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KY Milk Matters September October 2020


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September October issue of KY Milk Matters produced by the Kentucky Dairy Development Council

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KY Milk Matters September October 2020

  1. 1. September - October 2020 • KDDC • Page 1 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk MattersS e p t e m b e r - O c t o b e r w w w. k y d a i r y. o r g KENTUCKY Supported by "Comfort Food" Approach to Dairying page 8 State Fair Show Results page 12-13 Coronavirus Food Assistance Program pages 18-21 more photos on page 12 Supreme Champion Cow – Elise Carpenter – Marion County Supreme Champion Heifer – Hudson Spoonamore – Lincoln County
  2. 2. September - October 2020 • KDDC • Page 2 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund 2020 KDDC Board of Directors & Staff Executive Committee President: Freeman Brundige Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Member: Greg Goode EC Past President: Richard Sparrow Board of Directors District 1: Freeman Brundige 731.446.6248 District 2: Josh Duvall 270.535.6533 District 3: Keith Long 270.670.1388 District 4: Bill Crist Jr. 270.590.3185 District 5: Tony Compton 270.378.0525 District 6: Mark Williams 270.427.0796 District 7: Greg Goode 606.303.2150 District 8: Steve Weaver 270.475.3154 District 9: Jerry Gentry 606.875.2526 District 10: Terry Rowlette 502.376.2292 District 11: Stewart Jones 270.402.4805 District 12: John Kuegel 270.316.0351 Equipment: Tony Cowherd 270.469.0398 Milk Haulers: Mike Owen 270.392.1902 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dr. Jeffrey Bewley 859.699.2998 Dairy Co-op: Stephen Broyles 859.421.9801 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Todd Lockett 270.590.9375 Heifer Raiser: Bill Mattingly 270.699.1701 Former Pres.: Richard Sparrow 502.370.6730 Employee & Consultants Executive Director: H.H. Barlow 859.516.1129 DC-Central: Beth Cox PO Box 144, Mannsville, KY 42758 859.516.1619 • 270-469-4278 DC-Western: Dave Roberts 1334 Carrville Road, Hampton, KY 42047 859.516.1409 DC-Southern: Meredith Scales 2617 Harristown Road, Russell Springs, KY 42642 859.516.1966 DC-Northern: Jennifer Hickerson PO Box 293, Flemingsburg, KY 41041 859.516.2458 KDDC 176 Pasadena Drive • Lexington, KY 40503 KY Milk Matters produced by Carey Brown President’s Corner Freeman Brundige T he year 2020 has not had very many things to be excited about. A lot of dairy producers would like to just call the whole thing off. But one somewhat bright spot is recognizing the shortfalls of our complicated milk marketing system. The inability to adjust to change in the retail market has caused extreme volatility to dairy producers pay prices. The way milk is priced makes it hard for us in a Class 1 market to get the right signals to plan ahead at all combined with mandates from our co-op’s and processors and that many producers are having to change to a different organization to market their milk even adds to the stress level. Some of the projects that KDDC is working on are: 1. Federal Milk Marketing reform. Try to get the Southeast on a level playing field with the rest of the nation. The price we get for our milk continues to drop in relation to other parts of the country. 2. Transparency in ways that legislation and co-op decisions are made, who influences them, why are they made without board approval or comment periods. 3. Check off dollars, are they really being spent in the right way? What is the true direction of DMI and the groups under its wings? 4. Multi component pricing, making sure we understand the true facts on what it will and will not do to our milk prices. Small gains in some of these areas can make larger increases in our milk checks, so we feel that our time spent on these projects are well spent.
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  4. 4. September - October 2020 • KDDC • Page 4 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Executive Director Comments H H Barlow I hope everyone is having a successful harvest season. It has always been a time of thankfulness for me to fill the silo and bale the last cutting of hay to have feed for my cows for the winter. Crops have been excellent this year in Kentucky and we should be well prepared feed-wise for the next year. I pray for the Iowans who saw their crops destroyed by the Derecho winds. The milk pricing situation is still volatile and what I write today will probably be different by the time you read this. The Dixie Dairy Report in this newsletter is a good resource on pricing through the end of the year. KDDC is still active with our distribution of the free truck load of dairy products that are given away in various Kentucky communities. Recently, USDA approved another round of ‘Farmers to Families Food Boxes’ so we can continue to provide nutritious dairy products to Kentucky families. Up to now, KDDC has actively managed distribution at 26 different locations. We are currently participating in a Southeast Task Force which is studying the possibility and options of Federal Order reform. Along with other state organizations in the south, KDDC commissioned Matt Gould, a national dairy market analyst, to study the past 20 years of dairy policy and what effects these rules and regulations have had on our milk price. For example, what happened to the advantage of selling milk in the southern fluid market in Federal Order V and VII. In 2019, Order V (Appalachian Order) was ranked 9th in milk price nationally when it was previously ranked 3rd. Gould should have his report finished by early October. His analysis should provide concrete facts to use in proposing changes to national dairy policy. Thankfully, the National Farm Bureau has a dairy committee working toward reform. It will take a united front among dairy farmers and their organizations to push through meaningful change. KDDC is eager to hold the 6 Young Dairymen Education and Fellowship meetings we have scheduled in early October. This should be a time of networking with fellow producers to build friendships, share experiences and learn new practices to take home for improvement on their own operations. Dr. Jeffrey Bewley will be attending each meeting to lead discussion. Our desire is for these events to lead to the formation of peer groups that will continue to meet on occasion and develop their own programs and take leadership roles in leading Kentucky’s dairy industry in the future as well as KDDC. The locations and times for the meetings are highlighted in this newsletter. 2020 is the season that has brought us record cheese prices, very depressed mailbox prices, dumped milk, negative producer price differentials, depooling , Dairy Margin insurance payments one month and then zero payments the next month. Uncertainty is the word that describes our lives very well. What is going to happen next? Who is going to win the election? When is school going to be normal again? How much longer do I have to wear a mask? Will UK play basketball? In times like these I remember God’s word, He will provide for us. Take heart, we can trust God for better times ahead. Please read the tribute to Warren Beeler in this newsletter. He is a great friend to dairy. Enjoy a safe harvest and autumn season and have a cold glass of milk with all that Halloween candy.
