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KENTUCKY
September - October 2014 w w w. k y d a i r y. o r g
Milk Matters Journey to the Center of the World Dairy Expo Find out more on page 6 The Margin Protection Program More info on pages 12
Upcoming Udder Dissection Workshops Find out more on page 18
UK Ag Professor Named in Top 40 Under 40 By Aimee Nielson
University of Kentucky in 1998, then went on to purse a Master’s degree in Dairy Science at the University of Wisconsin-Madison. Bewley rom his early life on a dairy farm in Rineyville, Jeffrey landed back at UK after earning a Doctorate in Dairy Science at Purdue University. He is currently an associate extension professor for the UK Bewley has been committed College of Agriculture, Food and to animal agriculture. Environment. Recently he was honored by He said working at a landgrant university allows him Vance Publishing Corporation opportunities to work in extension, Agribusiness Group as one of teaching and research and to see its top “40 Under 40”. The award how all those things complement recognizes people who are each other. making a significant contribution “I’m interested in improving to America’s food system. dairy farmers’ and cows’ well“These are 40 of the brightest being,” he said. “I focus on leaders in the agriculture industry, implementing precision dairy and we hope readers of all our brands technology, mastitis prevention, are inspired by the work these young cow comfort, preventing lameness people are doing,” said Greg Johnson, and decision economics.” editorial director of the Agribusiness Although his love of the dairy Group and editor of The Packer. business has motivated him to be Bewley started out working on his passionate about his job, Bewley grandfather Hilary Skee’s dairy farm. said his students and innovative “My grandfather really encouraged farmers are the ones who really my interest in dairy cattle from inspire him to get things done. a young age,” he said. “He set an “I’m always excited to see PHOTO: Steve Patton, UK Agricultural Communications example for me as someone who how the dairy farmers I work with Specialist cared equally about dairy cows and continue to improve their operations,” the dairy business. I was lucky to he said. “I also look forward to each have many other mentors in high school, college, graduate school and new set of students I get to work with. Their enthusiasm really keeps the dairy industry. Today, I am most inspired by the enthusiastic students me going.” and innovative farmers I get to work with every day.” More information about the 40 Under 40 award program and this Bewley earned his Bachelor’s degree in Animal Sciences from the years’ honorees is available online at http://40under40Ag.com.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2014 KDDC Board of Directors & Staff Executive Committee President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Past President: Bob Klingenfus
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: 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
September - October 2014 • KDDC • Page 2
President’s Corner Richard Sparrow
D
airy producers have enjoyed the record milk prices that we received in 2014. However, a number of key indicators are predicting a downturn in 2015: 1) US milk production is increasing, 2) global milk production is increasing, 3) global demand, especially the demand for dairy products in China, is decreasing. The dairy export market was the single most important factor causing our record milk prices in 2014. I do not know how much of a drop in milk prices we will see in 2015; but, I do believe prices will decrease significantly. The 2014 Farm Bill included the Margin Protection Program for dairy. As a risk management, the MPP is a measure of protection against the type of catastrophic loss that was experienced in 2009. The University of Kentucky Extension Service offered a number of informational meetings to explain MPP in October and November. The MPP allows an operation to lock in a margin for up to 90 percent of a farm’s production history. The production history on an existing dairy operation is established using the highest milk marketings of 2011, 2012, or 2013. Once the $100.00 enrollment fee is paid, an operation’s production history is automatically protected by a $4.00 per
hundredweight margin on 90 percent of the production history. A producer can choose to purchase supplemental insurance, up to $8.00 per hundredweight on 25-90 percent of production history. There are a number of websites that a producer can use to calculate the premium of supplemental insurance by changing margin levels of $4-$8 per hundredweight and 25-90 percent of production history. You can access this information on the KDDC website www.kydairy.org. Click the link, “Dairy Margin Protection Program of the 2014 Farm Bill.” I encourage you to learn as much as you can about the Margin Protection Program. The enrollment deadline is November 28, 2014, but it is suggested to beat the holiday rush and do it before if at all possible.
Can’t Wait Until February By Dave Roberts The planning and securing of speakers is coming together for the Young Dairy Producers Conference and Kentucky Dairy Partners Meeting scheduled for February 24th and 25th, 2015. Many participants believe these meetings keep improving every year and this year we believe will be the best yet. Our purpose is to provide nationally and regionally known speakers to address issues that affect all producers. To that purpose we have so far confirmed speakers Dr. Victor Cortese Director of Cattle and Equine Immunology for Multi-Min, Dr. Michael Hutjens Professor Emeritus Feeding and Nutrition University of Illinois, Dr. Chad Dechow Penn State University Geneticist, Dr. Jeff Weyers Research and Nutritional Services for Vi-COR, Dr. Kenny Burdine University of Kentucky Livestock Extension Economist, Dr. Michelle Arnold University of Kentucky Extension Veterinarian and Chris Cifelli Director of Research for the Dairy Research Institute. Other highlights to look forward to are the fifty plus trade show booths displaying their dairy related goods and services, the Dairy Awards Banquet, the KDDC Annual Meeting, the SUDIA Annual Meeting, the dairy silent auction and the fellowship of many dairy producers. We have been told in recent years by producers and nationally known speakers that these meetings are as good as any they have attended nationwide and that the Kentucky dairy industry really has something big going on. So mark your calendars for the end of February and be there.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Executive Director Comments Maury Cox
