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July - August 2019 • KDDC • Page 1
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk MattersJ u l y - A u g u s t
w w w. k y d a i r y. o r g
KENTUCKY
Supported by Dairy Margin Coverage VeryAttractive for 2019
page 6
KDDC YDP Fall Tour
page 11
Hey, Doc, While You’re Here!
page 18
Chaney’s Milk: Bottling a Legacy
Elizabeth Lunsford
W
here the pride of the past meets the promise of the future; a motto
used for decades by the Chaney Family now has a whole new
meaning. James Riley Chaney began milking cows on Chaney
Farm in Bowling Green, KY in the 1940’s which he then later handed down
to his son Carl 40 years later. It was always a dream of theirs to bottle their
own milk, milk that they felt was some of the best around, straight from their
prize Jersey cows. Over the years Chaney’s would invest in an agritourism
operation, a new compost bedded pack barn and Lely A4 robotic milking
system, all laying the ground work for a milk bottling plant which came to
fruition in June 2019.
However, there are many factors outside
our control that “We work hard to make
sure our cows are well taken care of” says
Carl Chaney, owner of Chaney Farm and
Chaney’s Dairy Barn. All these investments
went into not only providing a level of
transparency to consumers wanting to know
where their food comes from, but just as
importantly to provide the best, cleanest,
most comfortable environment possible for
our girls, in turn providing us with a milk
that is of top quality. “When we treat them
well, they do the same for us in return” says
Carl.
J.R. Chaney Bottling company, named
after late James Chaney was established
and was created to fulfill a legacy the
family had been dreaming of for years. With the first equipment arriving in
December 2017, the Chaney family began construction on the creamery, which
took approximately 2 years to complete. For efficiency sake, they decided on
an HTST system, where they homogenize and bottle their milk for sale locally.
“We made almost 20,000 gallons of ice cream last year” says Carl. “That is a
continued on page 17
Kentucky Dairy
Value-Added
Conference
Dave Roberts
O
n July 9th and 10th the Kentucky Dairy
DevelopmentCouncil(KDDC),Kentucky
Department of Agriculture (KDA) and
Kentucky Agriculture Development Fund (KADF)
sponsored a conference showcasing dairy
producers that started their own value-added
enterprises. Other support personnel were
featured to help lay out what all goes into starting
a value-added processing facility. The meeting
was held at the new Warren County Extension
Office in Bowling Green.
The first day Warren Beeler from the Governor’s
Office of Agricultural Policy (GOAP) moderated the
speakers and panel discussion. Warren began with a
presentation on loans and grants available through
the GOAP. Next up Kellie Padgett from K-Card
described how they are available to help with business
plans, market studies and product selection. Lewis
Ramsey touched on Kentucky Milk Safety regulations
and Roger Snell went over opportunities, cost share
associated with
Kentucky Proud
and marketing your
products.
Carl Chaney of
Chaney’s Dairy
Barn described their
continued on page 2
July - August 2019 • KDDC • Page 2
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2019 KDDC Board of
Directors & Staff
Executive Committee
President: Richard Sparrow
Vice President: Charles Townsend, DVM
Sec./Treasurer: Tom Hastings
EC Member: Tony Cowherd
EC Member: Freeman Brundige
EC Past President: Bob Klingenfus
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: Richard Sparrow 502.370.6730
District 11: Stewart Jones 270.402.4805
District 12: John Kuegel 270.316.0351
Equipment: Tony Cowherd 270.469.0398
Milk Haulers: Alan Wilson 606.875.7281
Genetics: Dan Johnson 502.905.8221
Feed: Tom Hastings 270.748.9652
Nutrition: Dr. Ron Wendlandt 502.839.4222
Dairy Co-op: Justin Olson 765.499.4817
Veterinary: Dr. Charles Townsend 270.726.4041
Finance: Michael Smith 859.619.4995
Former Pres.: Bob Klingenfus 502.817.3165
Employee & Consultants
Executive Director: H.H. Barlow
859.516.1129
DC-Central: Beth Cox
859.516.1619 • 270-469-4278		
DC-Western: Dave Roberts
859.516.1409
DC-Southern: Meredith Scales
859.516.1966
DC -Northern: Jennifer Hickerson
859.516.2458
KDDC
176 Pasadena Drive
Lexington, KY 40503
www.kydairy.org
KY Milk Matters produced by Carey Brown
President’s Corner
Richard Sparrow
A
s you may be aware, the enrollment for the Dairy
Margin Coverage began on June 17 at your local
FSA office. I hope you have already signed up for
the program and even begun receiving DMC payments.
The payments for the first few months of 2019 will more
than pay the premium for 2019 coverage.
Also, KDDC, through a grant from the Agriculture Development Board, will
make available cost share dollars for producers who sign up for DMC for five
years. This program will pay 50% of the 2019 DMC premium, up to $1,000.
The 2018 KDDC MILK program did not use all of the money budgeted, and
the Agriculture Development Board allowed these dollars to be used for the
2019 DMC premium on a cost share basis. Obviously, this makes the DMC
even more attractive, and I hope every dairy farmer will take advantage of this
opportunity. (See form on page 7)
continued from cover
agritourism business and how it has developed
with the addition of their new barn and robotic
milker. Next the group of 67 attendees were
captivated by Elizabeth Lunsford’s description
of the process she has gone through to install a
milk processing plant at the Chaney Dairy. Many
questions were asked to Elizabeth and one major
take away was “whatever your estimate is of cost
and time to completion, double it.”
Much good discussion and questions with a panel of on-farm processors who spoke
about things they wished they had known at the beginning of their on-farm processing.
The panel was made up of Kenny Mattingly (Kenny’s Farmhouse Cheese), RachelWade
(Ed-Mar Cheese), Willis Schrock (JD Country Milk) and Gary Beu (WKU Creamery).
Ricky Gulley of Bluegrass Dairy/Foods was the last speaker of the day answering
questions on cheese making. After Ricky finished, those who wanted to, went to JD
Country Milk for a tour of the processing plant just south of Russellville.
Day two of the conference was moderated by Joe Cain of Kentucky Farm Bureau.
Bluegrass Dairy/Foods’ Eric Goan talked about getting started, food safety and
processing a safe product. Next another panel made up of on farm processors described
their operations, successes, steppingstones and pitfalls. The panel was made up of Bob
Klingenfus (Harvest Home Dairy), Matthew Wade (Middle Tn State University) and
Tim Mast (Sunrise Dairy). A common theme that seemed to come out overall was,
“It’s not easy, you must figure on working hard and be willing to adjust your plan and
continue on.”
The group then toured the West Kentucky University Creamery. There Gary Beu
described how WKU got started making and marketing cheese and showed the
combined classroom and cheese making room. Following lunch and ice cream at
Chaney’s Dairy Barn Elizabeth Lundsford and Carl Chaney conducted a tour of the dairy
and milk processing plant.
Of the 67 attendees 31 were producers. These producers were from three states
Kentucky, Tennessee and Minnesota. KDDC appreciates the support from Farm Credit
who set up a display at the meeting and all those who spoke and had a role in this very
successful conference. A special thanks to Eunice Schlappi of KDA for her organizing
skills and time.
Alltech.com AlltechNaturally @Alltech
©2019. Alltech, Inc. All Rights Reserved.
Different Yeasts
Different Results
The difference is Yea-Sacc:
• Improves feed efficiency by up to 6%
• Healthy rumen pH
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Alltech’s proven research on Yea-Sacc can
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Elizabeth Lunsford
Territory Sales Manager
elunsford@alltech.com
(859) 553-0072
July - August 2019 • KDDC • Page 4
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Executive Director Comments
H H Barlow
A
s I have traveled across the state these last two
months, I have observed much about the diversity of
our industry from the dairyman to the processor. I am
very encouraged about the positive spirit of most dairymen,
even though significant challenges remain for many of our
farmers.
At KDDC, I am very proud of our Dairy Margin Coverage
initiative, which pays up to $1,000 to sign up for DMC. At this
writing, we know the first five months of 2019 have a payment
to all participants in the DMC insurance program.
Thanks to the Ag Development Board for their approval of
this one-time incentive program. The ADB’s approval includes
the requirement that dairymen sign up for the whole five years
that the 2018 Farm Bill is in effect. In talking to the members
of the board, their comments centered on the fact that they
had never used Ag Development funds to buy insurance in the
past for any commodity; however, they were very cognizant
of the distressed financial situation of the past four years,
and therefore saw the need for their action. Since the DMC
program is a safety net for all dairymen’s margins, the board
felt it was imperative to encourage all dairymen to sign up for
all five years.
I know there is trepidation among some dairymen regarding the
five year requirement, because of the inadequacy of the previous
MPP insurance program. This, however, is not the same. I agree
with the position of five-year coverage, because of dairy market
uncertainty. In addition, this year’s troubling crop conditions
in the Midwest could lead to higher feed prices, which could
squeeze our profit margins and trigger DMC payments.
I sincerely hope all dairymen will sign up for the program.
The DEADLINE for signing up at your local FSA office is
SEPTEMBER 20, 2019.
There were many highlights for KDDC in the last few weeks,
beginning with the June Dairy Month Proclamation by Governor
Bevin in front of the Capitol. There was a great crowd to honor
our industry. The highlight for me was Ag Commissioner Ryan
Quarles’ announcement that Kentucky dairy farmers sold $190
million worth of milk in 2018. Just stop with me for a moment
and ponder the financial impact that $190 million had on our
rural communities where the farms are located. We truly are an
economic engine for rural Kentucky and must start exploring and
working toward growing our number of dairy farms in Kentucky.
This will take development of new markets which, I believe is
the number one goal of KDDC as we move forward.
I enjoyed two dairy field days in western Kentucky in our
Amish and Mennonite communities. We have over two hundred
dairies in these communities. They are excellent dairymen
committed to improving their herds and exploring value-added
marketing. A group of approximately 80 farmers have invested
in a processing plant built from scratch just outside of Trenton,
Kentucky. It is close to completion and we wish them great
success as they start processing cheese.
On July 9 & 10, KDDC along with Kentucky Department of
Agriculture hosted the first ever value-added dairy conference in
Kentucky. It was very well attended with over sixty participants.
There were twenty-five farms represented who are either already
processing milk or very interested in processing milk.
The value-added endeavor is definitely an opportunity for
some dairymen. Marketing the finished product is absolutely
the most important factor in success according to the established
processors, such as Kenny’s Cheese and JD Milk. They further
stated that it takes vision, commitment, family and faith to enter
this business.
It was great fun to attend many June Dairy Day celebrations,
like the ballgames and county dairy day events. There are people
who want to say dairy is dying, but I differ…On the night of June
28, the dairy farmers in Columbia, Kentucky were not depressed,
but looking forward to their future in dairying. Their positive
attitude is what we all need as we move forward in this industry.
Thanks to every dairyman who has already filled out the
KDDC survey. If you have not, I encourage you to please do so,
so that we can use your responses to plan our future programs
and better serve you.
In summary, dairy supply and demand are in better alignment
than they have been in many years. This should mean better
prices going into the fall.
Have a safe and successful fall harvest season!
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
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www.shelbyinsuranceagency.com
sia@iglou.com
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Key Changes:
• Employer groups of one may be eligible for small group plans.
• Husband/wife employer groups may be eligible for
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• Employer groups of 5 or more can choose 2 plan options.
• Employer groups of 10 or more can choose 3 plan options.
For more information, please contact:
ASSOCIATION
ADVANTAGE
INSURANCE GROUP
We’ve Got Your Members Covered!
Anthem of Kentucky has revised
their eligibility guidelines for KDDC
Association Group Health Plans.
Cassie Grigsby
Association Advantage Insurance Group
(502) 875-1593
cgrigsby@aaigky.com
Melissa Hinton
The Hinton Agency
(859) 351-6559
thehintonagency@gmail.com
July - August 2019 • KDDC • Page 6
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Dairy Margin Coverage Very Attractive for 2019
Kenny Burdine, UK Agricultural Economics
O
ne of the most significant
changes in the most recent
farm bill involved the creation
of the Dairy Margin Coverage (DMC)
program. The program works a lot
like the MPP-Dairy program, but is
much more attractive to producers as
higher coverage levels are available,
premiums are lower, and margins are
calculated monthly. Producers are also
able to participate in the DMC program
at the same time they participate in
LGM-Dairy or purchase dairy revenue
insurance. Since passage of the
farm bill, an additional change has
been made in the feed cost formula to
include premium and supreme Alfalfa
hay. This change increases the cost of
Alfalfa used in the formula and lowers
the DMC margin, making payment even
more likely.
Signups are ongoing for the DMC
program for 2019 and the decision for
dairy producers is very easy this year.
Payments from DMC are going to
greatly exceed premiums for 2019 on
covered milk up to 5 million lbs. This
is probably best illustrated by a quick
illustration. Let’s consider a dairy
operation with a production history
(based on the highest level of milk
marketings from 2011 to 2013) of 3.158
million lbs (roughly 150 milking cows
and a rolling herd average of a little over
21,000 lbs). I choose this level simply to
make the math easy. At 95% coverage,
this dairy operation could cover 3 million
lbs or 30,000 cwt of milk.
Premium for the $9.50 coverage level,
on up to 5 million lbs of production, is
$0.15 per cwt. For this illustration farm,
covering 3 million lbs of production,
this works out to $4,500 (30,000 cwt @
$0.15 per cwt). Additionally, this farm
would pay a $100 enrollment fee, for a
total cost of $4,600. However, DMC
margins have been below the $9.50 level
for the first five months of 2019. Since
enrollment this first year is retroactive
to January, the DMC program is literally
in the money right now. For this
Figures may be slightly different due to rounding
*This is paid on 1/12 of production history (30,000 cwt / 12 = 2,500 cwt)
**Estimated payment is reduced by 6.2% for sequestration ($5,875 x 93.8%)
hypothetical operation, total payments for
the first five months of 2019 will exceed
payments by more than $8,000. A more
detailed summary, with calculations, can
be found in table 1.
While enrollment for 2019 is pretty
straightforward, one decision that
producers likely will want to ponder is
whether to sign up for all 5 years (2019-
2023) at the $9.50 level. Producers who
do so will receive a 25% discount on
their premiums, bringing the premium to
$0.1125 per cwt per year for five years.
Some producers may elect not to do
this, pay the higher premium level, and
make their coverage election annually. I
understand this and agree that it provides
more flexibility should market conditions
change in the coming years.