  5. 5. September - October 2020 • KDDC • Page 6 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund State Fair Looked Different Dr. Ryan Quarles, Commissioner of Agriculture O n Aug. 30, we wrapped up one of the most historic Kentucky State Fairs ever: a fair in the middle of a pandemic. And it may turn out to be one of our most important state fairs ever. Several months ago, I fought hard for a modified State Fair with outdoor exhibits, youth livestock shows, the World Championship Horse Show, some amended amusement rides, concerts with social distancing – all in an effort to preserve the spirit of one of our greatest agricultural traditions. The Governor’s Office approved the plan, but later announced it would impose additional restrictions, eliminating everything except for the World Championship Horse Show and our youth livestock shows. As a result, the State Fair looked much different this year. The parking lot in front of the Kentucky Exposition Center was eerily empty. There were no outdoor concerts, nor was there a midway full of thrill rides and screams. There were no exhibits to browse, agricultural or otherwise. There were a few vendors, such as the Kentucky Cattlemen’s Association and Kentucky Pork Producers, who kept me and other fair participants fed, but not the normal number and variety. There was livestock, but not the high quantity of animals and adult handlers that we usually see. Despite the challenges and changes, many families and children were grateful to have an opportunity to participate in youth livestock shows. Every day, multiple times a day, young people and their parents expressed to me their gratitude for the opportunity to show their livestock. Since the pandemic canceled most county fairs this summer, many kids said they didn’t think they would have the opportunity to participate in this traditional agricultural pursuit that teaches discipline, patience, and the proper way to take care of animals. I would like to thank the young people and their parents who followed the public health guidelines we put in place, as well as the staff at the Kentucky Department of Agriculture who worked hard to make the State Fair possible. Their willingness to participate showed, once again, why agriculture is such a rich heritage for the residents of Kentucky. This pandemic has caused so much turmoil in our lives this year, but it has also brought out our true spirit of perseverance. While this was a historic year, I hope it’s an anomaly. I continue to pray for an end to the pandemic so that we can have a normal State Fair in 2021. “You usually don’t see sell-outs in early spring vegetables. Usually people don’t get as excited about baby spring lettuce as they do about other crops,” he said. “I never imagined it {pandemic] would be as life changing as it’s been. We’ve been working to make sure our farmers have an outlet for their crops.” At the Community Farmers’ Market in Bowling Green, manager Susan Warrell said while customer count has been drastically down in the spring, vendor sales were much better than normal. “I would venture to say that they are spending the majority of their food budget on local food here at our market,” Warrell said. “Our social distancing and reduced foot traffic rules are working. People aren't loitering around or just walking through looking at everything. They're here to buy local.” KDDC director for the 3rd district is Keith Long- Keith and Wife Connie along with son Brian, milk 400 cows just south of Glasgow, KY in Barren county. The Longs milk 3x a day with an average of 90 lbs. per cow per day. The cows are housed in two free-stall sand bedded barns with flush system and sand sorter. The herd consistently maintains their SCC below 175,000. Dry cows and pre fresh cattle are housed in a free-stall barn. The Longs row crop around 1,000 acres of corn and soybeans. They participate in the KDDC Milk program and have hosted several farm tours and field days. KDDC director for the 4th district is Billy Crist Jr. Bill and his family operate a 600 cow dairy farm in Metcalfe county near Wisdom, KY. Bill operates in partnership with his father Bill Crist, Sr. former UK Extension Specialist. The herd is milked 3x a day and has a RHA of 27,500 pounds. Dry and pre-fresh cattle are housed in compost bedded pack barn. The Crist row crop around 700 acres of corn and custom chop silage.