S
eptember and October have been busy months for Kentucky’s dairy industry. The KDDC has participated in multiple meetings where important issues affecting KY dairy farmers have been discussed. I have highlighted a few of these issues below. The Kentucky Cattlemen’s Association has worked to bring a $1 state check-off on cattle to a referendum. The appropriate steps have been completed and the vote will be taken Thursday, November 20th, from 8:00 a.m. to 6:00 p.m. local time in all University of KY Cooperative Extension Service County Offices. This is an important issue to dairy farmers when one considers approximately 20 percent of the U.S. beef production is derived from dairy-breed cows and steers and 14 percent of the total check-off dollars are contributed by dairy. The KDDC was invited to participate on the check-off task force which worked to develop the new make-up of the council that will over-see the administration of the program if the referendum passes. Dairy will have representation on this oversight committee. More information on the check-off is provided in this edition submitted by the KCA. Milk Diversion Percentages became a big issue recently as
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KY dairy farmer, Lee Robey requested Patrick Clark, Market Administration, Federal Milk Marketing Order 7 reduce the percentage allowed for diversions for the months of August through November, 2014. Milk diversions allow milk handlers the opportunity to secure 25 percent additional amounts of milk from producers outside the geographic Order. If this additional milk is not needed by a pool plant it could be diverted to Class III or Class IV usage. This lowers Class I utilizations and the blend price to producers. Harold Freidly, FMMO Market Administrator requested the KDDC host one of three SE educational/listening meetings in October. Dana Coale, Deputy Administrator, USDA Dairy Programs and Will Francis, also with USDA, Harold Freidly, Jason Nierman, FMMO 5, and Patrick Clark, Stephen Dupree, FMMO 7 attended and presented information. Sixty-one producers, industry representatives and officials attended the meeting in Bowling Green and heard an explanation for the need of diverted milk to help balance the supply and demands of the markets. Transportation Credits, qualifying standards, voting procedures and other issues were also discussed. It is expected these issues will receive more attention going forward as our markets change and evolve. This fall, KDDC has teamed with Alltech and other organizations to hold six regional on-farm meetings. High production/low SCC herds were selected to host the events and the focus was on what is being done by these farmers to achieve levels of quality and production, improving profitability. The turnout has been good at each meeting and our hopes are that producers can take home something that will make their operation more profitable. The deadline to sign up for the Dairy – Margin Protection Program in the 2014 Farm Bill is fast approaching; November 28, 2014. Kenny Burdine, Ph.D., UK Ag Economics held regional educational meetings during October and the first week of November to help inform producers on the program. We have inserted a portion of the information Dr. Burdine presented in this publication. It is important to recognize, this program replaces the MILC program and to participate producers will need to sign up. Finally, the KDDC submitted an application to the KY Agricultural Development Fund Board to continue the programs and administration of the organization for 2015 and 2016. KY is very fortunate to have these funds. Without them, the MILK Program, the Young Dairy Producer Initiative, the Dairy Partners Meeting and the Regional Dairy Consultant Program along with this publication might not be possible. Meetings like the ones mentioned above also might not occur and producers could possibly not be represented in a unified manner. The primary mission of KDDC has been and will continue to be education, but the organization also works hard at representing and promoting KY ’s dairy producers and their interests. If you think the KDDC is important to KY ’s dairy industry please take time to let your KDDC District Director and/or one of the KADF Board members know. All KDDC Directors are listed on the inside cover of every issue. Your support is always appreciated.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Journey to the Center of the World Dairy Expo By Alexandra Ash
O
n the dates October 1st through the 4th, 16 students from the University of Kentucky Animal Science program had the opportunity to follow Dr. Jeffrey Bewley and the Kentucky Dairy Development Council to Wisconsin for a truly amazing trip. The journey began with a two-hour trip leaving the University of Kentucky’s dairy to meet the rest of the group before beginning our adventure to Wisconsin. I am a junior animal science major at the University of Kentucky from Delaware. I have never been to Wisconsin and have mainly spent my years traveling up and down the east coast. The largest dairy farm I had seen had no more than 200 head of cows. My experience with dairy cattle is rather minimal, other than what I have learned in class and seen on the farm, the dairy world is rather new to me. I grew up milking goats and raising them for meat and profit. Even though most of my business has been with small ruminants, I have not been completely outside of the dairy cattle world. In fact, my main goal is to become a large animal veterinarian, specifically a dairy cattle veterinarian. One of the reasons a trip like this one was so thrilling was because reading about certain products used in the dairy world, and seeing pictures on Dr. Bewley’s PowerPoint slides, is a lot different than seeing the actual products in real life. The first day of the trip was spent mainly in travel. We visited two farms, one in Indiana and the other in Illinois as we traveled up to Wisconsin. At the first farm, the UK students and I were able to see our first robotic milkers. The Lely robots used in this herd were bigger than I expected they would be: big and red and looking practically new. It was interesting and rather comical to see the cows calmly wait in line to be milked as if they were humans waiting in line for lunch. At this particular farm one of the co-owners took us, the students, to their data room. They showed us how the robotic records recorded data and what they were able to learn from this data. The co-owner even showed us one of the cows who enjoyed being milked nine times a day rather than the usual two. After the brief tour, we were free to wonder around the farm as we pleased. After stepping into the barn, we were greeted by the Lely Juno, or affectionately known to the University of Kentucky students, a cow roomba. The ‘cow roomba’s’ job is to sweep the TMR