However, I do think a relatively strong
case can be made for signing up for
five years and taking the 25% premium
discount. A simple way to think about
this is that one would want to decline
the discount if they felt they would want
lower coverage than $9.50 two of the
five years. Since we already know that
2019 will pay, this really means two of
the next four years. I went back and ran
margins, premiums, and indemnities over
the 10-year period from January 2009 to
December 2018. If the DMC program
were in existence during that 10-year
period, payments would have exceeded
premiums in 9 out of the 10 years at the
$9.50 coverage level. History certainly
doesn’t predict the future, but I do think
this is worth noting. The only year that
the program would not have “paid out”
would have been 2014, which was an
amazing year for dairy producers. Given
this, I think I would lean towards taking
the premium discount and enrolling at the
$9.50 for all five years.
There is a very good decision aid
available to help dairy producers as they
consider DMC program enrollment.
The tool allows a producer to enter
production history for their operation and
will calculate premiums, and estimate
payments, based on current market
expectations. The tool will show how
“in the money” DMC currently is, will
forecast margins for the remainder of the
year, and can be found at: https://www.
fsa.usda.gov/programs-and-services/farm-
bill/farm-safety-net/dairy-programs/dmc-
decision-tool/index.
The FSA DMC fact sheet can be found
at https://www.fsa.usda.gov/Assets/USDA-
FSA-Public/usdafiles/FactSheets/2019/
dairy_margin_coverage_program-
june_2019_fact_sheet.pdf
July - August 2019 • KDDC • Page 7
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
KDDC 2019 Incentive Program
Kentucky Dairy Development Council is offering a one-time incentive program opportunity for Kentucky
dairy producers to participate in and capture the benefits from the new Dairy Margin Coverage (DMC)
program administered through Farm Service Agency (FSA).
Analyzing the Dairy Margin Coverage Program under the 2018 Farm Bill, the KDDC board members
voted to issue a program to help producers utilize the new DMC program at the June 6, 2019 KDDC
Board meeting. It was a unanimous decision for the board to help producers with the cost of utilizing
this program. Also, it was approved by the Kentucky Agriculture Development Board on June 21st
.
The current 2019 DMC program will be retroactive to January 2019 with months January through April
already qualifying for payments for producers. Producers locking in coverage levels now until 2023
can also receive a discount of 25% on DMC premium costs. Producers have until September
20,2019 to sign up. Producers also have until this date to make any changes to coverage levels.
KDDC’s DMC Incentive Program will pay one- half of the insurance premium cost up to
$1,000.00 per farm. Below are specifics of the program:
• This incentive program is provided through KDDC only using KDDC funds
• Producers must sign up at the highest coverage level at $9.50
• Producers must sign up for the 5-year period, locking in coverage level at $9.50
through 2023
• Producers need to submit verification before KDDC can issue a payment
• Producers are required to submit a copy of the FSA signup Form CCC-801 and copy of
payment receipt for verification
• These can be submitted to your regional dairy consultant
• Please sign below and fill out the information so payments can be made in a timely
manner after the September 20, 2019 deadline.
• Any questions contact your KDDC Consultant: Dave Roberts, 859-516-1409; Beth Cox,
859-516-1619; Meredith Scales, 859-516-1966 and Jennifer Hickerson, 859-516-2458
Yes, I would like to participate in the KDDC 2019
Incentive Program.
Signature -
Full Name:
Farm Address:
Mailing Address (if different):
Contact Number:
Dairy Operation Number:
(FOR KDDC USE ONLY)
July - August 2019 • KDDC • Page 8
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Thinking About Culling Economics
Jeffrey Bewley, Ph.D, Alltech Dairy Housing and Analytics Specialist
C
ulling decisions are one of the more difficult and
complex decisions dairy producers make. Deciding
when to cull a cow involves many economic and non-
economic factors. Choosing when less productive cows should
be culled is difficult. Too often, this decision is made solely
on barn capacity or restrictions on how many cows we want
to milk. Certainly, maintaining a minimum herd size is a valid
reason for keeping cows when the bank dictates that barns
should be kept full or for cash flow reasons. However, cows
are often retained much longer than they should be. Keeping
cows in the herd after production levels drop below feed costs
results in significant losses and reduced profitability.
A simple way to examine culling decisions is to calculate the
breakeven production level necessary to cover feed costs. At a
minimum, a cow should cover the costs of the feed she is eating
to remain in the milking string. A chart depicting breakeven
milk production levels for varying feed cost and milk prices is
provided below. As feed prices increase or milk prices decrease,
the breakeven production level increases. For example, when
milk prices are high ($25 per cwt.) and feed prices are low ($4
per cow per day), breakeven milk production level to cover just
feed costs is only 16 pounds per cow per day. On the other
hand, when feed costs are high ($10 per cow per day) and milk
prices are low ($12 per cwt.), breakeven milk production level
is 83 pounds per cow per day. With today’s feed costs for many
herds in the $7 to 9 per cow range with milk prices around $18
per cwt., breakeven milk production levels range from 39 to 50
pounds. As feed and milk prices change, dairy producers need
to re-evaluate when cows should be culled. Although difficult
to consider, if the majority of the herd produces less than the
breakeven milk production level, it may be time to consider
exiting the dairy business.
This method for calculating when to cull dairy cows only
accounts for feed costs. Feed costs account for the largest
percent of total costs (50 to 75%) but do not account for all
costs. Thus, the true breakeven milk production level will be
a few pounds higher than the levels in the table below and will
vary considerably from farm to farm. Nevertheless, this serves
as a quick reference guide for thinking about culling decisions
because if a cow cannot even cover her daily feed costs, she may
need to be culled or dried off early.
In practice, culling decisions also consider other factors.
Probably the most important factor is whether the cow is
pregnant. Another option for pregnant cows in late lactation
producing below the breakeven milk production level is to dry
them off early. One must also consider the costs of feeding
her during the dry period, particularly if she will be dry for a
long time. Another way of looking at when to cull a cow is
something called a retention pay-off. With retention pay-off,
the future income potential of a cow is calculated and compared
to that of her potential replacement. The actual calculations for
retention pay-off are fairly complex. But, the concept is useful
when thinking about culling a cow. For each cow, you should
ask yourself “What is the future income potential of this cow
compared to the next replacement heifer that will be brought
into the herd.” If the future income potential of the heifer is
higher, the cow in question should be culled. This concept helps
us see that culling decisions should be different for older cows
than for younger cows as their future income potential is limited.
The future income potential of a pregnant cow in late gestation
is much higher than that of an open cow. The future income
potential of a non-lame, low SCC cow is higher than a lame,
chronically high SCC cow.
The list of factors could go on and on. But, the important point
to remember are
(1) milking cows should at least cover the costs of the feed
they consume to be retained in the herd and
(2) additional cow factors may help determine when to cull a
cow accounting for her future income potential compared to that
of her potential replacement.
Table 1. Breakeven milk production levels (pounds per cow)
needed to cover daily feed costs for varying daily feed costs and
milk prices.
July - August 2019 • KDDC • Page 9
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
KY MILK MATTERS ADVERTISING RATES
Ad Size BW/C (1x) BW/C (3x) BW/C (6x)
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YEARLY MEMBERSHIP SPONSOR LEVEL BENEFITS
PLATINUM ($1,500+)
KDDC Website Homepage Top Banner Ad and Organization Link
One-time full page black/white advertisement in KDDC Annual Report
Name Recognition in KDDC Milk Matters Newsletter
Free booth space at KY Dairt Partners Meeting, includes one lunch ticket
Voting Member of KDDC
GOLD ($1,000)
KDDC Website Homepage Banner Ad and Organization Link
One-time half page black/white advertisement in KDDC Annual Report
Name Recognition in KDDC Milk Matters Newsletter
$100 Discount on booth space at KY Dairy Partners Meeting, includes one lunch ticket
Voting Member of KDDC
SILVER ($500)
KDDC Website Banner Ad and Organization Link
One-time black/white business card ad in KDDC Annual Report
Name Recognition in KDDC Milk Matters Newsletter
Voting Member of KDDC
BRONZE ($250)
KDDC Website Organization Link
One-time black/white business card ad in KDDC Annual Report
Name Recognition in KDDC Milk Matters Newsletter
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KDDC FRIEND ($25+)
Receive KDDC Milk Matters Newsletter
Name Recognition in KDDC Annual Report
July - August 2019 • KDDC • Page 10
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Last Year, 2018, I was fortunate to be able to help establish a Cheese Auction at the Kentucky State Fair which benefited over 60 of
our Junior Dairy kids (FFA & 4-H). This included the Junior Dairy Show Grand Champions and the First Place dairy cows of the Junior
Show in each of the seven (7) dairy breeds. These Juniors have indicated that most of them are putting their prize money in savings
accounts for college. A total of $7,500 was distributed to these young people thanks to the generous sponsorships of many of you.
At this time, I say “Thank You” to those of you who contributed to the 2018 Cheese Auction as well as to the Kentucky State Fair Board
for allowing us to tackle this endeavor and for their support. It is not easy to start up a program such as this and special thanks go to Eunice
Schlappi for procurement of the many cheeses that were auctioned and to the cheese processors for their generous contributions.
Thank you’s have been shared and now it is time to jump in and start supporting these Dairy Kids in 2019. We have set a huge
goal for 2019, but if we work together it is attainable. Our goal for this year is to DOUBLE last year’s sponsorships. Yes, we are
reaching for $15,000 this year. We helped these Juniors last year, but we need to help more. They are the future of Kentucky’s Dairy
industry and this is your opportunity to contribute to the future of these tremendous young people – to make a difference in their
lives. Don’t let it pass you by! Please become a proud sponsor. No contribution is too small.
When you settle on a dollar amount that you wish to contribute, please contact:
Glenn Sageser- cell (502)321-8670 or email Gsageser0427@gmail.com
Eunice Schlappi – cell (502)545-0809, office (502)782-4122 or email Eunice.Schlappi@ky.gov
Dr. George Heersche – cell (859)536-2054
The SECOND ANNUAL KY STATE FAIR JUNIOR DAIRY CHEESE AUCTION
Date: Friday, August 16, 2019
Time: 6:00(ish) after Supreme Champion Show
Place: West Wing Show Ring
In Memoriam (1943-2019)
The dairy industry and producers of Western Kentucky lost a true friend and dairy enthusiast. Mr. Jerry Fred Kirkland, age 76
of the Coldwater Community of Callaway County, passed away June 21, 2019 at his home.
Jerry’s Father, Fred Kirkland bought a truck in 1929 and began hauling can milk for dairymen in the Murray area and continued
until 1961 when Jerry bought the milk hauling business. The industry was changing from cans to tankers and so did Kirkland
Trucking. Picking up milk in bob trucks with sometimes 21 stops per load Jerry hauled milk in a radius of 350 miles. Most of
the milk Kirkland Trucking hauled went to Ryan Milk (Murray, Ky.), UC Milk Company (Madisonville, Ky.) and Turner Dairy
(Fulton Ky. and Perryville, Mo.). In the early 1980’s milk was also being hauled to Lewisburg,Tn. Five van trailers and reefers
were added for hauling dry freight and ice cream for Flavorich. At one time Jerry hauled for 69 dairy producers, had seven
milk routes, fourteen trucks and seventeen drivers. Loads of cream from Purity (Nashville Tn.), Turner (Fulton Ky.) and Deans
(Louisville, Ky.) were hauled to Ryan Milk Company in Murray. In 2014 the milk hauling business was sold but five tankers were
kept and Kirkland’s hauled cream until 2017. Jerry also had several farms and a successful beef operation.
Kirkland Trucking has hauled milk for the Ryan All Jersey producers, Dairymen Inc. (DI), Mid Am, Dairy Farmers of America
(DFA), Dean Foods and Dairy Marketing Service (DMS).
Jerry Kirkland and his wife Margaret have been great friends and supporters of the dairy producers and industry in West
Kentucky for many years. They attended many dairy meetings and Jerry always did his best to accommodate the producers he
hauled for. The love and loyalty Jerry had for the dairy industry was on display at his visitation at J.H. Churchill Funeral home.
Setting on top of his casket was a” GOT MILK” license plate, a model bob truck milk tanker and a model tractor trailer milk
tanker surrounded by miniature beef and dairy cows.
Jerry was preceded in death by his wife Margaret Hendon Kirkland. He is survived by two sons Freddie Kirkland of Murray,
Kentucky and Nickie Kirkland and wife Jan of Murray Kentucky.
To: Kentucky State Fair Junior Dairy Show Supporters
From: Glenn Sageser, Representative for Kentucky Purebred
Dairy Cattle Association
WE NEED YOUR HELP!
SAVE THE DATE
2019 KDDC YDP Fall Tour to Wisconsin
October 1st – 4th
Join us for this years upcoming Fall
tour and see a variety of dairies and
chance to visit the World Dairy Expo in
Madison, Wisconsin. You will have the
opportunity to see different management
styles and learn from other dairyman
as we tour different operations. Register
now to secure a spot on this years Fall
tour to Wisconsin.
Contact Eunice Schlappi
at eunice.schlappi@ky.gov
or at 1-502-545-0809
July - August 2019 • KDDC • Page 12
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Classified Ads
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 Conultants or Carey
Brown at (859) 948-1256
Global Dairy Situation
H. H. Barlow
A
t the Alltech One 19 Conference in Lexington, Kentucky
on May 21, 2019, Dr. Torsten Hemme, CEO of IFCN
Dairy Research Network, summarized the global dairy
picture. His most significant point was dairy product demand
has been increasing worldwide by two to three percent every
year since 2007. This is happening because the demand for
animal protein is increasing worldwide as many third world
country’s financial positions improve. The populace likes the
protein that cheese and milk powder provide.
There are many signals indicating that the global milk supply
situation is tightening. Daily Dairy Report has reported these
statistics for many months. The growth in the European Union
milk output has slowed to a crawl as evidenced by only one
tenth of 1% growth from May 2018 to May 2019. Germany, the
largest producing country in the EU, had a drop of 5% in cow
numbers.
New Zealand growth is also stagnant with production being
down 1.1% from a year ago. New Zealand is significantly
challenged in growing production since there is very limited land
for additional feed production.
South American potential for growth is stunted, mostly by a
lack of infrastructure and slow adoption of dairy technology.
The overall situation in South America is still behind the rest of
the world.
Japan is a strong indicator of growth potential for US milk
exports. Since 1998, Japanese production has fallen 14.9%...and
just since 2013, dairy imports have increased 23%.
Referencing the China situation, it is true the tariffs have
hurt US milk exports into China, but their overall imports are
up. As they import from other countries such as New Zealand.
That leaves an opening for US exports to other countries. Most
experts agree that the tariff problem will be resolved by this fall.