  6. 6. September - October 2020 • KDDC • Page 7 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Kentucky Farm Bureau Providing Nearly 200 Free Wi-Fi Internet Hotspots Statewide K entucky Farm Bureau (KFB) recently activated a free, public Wi-Fi internet signal from all 197 its locations statewide. The Wi-Fi network – with its easily identifiable name, KFBFreeWiFi – is accessible from the parking areas around KFB’s buildings 7am-10pm daily and free to anyone who would like to use it. “Reliable broadband internet service, especially in the rural parts of our state, is something that far too many Kentuckians still don’t have access to in their homes,” said Mark Haney, President of KFB. “In a world that now demands video meetings, virtual events and continual email communications – not to mention the tens of thousands of students who are about to start their new school year from home – internet connectivity is a must. We want to help ease that burden for some of our fellow Kentuckians through this initiative.” With at least one office located in each of Kentucky’s 120 counties, KFB is well-suited to provide free Wi-Fi access to communities across the Commonwealth. Signs identifying parking spots where the Wi-Fi signals are strongest will be placed at KFB’s offices, and no online registration or even KFB membership is required to use this service. Kentuckians can also maintain proper social distancing practices while accessing the internet through this free Wi-Fi signal from the convenience of their own vehicle. By providing this free service, KFB is focused on helping Kentuckians remain connected where the broadband availability is weak or nonexistent, especially with the added pressures of remote work and online learning resulting from the coronavirus pandemic. KFB’s efforts are also part of a nationwide effort called the “American Connection Project” led by Land O’ Lakes. Constructed to bring attention to the lack of rural broadband availability across the country, Land O’ Lakes sought partners who were deeply rooted in rural communities to assist with their goals. Prior to KFB’s launch, the American Connection Project had assembled a network of more than 90 businesses, trade associations and academic institutions in 19 states offering up more than 150 of their locations as free Wi-Fi hotspots. KFB more than doubled that number with its go-live today while adding Kentucky to the list of participating states. “This initiative may seem like a drop in the pond as it relates to solving the overall issue, but if we can help one student finish a school project, or one small business owner complete a payroll schedule, or one grandparent video conference with a grandchild they haven’t seen in months, then this entire effort will be worth it,” concluded Haney. To find a Kentucky Farm Bureau office and free Wi-Fi signal near you, visit
  7. 7. September - October 2020 • KDDC • Page 8 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund “Comfort Food” Approach to Dairying Donna M. Amaral-Phillips, UK Extension Dairy Nutritionist and Extension Professor V olatility and uncertainty definitely are adjectives that can be used to describe the outcomes of the economic climate and events this year. To start with, milk prices unquestionably have experienced a roller coaster type of fluctuation, resulting in the challenge of minimizing negative cash flows on a dairy. Hopefully, milk prices will stabilize and improve for the remainder of the year. On top of these financial challenges, all of us have dealt with the uncertainties and changes associated with COVID-19 in our personal and professional lives. One of the more interesting and positive outcomes I have observed through the media, be it newspapers, virtual meetings, or social media posts, is the resurgence of preparing “comfort foods” at home, be it learning to make bread, bake cookies, or just preparing good-old Mac and Cheese or spaghetti for dinner. To some, these foods and methods of preparation may seem just an everyday occurrence, but to many they represent a memory when times were more predictable and change did not occur on a daily or hourly basis. To me, people essentially wanted to feel they were in control of their lives and these foods helped provide that needed connection. In this article, I want to discuss how we can continue to incorporate the “comfort food” concept into dairy businesses. Specifically, I want to discuss how we manage dairy cows and daily finances where we can have some control over the outcome and those management practices that greatly impact financial security. Some of these key areas we have discussed many times, but they form the foundation of the more profitable dairies and those that also are survivors within the industry. These dairy businesses continuously practice these key concepts and are willing to change and find new ways to adapt to change. Getting cows to milk well in early lactation, increases milk income over the entire lactation; a key concept all know well. Cows need to be fed a balanced diet that adequately and efficiently feeds the microbes in the cow’s rumen. The microbes provide a large proportion of the nutrients needed for milk production and milk components. Forages need to be tested and these results used to balance these diets. Our understanding of these needed nutrients and how different feeds impact the microbes in the cow’s rumen continue to evolve. For example, we know that not all fats are equal and the bacteria need a source of sugar, starch, and digestible fiber. But, the nutrition-related area most under your control is getting early lactation cows to eat and managing the feeding program such that feed intake is not limited at any time over the day. Lactating cows, and most definitely early lactation cows, need to be fed such that they have access to quality feed at all times—including the times before you head to barn to feed or milk these cows. For each additional pound of TMR mix a cow eats, an early lactation cow can make daily 1 lb more milk and if she peaks one pound higher she can produce 200 to 250 lbs more milk over the lactation. At the same time, this ration needs to be as consistent as possible throughout the day and from day-to-day. In tie- stall barns, spreading grain intake over the day decreases the swings in rumen pH and allows the bacteria to “live” in a more consistent environment. For TMR fed herds, a more consistently and adequately mixed TMR comprised of consistent amounts and composition of ingredients is important. These mixes should be such that sorting by cows is kept to a minimum. All of these feed-related management practices are under our control, can be taken for granted, and definitely impact milk income per cow (production and butterfat), profit, and survivability. Another area under our control relates to the timely rebreeding of cows. Extended days open cost in lost milk