September - October 2014 2014 • KDDC • Page 6
the cows push away from the bunk to back in front of them. This particular roomba was used every couple of hours to push the TMR back in front of the cattle, but was turned on to do a couple runs just to demo to the tour group. These roombas run on magnetic stripping rather than cables that are laid in the cement aisle way of the barns. The roomba moves somewhat quickly and very quietly, they never fall off their set track and can be set to sweep both bunks if desired. It was dark by the time we got to the next farm and the workers had just finished the milking and were wiping down the parlor when we arrived. This dairy was huge and though there were no robotic milkers or cow roombas, we were able to see an operating dairy at night. The night tour was rather amazing; if given the chance I would rather tour the dairies at night. The next day was an all dairy field trip day. Our large tour group was shown four large and small farms in Wisconsin. The favorite of mine was a small farm that operated on almost an entire robotic system. This farm had two Lely robotic milkers on each side of the barn for the cows. And much to the pleasure of the UK students this barn had a cow roomba as well! The most interesting aspect of this farm was the low death loss of calves. An amazing feat for any dairy I would think. The owner says he owes the low death loss to his wife and the new system of Lely Calm robotic calf feeders as well. These Lely Calm feeders feed the calves sort of how the robotic milkers work for the cows. The calves all wear a collar with the ID tag and when they walk up to the feeder a bottle of milk is produced to feed them the correct amount. After finishing the farm tours, the next two days were spent at the World Dairy Expo in Wisconsin. We got to experience the best cheese flavors, free swag gear, as well as see brand new calf and cow products available on the market. This experience was truthfully a great one. I would love to travel with the KDDC group and dairy producers again if given the chance. I would like to thank the KDDC for inviting the University of Kentucky students on this trip. I would like to thank the farmers who graciously let us tour their farms and bombard them with questions. I would like to extend my thanks to the dairy farmers on the tour with us for their hospitality in sharing a trip like this with us. Special thanks to Pam and Tony Compton who have invited the UK students to do a tour of their dairy farm.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Dixie Dairy Report
October 2014 By Calvin Covington utter and cheese prices moving down from record highs. After setting record highs in the middle of September, both butter and cheese prices at the CME have declined. The CME butter price dropped from $3.06/lb. in the middle of September to close at $2.895/lb. on October 3. During the same time frame CME block cheddar declined $0.30/lb. from $2.45/lb. to $2.15/lb. Even though there could be temporary price hikes over the next few weeks, look for prices to continue to trend downward over the next few months. Large decline in powder price. The September AMS nonfat dry milk powder price dropped over $0.30/lb. from August to $1.47/lb. At the beginning of the year the price was over $2.00/lb. The decline is the equivalent of over $4.75/cwt. As stated previously, with today’s global dairy market, consider the nonfat dry milk price as the “bellwether price.” This especially with over 50% of U.S. powder production exported. Look for butter and cheese to follow the downward path already set by powder. September blend prices projected up, but then all downhill. We project southeast blend prices in September about $0.25-0.40/cwt. higher than August. Blend prices are then projected to decline about $0.75-$1.00/cwt. in October and also in November, with a larger decline in December. Our 2015 projections are lower than last month. We project 2015 southeast blend prices over $5.00/cwt. lower than 2014. Our lower projections are based on butter and cheese inventories
B
starting to build, more milk, declining exports, and lower international prices. August is the first time in 28 years American cheese inventories increased. Generally inventories decline in August. July powder exports were down about 14% from June. Our estimate of September world prices has butter at $1.36/lb. and skim milk powder at $1.28/lb. On the world scene, Rabobank’s quarterly dairy report projects lower dairy prices over the next twelve (12) months. According to the report, international dairy prices today are about 35-40% lower today compared to last February. Rabobank states that increased milk production in the exporting countries, weaker Chinese buying, and Russian ban on dairy imports all point to lower prices. Also, Fonterra lowered its farm pay price for the 2014-2015 production season. The price is 37% lower than last season, and the lowest since the 2008-2009 season. Florida leads the country in August milk production increase. August milk production was up 2.5% compared to last August. All but one (Oregon) of the 23 reporting states were up in milk production during August. Florida topped the list with production up a hefty 8.4%. Texas was up a strong 6.2%. The nation’s top two dairy states, California and Wisconsin, were up 1.4% and 1.2% respectively. Cow numbers did decline 11,000 head in August. 2013 per capita consumption of dairy products down slightly from 2012. USDA estimates, on a fat equivalent basis, 2013 per capita consumption of all dairy products at 607 lbs. This is down seven (7) lbs. from last year. 2013 marks the ninth year in a row per capita consumption is above 600 lbs. Since 1975 per capita consumption is up an amazing 68 lbs. September is the second consecutive month estimated margin exceeds $14.00/cwt. Using the new dairy program formula, we estimate the national margin for September at $14.75/cwt. A year ago the margin was $7.75/cwt. and two years ago $5.64/cwt.