One final statistic to boost a positive price outlook, the US
heifer replacement number has dropped 2.4% from a year ago.
This equals to 100,000 fewer heifers available. A statistic just
reported this July 19, is that for the first time since 2012 the
heifer inventory has dropped.
In the final analysis, demand is robust. Developing countries
are going for high protein cheese and milk powder which offers
us great opportunities for increased exports. Also, supply
shortages are showing up in the three major milk sheds of the
world. Growth in the US, the European Union and Oceania is
stagnant at best and declining in certain areas.
These factors should lead to a season of much better milk
prices for dairymen in the near future with potential for this
improvement to last for several years.
Fun Fact: Only 2.7% of greenhouse gases worldwide came
from cows…so much for cows causing global warming.
July - August 2019 • KDDC • Page 13
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
KDDC Director and Allied Industry Corner
Bill Mattingly, lives in Lebanon, KY with his wife, Susan. They
have been married for 30 years and have four children, Alex
(wife-Britney), Ann Kelty (fiancé Clayton), Lee, and Kate.
He is the 3rd youngest child of 11 and has always lived in the house
where they currently live. Bill graduated high school in 1980 and
started milking for his father full time at age 14. He started milking for
himself in 1986 when he also purchased the cows and equipment. He
was able to buy the farm in 1991.
In March 2016 they sold the milk cows, It was not an easy decision
with an excellent herd and after milking over 200 heard for 2X/day for
around 40 years. He then started raising dairy heifers on contract in
April 2016, with help from Alex Mattingly.
Currently they have a capacity(trying to get barns full, but not there
yet) to house 750-800 dairy heifers. They also have a beef cow/calf
herd, and along with the 235 acre farm, they lease two other farms, growing corn for silage and grain, and hay.
His son, Alex, works with Bill and takes care of all the feeding and nutrition rationing of the heifers on contract and is also a Crop
Insurance Adjustor full time.
KDDC’s Board of Directors is compromised of 21 members, 13 dairy farmers, and 8 allied industry representatives. Dairy farmer directors
represent the dairy producers within their respective districts. Allied industry members represent segments of the industry such as but not limited
to, veterinarians, milk handlers, and feed companies. The officers of the KDDC board include: President, Vice-Presidentm and Secretary-
Treasurer. The Executive Committee consists of the officers, the past president, and an elected member at large. The president must always be a
dairy farmer. When board meetings are held, there is one purpose in mind; to do what is best for Kentucky’s dairy farmers and its industry.
Dr. Jeffrey Bewley is from Rineyville, Kentucky, where
he grew up working on his grandfather’s dairy farm. He
received a bachelor’s degree in animal sciences from the
University of Kentucky in 1998. In 2000, he received his
master’s degree in dairy science with a focus on dairy
modernization from the University of Wisconsin-Madison
under the direction of Dr. Roger Palmer. His Ph.D. work
under Dr. Mike Schutz at Purdue University focused on
the application and economics of precision dairy farming
technologies. For more than nine years, Bewley was on the
faculty at the University of Kentucky as an extension dairy
specialist. He has also worked with IceRobotics, PerforMix
Nutrition and BoviSync.
Bewley has published over 50 peer-reviewed publications
and industry magazine publications. Bewley has also
delivered over 80 presentations around the world, primarily on precision dairy technologies, compost
bedded pack barns and mastitis management. He is an active member of the American Dairy Science
Association and the National Mastitis Council. He is a certified CowSignals trainer, a MEX udder health
coach and a lean farming trainer.
Kentucky Dairy Development Council is pleased to have Dr. Bewley join our board as an allied industry
representative in the nutrition segment.
VISION: To create a vibrant
and sustainable dairy
industry in Kentucky.
MISSION: To educate,
promote and represent dairy
producers and foster an
environment for growth of
the Kentucky dairy industry.
GOALS:
•	 To increase Kentucky
dairy farmers’ profitability
•	 To improve Kentucky
dairy farmers’
competiveness
•	 To enhance Kentucky
dairy farm families’
quality of life
•	 To assist in the
sustainability of
Kentucky’s dairy industry
July - August 2019 • KDDC • Page 14
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Dixie Dairy Report
July 2019
Most indicators point to stronger milk prices for the
half of 2019. Beginning with supply, May, month over month
milk production, is down 0.4%. For the year-to-date production
is flat. Cow numbers increased 5,000 head in April, but are
89,000 head less than last May. May per cow milk production
was 12 lbs. higher than a year ago. For the 24 reporting milk
states, Georgia is a new reporting state, production was up in
ten states, no change in two states, and down in the remaining
twelve states. Texas continues to lead the country in milk
production growth, up 5.4%. California was up 1.3%, due
to a 30 lb. increase in milk per cow. Production was down
0.4% in Wisconsin. Continuing strong dairy cow slaughter
(up 5.6% through May), many dairy farms continuing to leave
the business, challenges in getting crops in the ground and
harvesting forage, point to little or no production increases for
the last half of the year.
Turning to the Southeast, combined May to May milk
production in the three southeast reporting states is down 4.9%.
These three states produce about 65% of the milk in the ten
southeastern states. Georgia production is flat, but production
in Florida and Virginia is down 4.9% and 10.1%, respectively.
Milk production declines in Florida and Virginia are due to fewer
cows. As a result the potential for milk production rebounding in
Florida and Virginia, in the short term, is not likely.
Demand. On the demand side through April, both domestic
and export demand combined on a total solids basis, is down
0.25% compared to a year ago. Separately, domestic demand
is up a strong 2.8% while exports are 15.6% lower. Granted,
much attention and effort is directed towards exports. However,
due to higher revenue from a pound of milk solids sold
domestically, versus exported; strong domestic demand is
putting many more dollars in dairy farmers milk checks and
easily offsetting lower exports.
May was a challenging month for fluid milk demand in the
three southeastern orders. Producer milk utilized in Class I
was 5.6% lower than May 2018. This is almost a decline of 1.5
million lbs. of milk per day. On the other hand total producer
milk was down 4.6%. With Class I declining more than
producer milk, the combined May Class I utilization was 70.1%
compared to 70.8% a year ago. Most of the Class I decline was
in the Appalachian and Southeast orders
Another indicator supporting higher milk prices are
inventories. At the end of April the butter inventory is 7% lower
than last April, and American cheese inventory 2% lower. Even
with lower exports, the nonfat dry milk powder inventory is only
up 4%.
Prices. June saw nonfat dry milk powder (NFDM) continue
its upward movement. The June NFDM price was the highest
monthly average since 2014. A lower barrel price kept the
cheese price steady in June, however, barrels have recovered
and the July cheese price should be higher than June. The butter
price continues to remain in a narrow range.
Blend prices. We continue to increase our blend price
projections for the last of the year. Currently, we project 2019
blend prices to average about $2.00/cwt. higher than 2018.
Unlike recent years where almost of the price increase was on
butterfat, this increase will be on the skim.
International. I spent most of the month of June in the East
African countries of Rwanda and Kenya. The devastating 1994
genocide in Rwanda not only killed over 1 million people, but
also wiped out most of the country’s cattle. Since then Rwanda
has re-built its dairy herd back to over 1 million head. Most
dairy farmers only milk 1 or 2 cows with average production
about one to two gallons of milk per cow per day. The country
has 126 milk collection centers scattered throughout the country
to receive farmers’ milk. One of my assignments was to assess
these centers. The farm milk price is about $8.25/cwt.
SE REPORTING STATES - MAY TO MAY MILK PRODUCTION
Georgia Florida Virginia Total
(Production) (million lbs)
May 2019 156 212 133 501
May 2018 156 223 148 527
Change % 0.0% -4.9% -10.1% -4.9%
(Cows) (1,000 head)
May 2019 83 115 76 274
May 2018 83 122 84 289
Difference 0 -7,000 -8,000 -15,000
July - August 2019 • KDDC • Page 15
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices
FMMO 5
www.malouisville.com
July 2019
Class 1 Advanced Price
(@3.5%BF)
$20.58
August 2019
Class 1 Advanced Price
(@3.5%BF)
$ 21.29
FMMO 7
www.fmmmatlanta.com
July 2019
Class 1 Advanced Price
(@3.5%BF)
$20.98
August 2019
Class 1 Advanced Price
(@3.5%BF)
$21.69
DAIRY PRODUCTS SALES REPORT PRICES and CLASS I MOVER
Product June 2019 May 2019 June 2018 June 2017
($/lb)
Butter $2.3663 $2.2952 $2.3756 $2.4065
Cheese (block & barrel) $1.6910 $1.6974 $1.6150 $1.6293
Nonfat Dry Milk Powder $1.0431 $1.0149 $0.8150 $0.9137
Dry Whey $0.3643 $0.3784 $0.3086 $0.4917
June 2019 May 2019 June 2018 June 2017
($/cwt.)
Class I Mover (3.5% fat) $17.18 $17.07 $15.36 $16.59
Class I Mover (2.0% fat) $13.31 $13.55 $11.45 $12.61
PROJECTED BLEND PRICES–BASE ZONES – SOUTHEASTERN FEDERAL ORDERS
Month Appalachian Florida Southeast
($/cwt. 3.5% butterfat)
May 2019 (actual) $18.93 $21.13 $19.24
June $19.71 $21.58 $19.90
July $19.73 $21.66 $20.30
August $20.38 $22.34 $20.90
September $20.52 $22.54 $21.17
July - August 2019 • KDDC • Page 16
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Voluntary Waiting Period and Days Open Revisited
Dr. George Heersche, University of Kentucky Dairy Extension
O
ne of the primary functions of the Agriculture side of
the Cooperative Extension Service is to provide advice
to farmers based on solid research. I have been
providing advice to farmers since 1975 and my advice has
changed several times over the years as research provides
new discoveries. This certainly is the case when it comes to
dairy cattle reproduction. About the only advice which hasn’t
changed over the years is “It has been a long time since
anything got pregnant without getting semen put in it” - Doc
Olds, and mature dairy bulls are dangerous. This article
contains some history and my current advice on voluntary
waiting period and days open.
Forty years ago we recommended to start breeding some cows
as early as 45 days after calving. This was particularly the case
for cows who didn’t have issues around calving and got off to
a great start, and second and later lactation cows who were not
the highest producers. The logic was we were never going to be
great at detecting heats and one way to achieve reasonable days
open was to put semen in cows early.
We now know that first lactation cows, cows who do not
get off to a good start after calving, cows who lose a lot of
body condition in early lactation, and some high producing
cows benefit from having more time between calving and
first insemination. One of the main benefits is higher fertility
because they ovulate an ovum which is less compromised by
the metabolic environment which accompanies negative energy
balance. The embryo which results from fertilization of an
uncompromised ovum is more likely to survive the critical first
forty days of the pregnancy as well as the rest of the pregnancy.
The recommendation to allow first lactation cows extra days
open (within reason) compared to older cows is one that has not
changed over the last forty years. This is because their lactation
curve is more persistent so a higher percentage of their total first
lactation production happens later in the lactation. They also
benefit from the extra time to adjust to life as a milking cow and
finish the growth phase of their life.
We also know the cost of days open is not as high as we used
to think. We used to calculate the cost only using lost income
from less milk produced per day of life and fewer replacement
heifers born over the lifespan of the cow. The estimated cost was
in the $3.00 to $5.00 per day range.
This was during the BK era. BK is short for Before Karmella.
Things changed when we were graced with the presence of
the extremely bright graduate student, Karmella Dolecheck.
Karmella recalculated the cost of days open using more factors
than we need to include in this short article with a whole farm
stochastic simulation model. The results of her calculations
indicate the cost for each additional day open between 100
and150 days is about 40 cents for first lactation cows and about
$1.50 for second and third lactation cows. Karmella’s Cost of
Days Open Dashboard is at the UK Dairy website: https://afs.
ca.uky.edu/dairy/decision-tools/CostDaysOpen.
Here are my current recommendations to maximize fertility,
achieve reasonable days open, and reach the goal of having most
of the herd pregnant by 150 days in milk.
1) Have the herd veterinarian check the reproductive tract of all
cows at about 45 days after calving and resolve problems then.
2) At 60 days in milk start breeding second and later lactation
cows who have gotten off to a good start, have not lost a lot of
body condition, and are not the highest producers.
3) At 80 days in milk start breeding all other cows.
The success of recommendations 2 and 3 is dependent on
efficient and accurate detection of estrus accomplished with
diligent use of traditional methods or with the aid of a correctly
functioning activity monitoring system. In addition, timed A.I.
protocols should be utilized when appropriate.
KDDC would like to thank
our sponsors for their
continued support!
If you would like to become
a sponsor, see all of the
levels and benefits on page
9 or call any of the KDDC
Dairy Consultants.
July - August 2019 • KDDC • Page 17
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
REGISTRATION FORM – 2019
YDP WISCONSIN TOUR
October 2 – 5, 2019
FIRST PERSON ATTENDING (PLEASE INCLUDE BIRTHDAY IF UNDER 21)
SECOND PERSON ATTENDING
ADDRESS
HOME PHONE
CELL PHONE
EMAIL ADDRESS
Make checks payable to: 		 KDDC
Send registration/check to: 	 Eunice Schlappi
				 Kentucky Dept of Agriculture
				 111 Corporate Drive
				 Frankfort, KY 40601
$150 Young Dairy Producers/KDDC Board Member –
young farmers must meet criteria - limit 2 per dairy farm at
$150 - additional members from farm at $300 - $50 each
non-refundable
$300All other dairy farmers-per person - $50 non-refundable
$600 Industry representatives (non-sponsor) - $50 non-re-
fundable
$300 Industry rep ($1000 - $1499 sponsor) - $50 non-refundable
TOTAL
(After your registration is received, we will send you a full
agenda once it is set)
set market for us, because we are finally excited to be able to
use our own milk in”.
“Putting this milk plant together has been a journey.” Says
Elizabeth, owner and plant manager of J.R. Chaney Bottling.
“It has been hard, but it has been an incredibly remarkable
experience that has taught us all so much”. The first bottle of
milk came through the filler June 21st, 2019 and was approved
for sale just four days later. It has been a continual learning
experience from that point, with each week revealing new
orders, trying new techniques and products and our customers
learning with us. “We are currently using 1 days’ worth of our
milk production, which is going through our ice cream store
and restaurant as well as 9 Houchens and Crossroads IGA’s in
the Glasgow and Bowling Green area. The response has been
remarkable. People truly taste a difference in the jersey milk
and love the freshness and transparency that it brings” says
Elizabeth. “We are excited to see where it takes us.
For anyone wanting to start a creamery of their own,
Elizabeth has a list of 6 things she thinks is important for
people to consider.
