Supply.

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

2016 KDDC District and Proficiency Awards

Top Herd – RHA Milk Overall

Producer RHA Milk Fat Protein KENNETH & MATTHEW HORST 33061 1160 969 SCENIC VIEW DAIRY WAYNESBURG, KY

Top Herd RHA Milk – Non Holstein RICHARD SPARROW 26346 1115 923 FAIRDALE FARM

OWENTON, KY Top Herds – RHA Milk by District District County Producer RHA Milk Fat Protein 1 CHRISTIAN DAVID WEAVER 26330 898 765

PEMBROKE, KY 2 LOGAN ROBEY FARMS 30836 1009 899 ADAIRVILLE, KY 3 BARREN BRIAN PEDEN 25789 822 756 PEDEN DAIRY GLASGOW, KY 4 METCALFE BILL CRIST 27351 894 798 EDMONDTON, KY 5 TAYLOR CORBIN BROTHERS 27216 937 827 CAMPBELLSVILLE, KY 6 CLINTON STEVEN YOUNG 25732 860 757

DOUBLE YY FARMS, ALBANY, KY 7 LINCOLN KENNETH & MATTHEW HORST 33061 1160 969

SCENIC VIEW DAIRY, WAYNESBURG, KY

8 FAYETTE UK COLDSTREAM DAIRY HERDS 24178 886 751

JOEY CLARK, LEXINGTON, KY

9 FLEMING WAYNE MARTIN 19554 706 607

MISTY LAKE DAIRY LLC, MAYSLICK, KY 10 OWEN RICHARD SPARROW 26346 1115 923

FAIRDALE FARMS, OWENTON, KY 11 MARION BRENT & MICHAEL MASTERSON 26780 1060 816

TRI-MAST DAIRY, LEBANON, KY 12 GRAYSON LONGVIEW FARMS 25225 878 751

LARRY EMBRY, LEITCHFIELD, KY Proficient Dairy Production Winner

Producer RHA Milk Fat Protein

1st KENNETH & MATTHEW HORST 33061 1160 969 SCENIC VIEW DAIRY, WAYNESBURG, KY

2ND DARREL L. HORST 27673 982 843 WAYNESBURG, KY

Cont’d on pg. 15

March-April 2017 • KDDC • Page 13

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

2017 State 4-H Dairy Jeopardy

Junior Division 1st place Colton Huffman 2nd place Mallory Russell 3rd place Morgan Berryman 4th place Mason Tucker 5th place Bree Russell

Senior Division 1st place 2nd place 3rd place 4th place 5th place

Metcalfe County Metcalfe County Jessamine County Metcalfe County Metcalfe County

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• 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

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from pg. 13 Kentucky Milk Quality Producer – 2016 Producer

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March-April 2017 • KDDC • Page 15

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

National Policy Information The following legislative report was taken from March 24th, 2017 Edition of the Northeast Dairy Farmers Cooperatives authored by Bob Gray

House Agriculture Committee Focuses On Dairy

O

n Wednesday the House Agriculture Committee held a Farm Bill hearing that was focused entirely on dairy policy. In his opening statement (excerpts enclosed below), the Chairman of the House Agriculture Committee, Mike Conaway (R-TX), made the following key points on the current situation in terms of farm milk prices and the Margin Protection Program that was the safety net included in the 2014 Farm Bill. He also touched on trade issues as well.

“While the entire agricultural industry has been experiencing low prices—leading to a 50% drop in net farm income over the past 4 years—the dairy industry has been in an unenviable position. After hitting $24 per hundredweight in 2014, milk prices fell to around $16 per hundredweight in 2016.

While we often say that the farm safety net is designed for times like these, the Margin Protection Program in the 2014 Farm Bill has provided virtually no assistance. Underperformance of MPP has resulted in very few producers purchasing buy-up coverage levels in 2017, leaving producers even more exposed to market volatility.

While the industry is to be commended for making the fundamental shift away from price support to margin protection, that will only be sustainable if MPP actually provides sufficient risk management going forward.

In addition to an inadequate safety net, the dairy

March-April 2017 • KDDC • Page 16

industry is facing other headwinds here and abroad.

