June 2005

Value of dairying noted reports Farmshine ( June 24, '05 ). A new brochure, "I'm a Cash Cow," explains the economic impact of Pennsylvania 's dairy industry. The publication, produced by the Pennsylvania Dairy Task Force, is targeted to Pennsylvania 's non-farm public and elected officials. "Plans are to partner with the Pennsylvania Dairy Princess Program for use with their promotions. Mailings will also be made to Pennsylvania dairy producers and elected officials, requesting their support with use of the brochure." . . . An online version is available at the Center for Dairy Excellence website: www.centerfordairyexcellence.org .

Attention Farm Women says Pennsylvania Vegetable Grower News (June '05). Lynda Farrell, Blue Heron Consulting & Honeysuckle Hills Farms, Downingtown , PA , has been contracted through USDA & PDA to undertake a research project, Sustaining the Growth of Women in Pennsylvania Farming . She says, "The project has three goals: determine why women are the largest growing demographic in Pennsylvania agriculture; determine the significance of the phenomenon to a stable Pennsylvania agricultural economy; and create a blueprint for outreach and education programs. . . . If you are a woman in agriculture and would like to participate in this important study, you may fill out the short survey at www.winag.org . You will also find more information about the project and other ag website contact links as we continue to build the site."

The Business Planning Assistance Program is a grant-funded program designed to encourage dairy producers to develop and follow business plans for their farms. . . . The parameters of the program allow payments of 75%, up to $1,500, to dairy farm businesses to help defray the cost of having a business plan developed by a professional business consultant. The funding may also be used to help cover the cost of having a feasibility study done by a consultant. Grant monies may not be used for services other than business-related, such as nutrition work, nutrient management programs, or custom crop work." Additional information and instructions for how to apply are available at http://www.padairystake.org/programs/ . (Source: Pennsylvania Dairy Stakeholders online )

Why it takes more than milk quality is featured in Dairy Herd Management (June '05). "Milk quality will always be important. But in a consumer-driven market, it will take more than milk quality. . . . retailers are paying attention to what goes on at the farm level and even asking for changes. And they have the clout to do it. Five grocery retailers take in 52 percent of the food dollar. By 2020, those same five retailers-Wal-Mart, Kroger, Albertson's, Safeway and Ahold-are predicted to have 70 percent. . . That gives them more power to place demands on their suppliers-not only on price, but also in terms of quality, stability of product and even such issues as animal care. . . . Because they listen to consumer concerns . . . the major restaurant and grocery store chains will need some sort of verification process. . . . That means all segments of the food chain will need to develop sophisticated record-keeping systems that give consumers the safety assurances they demand. " Read the complete article at http://www.dairyherd.com/directories.asp?pgID=724&ed_id=4480&component_id=871 (registration required).

Are there gaps in your farm's insurance coverage? asks Hoard's Dairyman (June '05). "If you and/or your employees do some custom work in addition to your own farm work, there's a greater likelihood that your general farm insurance is not coverage enough." Other types of insurance to consider include non-owned auto liability (if an employee uses his or her own vehicle to do farm work), and hired auto liability "for those who rent or borrow somebody else's vehicle for farm or business purposes. . . . Not sure if you're fully covered for every situation? An umbrella policy may be the answer. . . . Because laws vary from state to state and coverage varies from one insurance company to the next" it's important to discuss "your farm or business coverage with a knowledgeable agent."

Invest in some off-farm assets recommends Dave Kohl, Virginia Tech, in a response to a question from a reader of Hoard's Dairyman (June '05). "Every dairy farm should take 5 percent of its profits and invest them outside the farm. . . . off-farm investments have great value and offer protection." If your farm were to be sued, "What would your family do for retirement if you lost your farm? In civil lawsuits, plaintiffs in most cases cannot take IRAs, 401ks, or other retirement funds. These assets are untouchable and offer risk aversion."

How to save enough to pay for an annual cruise is revealed in "The Manager" from Pro-Dairy, in Northeast Dairy Business (June '05). The theme of the series is energy costs. Authors David Ludington and Richard Peterson recommend four major Energy Conservation Measures (ECMs) many dairies could implement: 1) Variable-speed drive (VSD) vacuum pump; 2) Plate milk precooler; 3) Energy-efficient lighting; and 4) Refrigeration heat recovery. They conclude by saying, "If you add up just the minimum savings potential of the four technologies talked about here, you can save about $3,600 per year in energy costs. That's more than enough money to book a great cruise for two. Enjoy your trip!" Read the complete article at the Pro-Dairy website, http://www.ansci.cornell.edu/prodairy/ .

The growing earnings gap is highlighted in Northeast Dairy Business (June '05). "The earnings gap between the top 25% of Northeast dairy producers and the bottom 25% profit group widened in 2004 to $915 per cow, up nearly $100 from 2003, according to the 2004 Northeast Dairy Farm Summary, released in May by the Northeast Farm Credit system. The 25% most profitable producers earned a 16.7% return on their investment. But the 25% least profitable didn't make any profit. . . . Farm Credit members can get a copy of the Summary at their local Farm Credit office. For others, the cost is $50. For more information click on http://www.firstpioneer.com/notebook/L3/newsdairysum.asp .

National Heifer Sale Enters Record Books, Raises Over $400,000 For Jersey Youth And Research ( DairyLine.com , June 25, '05 ). " The National Heifer Sale, an annual sale of the nation's top Registered JerseyT heifers sponsored by the American Jersey Cattle Association, Reynoldsburg, Ohio, made history June 25, 2005 at the fairgrounds in Washington, Penna., when 95 lots sold for $309,900, the highest gross in the event's 48-year history. . . . All of the money was donated to two causes. The national Jersey youth program, the purpose for which the National Heifer Sale was created in 1958, received $25,000. The balance after sale expenses will be donated to the AJCC Research Foundation, a 501(c)(3) charitable trust sponsoring scientific research in the dairy industry." Read the complete article at http://www.dairyline.com/releases/070105ajca.htm .

Johne's Herd Certification Program Available reports Country Focus (PA Farm Bureau, June '05). "The state Department of Agriculture's new Johne's Disease Herd Cerificatin Program assists producers attemptinto eradicate Johne's in their herd. Producers may choose the management, control or status participation levels depending on herd needs. The Agriculture Department and Penn State conduct training sessions for veterinarians performing Risk Assessments and Herd Plans. For more information, contact your Agriculture Department regional office or Ron Miller at ronmiller@state.pa.us ." PDA also has information on the web at http://www.agriculture.state.pa.us/agriculture/cwp/view.asp?q=127781

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