DIXIE DAIRY REPORT - OCTOBER 2014 published by Calvin Covington, ccovington5@cs.com, 336-766-7191
Class I Mover $ Per Cwt. (3.5% fat) F M A J 2013 $18.97 $18.21 $17.80 $17.66 2014 $21.48 $22.02 $23.64 $23.65 2015 $20.02 $17.99 $17.63 $17.37 Class I Mover $ Per Cwt. (2.0% fat) 2013 $16.55 $15.94 $15.51 $15.26 2014 $19.05 $19.68 $20.86 $20.90 2015 $16.89 $15.20 $14.93 $14.66 CME Cheese $ Per lb. 2013 $1.70 $1.64 $1.62 $1.82 2014 $2.23 $2.19 $2.36 $2.24 2015 $1.77 $1.75 $1.74 $1.72 AMS Nonfat Dry Milk Powder $ Per lb. 2013 $1.56 $1.56 $1.52 $1.53 2014 $2.03 $2.08 $2.09 $2.02 2015 $1.38 $1.36 $1.34 $1.32 CME Butter $ Per lb. 2013 $1.49 $1.57 $1.64 $1.72 2014 $1.75 $1.80 $1.91 $1.94 2015 $1.80 $1.75 $1.75 $1.73 Federal Order Blend Price Per Cwt.(3.5% fat) Florida - Tampa 2013 $23.32 $22.90 $22.59 $22.50 2014 $26.18 $27.24 $28.19 $28.45 2015 $24.04 $22.52 $22.20 $21.84 Southeast - Atlanta 2013 $21.50 $21.05 $20.70 $20.80 2014 $24.77 $25.81 $26.56 $26.73 2015 $21.98 $20.59 $20.27 $20.02 Appalachian - Charlotte 2013 $21.10 $20.66 $20.29 $20.42 2014 $24.28 $25.38 $26.02 $26.31 2015 $21.50 $20.16 $19.72 $19.61
M $17.76 $24.47 $17.16
J $18.93 $22.86 $17.20
J $18.91 $23.02 $17.16
A $18.88 $23.87 $17.33
S $19.16 $23.63 $17.72
O $19.20 $24.19 $17.84
N $20.20 $23.60 $17.29
D $20.37 $21.81 $16.94
Avg. $18.84 $23.19 $17.64
$15.24 $21.46 $14.49
$16.43 $19.74 $14.55
$16.59 $19.59 $14.45
$16.69 $20.17 $14.53
$17.06 $19.74 $14.84
$17.20 $19.68 $15.05
$17.92 $19.21 $14.58
$18.20 $18.05 $14.27
$16.55 $19.84 $14.87
$1.81 $2.02 $1.75
$1.71 $2.02 $1.73
$1.71 $1.99 $1.73
$1.75 $2.18 $1.77
$1.80 $2.35 $1.75
$1.82 $2.15 $1.74
$1.85 $2.10 $1.73
$1.94 $1.95 $1.74
$1.76 $2.15 $1.74
$1.64 $1.88 $1.35
$1.69 $1.86 $1.37
$1.73 $1.86 $1.38
$1.77 $1.79 $1.40
$1.81 $1.47 $1.44
$1.84 $1.43 $1.40
$1.89 $1.42 $1.37
$1.95 $1.40 $1.36
$1.71 $1.78 $1.37
$1.60 $2.17 $1.72
$1.51 $2.27 $1.75
$1.48 $2.46 $1.80
$1.40 $2.59 $1.85
$1.52 $2.97 $1.80
$1.53 $2.70 $1.75
$1.61 $2.35 $1.73
$1.60 $2.00 $1.70
$1.56 $2.24 $1.76
$22.47 $29.25 $21.67
$23.27 $27.53 $21.72
$23.44 $27.95 $21.96
$23.56 $28.84 $22.25
$23.86 $29.21 $22.35
$24.28 $28.62 $22.48
$24.92 $27.43 $22.02
$25.28 $25.42 $21.48
$23.53 $27.86 $22.21
$20.89 $26.83 $19.60
$21.31 $25.88 $19.68
$21.57 $26.43 $20.22
$21.81 $27.39 $20.69
$22.10 $27.57 $20.63
$22.58 $26.83 $20.80
$23.36 $25.68 $20.51
$23.74 $23.68 $19.99
$21.78 $26.18 $20.42
$20.46 $26.45 $19.49
$21.00 $25.48 $19.28
$21.26 $25.95 $19.74
$21.35 $26.73 $19.95
$21.72 $27.18 $20.25
$22.25 $26.49 $20.46
$22.72 $25.05 $19.88
$23.26 $23.20 $19.50
$21.37 $25.71 $19.96
September - October 2014 • KDDC • Page 8
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices FMMO 5 www.malouisville.com October 2014 Class I Advanced Price (@ 3.5% BF) $27.59 November 2014 Class I Advanced Price (@ 3.5% BF) $27.46
FMMO 7
It Can Still Be Done
Patrick Patterson
Every child is asked the question, “What do you want to be when you grow up?” I remember being asked this question many times as a child. My response was always the same….”I want to be a dairy farmer.” I had grown up on a farm and knew that I wanted to live on a farm and be a dairy farmer. The road to this childhood dream has been a process that has taken time, patience, and persistence. I currently live on a 75 acre dairy farm in western Pulaski County. I am a grass-based dairy that does rotational grazing. My wife and I were able to purchase a farm in 1998. We started out raising tobacco and a small beef cow herd. In the spring of 2009 we purchased 44 open cross bred heifers and began renovating the pastures to a novel endophyte fescue (BarOptima). The heifers were bred in the summer of 2009 and we began construction on the milk parlor. The winter was harsh that year which delayed construction on the milk parlor. The cows began calving before the barn was ready. A neighboring dairy farmer milked the heifers until the barn was completed in April of 2010. We are a seasonal dairy with cows calving from March - May. All the cows are dried off the Saturday before Christmas. We use timed AI with 60 percent of the cows calving in the first 30 days. Block calving allows us to match the cow’s production curve with the grass growth curve. We grow some summer annuals to help during the summer slumps in our fescue. We are currently milking 39 crossbred cows. For our pasture dairy we need moderate sized cows (1,100 pounds) that can get around
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and be efficient grazers. We currently have 27 heifers to add to the herd next spring. November 2014 Many of these heifers have Class I Advanced Price New Zealand genetics. (@ 3.5% BF) Why did you want to start a $27.86 dairy farm? It is something that has always interested me. I have always wanted to live and raise my family on a farm. I enjoy the farm life and producing a quality food. I am able to see the product of the work that goes into making a dairy farm. Who was your mentor to help get you started? I was able to meet and visit many dairy farmers before starting my own dairy. Keenan Turner, former Pulaski Co. Extension Agent, introduced me to rotational grazing dairy cows. I also met many successful dairy farmers whom I began networking with while establishing my dairy. What was the biggest challenge you faced when starting your dairy farm? My biggest challenge has been locating and raising heifers that would fit my dairy operation. Quality heifers that are moderate sized with good milk production and that breed back on time are hard to come by. What would you recommend to a new dairy farmer getting started? I would recommend visiting successful dairy farms, getting to know the dairymen, and studying their operations. Research and networking are keys to a successful dairy startup. I would also recommend being conservative with finances when starting out. Special attention needs to be given to the cows because they are what make the dairy successful. What is your five year plan? In five years I would like to have my farm fully stocked (75 head). I would like to shorten the calving window to 45 days. This would allow me to be more efficient with resources on the farm. As you can see with proper planning, seeking the help of others and persistence, becoming a dairy farmer can still be done.