While many of our customers are now overseas—with Mexico being the most significant outlet for U.S. dairy exports—the industry has been consistently hampered by barriers to entry in the Canadian market, including the latest example designed to keep U.S. ultra-filtered milk out of Canadian processing facilities. And that’s just scratching the surface.”

Jim Mulhern, the President and CEO of NMPF, presented testimony on a number of important dairy policy issues including: • Proposed changes in the Margin Protection Program • Immigration Reform • Trade • Child Nutrition • Environmental Sustainability • Dairy Pride Act His testimony can be accessed at www.agriculture.house. gov, click on “hearings”, select March 22

IDFA Pulls Support Of Dairy Pride Legislation The International Dairy Foods Association (IDFA) no longer supports efforts by the dairy industry to ban plantbased products such as almond and soy beverages from being labeled as “milk”. In testifying before the House Agriculture Committee Wednesday, IDFA President Michal Dykes stated the following: “So far, the FDA has not concluded these are misleading, and there have been court challenges, and the courts have not concluded that they have been misleading. It’s been going on for quite some time,” Dykes said. “The beverage case is very competitive . . . so we think this is probably an issue that needs to be resolved in the marketplace, is our position.”

Legislation to ban soy, almond and other plant based products from using “milk” in Cont’d on pg. 18

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Cont’d from pg. 16

their label has been introduced in the House by Peter Welch (D-VT) and Mike Simpson (R-ID) and in the Senate by Tammy Baldwin (D-WI).

the Clean Water Act. Scott Pruitt has stated his intentions to redraft a new rule and one that provides certainty in its regulatory requirements and not regulate farmers out of business.

EPA Administrator Moves On WOTUS Rule

Trade Negotiations and Agricultural Exports

Scott Pruitt, the new head of EPA, is off and running in efforts to withdraw and repeal the Waters of the U.S. Rule (WOTUS) and replace it with a new rule. The current WOTUS Rule has been blocked by the courts from being implemented and enforced. There will now be a process set in place by EPA to repeal and replace the rule that was promulgated by the Obama Administration.

Almost all major farm organizations opposed the WOTUS Rule as being confusing, contradictory, and well beyond the scope of EPA’s authority to regulate U.S. navigable waters. The Agency as been accused of regulatory over-reach in expanding the WOTUS Rule to include land that may have water standing just a few weeks of the year.

The U.S. Supreme Court has mandated that the federal government (EPA and the Army Corps of Engineers) establish a clear definition of U.S. Navigable Waters under

May 30thJune 1st, 2017 Hyatt Regency Lexington, KY

An event designed for dairy producers, industry and educational representatives to come together on practical applications of technology.

Hosted by University of Kentucky And University of Minnesota

An event designed for dairy producers, industry and educational representatives to come A focus on producer panels and industry updates. together on practical applications of technology. yfarming.com/2017 Aprecisiondair focus on producer panels and industry May 30thMay 30thupdates.

June 1st,June 20171st, 2017

Hyatt Regency Lexington, KY University Hyatt Regency Lexington,ofKY Hosted by University of Kentucky and An event designedAn forevent dairydesigned for dairyMinnesota

Hosted by roducers, industry and educational Hosted by producers, industry and educational University of Kentucky epresentatives torepresentatives come together on University of Kentucky to come together on practical And University of Minnesota practical And University of Minnesota applications of technology. applications of technology.

A focus on producer panels A focus on producer panels and industry updates. and industry updates.

precisiondair yfarming.com/2017 precisiondair yfarming.com/2017

March-April 2017 • KDDC • Page 18

The press is saying that international trade is the top agricultural priority in the White House. Ray Starling recently appointed as Special Assistant to the President for agriculture was very effusive on ag trade’s importance at a National Ag Day event in Washington this week.

Starling also said that ag groups are actively engaged as the administration seeks to rework the North American Free Trade Agreement that was ratified in 1994.

The White House is talking with a number of ag groups who have articulated the message to them that overall, NAF TA was good for agriculture.

