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The Dairy Industry Braces Itself

Posted on January 28, 2009.

Grow cows, feed cows, milk cows.  Dairy farming is not all that complicated when it is boiled down to these basics.  Of course, long-time readers of Up on the Farm understand just how complex modern agriculture has become in order to compete on world markets to provide the safest and least expensive food supply in the history of humankind.  In my business, we help dairy producers develop month-by-month budgets to  help them create strategies to meet the demands of the business in the months ahead.

Last November, this column reported that 2009 was shaping up to be a  ‘rough’ year for dairy producers because the projected milk price had fallen from $20 to $17 per hundred weight.  Since then, the bottom has fallen out and the milk prices farmers are staring at now are a mind-numbing $13.50 average for 2009.  Prices for milk produced in February are projected in the $11.50 range.  This is about half the price of milk just a year ago. Read the rest of this entry…

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Deep Freeze Dairy Farming

Posted on January 21, 2009.

The recent artic blast into single digits sent most of us inside to the warmth and comfort of our homes to wait for the worst to pass.  Dairy farmers, their employees and livestock had no such luxury.  Regardless of weather, cows need to be milked, fed and cared for on schedule in order to maintain their health and productivity.

Holstein cows, the most common dairy bovine, thrive in cooler climates.  Shielded from the wind, they can withstand very cold temperatures just fine as long as the energy levels in their feed rations are increased to compensate for the colder environment.  Cows generate a lot heat - enough to keep traditional barns warm during the winter.  Read the rest of this entry…

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Cow Pedicures Are All The Rage

Posted on January 14, 2009.

Keeping the feet of dairy cows in excellent condition is an essential practice in today’s modern dairy herd.  Hoof trimming is a specialized skill that most dairy producers hire outside specialists to perform.  While horse owners call the farrier to trim and shoe horses, dairy producers call the hoof trimmer to make sure their cows feet are healthy and well manicured.

The hooves of dairy cows are equivalent to our fingernails.  They grow continually and like our fingernails, Read the rest of this entry…

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The December Dairy Slump

Posted on December 24, 2008.

Feeding a modern herd of dairy cows is a complex process that becomes even more difficult this time of year.  This complexity does not include the additional stress that winter weather creates on stoic farm employees as they mix precise dairy rations in the face of howling wind and blinding snow.

Most dairy herds run out of last year’s corn silage (chopped, fermented corn) and must start feeding this year’s crop now.  Although the silage may look like the same and may even be the same variety, growing conditions have a tremendous impact on its nutrient content.  Farmers are masters at controlling variables, but controlling the weather is still beyond their capability. Read the rest of this entry…

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Bankruptcy Protection

Posted on December 17, 2008.

The terms Bankruptcy and Chapter 11 have been in the news lately with respect to the U.S. auto industry.  From media coverage and in passing conversations at holiday parties, I am beginning to realize that many do not understand that being in bankruptcy is not the same as going out of business.  I claim no professional training in providing legal advice on bankruptcy proceedings, but have supported numerous farms and their attorneys as they used these laws to help them stay in business.  Here is what I have learned.

Farms, like other businesses, sometimes find themselves in a difficult cash flow position.  Their operating costs, debt service (principal and interest payments), and other cash obligations are higher than the amount of cash that is flowing into the business.  They simply do not have enough cash to meet the needs of the business.  If the business is profitable and strong, it usually gets through these periods by drawing cash from savings or borrowing from an operating line of credit or both. Read the rest of this entry…

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Electricity and Livestock Don’t Mix

Posted on December 12, 2008.

Stray cattle is something livestock farmers deal with on a regular basis by making sure fences and gates are in good working condition.  Stray electricity is an entirely different beast.  When electricity escapes the wires, motors, lights and other electrical equipment designed to use it, we have problem commonly referred to as stray voltage.

Stray voltage on dairy farms can put a farm out of business because this invisible and barely detectable problem can lead to poor milk production, poor reproduction, higher rates of metabolic problems and reduced immunity to disease.  Stray voltage can go undiagnosed for years, taking that long to debilitate the herd and the farm’s ability to compete. Read the rest of this entry…

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Corn Harvest Bottlenecks

Posted on December 3, 2008.

Have you noticed that there seems to be a lot of corn still standing in the fields even though it is early December?  Many are wondering why corn growers simply cannot seem to get corn harvested this year in Western New York.  The fact of the matter is that corn harvest is proceeding as fast as possible, but farmers face bottlenecks are at every turn.

One of the biggest factors causing the seemingly endless corn harvest is the large number  of  corn acres planted and the heavy yield per acre this year.  These two factors created a huge volume of corn to be harvested. Nobody is complaining about a bountiful crop, but in order to make it count, it needs to be harvested, dried, stored and sold.  Therein lies the rub.  Let’s examine these bottlenecks one at a time. Read the rest of this entry…

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Environmental Standards Are Serious Business

Posted on November 26, 2008.

Bashing the environmental stewardship of large farms seems to take on the fervor of a national sport for many people who hold the view that so-called “factory farms” don’t really care about our natural resources.  The truth is, farmers have been adjusting their practices for the past several decades through the same forces that have bought about improved environmental standards in the rest of society, including municipalities and industrial firms.  In New York State, a blend of carrot and stick policies motivates farmers to help improve the environment. Read the rest of this entry…

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A Rough Dairy Year Ahead

Posted on November 19, 2008.

On dairy farms this time of year, the crops have been harvested and employees are looking forward to some quiet time deer hunting in the woods.  There may be some manure to spread, fields to fall-plow or buildings to button-up before winter starts, but the constant pressure to plant, harvest and store crops on mother nature’s schedule has ended for the year. Now there’s more time to work with cows, have lingering conversations, and contemplate about what to do next year instead of just tomorrow. Read the rest of this entry…

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Farmland Preservation

Posted on November 12, 2008.

Every so often  perhaps you ponder how the scenery has changed as you drive between home and work, on the way to visit family and friends, or when taking a trip to your favorite shopping destination.  A housing development sits where there used to be a pasture.  A new factory now occupies the place where corn used to grow.  Old farmsteads have been transformed into a new church, parking lot, strip mall, car dealership, gas station or a new road.  This is normal economic progress.

If you can remember the changes that have occurred in the past 10 years near you, and assuming a linear extrapolation, try to imagine the changes that will occur in the next 10 years.  Now try imagining the next 100 or 200 years.  When I do, the question that pops up in my mind is, “Will there be any open farmland left someday?”  If there is, will it be obscured by office buildings, homes, and retail buildings as we drive past?  In addition to providing farmers and their employees with their basic means of production, farmland provides benefits to society in general, including open space, scenic preservation and wildlife habitat.  Imagine living here without them. Read the rest of this entry…

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  • Recent Posts

    • The Dairy Industry Braces Itself
    • Deep Freeze Dairy Farming
    • Cow Pedicures Are All The Rage
    • The December Dairy Slump
    • Bankruptcy Protection
    • Electricity and Livestock Don’t Mix
    • Corn Harvest Bottlenecks
    • Environmental Standards Are Serious Business
    • A Rough Dairy Year Ahead
    • Farmland Preservation
    • Price Cycle Drives Dairy Efficiency
    • Covering Bunk Silos is a Thankless Job
    • Will the Sub-Prime Melt Down Impact Farm Lenders?
    • Corn Silage: Blown and Chopped
    • The New Soybean Weed
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