I-29 Moo University
A newsletter for dairy producers & industry~February 2020
Calendar of Events
2020
February
25th: Nebraska State Dairy Convention - For more information visit webpage
26th: Eye on Employees Webinar - Fred Hall - Employee Handbook Importance, Register Here
March
4th: Eye on Employees Webinar - Melissa O'Rourke - Job Misclassification of Employees, Register Here
24th: I-29 Moo University Dairy Beef Short Course; Sioux Falls, SD. Access Agenda & Registration Here
24-26: Central Plains Dairy Expo: Click here for more information
31: Heifer Facilities Design & Management Field Day; Milford, IA. Click here to preregister.
Dairy Beef Short Course to Focus on Animal Health and Carcass Traits
Topics | Speakers | Agenda
9:30 a.m. - Registration
Program 10:00 am - 3:00 pm
“Finishing Dairy Cattle for Beef: the Good, the Bad and the Ugly,” Dr. Ty Lawrence, Professor of Animal Science, West Texas A&M University
Panel Discussion – “Being Conscious of Packer Programs That Fit Dairy and Dairy Beef Carcasses”
* Bill Munns – Marketing & Product Management, JBS Beef, “The Commercial Science Behind Purebred Holstein Beef"
* Kevin Hueser – Senior Vice President Beef Margin Management, Tyson Fresh Meats, “Dairy Cross Opportunities in the Plant”
“Health Considerations for Dairy Beef Cattle During the Feeding Period,” Russ Daly, DVM, SDSU Extension Veterinarian
“Feedlot Cattle Lameness and Economic Impact,” Jan Shearer, DVM, MS, Professor Veterinary Diagnostic & Production Animal Medicine, ISU
Roundtable Discussion with all Speakers
Wrap-up & Adjourn
Registration details
A registration fee of $25 per person will include the short course, lunch and proceedings. Registration closes March 20 and the event is limited to 130 attendees on a first come, first serve basis. To register, or go to the I-29 Moo University website. You can also register by mailing the registration fee to Tracey Erickson at 1910 West Kemp Ave., Watertown, SD 57201. Please include the contact (s) information and any dietary restrictions when mailing in your registration information.Email: tracey.erickson@sdstate.edu
Website: dairy.unl.edu/i-29-moo-university
Phone: 605-882-5140
Producer Requested Help with Manure Cropping Systems Survey
The survey will require 15 minutes or less to complete. Your decision whether or not to participate in this survey is voluntary and your responses will remain anonymous. Access the Survey Here. You may ask any questions concerning this survey and have those questions answered before agreeing to participate in or during the survey. Please contact the investigators: Rick Koelsch (rkoelsch1@unl.edu), University of Nebraska-Lincoln; Sally Flis (sflis@tfi.org), The Fertilizer Institute with your questions.
Eye On Working Capital
If you have heard my discussion on the direction of milk market you will remember one of my closing statements is that “dairymen will need to strengthen balance sheets before any real herd expansion rallies in a broad way. Some dairies are in stronger positions and are taking advantage of higher milk prices by filling their barns and moving expansion plans forward. Let’s take a look at where we are with working capital from the balance sheet in a broader way.
As with any business, working capital is the frontline defense in risk management, dairy farms are no different. Working capital is not a ratio, but real dollars, it gives a snapshot of the financial position of the operation on a particular day. Specifically, working capital is measured by taking the operation’s current assets minus current liabilities.
The USDA notes as farm incomes turned lower, so did working capital. In 2012, sector-wide working capital was more than $160 billion. For 2020, the USDA is projecting working capital will fall to $52 billion. What is the correct level of working capital, that depends on the enterprise, but it is the downward trend that is problematic for our industry.
David Widmar in Agricultural Economic Insights discusses working capital as a percentage of gross revenue.
“One way of thinking about this ratio is “for every $100 of gross revenue, how much financial cushion (working capital) is there?” The chart below shows this measure since 2012. When farm income and working capital were both high, the working capital to gross revenue ratio was 37%. More recently the ratio has been closer to 15%. In 2020, the ratio is expected to reach 12%. For every $100 of projected revenue, the sector will have only $12 of working capital. In other words, many producers will find the current portion of their balance sheet to be very tight in 2020.”