income and can increase culling rates. Getting semen into cows in a timely manner and then detecting open cows are key components under one’s control. Identifying cows needing to be bred and those in heat (or to receive synchronization) are the cornerstones of an effective breeding program. Especially, but not limited to those who use natural service, cows should be checked at least every 6 weeks or less to see which are open or pregnant. Timely pregnant/open diagnosis allows one to better pinpoint dry off and calving dates as well as target intervention programs for open cows. Financial aspects on a dairy represent the balancing act between generating income through the sale of milk, butterfat, and beef and expenses. Expenses do need to be in line with others in the community, but sometimes we need to remember that we need to spend money to make money. A great example is investing in production and performance records and then using these cow-based records to detect issues early. Often times, this is the one of the first expenses eliminated or the frequency of testing decreased to help cash flow. Monthly testing of individual cows for SCC allows one to detect areas that need attention, such as fresh cows, and to see when SCC is starting to increase versus when it is a bigger issue. Also, monthly testing allows one to identify those problem SCC cows and make a decision if they should enter their second career as cull cows sooner than later to keep SCC in the bulk tank at an acceptable/allowable SCC. In addition, current records allow one to quickly identify those cows past the voluntary waiting period so they can be watched for heat and inseminated on a timely basis. Often times we get easily distracted or overwhelmed and
  8. 8. September - October 2020 • KDDC • Page 9 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund forget to look for problem areas staring us in the face that we can control or at least minimize their impact. For the past 6 months, I have been working from my basement home office. One recent afternoon, I was working downstairs on a deadline. My dogs kept barking and I assumed that they wanted inside, so I went upstairs to let them in—simple enough. Well, I went to the French door to our patio to let them in. I noticed that Teddy was standing off the patio, still barking. I happened to look down and on the rug outside curled up, was a rather large snake—yes I typed the correct word!!!! I knew I had to get this situation under control quickly before my husband, who hates snakes, came back to the house and proceeded to put some holes in the house. Bottom line, I knew I had to take control, do what needed to get done, and then get back to my deadline. As you look around and think about those management areas you can control and work on modifying, remember that you are practicing those concepts associated with that “comfort food” you might be having for dinner that day. Comprehensive Nutrient Management Plans (CNMPs). Livestock manure management and water quality BMPs. Ky Division of Water permitting and compliance. Ben Koostra - Professional Engineer and NRCS Technical Service Provider - Lexington - 859-559-4662 To place a classified ad, contact any of the KDDC Dairy Consultants or Carey Brown at (859) 948-1256 ClassifiedAds
  9. 9. September - October 2020 • KDDC • Page 10 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund K DDC honors Warren Beeler for his outstanding service of over 20 years to all of Kentucky agriculture and especially his support of the dairy industry. At every dairy event that Warren participated in he always brought up his own days of milking cows as a youth on his home farm. He identified with every dairyman because he understood the work and commitment it takes to be a dairy farmer. Warren always supported KDDC’s programs and endeavors for improving our industry. He graciously always spoke at our events when we needed him and made everyone proud of being involved in dairying. His positive attitude and optimism are infectious. We will definitely miss his leadership, enthusiasm and wisdom at GOAP. As he has said, he’s not going away, he’s just changing roles and assured me we can still call on him for help in anyway. In reading Warren’s exit article in the Farmer’s Pride, he tells us something about his life that we all need to take to heart, “it has been FUN”. Thank you for reminding us to have fun. THANK YOU WARREN BEELER, You truly are Mr. Kentucky Agriculture, a title you richly deserve!! Warren Beeler Tribute SAVE THE DATE Kentucky Dairy Partners Annual Meeting February 23 & 24, 2021 Sloan Convention Center, 1021 Wilkinson Trace, Bowling Green, Kentucky
  10. 10. September - October 2020 • KDDC • Page 11 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Dairy Revenue Protection (DRP) Is Here! This recently released USDA product (DRP) is designed to protect dairy farmers from the decline in quarterly revenue from milk sales. Contact us today for more information about protecting one of the biggest risks to your operation. In Business Since 1972 1-800-353-6108 We are an equal opportunity provider Cowherd Equipment & Rental Inc. Cowherd Equipment & Rental, Inc.Cowherd Equipment & Rental, Inc. 1483 Old Summersville Rd.1483 Old Summersville Rd. Campbellsville, KY 42718Campbellsville, KY 42718 Office 270-465-2679Office 270-465-2679 Tony 270-469-0398Tony 270-469-0398 Vince 270-469-5095Vince 270-469-5095 Cowherd Equipment & Rental, Inc For More Information: Cowherd Equipment & Renta 1483 Old Summersville R Campbellsville, KY 4271 Office 270-465-2679 Tony 270-469-0398 Vince 270-469-5095 Penta 4030 Tire Scraper J&D Head Locks Hagedorn 5 Manure Spre Silage Defacer Penta 4930 Cowherd Equipment & Rental, Inc. For More Information: Cowherd Equipment & Rental, Inc. 1483 Old Summersville Rd. Campbellsville, KY 42718 Office 270-465-2679 Tony 270-469-0398 Vince 270-469-5095 Penta 4030 Tire Scraper J&D Head Locks Hagedorn 5440 Manure Spreader Silage Defacer C Penta 4930Cowherd Equ C Penta 4030 Tire J&D Head Locks Silage Defacer Roto-Mix Mixers Tire Scraper Hagedorn 5440 Manure Spreader Penta 4030 J&D Head Locks
  11. 11. September - October 2020 • KDDC • Page 12 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Grand Champion – Tre Wright – Hardin County Reserve Grand Champion – Emily Goode – Casey County Junior Champion – Tre Wright – Hardin County Reserve Junior Champion – Addison Houchens – Barren County AYSHIRESJERSEY Grand Champion – Elise Carpenter – Marion County Reserve Grand Champion – Elise Carpenter – Marion County Junior Champion – Elise Carpenter – Marion County Reserve Junior Champion – Tre Wright – Hardin County MILKINGSHORTHORN Grand Champion – Taylor Graves – Boyle County Reserve Grand Champion – Tre Wright – Hardin County Junior Champion – Taylor Graves – Boyle County Reserve Junior Champion – Tre Wright – Hardin County REDANDWHITES Grand Champion – Tre Wright – Hardin County Reserve Grand Champion – Kaden Gibson – Bourbon County Junior Champion – Bree Russell – Metcalfe County Reserve Junior Champion – Emily Goode – Casey County