The Administration has responded by saying they certainly don’t want to regress any of the gains made under NAF TA for agriculture. This is critical for dairy as Mexico is our number one export market.

this immense construction When we walk through of ons, we look around zone on quiet Sunday afterno two broke, farm kids get and ask ourselves, How did paration, and when it here? But life provides pre is born. It has been our meets opportunity, a dream e a dream and work experience that when you hav turn it into reality. hard, people want to help you

h business studies ldhood farms, continued wit chi on an beg first parcel of our ns atio par pre Our ry. In ‘95 we purchased the ust ind l ma ani the in nce as opportunities in college, and work experie have expanded and modified we rs, yea 22 t pas the er included 6 Malvern Hills Farm. Ov and opportunities, and has ics nom eco h wit s nge cha e lly bringing the arose. Our production bas feeder calves, crops, and fina g, sin rai fer hei ct tra con d, poultry houses, a beef her duction. on-site dairy back into pro pare for farm, but we needed to pre in our active and growing ant ort imp are en ldr chi Our two e handle the farm demands. Th changes so that Richard can g pin elo g robotic facilities and dev first step began with tourin val, nk, AgCentral, and DeLa a plan. South Central Ba e her w ieved in the dream. No along with many others bel t pas see how each step of the we are 2 years later, able to e eas l azing facility which wil 34 years has led to this am to demands, while responding dairy’s physical and timing es. cow comfort and health issu l asure, and we hope you wil We are thankful beyond me en alvern Hills Farm Op come and join us at our M We invite you to our House on June 29th.

Open House on June 29, 2017

would like to thank Malvern Hills Farm for investing in technology!

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

Best Management Practices Showcased at Eden Shale Farm Cattle and dairy farmers will get a chance to observe ways to increase farm productivity and improve operations at a field day from 10 a.m. to 2 p.m. April 20 at Eden Shale Farm in Owenton.

Some items of interest, a round-bale feeding station, water catchment system, a variety of watering stations, and a new feeding experiment that features several types of stations of a variety of costs and materials that will be evaluated to determine cattle preference, hay waste and required maintenance.

Eden Shale Farm is located at 245 Eden Shale Rd. in Owenton. Free van transport will be provided from these areas: Casey and Lincoln counties. A van will leave the Casey County Cooperative Extension Office, 1517 S. Wallace Wilkinson Blvd. in Liberty, at 7:45 a.m.

The van will leave Hustonville service station at US 127 and Hwy 78 at 8:15 a.m. eastern time. To reserve a seat, call Meredith Scales at (859) 516-1966 Christian County Cooperative Extension, 2850 Pembroke Road, Hopkinsville. Van leaves at 5:30 a.m. central time. Twelve spots are available.

To reserve, call Delia Scott at (859) 3390053.

Lunch will be provided by Organic Valley. Registration before April 14 is $5, and $10 after or at the door. Register on-line at oak-ky.org or by contacting Delia Scott at (859) 339-0053.

Since 1955, the University of Kentucky’s Eden Shale Farm has provided an educational research opportunity for beef farm operations.

Managed by the Kentucky Beef Network since 2013, research focuses on practical best practices that will be useful to commercial farming operations.

Organizations supporting this field day include the Kentucky Beef Network, Kentucky Dairy Development Council, Organic Association of Kentucky and Organic Valley.

March-April 2017 • KDDC • Page 20

PDPW - Exciting, Educational & Enthusiastic

By H. Barlow, III

I

attended the Professional Dairy Producers of Wisconsin meeting March 15 & 16 in Madison Wisconsin.

Seeing 1000 dairy farmers and 800 dairy vendors under one roof discussing our industry was very uplifting. Wisconsin is SERIOUS about dairy.

Their conference headline was Mission Driven. They accomplished their purpose for the meeting with 73 speakers over the two days. Attendees chose the seminars in which they would participate. The subjects ranged from “Global Trade and It’s Impact on You” to “Act Now, Turn Potential into Profit”.

My favorite sessions were “Predicting Mother Nature” presented by Eric Snodgrass, co-founder of Global Weather and Climate Logistics, a very entertaining speaker; and “Time Management: Take Back Your Life”, presented by Dr. Kristy Wanner. Of course, some of the best presentations were

by D. Jeffrey Bewley, our own Kentucky Specialist. He is very well respected throughout the dairy world.