-	 Transparency. This venture requires a level of
transparency with not only the public, but the state regulatory
agency, retailers and those working for you. Is your farm ready
for the public and are you ready to open your doors? Elizabeth
mentions that “We started seriously talking about this 15 years
ago when we started Chaney’s Dairy Barn. Though the path
was a little different than we might have wanted, meaning we
didn’t start bottling in 2003, we now know that it was the right
path for us. Our farm and facilities, and even our consumers
I don’t think were ready then, but they are now, and they are
showing us that every day.”
-	 The state is your friend. The regulatory agencies will
want to know and see everything before you do it. They want
to help you, and that they make clear, but they also do not want
you doing anything without their oversight and OK. Though it
may seem like too much at times, it is worth it and necessary
to having a plant that you are proud of, and that produces a
product that is safe.
-	 Cleanliness is next to godliness. For a creamery, this
is so true. Not only does bacteria impact your shelf life, but it
also can hurt people. Making sure you have the right chemical
and are paying attention to all items and that they are cleaning
properly is key. “At least for now, though not required to, I am
running aerobic and coliform counts on every batch we bottle.
So far, our counts are very good, but I want to know first if
something is not cleaning as it should. This is how I plan to do
this.” Says Elizabeth
-	 “The hardest part about this milk plant was that I
wasn’t just learning how to run the filler, I was learning how
to run the filler, how to plate milk samples, run antibiotics,
choose containers all why trying to figure out how a stem
continued from cover
continued on page 19
July - August 2019 • KDDC • Page 18
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Hey Doc, while you’re here!
Charles Townsend, DVM, Burkmann Nutrition
I
t’s that time of year again when everyone is getting ready to
chop corn silage and if you’re not, you are already behind
the 8 ball. Producers are always asking, when should I
chop my corn silage? Should I use a processor? Should I use
inoculants? Should I cover my pit and if so with what? I hope
to answer some of those questions and if I don’t answer a
question that you’ve been looking for, talk to your nutritionist or
feed consultant, they should be able to help.
Whole plant moisture is the critical element for the silage to
pack and ferment correctly. So, how do we know when the best
time is to harvest. Most folks rely on the milk-line to determine
time of harvest, but with hybrids and weather the milk-line is not
a very reliable indicator. We need to use the milk-line as a trigger
to start testing the moisture of the whole plant to give us the
right moisture to harvest. Looking at table 1 will give you a very
easy indicator to start testing the moisture of the plant.
Full dent is approximately 80% milk stage (milk-line). 50%
milk-line is approximately 42-47 days after silking. This will
help you gauge when to start testing moisture. The moisture of
the whole plant is truly the only reliable way to tell us when to
start harvesting. After you get that first reading then you can
estimate harvest time, depending on weather conditions. The
average dry-down rate is 0.4 -0.7 % per day (developed in the
northern parts of the country). As you well know, Harvest time
in Kentucky is hot, so you need to be looking at the 0.7% rate
or higher. We saw some 1- 1.5% dry-down rates last year, so be
vigilant.
You can test the moisture of the silage with a Koster,
microwave or sending to a lab. Some feed consultants may have
an on farm moisture tester that can give you instant readings. So,
get with your feed consultant to see which way will work best
for you.
This is a very good picture showing the milk-line, but
remember you will not start seeing this until after the kernels are
dented.
Some producers have asked about increasing the harvest
height. On average increasing the height of the chop is not
economical. A study in Wisconsin showed increasing the height
from 6 inches to 18 inches lowered the yield by 0.6 tons per acre
and only reduced the NDF from 0.5-0.7%. The only time that
it might be feasible to chop at a higher harvest height is when
there are potential nitrates. Nitrates can be tested in the lab or on
farm.
How about adding water to dry corn silage to increase the
moisture content? If you look at the math, it will take 137
gallons of water per 4000 lbs. of silage to increase the moisture
from 65% to 75%, or @ 1100 lbs. of water. It is infeasible to add
this amount of water and harvest corn silage in a timely fashion.
Harvesting the corn silage is only the 1st step of getting
a good feed. Storage is another vital part in insuring a good
product to feed. Speed is important during harvest. After you
start harvesting and storing the silage, delivery of the silage to
the silo, whatever type of silos you have, should be delivered
daily until the silo is full, stopping for the weekends is not
recommended. Stopping for any length of time can cause layers
of spoilage and harm the feed quality. With the big multi-row
self-propelled chopper, speed could be too fast for the packing
equipment. A rule of thumb: 5 minutes of packing time per ton
of wet forage, this is dependent on the weight of the tractor.
The heavier the better for the packing tractor, but it needs to be
safe. So, you need to figure out how many tractors you will
need to match your silage chopper. Impaction is important to the
fermentation process. A wheeled tractor is superior to a crawler,
since the crawler does not put as much downward pressure as
TABLE 1: Kernel milk stage “Triggers” for timing silage harvest
Silo Structure
Ideal Moisture
Content
Kernel Milk Stage
“Trigger”
% %
Horizontal Bunker 70 to 65 80
Bag 70 to 60 80
Upright Concrete
Stave
65 to 60 60
Upright Oxygen
Limiting
50 to 60 40
“Trigger:” kernel milk stage to begin checking silage moisture
July - August 2019 • KDDC • Page 19
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
a wheeled tractor. There are spread sheets available to help
determine the time needed to pack with the tractors available.
One of the key components I see that is overlooked is sealing
or covering the silage when the harvest is done. This part of the
harvest is vital to eliminate oxygen and starting the fermentation
process. Sealing the silo immediately after the silo is filled is
optimum, don’t wait until the next day or week. You will lose
dry matter by waiting, 15-20%. Consider using an oxygen barrier
film along with plastic, use 4mm plastic if it will be stored
for long period. Placing 15 -20 tires per 100 sq. feet will help
keep the plastic in place. With these steps, spoilage will be at a
minimum and the estimated return is $8 for every $1 invested.
Again, talk to your feed consultant to get more tips on packing
and storing silage.
What about Inoculants? There is an ongoing debate on the
effectiveness of silage inoculants, especially on corn silage.
There are two types of inoculants: homo-fermentative (which
is used to lower pH and help with dry matter loss) and hetero-
fermentative (L. buchneri, which is used to increase bunk life).
Some inoculants have both types of bacteria. What works
best? That is the question that everyone is asking, and to be
honest with you there is not a good answer to that question.
Studies have shown positive results for reducing dry matter
lose, increasing bunk life and increasing animal performance,
but those studies have not been duplicated consistently. Do I
recommend inoculants, Yes! I believe they are a good safety
net. Can you make good silage without them, yes. But, for the
cost per treated ton of silage, its hard to advise against them. I’ll
tell you this, if you are looking at not using inoculants on your
corn silage this year, studies have shown (consistently) using
inoculants when harvesting corn silage on the dry side is money
well spent. And the inoculant to use is the homo-fermentative
inoculant.
Last question: Should I use a kernel processor? The short
answer is yes. Studies have shown when silage is run through a
kernel processor properly, you will see a 4 lb. increase in milk
compared to feeding non-processed corn silage. Now the big
question: is the corn silage being processed properly? I have
seen over the past couple of years that corn silage is not being
processed properly, this is mainly due to chopper speed and
fuel consumption. Using the processor will slow you down and
increase fuel consumption. The processor gap should be closed
down to the width of a dime, when the silage is at the correct
moisture. If you are having to chop very wet silage (>70%) then
you may need to open up the gap to a nickel width. This can be
assessed in the field with the 32 oz. cup test.
Collect a 32 oz. cup of silage and you want no more than 2
whole or half kernels per cup, 2-4 is adequate but 5 you need to
make some adjustments.
The kernel processor, or I prefer plant processor, is one of the
major innovations in forage harvesting that has shown consistent
improvements in animal performance. I highly recommend
using a processor. Remember to continuously check the kernel
processing score throughout harvesting to maintain adequate
processing.
I hope this helps you get good quality corn silage in the bunk
and good quality feed to your milk cows. You get one shot at this
a year and then you live with it for the next 12 months. Let’s get
it right the first time. Be safe and God bless!
continued from page 17
valve actuates” says Elizabeth. There is so much to know, and
you must know all of it at least pretty well. Be eager to throw
yourself into all areas of your plant, ask lots of questions and
know who to call.
-	 Surround yourself with great people. “I told my dad
that it was just going to be he, my mom and I bottling milk.
We now regularly have around 4-5 people in the plant during
bottling. Boy was I wrong” Says Elizabeth. It is not just the
physical labor associated with bottling milk, but the advisors and
people willing to help you lay the plant out, size your equipment
and get it installed and working. These people will be your most
important assets. “Thankfully we have an awesome team, I work
the plant side, my mom keeps everything functioning, Dore, my
cousin, does an absolutely incredibly job managing the cows
keeping them in tip top shape and my dad keeps us all moving
forward. We are the definition of a dream team for sure, all with
a key unwavering focus of our individual areas which I think is
what makes us work so well. My family has been unbelievable,
everyone wanting to contribute and be helpful, it is so important
to have a good support system. They all want this to work as
much as I do, that’s a key attribute to good help”.
-	 Take care of yourself. This is harder and more
expensive than you ever thought it would be, just bank on that
from day one. But always make sure you are taking care of
yourself, exercising, finding ways to let go of some of the stress.
“Someone told me in the middle of this, that stress like this can
kill you. Though I was nowhere near death, the point is that it is
hard, and it is supposed to be hard. You just have to manage it.”
Says Elizabeth. Never lose sight of your WHY. Why am I doing
this? Who am I doing it for? What does this mean to our family?
If you keep your eye on the WHY you are guaranteed success.
Eastern Kentucky VS Tennessee State
University University
EKU Agriculture Day
at the EKU v TSU game
What: Farm On, Game On!
When: Saturday, September 28
Activites start at noon, Kick-off at 6
Petting Zoo
Drones
Tailgate (food, ice-cream, t-shirts!)
Agriculture Olympics
And More!
July - August -2019 • KDDC • Page 21
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Southland Dairy Farmers Continue to Support the Kentucky
Special Olympics with Cool Dairy Treats
S
pecial Olympics Kentucky celebrated its 25th year in
2019, and Southland Dairy Farmers were excited to
celebrate with the athletes, coaches and families at the
Kentucky games, held at the Richmond campus of Eastern
Kentucky University. The summer games are the largest
event of the year and over 1,400 athletes competed in five
sports that spread out from May 31 – June 2.
At Day 1 of the KSNA Conference, The Dairy Alliance preThe
Summer Games began with Opening Ceremonies early on
May 31st at the Capitol Rotunda in Frankfort. The Final Leg
of the Law Enforcement Torch Run concluded in Richmond.
Southland Dairy Farmers were there showing their support and
passing out ice cream sandwiches for all that attended.
The Special Olympics Kentucky Summer Games are made
possible through sponsorship support. Southland Dairy Farmers
are proud to be a part of such a worthwhile cause while
promoting delicious and nutritious milk the dairy industry
supplies.
July - August 2019 • KDDC • Page 22
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
You’ve Got a Friend in The Dairy Alliance
T
he Dairy Alliance attended The Kentucky School
Nutrition Association (KSNA) annual conference held
this June. The KSNA represents school nutrition
professionals across Kentucky, including members of
cafeteria staff, managers, supervisors and directors, in
advocating for improved school nutrition programs. This
year’s conference was held June 19 – 21 in Louisville. In
addition to booths for one-on-one discussions, conference
classes covered topics like nutrition and food safety for
members in all roles.
At Day 1 of the KSNA Conference, The Dairy Alliance
presented on We All Make Learning Possible, discussing
various Youth Wellness programs offered and sharing free
resources for the 30 school food service staff in attendance to
address Professional Standards Training Topics related to school
Communications and Marketing, Nutrition and Operations
departments. The Dairy Alliance also partnered with Feeding
Kentucky to provide training to help schools increase breakfast
participation in another presentation to 80 attendees for Breakfast
After the Bell with Peers. The informational presentation
provided details about how Breakfast After the Bell fits in the
school day and fuels students for a day of success.
The theme of After School Meals offerings and its resources
was the primary focus, with KSNA members having the
opportunity to learn more about the Milk@EveryMeal, Smooth
and Smart, and Yo to Go food programs offered through The
Dairy Alliance exhibit.
To highlight a fantastic event of presenting and exhibiting, the
KSNA recognized The Dairy Alliance as an industry leader with
the Friend of KSNA Award. Melinda Turner and Alan Curtsinger
accepted the award during the opening session on behalf of The
Dairy Alliance. This award recognizes The Dairy Alliance as an
industry leader in providing healthy nutrition options to students.
This award honors those who work to further KSNA’s efforts,
attend the KSNA Annual Conference or the KSNA Legislative
Action Conference and/or work with the KSNA organization
on a project. Especially with this award, the multiday event
showcased the importance of milk and The Dairy Alliance’s
involvement in spreading its message.
Call Charlie at 859-608-9745
www.RedBarnandAssociates.com
July - August 2019 • 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
Ag Central
Alltech
Cowherd Equipment
CPC Commodities
Bluegrass Dairy & Food
Burkmann Feeds
Dairy Farmers of America
Farm Credit Mid-America
Kentucky Department of Agriculture
Kentucky Farm Bureau
Kentucky Soybean Board
South Central Bank
Zoetis
GOLD
Arm & Hammer Animal Nutrition
Chaney’s Dairy Farm
Dairy Express Services
Dairy Products Association of KY
Elanco
IDEXX
Kentucky Nutrition Service
Land O’Lakes
Mid-South Dairy Records
Owen Transport
Select Sires MidAmerica (KABA)
Todd Co. Animal Clinic
Trenton Farm Supply
SILVER
Afi Milk
DCC Water Beds
Grain Processing Corp.
KVMA
Luttrull Feeds
Prairie Farms
Purina
RSI Calf Systems
Shaker Equipment Sales
Southland Dairy Farmers
BRONZE
ABS Global
Advantage Hoof Care
Bagdad Roller Mills
Central Farmers Supply
Double “S” Liquid Feed
Genetics Plus
H J Baker
Hinton Mills
Kentucky Corn Growers
Lallemand
Limestone & Cooper
Maryland & Virginia Milk Producers
Provimi
Smith Creek, Inc
Wilson Trucking
176 Pasadena Drive
Lexington, KY 40503
859.516.1129 ph
www.kydairy.org
Non-Profit
US Postage
PAID
AUG 13 KY State Fair Dairy Products Judging, West Wing
AUG 14 KY State Fair Youth Pizza Party, KFEC 7:00 P.M.