Total U.S. Farm working capital, 2012-2020. Data Source USDA ERS.
The University of Minnesota has worked with FINPACK data to determine the adequacy of working capital by computing the working capital to gross revenue. By comparing the level of working capital to a farm’s annual gross income, it puts some perspective into the adequacy of working capital.
Let’s view working capital in terms of adequacy. Are income and property taxes or living expenses listed as a current liability on your balance sheet? These expenses require working capital to cover them. Liquidity and working capital are not a measure of wealth, but if bills pile up faster than they can be paid, working capital is not sufficient.
A farmer that has a working capital to gross income ratio of 8 percent will rely heavily on borrowed operating money, because they will run out of their own working capital early in the year.
A farmer that has a working capital to gross revenue of 26 percent will rely on borrowed money during the year, but not as heavily and not as soon.
They conclude that a percentage over 30 percent indicates a strong enterprise while less than 10 percent is a fragile enterprise. Enterprises between those numbers fall in a caution range.
Again, the balance sheet is a snapshot of the enterprises financial condition on a given day and changes as business is conducted each day as bills are paid, crops are harvested and new loans established. Even as milk checks have creeped higher, repairing the balance sheet is paramount before capital expansion.
Email: fredhall@iastate.edu
Website: http://www.extension.iastate.edu/dairyteam/
Phone: (712)737.4230
Mastitis Management in the Winter? Ya, U Betcha!
ST. CLOUD, Minn. (2/12/20) — A lot of people, me included, think about mastitis management mostly in the summer. After all, that’s when we see the highest prevalence of it. However, we see mastitis every month of the year. It may not be on the top of the priority list during winter, but it should be on the list nonetheless. You already know about all of the health and economic impacts of mastitis, so why jeopardize your cows and your bottom line? You have your typical mastitis routine—dry treatment, monitoring fresh cows, keeping stalls clean, and the like. However, are you managing for the specific threats and stressors that only winter brings?
First, we know it’s cold. Make sure your cows (as always) have access to shelter and an ample amount of clean, dry bedding. These aren’t just for mastitis prevention, but are important factors to overall cow management in the winter. Like with any season, the ultimate goal is to keep the amount of stress on your cows low. Making sure your cows are properly sheltered and that barns have adequate ventilation will keep them comfortable and will prevent them from needing to use extra energy to keep warm. Cows can handle fairly cold temperatures; wind chills are what really bother cows and make them use extra energy. At the very least, keeping cows out of the wind will help keep them comfortable. Read more...
Email: krek0033@umn.edu
Website: extension.umn.edu/dairy
Location: St. Cloud, MN, USA
Phone: (605) 882.5140
Dry-off period recommendations update
The following workshop will be offered at Central Plains Dairy Expo
This workshop will be offered in Spanish.
Dr. Maristela Rovai will present an update on the recommendations during the dry period.
Dry therapy is a common practice among dairy cattle farms and its proper management plays a key role in the following lactation. Drying off involves interrupting lactation for generally 45 to 60 before calving. In this period, in addition to the demanding final phase of fetus development, there are structural changes in the mammary gland secretory tissue that influence both colostrum and milk production in the subsequent lactation.
One of the most important concerns during the dry period is the high gland susceptibility to intramammary infections. To ensure a cow’s comfort and udder health during this period, several dry-off protocols are available that may include prophylactic antimicrobials and teat sealants. Dry cow therapy may seem simple, but it requires care, consistency and responsibility.
In this session, participants will receive an update on the recommendations and precautions to be considered during drying-off treatment. In addition, attendees will have a real udder, hands-on experience to apply the knowledge acquired in this talk.
For more information on additional breakout sessions during Central Plains Dairy Expo, click here.
Coping with Farm & Rural Stress
Farming is one of the most stressful occupations in the United States. This is particularly true for dairy farmers as they are experiencing an extended period of low milk prices.
Below are some resources available when dealing with stress.