  12. 12. September - October 2020 • KDDC • Page 13 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund HOLSTEIN Grand Champion – Emily Goode – Casey County Reserve Grand Champion – Isabella Hayse – Shelby County Junior Champion – Hudson Spoonamore – Lincoln County Reserve Junior Champion – Colt Buckley – Anderson County GUERNSEY Grand Champion – Colton Huffman – Metcalfe County Reserve Grand Champion – Molly Shewmaker – Mercer County Junior Champion – Caden McIntyre – Metcalfe County Reserve Junior Champion – Megan Shewmaker – Mercer County BROWNSWISS Grand Champion – Emily Goode – Casey County Reserve Grand Champion – Colt Buckley – Anderson County Junior Champion – Kelly Jo Manion – Allen County Reserve Junior Champion – Colt Buckley – Anderson County Commissioners Trophy Showmanship Winner Tyler Berryman – Jessamine County
  13. 13. September - October 2020 • KDDC • Page 14 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund FLUID MILK SALES 2010-2019 Dairy product prices. August began with both block and barrel cheddar cheese trading slightly over $2.00/lb. at the CME. Then on the last trading day in August, blocks closed at $1.8275/lb. and barrels at $1.4300/lb. At one point during August, blocks fell as low as $1.65/lb. The August monthly average saw blocks $0.91/lb. lower than July, and barrels $0.87/ lb. lower. Then on August 25 additional fundin=g was announced for USDA’s Food Box Program, cheese prices starting moving higher. During the first week of September, blocks gained almost $0.30/lb. and barrels $0.27/lb. Closing CME cheese prices on September 4 were $1.9375/lb. and $1.5575/lb. for blocks and barrels, respectively. The large block to barrel spread shows the uncertainty in the cheese market. Historically, the start of the new school year provides a boost to cheese prices, due to fluid milk plants needing additional milk to fill the school pipelines. Unfortunately, with many schools not or only partially reopening, the seasonal boost is not occurring this year. Time will tell how long the Food Box program can support cheese prices. Both butter production and inventory continue to grow. Historically, butter production declines from June to July, but not this year, with July production higher than June. For the year to-date butter production is up 7.6%. The butter inventory at the end of July was over 13% higher than last July. And, butter imports are at historical highs through the first half of 2020. The August DPSR butter price is $1.5154/lb. which is $0.27/lb. lower than July, and $0.85/lb. lower than last August. This is the lowest August butter price since 2013. Hopefully, the lower domestic butter price will curtail imports, and provide more export opportunities. The August nonfat dry milk powder (NDM) dropped a penny to $0.9619/lb. Even though domestic disappearance for the first six months of 2020 is 35% lower than the same period in 2019, exports are up 24%. A competitive powder price and weaker dollar are fueling powder exports. The one caution flag with powder is an expanding inventory, up 6% at the end of July. More cows and more milk. USDA reports July milk production 1.5% higher than last July. More milk is due to more cows and more milk per cow. The nation’s dairy herd at the end of July is estimated at 9.352 million head, up 2,000 head from June, and 37,000 more cows than a year ago. Through July, 68,300 fewer dairy cows have gone to slaughter compared to last year. Milk produced per cow in July was 1.1% higher compared to last July, two months earlier it was 0.8% lower. Only six out of the 24 reporting states produced less milk in July compared to last July. Two of those six states with lower production were Florida and Georgia, down 5.7% and 0.7%, respectively. USDA reports 5,000 less dairy cows in Florida versus last July, along with less milk per cow. Cow numbers are steady in Georgia, but milk per cow is 10 lbs. lower. Total dairy demand. For the first six months of 2020, compared to the same period in 2019, total dairy demand is up 0.6% (total solids basis and adjusted for Leap Year). On the domestic front, demand is down 1.8%. Stronger retail sales Dixie Dairy Report September 2020 Calvin Covington MONTHLY % CHANGES IN PACKAGED FLUID MILK SALES (JANUARY-MAY 2020* VS. 2019) MILK VARIETY JANUARY FEBRUARY MARCH APRIL MAY TOTAL Conventional -3.2% -2.8% +6.4% -1.8% -4.2% -1.1% Organic +1.7% +3.4% +21.4% +23.8% +14.0% +12.6% Conv. + Org. -3.0% -2.5% +7.2% -0.5% -3.2% -0.4%
  14. 14. September - October 2020 • KDDC • Page 15 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk Prices FMMO 5 September 2020 Class 1 Advanced Price (@3.5%BF) $ 21.84 Class 1 Advanced Price (@3.5%BF) $ 18.60 FMMO 7 September 2020 Class 1 Advanced Price (@3.5%BF) $22.24 Class 1 Advanced Price (@3.5%BF) $19.00 helped partially offset the decline in food service sales. Exports were up a strong 15.2%. For the first six months of the year, exports accounted for 15.96% of demand measured by milk solids. The USDA Food Box program aided domestic demand greatly. We estimate from May 15 through August 31, the Food Box program utilized about 2.5% of total milk production. Fluid milk sales. Just recently, USDA released packaged fluid milk sales data for the first five months of 2020. Sales are 0.4% lower compared to the same period a year ago. Even though fluid sales declined from a year earlier, the decline is lower than previous years. As shown below, March sales were 7.2% higher than a year earlier, as consumers cleared grocery shelves of fluid milk. Once panic buying slowed, and food service sales almost ground to a halt, fluid sales declined 0.5% in April and 3.2% in May. As the table shows, conventional sales were down 1.1%, but organic sales were up a strong 12.6%. It is interesting to note whole milk sales, combined for both conventional and organic. Through May, total whole milk sales are up 5.6% while reduced fat sales were down 3.9%. Southeastern fluid milk sales. As anticipated, due to the large increase in the Class I Mover from June to July, Class I producer milk in July fell below a year ago in the Florida and Southeastern orders. July producer milk in Florida was 2.3% below a year ago and in the Southeast order down 3.8%. Class I producer milk in the Appalachian order continues to run ahead of last year. It was 22.8% higher in June, and 9.7% higher in July, compared to the same months a year earlier. Blend prices. After being lower than the Class III price for the past two months, August blend prices are projected higher than the Class III price in all three southeastern orders. As shown above, August blend prices in the Appalachian and Southeast orders are projected above $21,00/cwt. and in Florida above $23.00/cwt. Blend prices are projected lower in September and October. Compared to the futures market, my projections are lower for the remainder of the year, due to uncertainty in the cheese market. Fluid milk sales. On August 31 USDA-ERS releases its annual fluid milk sales report. Total fluid milk sales in 2019 were 46.4 billion lbs. This is a 1.8% decline from the previous year, and the tenth consecutive yearly decline. Fluid sales were almost 55 billion lbs. in 2010. On the positive side, 2019 marks the sixth consecutive year for an increase in whole milk sales. All of the fluid milk sales decline is in reduced fat and skim milk. PROJECTED* BLEND PRICES – BASE ZONES – SOUTHEASTERN FEDERAL OR- DERS MONTH APPALACHIAN FLORIDA SOUTHEAST ($/cwt. at 3.5% butterfat) July 2020 $19.33 $20.80 $18.89 August $21.36 $23.19 $21.33 September $19.71 $21.80 $20.22 October $17.91 $19.72 $18.35 November $18.42 $20.19 $18.96 December $17.80 $19.85 $18.20 * Projections in bold