AUG 15-25 Kentucky State Fair, Louisville, KY
AUG 15
Commodity Breakfast, Commodity Tent, KY State
Fair
AUG 15-18 4-H and Open Dairy Cattle Shows
AUG 16
Youth Cheese Auction, West Wing State Fair,
approximately 6:00 P.M.
AUG 22
Kentucky Farm Bureau Country Ham Breakfast,
South Wing State Fair
AUG 27-29
Kentucky Milk Quality Conference, Lake Barkley,
Cadiz, KY
SEP 05 C.P.C. Fall Field Day, Fountain Run, KY 9:00 A.M.
SEP 16
PA. All–American Invitational 4-H Dairy Judging
Contest
SEP 19
Grain and Forage Center of Excellence Open
House, Princeton, KY
Calendar of Events
SEP 26
KDDC Board Meeting, Adair County Extension
Office
SEP 28
Eastern Kentucky University, Agriculture Night,
Foot Ball Game
SEP 28-
OCT 03
National 4-H Dairy Conference and Dairy Judg-
ing, Madison WI.
OCT 01-04
KDDC Young Dairy Producer Bus Tour, World
Dairy Expo, Madison, WI.
OCT TBA
Dare to Dairy, University of Kentucky Coldstream
Dairy, Lexington, KY
NOV 08-12
North American International Livestock Show, KY
Fair and Exposition Center
NOV 14
KDDC Board Meeting, Taylor County Extension
Office
NOV 21-23 Dairy Challenge, Taylor County Extension Office
DEC 04-06
Kentucky Farm Bureau Annual Meeting, Louis-
ville, KY

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Kddcnewsletter.2019 07-08-final

  • 1. July - August 2019 • KDDC • Page 1 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk MattersJ u l y - A u g u s t w w w. k y d a i r y. o r g KENTUCKY Supported by Dairy Margin Coverage VeryAttractive for 2019 page 6 KDDC YDP Fall Tour page 11 Hey, Doc, While You’re Here! page 18 Chaney’s Milk: Bottling a Legacy Elizabeth Lunsford W here the pride of the past meets the promise of the future; a motto used for decades by the Chaney Family now has a whole new meaning. James Riley Chaney began milking cows on Chaney Farm in Bowling Green, KY in the 1940’s which he then later handed down to his son Carl 40 years later. It was always a dream of theirs to bottle their own milk, milk that they felt was some of the best around, straight from their prize Jersey cows. Over the years Chaney’s would invest in an agritourism operation, a new compost bedded pack barn and Lely A4 robotic milking system, all laying the ground work for a milk bottling plant which came to fruition in June 2019. However, there are many factors outside our control that “We work hard to make sure our cows are well taken care of” says Carl Chaney, owner of Chaney Farm and Chaney’s Dairy Barn. All these investments went into not only providing a level of transparency to consumers wanting to know where their food comes from, but just as importantly to provide the best, cleanest, most comfortable environment possible for our girls, in turn providing us with a milk that is of top quality. “When we treat them well, they do the same for us in return” says Carl. J.R. Chaney Bottling company, named after late James Chaney was established and was created to fulfill a legacy the family had been dreaming of for years. With the first equipment arriving in December 2017, the Chaney family began construction on the creamery, which took approximately 2 years to complete. For efficiency sake, they decided on an HTST system, where they homogenize and bottle their milk for sale locally. “We made almost 20,000 gallons of ice cream last year” says Carl. “That is a continued on page 17 Kentucky Dairy Value-Added Conference Dave Roberts O n July 9th and 10th the Kentucky Dairy DevelopmentCouncil(KDDC),Kentucky Department of Agriculture (KDA) and Kentucky Agriculture Development Fund (KADF) sponsored a conference showcasing dairy producers that started their own value-added enterprises. Other support personnel were featured to help lay out what all goes into starting a value-added processing facility. The meeting was held at the new Warren County Extension Office in Bowling Green. The first day Warren Beeler from the Governor’s Office of Agricultural Policy (GOAP) moderated the speakers and panel discussion. Warren began with a presentation on loans and grants available through the GOAP. Next up Kellie Padgett from K-Card described how they are available to help with business plans, market studies and product selection. Lewis Ramsey touched on Kentucky Milk Safety regulations and Roger Snell went over opportunities, cost share associated with Kentucky Proud and marketing your products. Carl Chaney of Chaney’s Dairy Barn described their continued on page 2
  • 2. July - August 2019 • KDDC • Page 2 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund 2019 KDDC Board of Directors & Staff Executive Committee President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Member: Freeman Brundige EC Past President: Bob Klingenfus 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: Richard Sparrow 502.370.6730 District 11: Stewart Jones 270.402.4805 District 12: John Kuegel 270.316.0351 Equipment: Tony Cowherd 270.469.0398 Milk Haulers: Alan Wilson 606.875.7281 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dr. Ron Wendlandt 502.839.4222 Dairy Co-op: Justin Olson 765.499.4817 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Michael Smith 859.619.4995 Former Pres.: Bob Klingenfus 502.817.3165 Employee & Consultants Executive Director: H.H. Barlow 859.516.1129 DC-Central: Beth Cox 859.516.1619 • 270-469-4278 DC-Western: Dave Roberts 859.516.1409 DC-Southern: Meredith Scales 859.516.1966 DC -Northern: Jennifer Hickerson 859.516.2458 KDDC 176 Pasadena Drive Lexington, KY 40503 www.kydairy.org KY Milk Matters produced by Carey Brown President’s Corner Richard Sparrow A s you may be aware, the enrollment for the Dairy Margin Coverage began on June 17 at your local FSA office. I hope you have already signed up for the program and even begun receiving DMC payments. The payments for the first few months of 2019 will more than pay the premium for 2019 coverage. Also, KDDC, through a grant from the Agriculture Development Board, will make available cost share dollars for producers who sign up for DMC for five years. This program will pay 50% of the 2019 DMC premium, up to $1,000. The 2018 KDDC MILK program did not use all of the money budgeted, and the Agriculture Development Board allowed these dollars to be used for the 2019 DMC premium on a cost share basis. Obviously, this makes the DMC even more attractive, and I hope every dairy farmer will take advantage of this opportunity. (See form on page 7) continued from cover agritourism business and how it has developed with the addition of their new barn and robotic milker. Next the group of 67 attendees were captivated by Elizabeth Lunsford’s description of the process she has gone through to install a milk processing plant at the Chaney Dairy. Many questions were asked to Elizabeth and one major take away was “whatever your estimate is of cost and time to completion, double it.” Much good discussion and questions with a panel of on-farm processors who spoke about things they wished they had known at the beginning of their on-farm processing. The panel was made up of Kenny Mattingly (Kenny’s Farmhouse Cheese), RachelWade (Ed-Mar Cheese), Willis Schrock (JD Country Milk) and Gary Beu (WKU Creamery). Ricky Gulley of Bluegrass Dairy/Foods was the last speaker of the day answering questions on cheese making. After Ricky finished, those who wanted to, went to JD Country Milk for a tour of the processing plant just south of Russellville. Day two of the conference was moderated by Joe Cain of Kentucky Farm Bureau. Bluegrass Dairy/Foods’ Eric Goan talked about getting started, food safety and processing a safe product. Next another panel made up of on farm processors described their operations, successes, steppingstones and pitfalls. The panel was made up of Bob Klingenfus (Harvest Home Dairy), Matthew Wade (Middle Tn State University) and Tim Mast (Sunrise Dairy). A common theme that seemed to come out overall was, “It’s not easy, you must figure on working hard and be willing to adjust your plan and continue on.” The group then toured the West Kentucky University Creamery. There Gary Beu described how WKU got started making and marketing cheese and showed the combined classroom and cheese making room. Following lunch and ice cream at Chaney’s Dairy Barn Elizabeth Lundsford and Carl Chaney conducted a tour of the dairy and milk processing plant. Of the 67 attendees 31 were producers. These producers were from three states Kentucky, Tennessee and Minnesota. KDDC appreciates the support from Farm Credit who set up a display at the meeting and all those who spoke and had a role in this very successful conference. A special thanks to Eunice Schlappi of KDA for her organizing skills and time.
  • 3. Alltech.com AlltechNaturally @Alltech ©2019. Alltech, Inc. All Rights Reserved. Different Yeasts Different Results The difference is Yea-Sacc: • Improves feed efficiency by up to 6% • Healthy rumen pH • Contributes to 5-7 fewer open days Alltech’s proven research on Yea-Sacc can drive your dairy’s efficiency to new limits. Visit Alltech.com/on-farm-support for more information on heat stress. The most researched yeast on the market. Elizabeth Lunsford Territory Sales Manager elunsford@alltech.com (859) 553-0072
  • 4. July - August 2019 • KDDC • Page 4 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Executive Director Comments H H Barlow A s I have traveled across the state these last two months, I have observed much about the diversity of our industry from the dairyman to the processor. I am very encouraged about the positive spirit of most dairymen, even though significant challenges remain for many of our farmers. At KDDC, I am very proud of our Dairy Margin Coverage initiative, which pays up to $1,000 to sign up for DMC. At this writing, we know the first five months of 2019 have a payment to all participants in the DMC insurance program. Thanks to the Ag Development Board for their approval of this one-time incentive program. The ADB’s approval includes the requirement that dairymen sign up for the whole five years that the 2018 Farm Bill is in effect. In talking to the members of the board, their comments centered on the fact that they had never used Ag Development funds to buy insurance in the past for any commodity; however, they were very cognizant of the distressed financial situation of the past four years, and therefore saw the need for their action. Since the DMC program is a safety net for all dairymen’s margins, the board felt it was imperative to encourage all dairymen to sign up for all five years. I know there is trepidation among some dairymen regarding the five year requirement, because of the inadequacy of the previous MPP insurance program. This, however, is not the same. I agree with the position of five-year coverage, because of dairy market uncertainty. In addition, this year’s troubling crop conditions in the Midwest could lead to higher feed prices, which could squeeze our profit margins and trigger DMC payments. I sincerely hope all dairymen will sign up for the program. The DEADLINE for signing up at your local FSA office is SEPTEMBER 20, 2019. There were many highlights for KDDC in the last few weeks, beginning with the June Dairy Month Proclamation by Governor Bevin in front of the Capitol. There was a great crowd to honor our industry. The highlight for me was Ag Commissioner Ryan Quarles’ announcement that Kentucky dairy farmers sold $190 million worth of milk in 2018. Just stop with me for a moment and ponder the financial impact that $190 million had on our rural communities where the farms are located. We truly are an economic engine for rural Kentucky and must start exploring and working toward growing our number of dairy farms in Kentucky. This will take development of new markets which, I believe is the number one goal of KDDC as we move forward. I enjoyed two dairy field days in western Kentucky in our Amish and Mennonite communities. We have over two hundred dairies in these communities. They are excellent dairymen committed to improving their herds and exploring value-added marketing. A group of approximately 80 farmers have invested in a processing plant built from scratch just outside of Trenton, Kentucky. It is close to completion and we wish them great success as they start processing cheese. On July 9 & 10, KDDC along with Kentucky Department of Agriculture hosted the first ever value-added dairy conference in Kentucky. It was very well attended with over sixty participants. There were twenty-five farms represented who are either already processing milk or very interested in processing milk. The value-added endeavor is definitely an opportunity for some dairymen. Marketing the finished product is absolutely the most important factor in success according to the established processors, such as Kenny’s Cheese and JD Milk. They further stated that it takes vision, commitment, family and faith to enter this business. It was great fun to attend many June Dairy Day celebrations, like the ballgames and county dairy day events. There are people who want to say dairy is dying, but I differ…On the night of June 28, the dairy farmers in Columbia, Kentucky were not depressed, but looking forward to their future in dairying. Their positive attitude is what we all need as we move forward in this industry. Thanks to every dairyman who has already filled out the KDDC survey. If you have not, I encourage you to please do so, so that we can use your responses to plan our future programs and better serve you. In summary, dairy supply and demand are in better alignment than they have been in many years. This should mean better prices going into the fall. Have a safe and successful fall harvest season! 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
  • 5. Key Changes: • Employer groups of one may be eligible for small group plans. • Husband/wife employer groups may be eligible for small group plans. • Employer groups of 5 or more can choose 2 plan options. • Employer groups of 10 or more can choose 3 plan options. For more information, please contact: ASSOCIATION ADVANTAGE INSURANCE GROUP We’ve Got Your Members Covered! Anthem of Kentucky has revised their eligibility guidelines for KDDC Association Group Health Plans. Cassie Grigsby Association Advantage Insurance Group (502) 875-1593 cgrigsby@aaigky.com Melissa Hinton The Hinton Agency (859) 351-6559 thehintonagency@gmail.com