The highlight for me was one of the keynote speakers, Dr. David Kohl, Professor Emeritus of Agricultural Economics. He outlined the truth about global economics that could also be applied to us as individual dairymen. “Forty percent are

going forward, twenty percent are thinking about going forward, forty percent are zombies”–just plain stuck.

His ten strategies for success were: •Drive toward efficiency.

•Capitalize on successful megatrends.

•Select good people that are trustworthy to help you.

•Gain financial acumen—very essential.

•Be adept in transition management.

•Engage in your non-farm community.

•Education should be a high priority.

•Plan for UNINTENDED consequences.

•Become more high tech.

•Most of all, manage with your heart as well as your head.

It was a great conference. If any Kentucky dairymen can attend in the future, I would encourage it.

Many great ideas were gathered that I hope we can use in our own Kentucky Dairy Partner’s Conference.

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

Celebration of Land Grant Research focuses on the future of dairy in memory of former UK Department of Entomology chair Bobby Pass. The 2016 recipient is Surendranath Suman, associate professor in the Department of Animal and Food Sciences. t the recent 2017 Celebration of Land Grant The award recognizes his success in attracting competitive Research, the University of Kentucky College of federal funding for his research related to meat quality. Most Agriculture, Food and Environment took a moment notably, Suman has served as principal investigator or co-principal to focus on current issues in land-grant research and investigator for five competitive grants from the U.S. Department of Agriculture’s National Institute of Food and Agriculture over recognize award-winning researchers. the past 5 years.

The Research/Extension Impact award is given to faculty The celebration featured keynote speaker Jack Britt, scientist, in the college whose research program has resulted in a fully teacher consultant and entrepreneur, in its inaugural Futures developed Cooperative Extension program. The 2017 recipient is Lecture. Britt delivered a presentation titled, “Dairying in Kentucky Roy Burris, Animal and Food Sciences faculty member located at and the USA in 2067,” in the Cameron Williams Lecture the UK Research and Education Center in Princeton. The award Hall in the UK recognizes his Plant Sciences research and Building. extension The Futures p r o g r a m L e c t u r e regarding the series aims to use of soybean help people hulls as a envision the supplement for future of food, grazing beef society and cattle, turning agriculture. what was once Britt is a a byproduct Kentucky into a valuable native, having feed. grown up on T h e a dairy farm P r e s t i g i o u s in Warren R e s e a r c h County. He Paper award is earned a given to faculty b ac h e l o r ’s in the college degree in based on agriculture research papers and biology published from Western between 2008 K e n t u c k y PHOTO: Matt Barton, UK Agricultural Communications Specialist and 2016.

University and The 2016 a doctorate recipient is Peter Nagy, professor in the UK Department of Plant in physiology and biochemistry from North Carolina State University. His career includes appointments at Michigan State, Pathology. The award recognizes his paper titled, “RNA virus replication depends on enrichment of phosphatidylethanolamine NCSU and the University of Tennessee system.

After the keynote, the celebration continued with recognition of at replication sites in subcellular membranes,” published in the winners of the 2016 Bobby Pass Excellence in Grantsmanship the Proceedings of the National Academy of Sciences. Nagy’s Award, Research/Extension Impact Award and the Prestigious published research revealed new insights on RNA viral replication, which has implications for diseases of both plants and humans.

Research Paper Award.

Each recipient received $1,000.

The Bobby Pass Excellence in Grantsmanship award is given

By Aimee Nielson

A

March-April 2017 • KDDC • Page 21

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

SUPER COOL 4-H DAIRY Judging Cow Camp

SATURDAY, April 22, 2017 Barren County Fair groundS Temple Hill, KY Youth will be divided into the following groups: Group 1 Group 2 Group 3 Group 4

Novice -Youth 4-H Age 9-11 (with no judging experience) Junior - Youth 4-H Age 9-13 (with judging experience) Senior - Youth 4-H Age 14-19 Cow Lovers– Youth Age 5-8

Schedule (Central Daylight Time) 7:30 am Registration begins at Fairgrounds 8:00 am Instruction & Judging Classes 12:00 pm Lunch 12:45 pm Reasons for Juniors & Seniors Games for Novice, Juniors & Cow Lovers 2:30 pm Awards Presentation 3:00 pm Safe Trip Home

In conjunction with ADA of KY and “4-H True Leaders in Service” Please bring a monetary donation to be sent to “The Great American Milk Drive” to provide a gallon of milk for a hungry family. Let’s make a difference in someone’s life!!!

