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Nor' east Thinkin'Nor' east Thinkin'   
A frequently updated look at issues, topics and impressions about Northeast agriculture.
 
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Step Backwards Into Dairy Profitablity?
Posted on September 15, 2009 at 12:46 PM
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Not every change termed as progressive is beneficial. While that certainly applies to politics, it also fits farming – particularly dairy farming.

 

Dairy farmers are getting all kinds of advice today how to make their cows work harder to help them blacken the cash flow bottom line. But as I started looking at Northeast dairy farm financials several months ago, the lack of profitability didn’t appear to be just a milk price problem.

 

You’re right. I have no claim to being a dairy expert. But I do tap the minds of many who you’d agree are experts.

 

While feed costs are a big ticket item, it alarms me that close to 45% or more of feed costs are purchased ingredients. That’s simply out of control, and a losing proposition in this dairy economy!

 

Most dairy farmers – particularly smaller scale ones – have the greatest opportunity to change that. Consider, for a moment, the savings impact of cutting purchased ingredients back to 15 to 25% of feed costs – assuming you can hold milk production within a few pounds of current levels.

 

How so?

 

We’ll be digging into a number of ideas in November’s American Agriculturist. But here are a few ideas that you can start thinking about before it’s too late to make cropping changes this fall.

 

As Vicky Carson, our dairy column contributor, has been preaching for years, get those cows back on a high-quality, high-forage diet. That’s the easiest way to reduce feed costs per hundredweight of milk produced. Your cows will be healthier for it and your purchased protein needs might be eliminated.

 

It’s no secret that well-managed grazing operations are surviving this milk price depression better than anybody. Why? See previous paragraph.

 

Consider fall-seeded cover crops. While it’s a tad late now, especially in our northern readership states, wrap your mind around using early-seeded cover crops as a high-quality hay or silage feed source. October’s cover story – soon to arrive in your mailbox – about Steve Groff’s permanent cover crop system has huge merit, as done intercropping.

 

Here’s one other tip from November’s issue: Got average quality hay in the barn? Consider selling it, and buying high-quality dairy hay from the western states.

 

Your comments are welcome -- and wanted! Just click on "Add a Comment".

 

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Step Backwards Into Dairy Profitablity?
Posted on September 15, 2009 at 12:46 PM
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About The Writer
Nor' east Thinkin'

For more than 32 years, John Vogel has been a Farm Progress editor writing for farmers from the western Dakotas to the eastern Atlantic states. Since 1985, he's been the editor of American Agriculturist – successor of three other Farm Progress publications in the Northeast.

Raised on an Iowa grain and beef farm, he double-majored in Animal Science and Ag Journalism at Iowa State. His passion for helping farmers and farm management skills led to his family farm's first 209-bushel corn yield average in 1989.

John's personal and professional missions have become an integral part of American Agriculturist's mission: To anticipate and explore tomorrow's farming needs and encourage positive change to keep family, profit and pride in farming.

John co-founded Pennsylvania Farm Link, a non-profit dedicated to helping young farmers start farming. It was a prototype for four similar Northeast groups and was responsible for creating three innovative state-supported young farmer financing and funding programs. His efforts led to development of the Mid-Atlantic Ag Computing and Electronic Expo, two "Farms for the Future" conferences and two state ag workforce certification programs.

His publications have received countless awards, including the 2000 Folio "Gold Award" for editorial excellence, the 2001 National Association of Ag Journalists' Mackiewicz Award and several Oscars in Agriculture.

Vogel is two-time winner of the Northeast Farm Communicators' Farm Communicator of the Year award. He's a National 4-H Foundation Distinguished Alumni, an honorary member of Alpha Zeta and was recently recognized in "Who's Who in Executives and Professionals."


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