  • 6. July - August 2019 • KDDC • Page 6 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Dairy Margin Coverage Very Attractive for 2019 Kenny Burdine, UK Agricultural Economics O ne of the most significant changes in the most recent farm bill involved the creation of the Dairy Margin Coverage (DMC) program. The program works a lot like the MPP-Dairy program, but is much more attractive to producers as higher coverage levels are available, premiums are lower, and margins are calculated monthly. Producers are also able to participate in the DMC program at the same time they participate in LGM-Dairy or purchase dairy revenue insurance. Since passage of the farm bill, an additional change has been made in the feed cost formula to include premium and supreme Alfalfa hay. This change increases the cost of Alfalfa used in the formula and lowers the DMC margin, making payment even more likely. Signups are ongoing for the DMC program for 2019 and the decision for dairy producers is very easy this year. Payments from DMC are going to greatly exceed premiums for 2019 on covered milk up to 5 million lbs. This is probably best illustrated by a quick illustration. Let’s consider a dairy operation with a production history (based on the highest level of milk marketings from 2011 to 2013) of 3.158 million lbs (roughly 150 milking cows and a rolling herd average of a little over 21,000 lbs). I choose this level simply to make the math easy. At 95% coverage, this dairy operation could cover 3 million lbs or 30,000 cwt of milk. Premium for the $9.50 coverage level, on up to 5 million lbs of production, is $0.15 per cwt. For this illustration farm, covering 3 million lbs of production, this works out to $4,500 (30,000 cwt @ $0.15 per cwt). Additionally, this farm would pay a $100 enrollment fee, for a total cost of $4,600. However, DMC margins have been below the $9.50 level for the first five months of 2019. Since enrollment this first year is retroactive to January, the DMC program is literally in the money right now. For this Figures may be slightly different due to rounding *This is paid on 1/12 of production history (30,000 cwt / 12 = 2,500 cwt) **Estimated payment is reduced by 6.2% for sequestration ($5,875 x 93.8%) hypothetical operation, total payments for the first five months of 2019 will exceed payments by more than $8,000. A more detailed summary, with calculations, can be found in table 1. While enrollment for 2019 is pretty straightforward, one decision that producers likely will want to ponder is whether to sign up for all 5 years (2019- 2023) at the $9.50 level. Producers who do so will receive a 25% discount on their premiums, bringing the premium to $0.1125 per cwt per year for five years. Some producers may elect not to do this, pay the higher premium level, and make their coverage election annually. I understand this and agree that it provides more flexibility should market conditions change in the coming years. However, I do think a relatively strong case can be made for signing up for five years and taking the 25% premium discount. A simple way to think about this is that one would want to decline the discount if they felt they would want lower coverage than $9.50 two of the five years. Since we already know that 2019 will pay, this really means two of the next four years. I went back and ran margins, premiums, and indemnities over the 10-year period from January 2009 to December 2018. If the DMC program were in existence during that 10-year period, payments would have exceeded premiums in 9 out of the 10 years at the $9.50 coverage level. History certainly doesn’t predict the future, but I do think this is worth noting. The only year that the program would not have “paid out” would have been 2014, which was an amazing year for dairy producers. Given this, I think I would lean towards taking the premium discount and enrolling at the $9.50 for all five years. There is a very good decision aid available to help dairy producers as they consider DMC program enrollment. The tool allows a producer to enter production history for their operation and will calculate premiums, and estimate payments, based on current market expectations. The tool will show how “in the money” DMC currently is, will forecast margins for the remainder of the year, and can be found at: https://www. fsa.usda.gov/programs-and-services/farm- bill/farm-safety-net/dairy-programs/dmc- decision-tool/index. The FSA DMC fact sheet can be found at https://www.fsa.usda.gov/Assets/USDA- FSA-Public/usdafiles/FactSheets/2019/ dairy_margin_coverage_program- june_2019_fact_sheet.pdf
  • 7. July - August 2019 • KDDC • Page 7 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund KDDC 2019 Incentive Program Kentucky Dairy Development Council is offering a one-time incentive program opportunity for Kentucky dairy producers to participate in and capture the benefits from the new Dairy Margin Coverage (DMC) program administered through Farm Service Agency (FSA). Analyzing the Dairy Margin Coverage Program under the 2018 Farm Bill, the KDDC board members voted to issue a program to help producers utilize the new DMC program at the June 6, 2019 KDDC Board meeting. It was a unanimous decision for the board to help producers with the cost of utilizing this program. Also, it was approved by the Kentucky Agriculture Development Board on June 21st . The current 2019 DMC program will be retroactive to January 2019 with months January through April already qualifying for payments for producers. Producers locking in coverage levels now until 2023 can also receive a discount of 25% on DMC premium costs. Producers have until September 20,2019 to sign up. Producers also have until this date to make any changes to coverage levels. KDDC’s DMC Incentive Program will pay one- half of the insurance premium cost up to $1,000.00 per farm. Below are specifics of the program: • This incentive program is provided through KDDC only using KDDC funds • Producers must sign up at the highest coverage level at $9.50 • Producers must sign up for the 5-year period, locking in coverage level at $9.50 through 2023 • Producers need to submit verification before KDDC can issue a payment • Producers are required to submit a copy of the FSA signup Form CCC-801 and copy of payment receipt for verification • These can be submitted to your regional dairy consultant • Please sign below and fill out the information so payments can be made in a timely manner after the September 20, 2019 deadline. • Any questions contact your KDDC Consultant: Dave Roberts, 859-516-1409; Beth Cox, 859-516-1619; Meredith Scales, 859-516-1966 and Jennifer Hickerson, 859-516-2458 Yes, I would like to participate in the KDDC 2019 Incentive Program. Signature - Full Name: Farm Address: Mailing Address (if different): Contact Number: Dairy Operation Number: (FOR KDDC USE ONLY)
  • 8. July - August 2019 • KDDC • Page 8 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Thinking About Culling Economics Jeffrey Bewley, Ph.D, Alltech Dairy Housing and Analytics Specialist C ulling decisions are one of the more difficult and complex decisions dairy producers make. Deciding when to cull a cow involves many economic and non- economic factors. Choosing when less productive cows should be culled is difficult. Too often, this decision is made solely on barn capacity or restrictions on how many cows we want to milk. Certainly, maintaining a minimum herd size is a valid reason for keeping cows when the bank dictates that barns should be kept full or for cash flow reasons. However, cows are often retained much longer than they should be. Keeping cows in the herd after production levels drop below feed costs results in significant losses and reduced profitability. A simple way to examine culling decisions is to calculate the breakeven production level necessary to cover feed costs. At a minimum, a cow should cover the costs of the feed she is eating to remain in the milking string. A chart depicting breakeven milk production levels for varying feed cost and milk prices is provided below. As feed prices increase or milk prices decrease, the breakeven production level increases. For example, when milk prices are high ($25 per cwt.) and feed prices are low ($4 per cow per day), breakeven milk production level to cover just feed costs is only 16 pounds per cow per day. On the other hand, when feed costs are high ($10 per cow per day) and milk prices are low ($12 per cwt.), breakeven milk production level is 83 pounds per cow per day. With today’s feed costs for many herds in the $7 to 9 per cow range with milk prices around $18 per cwt., breakeven milk production levels range from 39 to 50 pounds. As feed and milk prices change, dairy producers need to re-evaluate when cows should be culled. Although difficult to consider, if the majority of the herd produces less than the breakeven milk production level, it may be time to consider exiting the dairy business. This method for calculating when to cull dairy cows only accounts for feed costs. Feed costs account for the largest percent of total costs (50 to 75%) but do not account for all costs. Thus, the true breakeven milk production level will be a few pounds higher than the levels in the table below and will vary considerably from farm to farm. Nevertheless, this serves as a quick reference guide for thinking about culling decisions because if a cow cannot even cover her daily feed costs, she may need to be culled or dried off early. In practice, culling decisions also consider other factors. Probably the most important factor is whether the cow is pregnant. Another option for pregnant cows in late lactation producing below the breakeven milk production level is to dry them off early. One must also consider the costs of feeding her during the dry period, particularly if she will be dry for a long time. Another way of looking at when to cull a cow is something called a retention pay-off. With retention pay-off, the future income potential of a cow is calculated and compared to that of her potential replacement. The actual calculations for retention pay-off are fairly complex. But, the concept is useful when thinking about culling a cow. For each cow, you should ask yourself “What is the future income potential of this cow compared to the next replacement heifer that will be brought into the herd.” If the future income potential of the heifer is higher, the cow in question should be culled. This concept helps us see that culling decisions should be different for older cows than for younger cows as their future income potential is limited. The future income potential of a pregnant cow in late gestation is much higher than that of an open cow. The future income potential of a non-lame, low SCC cow is higher than a lame, chronically high SCC cow. The list of factors could go on and on. But, the important point to remember are (1) milking cows should at least cover the costs of the feed they consume to be retained in the herd and (2) additional cow factors may help determine when to cull a cow accounting for her future income potential compared to that of her potential replacement. Table 1. Breakeven milk production levels (pounds per cow) needed to cover daily feed costs for varying daily feed costs and milk prices.
  • 9. July - August 2019 • KDDC • Page 9 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund KY MILK MATTERS ADVERTISING RATES Ad Size BW/C (1x) BW/C (3x) BW/C (6x) Full Page $400/$450 $380/$428 $360/$405 1/2 Page $300/$350 $285/$333 $270/$315 1/4 Page $200/$250 $190/$238 $180/$225 Business Card $100/$125 $95/$119 $90/$113 AD SIZE SPECIFICATIONS Full page (bleed).................................................................................................................................................8.75 x 11.25 Full page (no bleed)...................................................................................................................................................7.5 x 10 Half page (horizontal).........................................................................................................................................7.5 x 4.875 Half page (vertical).........................................................................................................................................3.625 x 4.875 Business Card......................................................................................................................................................3.625 x 2.3 YEARLY MEMBERSHIP SPONSOR LEVEL BENEFITS PLATINUM ($1,500+) KDDC Website Homepage Top Banner Ad and Organization Link One-time full page black/white advertisement in KDDC Annual Report Name Recognition in KDDC Milk Matters Newsletter Free booth space at KY Dairt Partners Meeting, includes one lunch ticket Voting Member of KDDC GOLD ($1,000) KDDC Website Homepage Banner Ad and Organization Link One-time half page black/white advertisement in KDDC Annual Report Name Recognition in KDDC Milk Matters Newsletter $100 Discount on booth space at KY Dairy Partners Meeting, includes one lunch ticket Voting Member of KDDC SILVER ($500) KDDC Website Banner Ad and Organization Link One-time black/white business card ad in KDDC Annual Report Name Recognition in KDDC Milk Matters Newsletter Voting Member of KDDC BRONZE ($250) KDDC Website Organization Link One-time black/white business card ad in KDDC Annual Report Name Recognition in KDDC Milk Matters Newsletter Voting member of KDDC KDDC FRIEND ($25+) Receive KDDC Milk Matters Newsletter Name Recognition in KDDC Annual Report
  • 10. July - August 2019 • KDDC • Page 10 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Last Year, 2018, I was fortunate to be able to help establish a Cheese Auction at the Kentucky State Fair which benefited over 60 of our Junior Dairy kids (FFA & 4-H). This included the Junior Dairy Show Grand Champions and the First Place dairy cows of the Junior Show in each of the seven (7) dairy breeds. These Juniors have indicated that most of them are putting their prize money in savings accounts for college. A total of $7,500 was distributed to these young people thanks to the generous sponsorships of many of you. At this time, I say “Thank You” to those of you who contributed to the 2018 Cheese Auction as well as to the Kentucky State Fair Board for allowing us to tackle this endeavor and for their support. It is not easy to start up a program such as this and special thanks go to Eunice Schlappi for procurement of the many cheeses that were auctioned and to the cheese processors for their generous contributions. Thank you’s have been shared and now it is time to jump in and start supporting these Dairy Kids in 2019. We have set a huge goal for 2019, but if we work together it is attainable. Our goal for this year is to DOUBLE last year’s sponsorships. Yes, we are reaching for $15,000 this year. We helped these Juniors last year, but we need to help more. They are the future of Kentucky’s Dairy industry and this is your opportunity to contribute to the future of these tremendous young people – to make a difference in their lives. Don’t let it pass you by! Please become a proud sponsor. No contribution is too small. When you settle on a dollar amount that you wish to contribute, please contact: Glenn Sageser- cell (502)321-8670 or email Gsageser0427@gmail.com Eunice Schlappi – cell (502)545-0809, office (502)782-4122 or email Eunice.Schlappi@ky.gov Dr. George Heersche – cell (859)536-2054 The SECOND ANNUAL KY STATE FAIR JUNIOR DAIRY CHEESE AUCTION Date: Friday, August 16, 2019 Time: 6:00(ish) after Supreme Champion Show Place: West Wing Show Ring In Memoriam (1943-2019) The dairy industry and producers of Western Kentucky lost a true friend and dairy enthusiast. Mr. Jerry Fred Kirkland, age 76 of the Coldwater Community of Callaway County, passed away June 21, 2019 at his home. Jerry’s Father, Fred Kirkland bought a truck in 1929 and began hauling can milk for dairymen in the Murray area and continued until 1961 when Jerry bought the milk hauling business. The industry was changing from cans to tankers and so did Kirkland Trucking. Picking up milk in bob trucks with sometimes 21 stops per load Jerry hauled milk in a radius of 350 miles. Most of the milk Kirkland Trucking hauled went to Ryan Milk (Murray, Ky.), UC Milk Company (Madisonville, Ky.) and Turner Dairy (Fulton Ky. and Perryville, Mo.). In the early 1980’s milk was also being hauled to Lewisburg,Tn. Five van trailers and reefers were added for hauling dry freight and ice cream for Flavorich. At one time Jerry hauled for 69 dairy producers, had seven milk routes, fourteen trucks and seventeen drivers. Loads of cream from Purity (Nashville Tn.), Turner (Fulton Ky.) and Deans (Louisville, Ky.) were hauled to Ryan Milk Company in Murray. In 2014 the milk hauling business was sold but five tankers were kept and Kirkland’s hauled cream until 2017. Jerry also had several farms and a successful beef operation. Kirkland Trucking has hauled milk for the Ryan All Jersey producers, Dairymen Inc. (DI), Mid Am, Dairy Farmers of America (DFA), Dean Foods and Dairy Marketing Service (DMS). Jerry Kirkland and his wife Margaret have been great friends and supporters of the dairy producers and industry in West Kentucky for many years. They attended many dairy meetings and Jerry always did his best to accommodate the producers he hauled for. The love and loyalty Jerry had for the dairy industry was on display at his visitation at J.H. Churchill Funeral home. Setting on top of his casket was a” GOT MILK” license plate, a model bob truck milk tanker and a model tractor trailer milk tanker surrounded by miniature beef and dairy cows. Jerry was preceded in death by his wife Margaret Hendon Kirkland. He is survived by two sons Freddie Kirkland of Murray, Kentucky and Nickie Kirkland and wife Jan of Murray Kentucky. To: Kentucky State Fair Junior Dairy Show Supporters From: Glenn Sageser, Representative for Kentucky Purebred Dairy Cattle Association WE NEED YOUR HELP!