September - October 2014 • KDDC • Page 9
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Eastern Kentucky University By Dr. Laurie Rincker
T
o the average eye the serene location and views from Stateland Dairy can’t seem further away from the hustle and bustle of the excitement coming from the typical campus activities of Eastern Kentucky University. However, a quick walk through the barn or conversation with any of the employees or students will quickly have you abuzz with the exciting possibilities ahead for the 102-yearold dairy farm. Stateland Dairy was founded in 1912 when EKU’s Board of Regents purchased 116 acres for $18,000. It was incorporated into the Agriculture curriculum, which is the second oldest program at Eastern Kentucky University. A subdivision now sits where the original dairy was located in downtown Richmond. It then moved in 1922 to the location currently occupied by Alumni Coliseum, where EKU plays basketball. A. B. Carter established a first-class dairy and later a processing plant that was constructed to supply milk to the campus cafeteria. Dr. Carter selected top-quality genetics, including four cow families that still exist in the herd today. In 1930, the dairy enrolled in the Dairy Herd Improvement Registry Program. The third location, built in 1960, was directly across from the football stadium and the A. B. Carter Building, which continues to house the Department of Agriculture. Many alumni have said that the cows would go ballistic when the cannons were shot off during football games. On the other hand, fans were not so crazy about the “odors” given off at the dairy and the freshly spread manure on football Saturdays! Since 1996, Stateland Dairy has called home at its fourth location, Meadowbrook Farm. The 70 head of milking Holsteins and Brown Swiss and 55 head of young stock mainly occupy a free stall barn with other animal housing located around the farm. Cows are milked in a double four herringbone. Although the facilities are beautiful, perhaps the most important recent addition to the farm was the implementation of a rotational
September - October 2014 • KDDC • Page 10
grazing program along with a confinement partial mixed ration. Weather permitting, lactating cows are given free choice access to pasture which consists of a variety of forages including sudan sudex, black forage oats, orchard grass, timothy grass, ryegrass, rye, and alfalfa depending on the season. In the second year of implementation, there are still improvements and tweaks to be made as there is a steep learning curve involved in such a move. However, thus far the pros far outweigh the cons with the greatest improvements coming in cow feet and leg health and a mortality rate of nearly zero. Furthermore, when this change occurred in the midst of high feed prices, it was estimated that total ration savings was $3 to 4/head/day with very little to no impact on milk yield depending on forage availability. Even though major changes have been made to the nutrition program at Stateland Dairy over the past few years, milk production and milk quality have not been compromised. In 2012, Stateland Dairy earned the 2012 Kentucky Dairy Development Council/Kentucky Farm Bureau Proficient Dairy Producer Award and received second place for this award in 2013. Stateland Dairy was also the District 8 winner for the production award in 2013. In addition to the implementation of the grazing program, there have also been some other major changes in the last four years at Stateland. Perhaps surprising to some has been the move to start adding Brown Swiss to the well-established Holstein herd. Current manager, Chad Powers was the former herdsman at well known Oak Spring Dairy, home of the one and only “Snickerdoodle” prior to coming to Stateland. This led to a life long friendship with Allen Bassler, breeder and owner of “Snick” and former director of The Brown Swiss Cattle Breeders Association. While serving as director, Allen became aware of a number of Swiss embryos that were available through the Association to be donated to an educational program and immediately thought of Chad. This was the catalyst to the gradual addition of Brown Swiss to the Stateland herd. The first embryos were implanted in Holsteins at the farm with a low success rate. The decision was then made to start
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
outsourcing the embryo work to a recipient farm owned and operated by Willy Campbell, former KDDC field rep. Two years ago, the first Swiss calves started hitting the ground and have thrived since finding their home in Richmond. One of the earliest calves, Sun-Made Valentina-ET calved in as a milking yearling this year and quickly caught the eye of many Stateland visitors including nutritionist Joe Sparrow. After a great deal of discussion the decision was made to send Valentina to the World Dairy Expo with Joe and his family dairy, Fairdale Farm. When all was said and done “Valentina” was the 7th place Milking Yearling at World Dairy Expo, a rare accomplishment for any University dairy. Brown Swiss fever quickly caught on amongst students, faculty, and staff at the dairy and they went on the hunt for more quality Swiss to add to their milking herd. In total, ten head were
purchased last spring through the Mid-West Review Sale and Kentucky National Show and Sale and now find their home in Richmond. As the Brown Swiss herd continues to thrive at Stateland, the goal is to one day move the herd to a 50/50 Brown Swiss/Holstein ratio that exemplifies high quality purebred genetics. As students continue to gain more interest into the showing aspect of the dairy, employees have began making plans for the future of the herd. Three years ago, an on farm dairy show was started that pairs students with heifers for a showmanship competition, in conjunction with Dr. Laurie Rincker’s Dairy Production class. This competition has proved to be invaluable to students as they learn about everything from judging, to fitting, and nutrition.
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September - October 2014 • KDDC • Page 11
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
The Margin Protection Program for Dairy in the 2014 Farm Bill By Kenny Burdine, University of Kentucky
Introduction: The Margin Protection Program for Dairy (MPP-Dairy) was authorized in the Food, Farm and Jobs Bill, aka “2014 Farm Bill”. The new program was established in August 2014 and will run through December 31, 2018. The bill effectively repeals the Dairy Export Incentive Program and the Milk Income Loss Contract (MILC) program while establishing the new MPP-Dairy program and a Dairy Product Donation Program (DPDP). Producers are permitted to participate in the new program, or the previously existing LGM-Dairy program, but not both at the same time. The purpose of this publication is three-fold, (1) provide an overview of how MPP-Dairy works, (2) provide some historical perspective on how a similar program might have worked had it been available over the last several years, and (3) help frame the participation decision that dairy producers will make in the coming years.
