March 2005

Does selling timber from your woodlot make sense? asks an article in Hoard’s Dairyman (March 10, ’05). “A dairyman looking for quick cash may be tempted to accept the first offer for timber on his farm. But beware of the pitfalls. There are two types of timber sales that are undesirable. One is selling timber on the basis of shares, also called a consignment sale, while the other is a mill-tally sale. . . . The only sensible way for a dairyman to sell timber from a farm woodlot is the ‘lump sum’ sale using the service of a consulting forester. For a reasonable fee (usually 15 percent of gross sales), this professional person, a graduate forester, will cruise your woodlot, and mark saleable trees. Then the forester will estimate the volume and value in total thousand-board-feet, and send out for bids to logging firms. He will also prepare a sale contract.”

8 rules to improve your management is the Tools for Profit feature in Dairy Herd Management (Mar. ’05). “* ‘About right’ now is better than ‘exactly wrong’ later . . . * Hire smart rather than manage tough . . . .* Hire for attitude, train for skills . . . .* ‘I will’ beats ‘IQ’ every time. . . . * Do the ‘right thing’ rather than many ‘things right.’ . . . *Beware of promoting a successful task-achiever to manager. . . . * A little success can create a lot of overhead. . . . *The boss is responsible for momentum.” Read the complete article at http://www.dairyherd.com/directories.asp?pgID=726&ed_id=4188.

New animal ID Web site. The National Animal Identification System (NAIS) is a national program intended to identify specific animals in the United States and record their movement over their lifespans. It is being developed by the U.S. Department of Agriculture (USDA) and State agencies—in cooperation with industry—to enable 48-hour traceback of the movements of any diseased or exposed animal. This will help to ensure rapid disease containment and maximum protection of America's animals. Visit the NAIS website at: http://animalid.aphis.usda.gov/nais/index.shtml

Dairy farm numbers drop to 66,830 reports Hoard’s Dairyman (Mar. 10, ’05). “There was a drop of 3,545 in the number of licensed dairy farms in the U.S. between 2003 and 2004, according to USDA’s National Agricultural Statistics Service (NASS). That decline of 5 percent was similar to the average annual change since the survey was first conducted 12 years ago. . . . While there is not a perfect correlation, the decline in herd numbers generally has followed milk prices. . . . Average number of cows per farm has nearly doubled during the past 12 years to 135.” An accompanying table shows that Pennsylvania had 9,130 dairy farms in 2003 with a drop to 8,720 in 2004.

What’s ahead for milk is a “Dairy Edge” feature in Northeast Dairy Business (Mar. ’05). Jeff Manning, executive director of the California Milk Processor Board and “the brains behind the highly successful ‘got milk?’ campaign, laid out his forecasts for the dairy industry by the year 2010.” Some trends Manning sees on the horizon are: major national brands of milk, owned by large, global consumer goods companies; milk sales growing with population while per capita consumption stabilizes; milk blended with other beverages; and, a tremendous growth of vending milk.

Thinking about hedging your milk production? asks Northeast Dairy Business (Mar. ’05). “Before you begin, tap into all the information on trading dairy futures and options,” the article advises. “When producers start dealing with futures, they need to realize they are dealing with a national price, not a local one.” The internet has many sources of information on trading dairy futures and options, including a Penn State Cooperative Extension publication by Ken Bailey called “Contracting, Hedging and Options for Dairy Producers in the Northeast” at http://pubs.cas.psu.edu/freepubs/pdfs/ua359.pdf.

New Jersey dairy farms face an uncertain future reports The New Jersey Farmer, Mar. 15, ’05. “Despite its once-mighty reputation as a dairy powerhouse, central New Jersey is largely cow-free these days. While there are four farms left in Burlington County, there are none in Mercer, none in Monmouth and none in Ocean counties. . . . New Jersey’s dairy industry has atrophied, its farmers and livestock long gone to the wider, greener pastures in New York and Pennsylvania . . . . The state’s response officially began last month, when the DOA (NJ Department of Agriculture) announced the formation of the Garden State Dairy Alliance . . . . (which) seeks to offer the state’s dairy farmers and supporting industries information and technical resources for the production of milk products and the promotion of the industry. . . . Part of the marketing strategy . . . is the promotion of the “Jersey Fresh” brand on milk products produced in New Jersey.” Read the complete article at http://www.americanfarm.com/njftopstory3.15.05d.html.