  • 11. SAVE THE DATE 2019 KDDC YDP Fall Tour to Wisconsin October 1st – 4th Join us for this years upcoming Fall tour and see a variety of dairies and chance to visit the World Dairy Expo in Madison, Wisconsin. You will have the opportunity to see different management styles and learn from other dairyman as we tour different operations. Register now to secure a spot on this years Fall tour to Wisconsin. Contact Eunice Schlappi at eunice.schlappi@ky.gov or at 1-502-545-0809
  • 12. July - August 2019 • KDDC • Page 12 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Classified Ads 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 Conultants or Carey Brown at (859) 948-1256 Global Dairy Situation H. H. Barlow A t the Alltech One 19 Conference in Lexington, Kentucky on May 21, 2019, Dr. Torsten Hemme, CEO of IFCN Dairy Research Network, summarized the global dairy picture. His most significant point was dairy product demand has been increasing worldwide by two to three percent every year since 2007. This is happening because the demand for animal protein is increasing worldwide as many third world country’s financial positions improve. The populace likes the protein that cheese and milk powder provide. There are many signals indicating that the global milk supply situation is tightening. Daily Dairy Report has reported these statistics for many months. The growth in the European Union milk output has slowed to a crawl as evidenced by only one tenth of 1% growth from May 2018 to May 2019. Germany, the largest producing country in the EU, had a drop of 5% in cow numbers. New Zealand growth is also stagnant with production being down 1.1% from a year ago. New Zealand is significantly challenged in growing production since there is very limited land for additional feed production. South American potential for growth is stunted, mostly by a lack of infrastructure and slow adoption of dairy technology. The overall situation in South America is still behind the rest of the world. Japan is a strong indicator of growth potential for US milk exports. Since 1998, Japanese production has fallen 14.9%...and just since 2013, dairy imports have increased 23%. Referencing the China situation, it is true the tariffs have hurt US milk exports into China, but their overall imports are up. As they import from other countries such as New Zealand. That leaves an opening for US exports to other countries. Most experts agree that the tariff problem will be resolved by this fall. One final statistic to boost a positive price outlook, the US heifer replacement number has dropped 2.4% from a year ago. This equals to 100,000 fewer heifers available. A statistic just reported this July 19, is that for the first time since 2012 the heifer inventory has dropped. In the final analysis, demand is robust. Developing countries are going for high protein cheese and milk powder which offers us great opportunities for increased exports. Also, supply shortages are showing up in the three major milk sheds of the world. Growth in the US, the European Union and Oceania is stagnant at best and declining in certain areas. These factors should lead to a season of much better milk prices for dairymen in the near future with potential for this improvement to last for several years. Fun Fact: Only 2.7% of greenhouse gases worldwide came from cows…so much for cows causing global warming.
  • 13. July - August 2019 • KDDC • Page 13 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund KDDC Director and Allied Industry Corner Bill Mattingly, lives in Lebanon, KY with his wife, Susan. They have been married for 30 years and have four children, Alex (wife-Britney), Ann Kelty (fiancé Clayton), Lee, and Kate. He is the 3rd youngest child of 11 and has always lived in the house where they currently live. Bill graduated high school in 1980 and started milking for his father full time at age 14. He started milking for himself in 1986 when he also purchased the cows and equipment. He was able to buy the farm in 1991. In March 2016 they sold the milk cows, It was not an easy decision with an excellent herd and after milking over 200 heard for 2X/day for around 40 years. He then started raising dairy heifers on contract in April 2016, with help from Alex Mattingly. Currently they have a capacity(trying to get barns full, but not there yet) to house 750-800 dairy heifers. They also have a beef cow/calf herd, and along with the 235 acre farm, they lease two other farms, growing corn for silage and grain, and hay. His son, Alex, works with Bill and takes care of all the feeding and nutrition rationing of the heifers on contract and is also a Crop Insurance Adjustor full time. KDDC’s Board of Directors is compromised of 21 members, 13 dairy farmers, and 8 allied industry representatives. Dairy farmer directors represent the dairy producers within their respective districts. Allied industry members represent segments of the industry such as but not limited to, veterinarians, milk handlers, and feed companies. The officers of the KDDC board include: President, Vice-Presidentm and Secretary- Treasurer. The Executive Committee consists of the officers, the past president, and an elected member at large. The president must always be a dairy farmer. When board meetings are held, there is one purpose in mind; to do what is best for Kentucky’s dairy farmers and its industry. Dr. Jeffrey Bewley is from Rineyville, Kentucky, where he grew up working on his grandfather’s dairy farm. He received a bachelor’s degree in animal sciences from the University of Kentucky in 1998. In 2000, he received his master’s degree in dairy science with a focus on dairy modernization from the University of Wisconsin-Madison under the direction of Dr. Roger Palmer. His Ph.D. work under Dr. Mike Schutz at Purdue University focused on the application and economics of precision dairy farming technologies. For more than nine years, Bewley was on the faculty at the University of Kentucky as an extension dairy specialist. He has also worked with IceRobotics, PerforMix Nutrition and BoviSync. Bewley has published over 50 peer-reviewed publications and industry magazine publications. Bewley has also delivered over 80 presentations around the world, primarily on precision dairy technologies, compost bedded pack barns and mastitis management. He is an active member of the American Dairy Science Association and the National Mastitis Council. He is a certified CowSignals trainer, a MEX udder health coach and a lean farming trainer. Kentucky Dairy Development Council is pleased to have Dr. Bewley join our board as an allied industry representative in the nutrition segment. VISION: To create a vibrant and sustainable dairy industry in Kentucky. MISSION: To educate, promote and represent dairy producers and foster an environment for growth of the Kentucky dairy industry. GOALS: • To increase Kentucky dairy farmers’ profitability • To improve Kentucky dairy farmers’ competiveness • To enhance Kentucky dairy farm families’ quality of life • To assist in the sustainability of Kentucky’s dairy industry
  • 14. July - August 2019 • KDDC • Page 14 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Dixie Dairy Report July 2019 Most indicators point to stronger milk prices for the half of 2019. Beginning with supply, May, month over month milk production, is down 0.4%. For the year-to-date production is flat. Cow numbers increased 5,000 head in April, but are 89,000 head less than last May. May per cow milk production was 12 lbs. higher than a year ago. For the 24 reporting milk states, Georgia is a new reporting state, production was up in ten states, no change in two states, and down in the remaining twelve states. Texas continues to lead the country in milk production growth, up 5.4%. California was up 1.3%, due to a 30 lb. increase in milk per cow. Production was down 0.4% in Wisconsin. Continuing strong dairy cow slaughter (up 5.6% through May), many dairy farms continuing to leave the business, challenges in getting crops in the ground and harvesting forage, point to little or no production increases for the last half of the year. Turning to the Southeast, combined May to May milk production in the three southeast reporting states is down 4.9%. These three states produce about 65% of the milk in the ten southeastern states. Georgia production is flat, but production in Florida and Virginia is down 4.9% and 10.1%, respectively. Milk production declines in Florida and Virginia are due to fewer cows. As a result the potential for milk production rebounding in Florida and Virginia, in the short term, is not likely. Demand. On the demand side through April, both domestic and export demand combined on a total solids basis, is down 0.25% compared to a year ago. Separately, domestic demand is up a strong 2.8% while exports are 15.6% lower. Granted, much attention and effort is directed towards exports. However, due to higher revenue from a pound of milk solids sold domestically, versus exported; strong domestic demand is putting many more dollars in dairy farmers milk checks and easily offsetting lower exports. May was a challenging month for fluid milk demand in the three southeastern orders. Producer milk utilized in Class I was 5.6% lower than May 2018. This is almost a decline of 1.5 million lbs. of milk per day. On the other hand total producer milk was down 4.6%. With Class I declining more than producer milk, the combined May Class I utilization was 70.1% compared to 70.8% a year ago. Most of the Class I decline was in the Appalachian and Southeast orders Another indicator supporting higher milk prices are inventories. At the end of April the butter inventory is 7% lower than last April, and American cheese inventory 2% lower. Even with lower exports, the nonfat dry milk powder inventory is only up 4%. Prices. June saw nonfat dry milk powder (NFDM) continue its upward movement. The June NFDM price was the highest monthly average since 2014. A lower barrel price kept the cheese price steady in June, however, barrels have recovered and the July cheese price should be higher than June. The butter price continues to remain in a narrow range. Blend prices. We continue to increase our blend price projections for the last of the year. Currently, we project 2019 blend prices to average about $2.00/cwt. higher than 2018. Unlike recent years where almost of the price increase was on butterfat, this increase will be on the skim. International. I spent most of the month of June in the East African countries of Rwanda and Kenya. The devastating 1994 genocide in Rwanda not only killed over 1 million people, but also wiped out most of the country’s cattle. Since then Rwanda has re-built its dairy herd back to over 1 million head. Most dairy farmers only milk 1 or 2 cows with average production about one to two gallons of milk per cow per day. The country has 126 milk collection centers scattered throughout the country to receive farmers’ milk. One of my assignments was to assess these centers. The farm milk price is about $8.25/cwt. SE REPORTING STATES - MAY TO MAY MILK PRODUCTION Georgia Florida Virginia Total (Production) (million lbs) May 2019 156 212 133 501 May 2018 156 223 148 527 Change % 0.0% -4.9% -10.1% -4.9% (Cows) (1,000 head) May 2019 83 115 76 274 May 2018 83 122 84 289 Difference 0 -7,000 -8,000 -15,000
  • 15. July - August 2019 • KDDC • Page 15 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk Prices FMMO 5 www.malouisville.com July 2019 Class 1 Advanced Price (@3.5%BF) $20.58 August 2019 Class 1 Advanced Price (@3.5%BF) $ 21.29 FMMO 7 www.fmmmatlanta.com July 2019 Class 1 Advanced Price (@3.5%BF) $20.98 August 2019 Class 1 Advanced Price (@3.5%BF) $21.69 DAIRY PRODUCTS SALES REPORT PRICES and CLASS I MOVER Product June 2019 May 2019 June 2018 June 2017 ($/lb) Butter $2.3663 $2.2952 $2.3756 $2.4065 Cheese (block & barrel) $1.6910 $1.6974 $1.6150 $1.6293 Nonfat Dry Milk Powder $1.0431 $1.0149 $0.8150 $0.9137 Dry Whey $0.3643 $0.3784 $0.3086 $0.4917 June 2019 May 2019 June 2018 June 2017 ($/cwt.) Class I Mover (3.5% fat) $17.18 $17.07 $15.36 $16.59 Class I Mover (2.0% fat) $13.31 $13.55 $11.45 $12.61 PROJECTED BLEND PRICES–BASE ZONES – SOUTHEASTERN FEDERAL ORDERS Month Appalachian Florida Southeast ($/cwt. 3.5% butterfat) May 2019 (actual) $18.93 $21.13 $19.24 June $19.71 $21.58 $19.90 July $19.73 $21.66 $20.30 August $20.38 $22.34 $20.90 September $20.52 $22.54 $21.17
  • 16. July - August 2019 • KDDC • Page 16 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Voluntary Waiting Period and Days Open Revisited Dr. George Heersche, University of Kentucky Dairy Extension O ne of the primary functions of the Agriculture side of the Cooperative Extension Service is to provide advice to farmers based on solid research. I have been providing advice to farmers since 1975 and my advice has changed several times over the years as research provides new discoveries. This certainly is the case when it comes to dairy cattle reproduction. About the only advice which hasn’t changed over the years is “It has been a long time since anything got pregnant without getting semen put in it” - Doc Olds, and mature dairy bulls are dangerous. This article contains some history and my current advice on voluntary waiting period and days open. Forty years ago we recommended to start breeding some cows as early as 45 days after calving. This was particularly the case for cows who didn’t have issues around calving and got off to a great start, and second and later lactation cows who were not the highest producers. The logic was we were never going to be great at detecting heats and one way to achieve reasonable days open was to put semen in cows early. We now know that first lactation cows, cows who do not get off to a good start after calving, cows who lose a lot of body condition in early lactation, and some high producing cows benefit from having more time between calving and first insemination. One of the main benefits is higher fertility because they ovulate an ovum which is less compromised by the metabolic environment which accompanies negative energy balance. The embryo which results from fertilization of an uncompromised ovum is more likely to survive the critical first forty days of the pregnancy as well as the rest of the pregnancy. The recommendation to allow first lactation cows extra days open (within reason) compared to older cows is one that has not changed over the last forty years. This is because their lactation curve is more persistent so a higher percentage of their total first lactation production happens later in the lactation. They also benefit from the extra time to adjust to life as a milking cow and finish the growth phase of their life. We also know the cost of days open is not as high as we used to think. We used to calculate the cost only using lost income from less milk produced per day of life and fewer replacement heifers born over the lifespan of the cow. The estimated cost was in the $3.00 to $5.00 per day range. This was during the BK era. BK is short for Before Karmella. Things changed when we were graced with the presence of the extremely bright graduate student, Karmella Dolecheck. Karmella recalculated the cost of days open using more factors than we need to include in this short article with a whole farm stochastic simulation model. The results of her calculations indicate the cost for each additional day open between 100 and150 days is about 40 cents for first lactation cows and about $1.50 for second and third lactation cows. Karmella’s Cost of Days Open Dashboard is at the UK Dairy website: https://afs. ca.uky.edu/dairy/decision-tools/CostDaysOpen. Here are my current recommendations to maximize fertility, achieve reasonable days open, and reach the goal of having most of the herd pregnant by 150 days in milk. 1) Have the herd veterinarian check the reproductive tract of all cows at about 45 days after calving and resolve problems then. 2) At 60 days in milk start breeding second and later lactation cows who have gotten off to a good start, have not lost a lot of body condition, and are not the highest producers. 3) At 80 days in milk start breeding all other cows. The success of recommendations 2 and 3 is dependent on efficient and accurate detection of estrus accomplished with diligent use of traditional methods or with the aid of a correctly functioning activity monitoring system. In addition, timed A.I. protocols should be utilized when appropriate. KDDC would like to thank our sponsors for their continued support! If you would like to become a sponsor, see all of the levels and benefits on page 9 or call any of the KDDC Dairy Consultants.