relative to the chosen coverage level. A payment would not be triggered if the average margin fell below the producer defined coverage level for February and March. The only six timeframes that payments can be triggered on are the six two-month couplets each year. Producers actually have some choices to make concerning margin level. The available margin levels range from $4.00 to $8.00 in $0.50 increments. Enrollment in the program is $100 per year and this essentially gets a producer in the program at the $4.00 coverage level. If this is the level that is chosen, producers receive a payment of $4 minus the actual margin for that couplet for twomonths of their covered milk production. If the actual margin is negative, payment is calculated as though it were zero. However, producers also have the option of paying increasing premiums to move up to higher coverage levels on an annual basis. Table 1 below shows the available coverage levels and their associated premiums per cwt of milk covered. Note that premium levels are higher once producers cover more than 4 million pounds, but the
How does the program work? The MPP-Dairy program is designed to guarantee what is referred to in the farm bill as an Actual Dairy Production Margin. In reality, this is actually an estimated margin (milk price minus a feed cost index). The milk price used in the calculation of the Actual Margin is the monthly US All Milk Price. The average feed cost calculation used is a bit more complex and includes corn, soybean meal, and alfalfa hay prices. The feed cost index is the sum of the average monthly corn price per bushel received by farmers multiplied by a factor of 1.0728, the monthly soybean meal price per ton in Central Illinois multiplied by a factor of 0.00735, and the average price received by farmers for alfalfa hay per ton multiplied by a factor of 0.0137. The milk price minus the feed cost index becomes the actual margin for the month. This is probably best explained by viewing the computation in the adjacent box (Figure 1), which assumes a milk price of $24 per cwt, a corn price of $4 per bushel, a Soybean Meal Price of $400 per ton, and an Alfalfa Hay price of $200 per ton. Based on these assumed prices, actual margin for this hypothetical month would have been $14.03, as can be seen in Figure 1. The MPP-Dairy program would provide payments to participating dairy producers on covered milk production when this margin falls below their chosen coverage level during a twomonth period. The two-month periods, or couplets, defined in the 2014 Farm Bill are: Jan-Feb, Mar- Apr, May-June, July-Aug, Sept-Oct, and Nov-Dec. For example, the average actual margin for January and February would have to be below the producer defined coverage level to trigger a payment. Then next trigger would be based on the average of the March and April margins
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first 4 million pounds can be covered at the lower premium rate. As a quick estimate on scale, at 20,000 lbs of milk per cow, this is roughly a 200 cow herd. Obviously, the margin example in the previous box would not yield a payment at any of these coverage levels as the actual margin was considerably higher than $8.00. Finally, producers must decide how much milk they want to cover, and again, there are multiple options. Each dairy operation will have an established production history that is equal to the highest level of milk marketings in the years 2011, 2012, and 2013. There is language that allows the secretary to adjust production history in subsequent years based on national average production as well as language that allows for the establishment of production history for new dairy operations that have been in operation less than one year. Once this production history has been established, participating dairy operations choose a percentage of coverage between 25% and 90%, in 5% increments (25%, 30%, 35%, …, 90%) on their production history. Like the coverage level threshold, the percentage of coverage is also chosen on an annual basis. For example, a dairy producer could potentially choose to cover up to 90% of their production history at up to the $8.00 coverage level.
Summary and Conclusions While current dairy margins are such that the offered coverage levels would not likely trigger payments, producers need to look Cont’d on page 14
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Cont’d from page 12 at the MPP-Dairy from a long-term perspective. MPP-Dairy will be available from fall 2014 through the end of 2018 with the ability to change coverage levels and percentages of coverage on an annual basis. The program effectively offers the opportunity to establish a minimum margin level over more than 4 years and essentially “locks in” the premium costs for doing so. With the new Margin Protection Program, premiums are the same on milk covered during 2015 as they are on milk covered in 2018. This is very attractive as milk, corn, and soybean meal futures aren’t even
available that far out. Both milk and feed prices have been highly variable over the last several years and present significant market risk to dairy producers. MPP-Dairy provides an opportunity to offset some of that risk through guaranteeing a margin of milk price above a feed cost index. Producers should carefully consider participation, while at the same time considering other risk management opportunities such as contracting, futures and options, and LGM-Dairy.
You’re invited to Attend Your Kentucky Area Dairy Producer Meetings for 2014 There will also be a short presentation on your SUDIA programs and lots of time for discussion and questions. And, good food too! *Elections will be held in even numbered districts. DISTRICT 1
DISTRICT DIRECTOR Simon Yoder, 435 Meredith Lane, Guthrie, KY 42234 MTG. – Nov. 3, 2014, Patti’s, Grand Rivers, KY – 7:00 p.m. CT
2*
Daniel Perkins, 2198 Ball Hollow Road, Hodgenville, KY 42748 MTG. – Nov. 5, 2014, Cave City Convention Center, Cave City, KY – 7:00 p.m. CT
3
H. H. Barlow, III, 500 Salem Church Road, Cave City, KY 42127 MTG. – Nov. 5, 2014, Cave City Convention Center, Cave City, KY – 7:00 p.m. CT
4* 5
Ginger Coombs, 3401 Lake Jericho Rd., Smithfield, KY 40068 MTG. – Nov. 19, 2014, Claudia Sanders, Shelbyville, KY – 7:00 p.m. ET Jeff Deener, 139 Sanders Rd., Campbellsville, KY 42718 MTG. – Nov. 6, 2014, Taylor County Extension Office, Campbellsville, KY – 7:00 p.m. ET
6*