  15. 15. September - October 2020 • KDDC • Page 16 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Winter Calf Barn Ventilation Tips Purina Animal Nutrition M any farmers rely on natural ventilation to provide clean, fresh air to their dairy calf barns. But when summer breezes turn to winter chill, balancing fresh air and keeping calves warm can be hard. Many farmers close doors, windows and curtains in an effort to reduce drafts and keep calves warm, but when buildings are closed, proper air exchange to keep calves healthy through the winter months can be challenging. Proper ventilation and adequate air exchange in dairy calf barns can decrease the build-up of dust, pathogens and moisture in the air, helping reduce the risk of pneumonia and other respiratory diseases in calves. POSITIVE PRESSURE VENTILATION BENEFITS A positive pressure ventilation system brings fresh, outside air into the calf barn and distributes the air evenly. These systems are designed to move air into “dead spots” – areas where the air may be stagnant, such as between solid calf pen panels. Stagnant air can harbor airborne pathogens which may lead to health challenges in calves. The goal for calf barn ventilation in wintertime is a minimum of four interior air exchanges per hour. A well-designed positive pressure ventilation system will deliver fresh air to calves without creating a draft, and can run 24 hours per day, even in cold weather. This alleviates the seasonal limitations seen with natural and negative-pressure ventilation systems. PROPER PLANNING IS CRITICAL While positive pressure ventilation systems can be a great solution for providing air exchange throughout your calf barn, these systems are “not one size fits all.” Positive pressure ventilation systems should be designed based on the number of calves, building size, barn dimensions, calf pen layout and more. There’s a fine line between providing adequate ventilation and creating drafts. It takes precise planning to achieve even air distribution throughout the barn. Doing their homework and working with their local expert when investing in a positive pressure ventilation system will help dairy farmers determine the best fit for their unique farm. The Dairyland Initiative, a University of Wisconsin School of Veterinary Medicine outreach program, provides resources that can assist dairy farmers in planning a ventilation system. They have trained design consultants throughout the U.S. and Canada. MORE WINTERTIME CALF CARE TIPS Ventilation is a critical part of winter calf management. Help calves thrive during cool weather months with a complete winter calf management program, including: • Make sure each calf has 30-35 square feet of resting space. • Pack 5-6 inches of bedding between the floor and the calf. • Bed with deep, clean, dry straw that calves can nestle in. • Provide calf jackets as needed. • Use pens with an open front and back, with solid panels in between. • Feed ½ to ¾ of a pound more milk solids daily, recommended as a third feeding. To help calves healthy and growing in winter, consider additional management factors at
  16. 16. September - October 2020 • KDDC • Page 17 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund YOU ARE INVITED TO JOIN US FOR OUR Young Dairyman Education and Fellowship Lunch WHERE LIKE-MINDED DAIRYMEN COME TOGETHER TO TALK AND FELLOWSHIP NOON TIL 1:00 OCTOBER 5-CHRISTIAN CO Shoney’s 4000 Fort Campbell Blvd. Hopkinsville, Ky 42240 OCTOBER 6-HENRY CO Lawson’s Family Restaurant 10621 Campbellsburg Road Campbellsburg, KY 40011 OCTOBER 7-GLASGOW Gondolier Italian Restaurant 509 S Roger Wells Blvd. Glasgow, KY OCTOBER 8-LEBANON La Fuente Mexican Restaurant 784 W Main Street Lebanon, KY 40033 OCTOBER 9-ADAIR CO Fiesta Mexico 819 Jamestown Street Columbia, KY 42728 OCTOBER 14-LOGAN CO Roy’s BBQ 101 Sarah Lane Russellville, KY 42276 Questions??? Contact your dairy consultant. Jennifer Hickerson 1-859-516-2458 Beth Cox 1-859-516-1619 Meredith Scales 1-859-516-1966 Dave Roberts 1-859-516-1409 OCTOBER 13-ADAIR CO
  17. 17. USDA is providing critical support to our nation’s farmers and ranchers through the Coronavirus Food Assistance Program (CFAP 2). CFAP 2 provides vital financial assistance to agricultural producers who continue to face market disruptions and associated costs because of COVID-19. Overview The Coronavirus Aid, Relief, and Economic Stability Act (CARES Act) and the Commodity Credit Corporation (CCC) Charter Act authorized the funds for the original CFAP. CCC funds will be used for CFAP 2, with the exception of tobacco, which will use remaining CARES Act funds. FSA is accepting applications for CFAP 2 from September 21, 2020, to December 11, 2020. Who is Eligible? Producers (persons or legal entities) of specified agricultural commodities who face continuing market disruptions and significant marketing costs are eligible for CFAP 2 payments. United States Department of Agriculture CORONAVIRUS FOOD ASSISTANCE PROGRAM 2 FARM SERVICE AGENCY FACT SHEET - SEPTEMBER 21, 2020 To be eligible for payments, a person or legal entity must either: • have an average adjusted gross income of less than $900,000 for tax years 2016, 2017, and 2018; or • derive at least 75 percent of their adjusted gross income from farming, ranching or forestry-related activities. Persons and legal entities also must: • commercially produce the eligible commodities; • be in the business of farming at the time of application; • comply with the provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions; • if a foreign person, provides land, capital, and a substantial amount of active personal labor to the farming operation; and • not have a controlled substance violation. Contract growers who do not share in the price risk of production are ineligible. Eligible Commodities CFAP 2 payments will be split into three categories of commodities: 1. Price trigger commodities; 2. Flat-rate crops; and 3. Sales commodities.