Registration: (Use Form on Back) Youth/Adult-$15 If received by Thursday, March 30(includes lunch, snacks, t-shirt, awards) Youth/Adult-$25 Late Fee– Received after March 30 and by April 10th* Additional $1 for each XL size shirt—2XL = $2; 3XL= $3; 4XL= $4  No t-shirts guaranteed after April 10 Make Checks Payable to: Barren County 4-H Moo Crew (NO REFUNDS!!! ) Mail Forms & Fees to: Location & Directions Barren County Extension Office The Barren County Fairgrounds are 1463 West Main Street located at 10168 Tompkinsville Road, Glasgow, KY 42141 Glasgow, KY 42141. Approximately 12 Phone: 270-651-3818 miles from Glasgow on Highway 63.

Fax: 270-651-3744 Signs will be posted. ptarry@uky.edu

March-April 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

Alltech Cowherd Equipment Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Farm Credit Mid-America Kentucky Department of Agriculture Kentucky Farm Bureau Southland Dairy Farmers Trenton Farm Supply Zoetis

Gold Arm & Hammer Animal Nutrition CPC Commodities 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 Balchem Grain Processing Corp.

Luttrull Feeds Prairie Farms QMI Quality Management RSI Calf Systems Southern States

Bronze Advantage Hoof Care Bagdad Roller Mills Chaney’s Dairy Day & Day Feed Mill Hinton Mills HJ Baker Maryland & Virginia Milk Producers Wilson Trucking

March-April 2017 • KDDC • Page 23

Non-Profit US Postage PAID Boelte-Hall LLC

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

2017 Dairy Calendar of Events April 2017 April 20

April 27

May 2017

May 09

May 13

May 22-24

May 26

May 27

May 30- June 1

June 2017 June 3

June 5

June 10

June 12-13 Organic Valley Conservation Practices Field June 15 Day, U K Eden Shale Farm,Owen County June 22 4-H Dairy Cow Camp, Barren County June 23-24

Rockcastle Co. 3rd Grade Dairy Farm Field June 28

Day, Lewis Family Dairy Dairy U: Know Before You Show, Burley July 2017 Fields Livestock Center, Horse Cave All-Tech International Symposium, July 01 Convention Center, Lexington, KY KDDC Board Meeting, Hardin County July 10 Extension Office Mercer County Dairy Day, Clouds July 13

Restaurant¸ Harrodsburg, KY Precision Dairy Farming Conference 2017, July 19

Hyatt Regency, Lexington, KY July 21-22

July 28 Harrodsburg 4-H District Dairy Show, Mercer Co. Fairgrounds, 9:30 A.M. August 2017 State 4-H Dairy Judging Contest, U.K. Coldstream Dairy 9:00 A.M. August 16 Edmonton 4-H District Dairy Show, Metcalfe

Co. Fairgrounds, 9:00A.M. August 17-27

Milk Matters March - April 2017

Kentucky Jr. Livestock Expo. East, Morehead, KY Dairy Night at Lexington Legions, 5:00P.M. Dairy Night at Bowling Hot Rods, 5:00P.M. Western Rivers Kentucky Jr. Livestock Expo., Expo Center, Murray, KY Shelbyville District Show, Shelby Co. Fairgrounds

Liberty District Dairy Show, Casey Co. Fairgrounds, 10:00 A.M. Kentucky State Fair Livestock Entry Deadline Horse Cave District Dairy Show, Burley Fields Livestock Center, 9:30 A.M. Tollesboro District Dairy Show, Tollesboro Fairgrounds Kentucky Junior Livestock Expo, L.D. Brown Ag Center, Bowling Green KDDC Board Meeting, T.B.A.

KY State Fair Dairy Skillathon and Pizza Party, KFEC, 7:00 P.M. Kentucky State Fair