Some Farm Labor Myths and Realities by Dr. Bernie Erven, professor emeritus at the Ohio State University, appear in Hoard’s Dairyman (March ’05). One myth, for example, is: “Farm employers cannot compete with non-farm employers to attract high-quality people.” Dr. Erven says the reality is: “Some people prefer what farm work can offer them, such as challenging and rewarding work, work with animals and high tech equipment, opportunity to learn and develop new skills, little chance of unemployment, and being part of a small, informal, and caring farm team.” Dr. Erven’s myths and realities appear on the Ohio State website and can be accessed by clicking on Myths and Realities.

Discipline for a Fair Workplace (Greenhouse Product News, Mar. ’05). “Disciplining employees is one of the toughest things an employer has to do.” This article by Bernie Erven, professor emeritus at Ohio State University, offers some tips to make it easier. Advice includes disciplining “the behavior not the person. Aim discipline at what an employee has done or not done. Avoid criticizing the employee’s personal characteristics. . . . Know the law . . . Put rules in place . . . . Train supervisors . . . A business should avoid having some supervisors known to be easy and others known to be tough . . . Make rules an important part of employee orientation.” Read the complete article at Fair Workplace.

Plug Those Cash Flow Leaks (Inc.com, March ‘05) notes, “it's impossible to create true and lasting financial success in business unless you have the lifeblood of your business under control – your CASH.” The article offers three tips to help you plug cash flow leaks in your business. “Understand your peak and trough cash months; pay special attention to capital expenditures; and, watch accounts payable closely.” The author concludes, “Remember, your success in business will ultimately be determined by the degree to which you create, and hang onto, your cash flow. One of the most rewarding activities you can undertake is to become maniacal about understanding and closely managing each area of your business that creates or uses cash.” Read the complete article at http://www.inc.com/resources/finance/articles/20050301/cfleaks.html.

Report attacks milk’s role in building strong bones (Food Systems Insider, March 10, ’05). “According to an article in the February issue of Pediatrics, milk may not be the best calcium source to help kids build strong bones. That message flies in the face of countless studies completed over the years that link dairy consumption with building strong bones. But, unless you know the lead researcher is a member of the Physicians Committee for Responsible Medicine – an animal rights group with just 5 percent of the membership being actual physicians – you may be inclined to believe the message. A statement by the National Dairy Council and the International Dairy Foods Association, calls the article an “opinion piece” and that the authors “chose to ignore decades of comprehensive research endorsing dairy’s role in bone health.” Read the complete article at http://www.foodsystemsinsider.com/eversion/0305milk.htm

New Pressure Treated Lumber: Things You Really Need to Know (The Vegetable & Small Fruit Gazette, March ’05). By now, all of the pressure treated lumber you will find in stores has been treated with one of the new, more ‘environmentally friendly’ pressure treatment chemicals. . . . Today’s pressure treating chemicals rely on copper in new formulations to stabilize it in ground contact and wet conditions. . . . Research so far indicates that these new materials should work to prevent decay for decades much as the old CCA treatment did. . . . If you are certified organic or transitioning to organic, be sure to check with your certifier prior to using any pressure-treated lumber. . . . Do not use nails, screws or connectors that are labeled ‘galvanized’ as these will start to corrode in just weeks. . . . Joist hangars, post anchors and other hardware need to be considered as well. . . . As stores transition to these new lumbers, finding the right connectors may take time and planning. . . . Lastly, you cannot use aluminum flashing. It will start to corrode immediately.” Read the complete article at Veg&SmallFruitLumber

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