  18. 18. September - October 2020 • KDDC • Page 19 CORONAVIRUS FOOD ASSISTANCE PROGRAM 2 2 Price Trigger Commodities Price trigger commodities suffered a 5-percent-or- greater price decline in a comparison of the average price for the week of January 13-17, 2020, and the average price for the week of July 27-31, 2020. Price trigger commodities include: • Barley • Corn • Sorghum • Soybeans • Sunflowers • Upland Cotton • Wheat (all classes) • Broilers • Eggs • Beef Cattle • Dairy • Hogs and Pigs • Lambs and Sheep Flat-rate Crops Flat-rate crops are crops that either do not meet the 5-percent price decline trigger or do not have data available to calculate a price change. Flat-rate crops include, but are not limited to: • Alfalfa • Amaranth Grain • Buckwheat • Canola • Extra Long Staple Cotton • Crambe (Colewart) • Einkorn • Emmer • Flax • Guar • Hemp • Indigo • Industrial Rice • Kenaf • Millet Ineligible Commodities Hay, except alfalfa, and crops intended for grazing are ineligible for CFAP 2 and will not receive a CFAP 2 payment. Crops with intended uses of green manure and those left standing are also ineligible. Ineligible commodities for CFAP 2 include, but are not limited to: • Birdsfoot and Trefoil • Clover • Cover Crop • Fallow • Forage Sorghum • Forage Soybeans • Gardens (commercial and home) • Grass • Kochia (prostrata) FACT SHEET - SEPTEMBER 21, 2020 • Khorasan Wheat • Mustard • Oats • Peanuts • Quinoa • Rapeseed • Safflower • Sesame • Speltz • Sugarcane • Sugar Beets • Sweet rice • Teff • Triticale • Wild rice Sales Commodities Sales commodities include: • Fruits and Vegetables • Aquaculture grown in a controlled environment; • Nursery crops and floriculture; • Other livestock (excluding breeding stock) not included under the price trigger category that were grown for food, fiber, fur, or feathers; • Tobacco; • Goat milk; • Mink (including pelts); • Mohair; • Wool; and • Other commodities. For a list of all eligible commodities, visit • Lespedeza • Milkweed • Mixed Forage • Pelt (excluding mink) • Perennial Peanuts • Pollinators • Sunn Hemp • Seed of ineligible crops • Vetch Payments CCC funds will be used to partially compensate producers for on-going market disruptions and assist with the transition to a more orderly marketing system. CCC Charter Act funds cannot be used to provide assistance for tobacco; however, tobacco will be eligible for CFAP 2 using remaining funds authorized by the CARES Act. Price Trigger Crops For barley, corn, sorghum, soybeans, sunflowers, upland cotton, and wheat (all classes), payments will be based on the eligible 2020 acres of the crop, as reported to FSA on form FSA-578, excluding prevented planting and experimental acres. Payments for price trigger crops will be the greater of: 1. the eligible acres multiplied by a payment rate of $15 per acre; or 2. the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History (APH) approved yield. If the APH is not available, 85 percent of the 2019 Agriculture Risk Coverage-County Option (ARC- CO) benchmark yield for that crop will be used.
  19. 19. PAYMENT RATES FOR PRICE TRIGGER CROPS COMMODITY UNIT OF MEASURE CROP MARKETING PERCENTAGE (%) PAYMENT RATE ($/UNIT) Barley bushels 63 $0.54 Corn bushels 40 $0.58 Cotton, Upland pounds 46 $0.08 Sorghum bushels 55 $0.56 Soybeans bushels 54 $0.58 Sunflowers pounds 44 $0.02 Wheat (All Classes) bushels 73 $0.54 Broilers and Eggs For broilers, payments will be equal to 75 percent of the producer’s 2019 broiler production multiplied by the payment rate of $1.01 per bird (head). Payments for eggs will be equal to 75 percent of the producer’s 2019 egg production multiplied by the CCC payment rate. PAYMENT RATES FOR PRICE TRIGGER CROPS COMMODITY UNIT OF MEASURE PAYMENT RATE ($/UNIT) Shell Eggs dozen 0.05 Liquid Eggs pounds 0.04 Dried Eggs pounds 0.14 Frozen Eggs pounds 0.05 Dairy Dairy (cow’s milk) payments will be equal to the sum of the following: • The producer’s total actual milk production from April 1, 2020, to August 31, 2020, multiplied by the payment rate of $1.20 per hundredweight; and • The producer’s estimated milk production from September 1, 2020, to December 31, 2020, multiplied by a payment rate of $1.20 per hundredweight. FSA will estimate this production based on the producer’s daily average production from April 1 to August 31, 2020, multiplied by the number of days the dairy operation commercially markets milk from September 1, 2020, through December 31, 2020. Dairy operations applying for CFAP 2 must be in the business of producing and commercially marketing milk at the time of application. Dairy operations that dissolve or have dissolved on or after September 1, 2020, are eligible for a prorated payment for the number of days the dairy operation commercially markets milk from September 1, 2020, through December 31, 2020. Price-Trigger Livestock For price-triggered livestock, payments are based on a fixed number of head, which is defined as the lower of: • the highest maximum owned inventory of eligible livestock, excluding breeding stock, on a date selected by the eligible producer from April 16, 2020, through August 31, 2020; or • the maximum number of livestock per type established by USDA. PAYMENT RATES FOR PRICE-TRIGGER LIVESTOCK COMMODITY UNIT OF MEASURE PAYMENT RATE ($/UNIT) Beef Cattle head $55 Hogs and Pigs head $23 Lambs and Sheep head $27 Flat-Rate Crops For flat-rate crops, payments will be calculated by multiplying the producer’s share of reported or determined 2020 planted acres of the crop, excluding prevented planted and experimental acres, by $15 per acre. CORONAVIRUS FOOD ASSISTANCE PROGRAM 2 3 FACT SHEET - SEPTEMBER 21, 2020