Kim Jones, 3310 Highway 52, Loretto, KY 40037 MTG. – Nov.11, 2014, Marion County Extension Office, Lebanon, KY – 7:00 p.m. ET
7
Dale Fudge, 163 Fudge St., Gamaliel, KY 42140 MTG. – Nov. 5, 2014, Cave City Convention Center, Cave City, KY – 7:00 p.m. CT
8*
Billy Rowe, 499 Norman Grant Rd., Columbia, KY 42728 MTG. – Nov. 13, 2014, Lindsey Wilson College, R.D. Cranmer Dining, Columbia, KY – 7:00 p.m. CT
9 10*
Ronnie Patton, 5049 Hwy. 490, E. Bernstadt, KY 40729 MTG. – Nov. 14, 2014, Historic Lodge Restaurant, Renfro Valley Center, US Hwy. 25, Mt. Vernon, KY – 7:30 p.m. ET
Karen Mineer, 521 J.M. Clary Road, Flemingsburg, KY 41041 MTG. – Oct 30, 2014, Blue Licks State Park, Carlisle, KY – 7:30 p.m. ET
11
Karen Mineer, 521 J. M. Clary Road, Flemingsburg, KY 41041 MTG. – Oct 30, 2014, Blue Licks State Park, Carlisle, KY – 7:30 p.m. ET
12*
Ray Koester, 11927 Diamond Island Rd., Wadesville, IN 47638 MTG. – Oct. 28, 2013, Haub’s Steak House, Haubstadt, IN – 6:30 p.m. CT
September - October 2014 • KDDC • Page 14
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Committed to Kentucky’s Dairy Industry and Dairy Farm Families Ǥ Ǧ ͵ Ǥ ʹͲͳͶ Ǧ Ǩ ǡ ͳǡͲͲͲ Ƭ ͳǡͷͲͲ Ǥ
Introducing the newest addition to our Dairy Nutrition Team Ǥ | ʹͲǤͶʹǤͲͲͳ | ̷ Ǥ | ʹͲǤͲǤͶͳͺ | ̷ Ǥ Ǥ | ͺͺͺǤͳͺǤͶͷͷ
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
State Beef Assessment Referendum Set for November 20 Kentucky Department of Agriculture
A
referendum on whether Kentucky cattle producers may be assessed $1 per head on cattle marketed in Kentucky is scheduled for Nov. 20, the Kentucky Department of Agriculture and the Kentucky Cattlemen’s Association have announced. The referendum will ask Kentucky cattle producers: “Shall the producers of bovine animals assess themselves an additional ONE DOLLAR ($1.00) per head sold, and use the funds so collected by the Kentucky Beef Promotion Council to finance a program to promote and stimulate by research, market development, and education, the use and sale, domestic and foreign, of bovine animal products?” The referendum will be held from 8 a.m.-6 p.m. local time at all county Extension offices. All cattle producers involved in the marketing or sale of cattle in Kentucky are eligible to vote. To vote by absentee ballot, a request form must be completed and sent to the commissioner of agriculture at least 10 days in advance of the referendum date. The request form may be obtained from any Extension office, the Kentucky Department of Agriculture, or the Kentucky Cattlemen’s Association. Completed request forms should be sent to Steve Kelly, Kentucky Department of Agriculture, 105 Corporate Dr., Frankfort, KY 40601. Following the referendum, the department will tabulate the votes and announce the results. If producers vote in favor of the state check off, it will become effective April 1, 2015. Producers will be able to get a refund for the assessment within 30 days of the date on which the assessment is collected. The Kentucky State Board of Agriculture in August approved the KCA’s request for a referendum. State law requires the Kentucky Department of Agriculture to carry out a referendum at the direction of the board. For more information, contact Dave Maples, executive director of the Kentucky Cattlemen’s Association, at (859) 278-0899 or dmaples@kycattle.org, or the KDA’s Steve Kelly at (502) 573-0450 or steve.kelly@ky.gov.
September - October 2014 • KDDC • Page 16
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
T
Farm to Market Exhibit Unveiled
ayshaun Prince returned to Kentucky on Tuesday to help raise the curtain on a new agriculture display at The Explorium of Lexington.
The former University of Kentucky men’s basketball star joined Lexington Mayor Jim Gray, Explorium executive director Lee Ellen Martin, and Kentucky Department of Agriculture officials to unveil the Farm To Market exhibit, which is designed to raise awareness of the importance of agriculture in the everyday lives of all Kentuckians. “Tayshaun never stops giving back to the people of Kentucky,” Agriculture Commissioner James Comer said. “He generously took the time to help raise funds for this exhibit and then came back to help open it. Tayshaun understands that we have a responsibility to teach our children about where their food comes from and to eat fresh, nutritious foods as part of a healthful lifestyle.” Prince lent his name and likeness to a special label of Elk Creek wines to help raise money for the project in 2012. “I am honored to play a role in opening this exhibit,” Prince said. “This exhibit should help reinforce the importance of nutritional eating with our young people and the importance of agriculture in Kentucky.” Orange Leaf Frozen Yogurt, based in Lexington, also provided funds for the exhibit. “Orange Leaf is excited to partner with Tayshaun, Kentucky Proud and the Explorium on this project,” said Orange Leaf coowner Jeremiah Sizemore. “We have enjoyed supporting local farms by using Udderly Kentucky milk this past year, and we hope this exhibit will help encourage and educate the next generation of farmers and consumers.” The exhibit includes Kentucky Proud signage, a milkable fiberglass cow, a chicken coop, and a simulated garden and farmers’ market. “The Explorium is delighted to have our new Farm To Market
exhibit teaching children about farming and the economics of the agriculture industry,” Martin said. “The Explorium is about fun and learning, and we have no doubt that they will love milking the cow, harvesting and selling their vegetables, and gathering eggs in the barn. Many children have no concept of how food gets to the market. It is our hope that we can spark interest in becoming a farmer as well as encouraging children to make healthy eating choices.” The Explorium provides a fun and dynamic hands-on learning environment that inspires imagination and curiosity. Founded in 1987 as the Lexington Children’s Museum, the Explorium averages 70,000 visitors annually and serves an additional 10,000 people with outreach activities in the Lexington community. Prince has served as the celebrity spokesperson for the department’s Eat To Win campaign, which encourages K-12 students across the Commonwealth to incorporate more locally grown fruits and vegetables into their diets. Prince will enter his 13th season in the National Basketball Association this fall as a forward for the Memphis Grizzlies. He led the Detroit Pistons to the NBA championship in the 2003-2004 season.
