KY Milk Matters September October 2020

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

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
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
kddc@kydairy.org
DC-Central: Beth Cox
PO Box 144, Mannsville, KY 42758
bethcoxkddc@gmail.com
859.516.1619 • 270-469-4278
DC-Western: Dave Roberts
1334 Carrville Road, Hampton, KY 42047
roberts@kydairy.org
859.516.1409
DC-Southern: Meredith Scales
2617 Harristown Road, Russell Springs, KY 42642
mescales2@gmail.com
859.516.1966
DC-Northern: Jennifer Hickerson
PO Box 293, Flemingsburg, KY 41041
j.hickersonkddc@gmail.com
859.516.2458
KDDC
176 Pasadena Drive • Lexington, KY 40503
www.kydairy.org
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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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.
KY Milk Matters September October 2020
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.
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 kyfb.com/find/
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
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
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
September - October 2020 • KDDC • Page 11
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
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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
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
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%
September - October 2020 • KDDC • Page 15
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices
FMMO 5
www.malouisville.com
September 2020
Class 1 Advanced Price
(@3.5%BF)
$ 21.84
Class 1 Advanced Price
(@3.5%BF)
$ 18.60
FMMO 7
www.fmmmatlanta.com
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
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 https://bit.ly/2GchGqN.
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
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.
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 farmers.gov/cfap.
• 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
$15 per acre; or
2. the eligible acres multiplied by a nationwide crop
marketing percentage, multiplied by a crop-specific
payment rate, and then by the producer’s weighted
2020 Actual Production History (APH) approved
yield. If the APH is not available, 85 percent of the
2019 Agriculture Risk Coverage-County Option (ARC-
CO) benchmark yield for that crop will be used.
PAYMENT RATES FOR PRICE TRIGGER CROPS
COMMODITY UNIT OF
MEASURE
CROP
MARKETING
PERCENTAGE
(%)
PAYMENT
RATE
($/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
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 farmers.gov/cfap.
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 farmers.gov/cfap or contact
your local FSA office. To find your local FSA office, visit
farmers.gov/cfap.
CORONAVIRUS FOOD ASSISTANCE PROGRAM 2 4
September - October 2020 • KDDC • Page 22
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
*ALL SHOWMANSHIP CLASSES WILL TAKE PLACE AT THE END OF EACH JUNIOR BREED SHOW
*ALL JUNIOR SHOWS: COWS WILL SHOW FIRST
THURSDAY, NOVEMBER 5 8:00 am GRAND NATIONAL HOLSTEIN JUNIOR SHOW
4:00 pm NATIONAL GUERNSEY JUNIOR SHOW
FRIDAY, NOVEMBER 6 8:00 am MID - EAST FALL RED & WHITE JUNIOR SHOW
8:00 am SOUTHEASTERN NATIONAL BROWN SWISS JUNIOR SHOW
2:30 pm NATIONAL AYRSHIRE JUNIOR SHOW SHOW
3:00 pm WINTER NATIONAL MILKING SHORTHORN JUNIOR SHOW
SATURDAY, NOVEMBER 7 7:30 am THE ALL AMERICAN JERSEY JUNIOR SHOW
7:30 am NATIONAL GUERNSEY SHOW (HEIFERS AND COWS)
GUERNSEY GOLD FUTURITY
5:00 pm JUNIOR DAIRY SHOW SUPREME CHAMPION SELECTION
SUNDAY, NOVEMBER 8 7:30 am SOUTHEASTERN NATIONAL BROWN SWISS OPEN SHOW (HEIFERS)
7:30 am SOUTHERN NATIONAL AYSHIRE SHOW (HEIFERS)
1:30 pm NATIONAL JERSEY JUG FUTURITY
4:30 pm SOUTHEASTERN NATIONAL BROWN SWISS OPEN SHOW (COWS)
4:30 pm WINTER NATIONAL MILKING SHORTHORN OPEN SHOW (HEIFERS)
MONDAY, NOVEMBER 9 7:30 am THE ALL-AMERICAN JERSEY SHOW (HEIFERS AND COWS)
7:30 am MID-EAST FALL RED & WHITE SHOW (HEIFERS AND COWS)
2:30 pm SOUTHERN NATIONAL AYRSHIRE SHOW (COWS)
4:30 pm WINTER NATIONAL MILKING SHORTHORN OPEN SHOW (HEIFERS)
TUESDAY, NOVEMBER 10 7:30 am MID-EAST FALL NATIONAL HOLSTEIN SHOW (HEIFERS AND COWS)
4:30 pm OPEN DAIRY SHOW SUPREME CHAMPION SELECTION
6:30 pm RELEASE OF ALL DAIRY CATTLE
WEDNESDAY, NOVEMBER 11 8:00 am ALL CATTLE MUST BE OUT OF BARN
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
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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
176 Pasadena Drive
Lexington, KY 40503
859.516.1129 ph
www.kydairy.org
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
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KY Milk Matters September October 2020