Minnesota Farm and Rural Helpline: 833-600-2670
Ted Matthews, Rural Mental Health Counselor, no cost, no paperwork; 320-266-2390
Nebraska Rural Response Hotline: 800-464-0258
South Dakota Ag Mediation Program: 605-773-5436 or 605-280-4745
South Dakota Rural Help Line:800-664-1349South Dakota Suicide Prevention Hotline: 605-339-8599
Iowa Concern Hotline & Resources: 800-447-1985
Illinois Agriculture Mediation Program: 618-549-1200, ext. 1001
Rural Services of Indiana, Inc.: 574-299-9460
Kansas Ag Mediation Services: 800-321-3276
Missouri Agricultural Mediation Program: 573-751-5520
New York State Ag Mediation Program: 518-687-2240 or 866-669-7267
New York Farm Net: 800-547-3276
North Dakota Mediation Service: 844-642-4752 or 701-328-4158
North Dakota 211 Help Line Mental Health Association in North Dakota: 800-472-2911
North Dakota Agricultural Mediation Services: 800-642-4757 or 701-328-2061
Wisconsin Farm Center Hotline: 800-942-2474
Disaster Resources Available with Recent Weather Events
Available resources include
South Dakota Department of Agriculture website (sdda.sd.gov)
Livestock Indemnity Program (LIP)
Emergency Livestock Assistance Program (ELAP)
Emergency Conservation Program (ECP)
Environmental Quality Incentives Program (EQIP)
Emergency Loans
Farm Stress Help
University of Nebraska Lincoln website (flood.unl.edu)
- Cattle producers post flood checklist
- University of Nebraska feeding assistance program
- Dealing with flooded hay and grain
- Disposal of flood soaked grains and forages
- Emergency disposal of livestock carcasses
- Flood-related diseases in poultry and livestock
- Hay donations
Many more resources available at the websites listed above.
About Us
Location: I29 Corridor
Facebook: Facebook.com/I29DairyOutreachConsortium
University of Minnesota Dairy Extension
Contacts:
Jim Salfer: salfe001@umn.edu; phone: (320) 203-6093
Karen Johnson: ande9495@umn.edu; phone: (320) 484-4303
Brenda Miller: nels4220@umn.edu; phone: (320) 732-4435
Emily Wilmes: krek0033@umn.edu; phone: (320) 255-6169, ext. 3
South Dakota State University Extension
Contacts:
Tracey Erickson: Tracey.Erickson@sdstate.edu phone: (605) 882-5140
Heidi Carroll: Heidi.Carroll@sdstate.edu; phone: (605) 688-6623
Maristela Rovai: Maristela.Rovai@sdstate.edu; phone: (605)688-5488
Nebraska Dairy Extension
Contacts:
Kim Clark: KimClark@unl.edu; phone: (402) 472-6065
Robert Tigner: Robert.Tigner@unl.edu; phone: (308) 696-6734
North Dakota State University Dairy Extension
Vacant Position
Iowa State University Dairy Extension
Contacts:
Fred Hall: FredHall@iastate.edu; phone (712) 737-4230
Jennifer Bentley: jbentley@iastate.edu; phone: (563) 382-2949
Allied Partners
Mitch Schulte: mitchschulte@iowadairy.org; phone: (319) 7745-3451
Western Iowa Dairy Alliance: Scott Schroeder: westerniowadairy@gmail.com; phone: (712) 441-5308
Minnesota Milk Producers Association: MNMilk.org
Lucas Sjostrom: lucas@mnmilk.org; phone: (320) 249-8701
North Dakota Livestock Alliance:
Amber Boeshans: amberboeshans@ndlivestock.org; phone: (701) 712- 1488
Nebraska State Dairy Association: NebraskaMilk.org
Kris Bousquet: KrisBousquet@NebraskaMilk.org
phone: (531) 207-4291
South Dakota Dairy Producers: SDDairyProducers.org
Tom Peterson tom.peterson@sddairyproducers.org; phone: (605) 251-2439
Minnesota Dairy Initiative-SW Region
Becca Schulze becca.schulze@co.pipestone.mn.us; phone: (507) 531-0443