No Boundaries to Quality By Jennifer Hickerson Kentucky is known for many things, whether it is thoroughbred horses or the grass that gave our state the fond name of the “Bluegrass State”. It is becoming more apparent that the dairy industry in Kentucky is creating a ripple effect of interest that goes well across the state and beyond. Kentucky dairy producers love what they do and it shows in the top quality milk they produce and the great care they give their cattle. An example of this can be found in the October issue of Progressive Dairyman Magazine, www.progressivedairy.com, where you will find the following article on the Compton Family of Adair County: “Kentucky Comptons make milk quality a priority”. Thanks to Tony, Pam and Ben for placing a spotlight on Kentucky’s dairy industry by producing the quality of milk that makes us all proud. Your passion, hard work and dedication are demonstrated in the quality milk
you produce. The Compton Family Dairy received the Kentucky Quality Producer Award for 2013. Another example of KY producers in the national spotlight can be found in the October 25 issue of Hoard’s Dairyman, page 66, “A businessman in muck boots.” This article features LeCows Dairy, with Dan and Lesa Clark of Paducah, KY. The Clarks have participated in several KDDC dairy tours and attended other educational events. Lesa serves as a District Director for the KDDC as well. Dan mentions Dave Roberts, KDDC Dairy Consultant of Western KY in the article as being instrumental in helping turn the dairy in the right direction. We are excited to see Kentucky dairy families in nationally published dairy magazines. Please take time to read the articles if you haven’t already. They are great stories of a wonderful families working hard to carry the dairy legacy on in Kentucky.
September - October 2014 • KDDC • Page 17
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Complexity of the Udder Made Simple By Jennifer Hickerson
M
astitis is the most expensive disease in the dairy business. Truly a very complex subject to understand but with the help of Vi-COR’s Udder Dissection Labs it gets a little simpler for dairy producers and their employees to understand. Burkmann Feeds hosted an Udder Dissection on August 27th in Glasgow, KY with over 40 participants. A unique look at how the complex world of the udder works and how mother-nature has created it to function was only the start of the day. Discussion on the classes of mastitis and how to differentiate between them and the natural defense mechanism of the udder to protect itself followed. The core of the program was informing the group about proper milking procedure not only in the parlor but how an overall good milking routine will stimulate the correct milk letdown and protect the teat ends from bacteria entering after milking is completed. This was a great opportunity for producers and employees as it was presented in English and Spanish. As a dairyman we have many important roles to fulfill on our operation. One of these is to produce quality milk from our cows and education is a vital means to this achievement. Understanding the “how” is just as important as to knowing the “why” of the dairy cow and her mammary system. Burkmann Feeds, Vi-COR and the KDDC will present
two upcoming bilingual (English and Spanish) Milk Quality Udder Dissection Wet Lab workshops to educate dairy owners and theemployees about udder health and physiology. The dates and locations are below. Tuesday, November 11 10:30 am – 1:30pm with Lunch Lebanon Fairgrounds 760 Fairgrounds Rd Lebanon, KY 40033 & Wednesday, November 12 10:30 am – 1:30 pm with Lunch Burkmann Feeds 100 Georgetown Lane Glasgow, KY 42141 To learn more about Vi-COR visit the company’s web site www.vi-cor.com.
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270-465-2679 or 270-469-0398 September - October 2014 • KDDC • Page 18
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Allied Sponsors
S P E C I A L
Platinum AFI Milk Alltech Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Dairy Products Assoc. of KY Farm Credit Services of Mid-America Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Mammoth Cave Dairy Auction Prairie Farms Southern States Co-op, Inc. Whayne Supply
T H A N K S
Gold
T O
Animal Health Management Services Arm & Hammer Animal Nutrition Kentucky Nutrition Service Mid-America Select Sires, Inc Mid-South Dairy Records Neogen Owen Transport Purina Animal Nutrition, LLC Valley Farmers Coop
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Silver Grain Processing Corp. Kentucky Veterinary Medical Assoc. Koetter & Smith, Inc. Luttrull Feeds MD/VA Milk Producers
Bronze
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ABS Global Advantage Hoof Care Alan Wilson Milk Hauling Bagdad Roller Mills Central Farmers Supply of Green Co. Chaney’s Dairy Barn Clark Dairy Supply Cornerstone Vet Clinic Cowherd Equipment Double “S” Liquid Feed Genetics Plus Hartland Animal Hospital Logan County Animal Clinic MultiMin USA Premier Crop Insurance
September - October 2014 • KDDC • Page 19
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2014 Dairy Calendar of Events November November November November November November November November November November November
3 3 5 6 11 12 7-11 11 13 14
November November November November
17 19 21 28
Dairy Market Margin Program, Fleming Co. Ext. Office SUDIA District 1 Mtg. Patti’s, Grand Rivers, KY SUDIA Districts 2, 3 & 7 Mtg. Cave City Convention Center, Cave City, KY SUDIA District 5 Mtg. Taylor County Extension Office, Campbellsville, KY Udder Dissection – Lebanon Fairgrounds, Lebanon, KY Udder Dissection – Burkmann Feeds, Glasgow, KY North America International Livestock Exhibition, Louisville, KY SUDIA District 6 Mtg. Marion County Extension Office, Lebanon, KY SUDIA District 8 Mtg. Lindsey Wilson College, R.D. Crammer Dining, Columbia, KY SUDIA District 9 Mtg. Historic Lodge Restaurant, Renfro Valley Center, US Hwy. 25, Mt. Vernon, KY Farm City Luncheon and Wing Tip Rodeo SUDIA District 4 Mtg. Claudia Sanders, Shelbyville, KY KADF Board Mtg. Frankfort, KY, T.B.A. Deadline date for Dairy-MMP signup.
December December 3 December 3-6
UK Precision Dairy Showcase, Coldstream UK Campus E.S. Goodbarn, Lexington, KY Kentucky Farm Bureau Annual Meeting, Louisville, KY
Milk Matters September - October 2014