  • 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. 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 kddc@kydairy.org DC-Central: Beth Cox PO Box 144, Mannsville, KY 42758 bethcoxkddc@gmail.com 859.516.1619 • 270-469-4278 DC-Western: Dave Roberts 1334 Carrville Road, Hampton, KY 42047 roberts@kydairy.org 859.516.1409 DC-Southern: Meredith Scales 2617 Harristown Road, Russell Springs, KY 42642 mescales2@gmail.com 859.516.1966 DC-Northern: Jennifer Hickerson PO Box 293, Flemingsburg, KY 41041 j.hickersonkddc@gmail.com 859.516.2458 KDDC 176 Pasadena Drive • Lexington, KY 40503 www.kydairy.org 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.
  • 3. Alltech.com AlltechNaturally @Alltech ©2020. Alltech, Inc. All Rights Reserved. For over 35 years, Alltech has promoted animal health and performance through management programs and the help of our experts in high-risk challenged feedstuffs, minerals and on-farm support. Strengthen your nutrition for profitable production! Elizabeth Lunsford elunsford@alltech.com | (859) 553-0072 ACTIGEN®, BIO-MOS® INTEGRAL® A+ , SELECT GH® BIOPLEX®, SEL-PLEX® AMAIZE®, FIBROZYME® OPTIGEN®, YEA-SACC® for modern dairy production NUTRITIONAL SOLUTIONS
  • 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.
  • 6. 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.
  • 7. 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 kyfb.com/find/
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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 www.shelbyinsuranceagency.com sia@iglou.com 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
  • 12. 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
  • 13. 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
  • 14. 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%
  • 15. September - October 2020 • KDDC • Page 15 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk Prices FMMO 5 www.malouisville.com September 2020 Class 1 Advanced Price (@3.5%BF) $ 21.84 Class 1 Advanced Price (@3.5%BF) $ 18.60 FMMO 7 www.fmmmatlanta.com 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
  • 16. 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 https://bit.ly/2GchGqN.
  • 17. 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
  • 18. 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.
  • 19. 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 farmers.gov/cfap. • 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 $15 per acre; or 2. the eligible acres multiplied by a nationwide crop marketing percentage, multiplied by a crop-specific payment rate, and then by the producer’s weighted 2020 Actual Production History (APH) approved yield. If the APH is not available, 85 percent of the 2019 Agriculture Risk Coverage-County Option (ARC- CO) benchmark yield for that crop will be used.
  • 20. PAYMENT RATES FOR PRICE TRIGGER CROPS COMMODITY UNIT OF MEASURE CROP MARKETING PERCENTAGE (%) PAYMENT RATE ($/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
  • 21. 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 farmers.gov/cfap. 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 farmers.gov/cfap or contact your local FSA office. To find your local FSA office, visit farmers.gov/cfap. CORONAVIRUS FOOD ASSISTANCE PROGRAM 2 4
  • 22. September - October 2020 • KDDC • Page 22 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund *ALL SHOWMANSHIP CLASSES WILL TAKE PLACE AT THE END OF EACH JUNIOR BREED SHOW *ALL JUNIOR SHOWS: COWS WILL SHOW FIRST THURSDAY, NOVEMBER 5 8:00 am GRAND NATIONAL HOLSTEIN JUNIOR SHOW 4:00 pm NATIONAL GUERNSEY JUNIOR SHOW FRIDAY, NOVEMBER 6 8:00 am MID - EAST FALL RED & WHITE JUNIOR SHOW 8:00 am SOUTHEASTERN NATIONAL BROWN SWISS JUNIOR SHOW 2:30 pm NATIONAL AYRSHIRE JUNIOR SHOW SHOW 3:00 pm WINTER NATIONAL MILKING SHORTHORN JUNIOR SHOW SATURDAY, NOVEMBER 7 7:30 am THE ALL AMERICAN JERSEY JUNIOR SHOW 7:30 am NATIONAL GUERNSEY SHOW (HEIFERS AND COWS) GUERNSEY GOLD FUTURITY 5:00 pm JUNIOR DAIRY SHOW SUPREME CHAMPION SELECTION SUNDAY, NOVEMBER 8 7:30 am SOUTHEASTERN NATIONAL BROWN SWISS OPEN SHOW (HEIFERS) 7:30 am SOUTHERN NATIONAL AYSHIRE SHOW (HEIFERS) 1:30 pm NATIONAL JERSEY JUG FUTURITY 4:30 pm SOUTHEASTERN NATIONAL BROWN SWISS OPEN SHOW (COWS) 4:30 pm WINTER NATIONAL MILKING SHORTHORN OPEN SHOW (HEIFERS) MONDAY, NOVEMBER 9 7:30 am THE ALL-AMERICAN JERSEY SHOW (HEIFERS AND COWS) 7:30 am MID-EAST FALL RED & WHITE SHOW (HEIFERS AND COWS) 2:30 pm SOUTHERN NATIONAL AYRSHIRE SHOW (COWS) 4:30 pm WINTER NATIONAL MILKING SHORTHORN OPEN SHOW (HEIFERS) TUESDAY, NOVEMBER 10 7:30 am MID-EAST FALL NATIONAL HOLSTEIN SHOW (HEIFERS AND COWS) 4:30 pm OPEN DAIRY SHOW SUPREME CHAMPION SELECTION 6:30 pm RELEASE OF ALL DAIRY CATTLE WEDNESDAY, NOVEMBER 11 8:00 am ALL CATTLE MUST BE OUT OF BARN
  • 23. 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
  • 24. 176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph www.kydairy.org 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