  20. 20. Sales Commodities For sales commodities, payments will be calculated using a sales-based approach based on five payment gradations associated with the producer’s 2019 sales of the commodity. PAYMENT RATES FOR SALES COMMODITIES 2019 SALES RANGE PERCENT PAYMENT FACTOR Up to $49,999 10.6 $50,000-$99,999 9.9 $100,000-$499,999 9.7 $500,000-$999,999 9.0 All sales over $1 million 8.8 Example: A producer’s 2019 sales of eligible commodities totaled $75,000. The payment is calculated as ($49,999 times 10.6%) plus ($25,001 times 9.9%) equals a total payment of $7,775. New Producers in 2020 Payments cannot be calculated using the methods described above for producers of broilers, eggs, and sales commodities who began farming in 2020 and had no 2019 production or sales. Payments for such producers will be based on the producer’s actual 2020 production or sales as of the date the producer submits an application for payment. Payment Limitation CFAP 2 payments are subject to a per person and legal entity payment limitation of $250,000. This limitation applies to the total amount of CFAP 2 payments for all eligible commodities. Unlike other FSA programs, special payment limitation rules apply to participants that are corporations, limited liability companies, limited partnerships (corporate entities), trusts, and estates. These legal entities may receive up to $750,000 based upon the number of members (not to exceed three members) who each contribute at least 400 hours of active personal labor or active personal management. USDA is an equal opportunity provider, employer and lender. For a legal entity: • With one such member, the payment limit for the entity is $250,000; • With two such members, the payment limit for the entity is $500,000 if at least two members contribute at least 400 hours of active personal labor or active personal management, or combination thereof, with respect to the operation of the corporate entity; and • With three such members, the limit is $750,000 if at least three members contribute at least 400 hours of active personal labor or active personal management, or combination thereof, with respect to the operation of the corporate entity. CFAP 2 payment limitation is separate from the CFAP 1 payment limitation. Where to File the Application FSA staff at your local USDA Service Center will work with producers to file applications. Applications may be submitted via mail, fax, hand delivery, or via electronic means. Please call your office prior to sending applications electronically. The CFAP 2 application and associated forms are available online at Who to Call for Help Additionally, producers interested in one-on-one support with the CFAP 2 application can call our call center at 877-508-8364 to speak directly with a USDA employee ready to offer assistance. More Information This fact sheet is for informational purposes only; other restrictions may apply. For more information about the CFAP program, visit or contact your local FSA office. To find your local FSA office, visit CORONAVIRUS FOOD ASSISTANCE PROGRAM 2 4
  22. 22. September - October 2020 • KDDC • Page 23 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund S P E C I A L T H A N K S T O O U R S P O N S O R S Allied Sponsors PLATINUM Alltech Ag Central Bluegrass Dairy & Food Burkmann Feeds Cowherd Equipment CPC Commodities Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Shaker Equipment Sales Southland Dairy Farmers/Southwest Dairy Museum GOLD Arm & Hammer Animal Nutrition Dairy Express Services Dairy Products Assoc. of Kentucky Dairy Farmers of America ME Farm Credit Mid-America Givens and Houchens Trucking Mid-South Dairy Records Select Sires Mid America Todd County Animal Clinic Trenton Farm Supply SILVER Advanced Comfort Grain Processing Corp. KVMA Luttrull Feeds Prairie Farms Owen Transport RSI Calf Systems South Central Bank BRONZE Bank of Jamestown Bagdad Roller Mills Central Farmers Supply Double “S” Liquid Feed Genetics Plus H J Baker Kentucky Corn Growers Limestone & Cooper Maryland & Virginia Milk Producers Provimi (Cargill) QMI Wilson Trucking
  23. 23. 176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph Non-Profit US Postage PAID OCT 05 Young Dairyman Education and Fellowship, Christian County TBA OCT 06 Young Dairyman Education and Fellowship, Henry County TBA OCT 07 Young Dairyman Education and Fellowship, Barren County, Gondolier’s Restaurant, Glasgow OCT 08 Young Dairyman Education and Fellowship, Marion Co, La Fuente Mexican Restaurant, Lebanon OCT 13 Young Dairyman Education and Fellowship, Adair County, TBA OCT 14 Young Dairyman Education and Fellowship, Logan County, TBA OCT 24 Dare to Dairy, University of Kentucky Coldstream Dairy, Lexington KY NOV 06-10 North American International Livestock Show, KY Fair and Exposition Center DEC 03-06 KY Farm Bureau Annual Meeting, Louisville, KY DEC 11 KDDC Board Meeting, Adair County Extension Office, 10:00 A M CT FEB 23 KDDC Young Dairy Producer Conference, Sloan Convention Center, Bowling Green, KY FEB 23 Dairy Awards Banquet, Sloan Convention Center, Bowling Green, KY FEB 24 KY Dairy Partners Meeting and Industry Trade Show, Sloan Convention Center, Bowling Green, KY Calendar of Events