  • 17. July - August 2019 • KDDC • Page 17 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund REGISTRATION FORM – 2019 YDP WISCONSIN TOUR October 2 – 5, 2019 FIRST PERSON ATTENDING (PLEASE INCLUDE BIRTHDAY IF UNDER 21) SECOND PERSON ATTENDING ADDRESS HOME PHONE CELL PHONE EMAIL ADDRESS Make checks payable to: KDDC Send registration/check to: Eunice Schlappi Kentucky Dept of Agriculture 111 Corporate Drive Frankfort, KY 40601 $150 Young Dairy Producers/KDDC Board Member – young farmers must meet criteria - limit 2 per dairy farm at $150 - additional members from farm at $300 - $50 each non-refundable $300All other dairy farmers-per person - $50 non-refundable $600 Industry representatives (non-sponsor) - $50 non-re- fundable $300 Industry rep ($1000 - $1499 sponsor) - $50 non-refundable TOTAL (After your registration is received, we will send you a full agenda once it is set) set market for us, because we are finally excited to be able to use our own milk in”. “Putting this milk plant together has been a journey.” Says Elizabeth, owner and plant manager of J.R. Chaney Bottling. “It has been hard, but it has been an incredibly remarkable experience that has taught us all so much”. The first bottle of milk came through the filler June 21st, 2019 and was approved for sale just four days later. It has been a continual learning experience from that point, with each week revealing new orders, trying new techniques and products and our customers learning with us. “We are currently using 1 days’ worth of our milk production, which is going through our ice cream store and restaurant as well as 9 Houchens and Crossroads IGA’s in the Glasgow and Bowling Green area. The response has been remarkable. People truly taste a difference in the jersey milk and love the freshness and transparency that it brings” says Elizabeth. “We are excited to see where it takes us. For anyone wanting to start a creamery of their own, Elizabeth has a list of 6 things she thinks is important for people to consider. - Transparency. This venture requires a level of transparency with not only the public, but the state regulatory agency, retailers and those working for you. Is your farm ready for the public and are you ready to open your doors? Elizabeth mentions that “We started seriously talking about this 15 years ago when we started Chaney’s Dairy Barn. Though the path was a little different than we might have wanted, meaning we didn’t start bottling in 2003, we now know that it was the right path for us. Our farm and facilities, and even our consumers I don’t think were ready then, but they are now, and they are showing us that every day.” - The state is your friend. The regulatory agencies will want to know and see everything before you do it. They want to help you, and that they make clear, but they also do not want you doing anything without their oversight and OK. Though it may seem like too much at times, it is worth it and necessary to having a plant that you are proud of, and that produces a product that is safe. - Cleanliness is next to godliness. For a creamery, this is so true. Not only does bacteria impact your shelf life, but it also can hurt people. Making sure you have the right chemical and are paying attention to all items and that they are cleaning properly is key. “At least for now, though not required to, I am running aerobic and coliform counts on every batch we bottle. So far, our counts are very good, but I want to know first if something is not cleaning as it should. This is how I plan to do this.” Says Elizabeth - “The hardest part about this milk plant was that I wasn’t just learning how to run the filler, I was learning how to run the filler, how to plate milk samples, run antibiotics, choose containers all why trying to figure out how a stem continued from cover continued on page 19
  • 18. July - August 2019 • KDDC • Page 18 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Hey Doc, while you’re here! Charles Townsend, DVM, Burkmann Nutrition I t’s that time of year again when everyone is getting ready to chop corn silage and if you’re not, you are already behind the 8 ball. Producers are always asking, when should I chop my corn silage? Should I use a processor? Should I use inoculants? Should I cover my pit and if so with what? I hope to answer some of those questions and if I don’t answer a question that you’ve been looking for, talk to your nutritionist or feed consultant, they should be able to help. Whole plant moisture is the critical element for the silage to pack and ferment correctly. So, how do we know when the best time is to harvest. Most folks rely on the milk-line to determine time of harvest, but with hybrids and weather the milk-line is not a very reliable indicator. We need to use the milk-line as a trigger to start testing the moisture of the whole plant to give us the right moisture to harvest. Looking at table 1 will give you a very easy indicator to start testing the moisture of the plant. Full dent is approximately 80% milk stage (milk-line). 50% milk-line is approximately 42-47 days after silking. This will help you gauge when to start testing moisture. The moisture of the whole plant is truly the only reliable way to tell us when to start harvesting. After you get that first reading then you can estimate harvest time, depending on weather conditions. The average dry-down rate is 0.4 -0.7 % per day (developed in the northern parts of the country). As you well know, Harvest time in Kentucky is hot, so you need to be looking at the 0.7% rate or higher. We saw some 1- 1.5% dry-down rates last year, so be vigilant. You can test the moisture of the silage with a Koster, microwave or sending to a lab. Some feed consultants may have an on farm moisture tester that can give you instant readings. So, get with your feed consultant to see which way will work best for you. This is a very good picture showing the milk-line, but remember you will not start seeing this until after the kernels are dented. Some producers have asked about increasing the harvest height. On average increasing the height of the chop is not economical. A study in Wisconsin showed increasing the height from 6 inches to 18 inches lowered the yield by 0.6 tons per acre and only reduced the NDF from 0.5-0.7%. The only time that it might be feasible to chop at a higher harvest height is when there are potential nitrates. Nitrates can be tested in the lab or on farm. How about adding water to dry corn silage to increase the moisture content? If you look at the math, it will take 137 gallons of water per 4000 lbs. of silage to increase the moisture from 65% to 75%, or @ 1100 lbs. of water. It is infeasible to add this amount of water and harvest corn silage in a timely fashion. Harvesting the corn silage is only the 1st step of getting a good feed. Storage is another vital part in insuring a good product to feed. Speed is important during harvest. After you start harvesting and storing the silage, delivery of the silage to the silo, whatever type of silos you have, should be delivered daily until the silo is full, stopping for the weekends is not recommended. Stopping for any length of time can cause layers of spoilage and harm the feed quality. With the big multi-row self-propelled chopper, speed could be too fast for the packing equipment. A rule of thumb: 5 minutes of packing time per ton of wet forage, this is dependent on the weight of the tractor. The heavier the better for the packing tractor, but it needs to be safe. So, you need to figure out how many tractors you will need to match your silage chopper. Impaction is important to the fermentation process. A wheeled tractor is superior to a crawler, since the crawler does not put as much downward pressure as TABLE 1: Kernel milk stage “Triggers” for timing silage harvest Silo Structure Ideal Moisture Content Kernel Milk Stage “Trigger” % % Horizontal Bunker 70 to 65 80 Bag 70 to 60 80 Upright Concrete Stave 65 to 60 60 Upright Oxygen Limiting 50 to 60 40 “Trigger:” kernel milk stage to begin checking silage moisture
  • 19. July - August 2019 • KDDC • Page 19 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund a wheeled tractor. There are spread sheets available to help determine the time needed to pack with the tractors available. One of the key components I see that is overlooked is sealing or covering the silage when the harvest is done. This part of the harvest is vital to eliminate oxygen and starting the fermentation process. Sealing the silo immediately after the silo is filled is optimum, don’t wait until the next day or week. You will lose dry matter by waiting, 15-20%. Consider using an oxygen barrier film along with plastic, use 4mm plastic if it will be stored for long period. Placing 15 -20 tires per 100 sq. feet will help keep the plastic in place. With these steps, spoilage will be at a minimum and the estimated return is $8 for every $1 invested. Again, talk to your feed consultant to get more tips on packing and storing silage. What about Inoculants? There is an ongoing debate on the effectiveness of silage inoculants, especially on corn silage. There are two types of inoculants: homo-fermentative (which is used to lower pH and help with dry matter loss) and hetero- fermentative (L. buchneri, which is used to increase bunk life). Some inoculants have both types of bacteria. What works best? That is the question that everyone is asking, and to be honest with you there is not a good answer to that question. Studies have shown positive results for reducing dry matter lose, increasing bunk life and increasing animal performance, but those studies have not been duplicated consistently. Do I recommend inoculants, Yes! I believe they are a good safety net. Can you make good silage without them, yes. But, for the cost per treated ton of silage, its hard to advise against them. I’ll tell you this, if you are looking at not using inoculants on your corn silage this year, studies have shown (consistently) using inoculants when harvesting corn silage on the dry side is money well spent. And the inoculant to use is the homo-fermentative inoculant. Last question: Should I use a kernel processor? The short answer is yes. Studies have shown when silage is run through a kernel processor properly, you will see a 4 lb. increase in milk compared to feeding non-processed corn silage. Now the big question: is the corn silage being processed properly? I have seen over the past couple of years that corn silage is not being processed properly, this is mainly due to chopper speed and fuel consumption. Using the processor will slow you down and increase fuel consumption. The processor gap should be closed down to the width of a dime, when the silage is at the correct moisture. If you are having to chop very wet silage (>70%) then you may need to open up the gap to a nickel width. This can be assessed in the field with the 32 oz. cup test. Collect a 32 oz. cup of silage and you want no more than 2 whole or half kernels per cup, 2-4 is adequate but 5 you need to make some adjustments. The kernel processor, or I prefer plant processor, is one of the major innovations in forage harvesting that has shown consistent improvements in animal performance. I highly recommend using a processor. Remember to continuously check the kernel processing score throughout harvesting to maintain adequate processing. I hope this helps you get good quality corn silage in the bunk and good quality feed to your milk cows. You get one shot at this a year and then you live with it for the next 12 months. Let’s get it right the first time. Be safe and God bless! continued from page 17 valve actuates” says Elizabeth. There is so much to know, and you must know all of it at least pretty well. Be eager to throw yourself into all areas of your plant, ask lots of questions and know who to call. - Surround yourself with great people. “I told my dad that it was just going to be he, my mom and I bottling milk. We now regularly have around 4-5 people in the plant during bottling. Boy was I wrong” Says Elizabeth. It is not just the physical labor associated with bottling milk, but the advisors and people willing to help you lay the plant out, size your equipment and get it installed and working. These people will be your most important assets. “Thankfully we have an awesome team, I work the plant side, my mom keeps everything functioning, Dore, my cousin, does an absolutely incredibly job managing the cows keeping them in tip top shape and my dad keeps us all moving forward. We are the definition of a dream team for sure, all with a key unwavering focus of our individual areas which I think is what makes us work so well. My family has been unbelievable, everyone wanting to contribute and be helpful, it is so important to have a good support system. They all want this to work as much as I do, that’s a key attribute to good help”. - Take care of yourself. This is harder and more expensive than you ever thought it would be, just bank on that from day one. But always make sure you are taking care of yourself, exercising, finding ways to let go of some of the stress. “Someone told me in the middle of this, that stress like this can kill you. Though I was nowhere near death, the point is that it is hard, and it is supposed to be hard. You just have to manage it.” Says Elizabeth. Never lose sight of your WHY. Why am I doing this? Who am I doing it for? What does this mean to our family? If you keep your eye on the WHY you are guaranteed success.
  • 20. Eastern Kentucky VS Tennessee State University University EKU Agriculture Day at the EKU v TSU game What: Farm On, Game On! When: Saturday, September 28 Activites start at noon, Kick-off at 6 Petting Zoo Drones Tailgate (food, ice-cream, t-shirts!) Agriculture Olympics And More!
  • 21. July - August -2019 • KDDC • Page 21 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Southland Dairy Farmers Continue to Support the Kentucky Special Olympics with Cool Dairy Treats S pecial Olympics Kentucky celebrated its 25th year in 2019, and Southland Dairy Farmers were excited to celebrate with the athletes, coaches and families at the Kentucky games, held at the Richmond campus of Eastern Kentucky University. The summer games are the largest event of the year and over 1,400 athletes competed in five sports that spread out from May 31 – June 2. At Day 1 of the KSNA Conference, The Dairy Alliance preThe Summer Games began with Opening Ceremonies early on May 31st at the Capitol Rotunda in Frankfort. The Final Leg of the Law Enforcement Torch Run concluded in Richmond. Southland Dairy Farmers were there showing their support and passing out ice cream sandwiches for all that attended. The Special Olympics Kentucky Summer Games are made possible through sponsorship support. Southland Dairy Farmers are proud to be a part of such a worthwhile cause while promoting delicious and nutritious milk the dairy industry supplies.
  • 22. July - August 2019 • KDDC • Page 22 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund You’ve Got a Friend in The Dairy Alliance T he Dairy Alliance attended The Kentucky School Nutrition Association (KSNA) annual conference held this June. The KSNA represents school nutrition professionals across Kentucky, including members of cafeteria staff, managers, supervisors and directors, in advocating for improved school nutrition programs. This year’s conference was held June 19 – 21 in Louisville. In addition to booths for one-on-one discussions, conference classes covered topics like nutrition and food safety for members in all roles. At Day 1 of the KSNA Conference, The Dairy Alliance presented on We All Make Learning Possible, discussing various Youth Wellness programs offered and sharing free resources for the 30 school food service staff in attendance to address Professional Standards Training Topics related to school Communications and Marketing, Nutrition and Operations departments. The Dairy Alliance also partnered with Feeding Kentucky to provide training to help schools increase breakfast participation in another presentation to 80 attendees for Breakfast After the Bell with Peers. The informational presentation provided details about how Breakfast After the Bell fits in the school day and fuels students for a day of success. The theme of After School Meals offerings and its resources was the primary focus, with KSNA members having the opportunity to learn more about the Milk@EveryMeal, Smooth and Smart, and Yo to Go food programs offered through The Dairy Alliance exhibit. To highlight a fantastic event of presenting and exhibiting, the KSNA recognized The Dairy Alliance as an industry leader with the Friend of KSNA Award. Melinda Turner and Alan Curtsinger accepted the award during the opening session on behalf of The Dairy Alliance. This award recognizes The Dairy Alliance as an industry leader in providing healthy nutrition options to students. This award honors those who work to further KSNA’s efforts, attend the KSNA Annual Conference or the KSNA Legislative Action Conference and/or work with the KSNA organization on a project. Especially with this award, the multiday event showcased the importance of milk and The Dairy Alliance’s involvement in spreading its message. Call Charlie at 859-608-9745 www.RedBarnandAssociates.com
  • 23. July - August 2019 • 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 Ag Central Alltech Cowherd Equipment CPC Commodities Bluegrass Dairy & Food Burkmann Feeds Dairy Farmers of America Farm Credit Mid-America Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board South Central Bank Zoetis GOLD Arm & Hammer Animal Nutrition Chaney’s Dairy Farm Dairy Express Services Dairy Products Association of KY Elanco IDEXX Kentucky Nutrition Service Land O’Lakes Mid-South Dairy Records Owen Transport Select Sires MidAmerica (KABA) Todd Co. Animal Clinic Trenton Farm Supply SILVER Afi Milk DCC Water Beds Grain Processing Corp. KVMA Luttrull Feeds Prairie Farms Purina RSI Calf Systems Shaker Equipment Sales Southland Dairy Farmers BRONZE ABS Global Advantage Hoof Care Bagdad Roller Mills Central Farmers Supply Double “S” Liquid Feed Genetics Plus H J Baker Hinton Mills Kentucky Corn Growers Lallemand Limestone & Cooper Maryland & Virginia Milk Producers Provimi Smith Creek, Inc Wilson Trucking
  • 24. 176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph www.kydairy.org Non-Profit US Postage PAID AUG 13 KY State Fair Dairy Products Judging, West Wing AUG 14 KY State Fair Youth Pizza Party, KFEC 7:00 P.M. AUG 15-25 Kentucky State Fair, Louisville, KY AUG 15 Commodity Breakfast, Commodity Tent, KY State Fair AUG 15-18 4-H and Open Dairy Cattle Shows AUG 16 Youth Cheese Auction, West Wing State Fair, approximately 6:00 P.M. AUG 22 Kentucky Farm Bureau Country Ham Breakfast, South Wing State Fair AUG 27-29 Kentucky Milk Quality Conference, Lake Barkley, Cadiz, KY SEP 05 C.P.C. Fall Field Day, Fountain Run, KY 9:00 A.M. SEP 16 PA. All–American Invitational 4-H Dairy Judging Contest SEP 19 Grain and Forage Center of Excellence Open House, Princeton, KY Calendar of Events SEP 26 KDDC Board Meeting, Adair County Extension Office SEP 28 Eastern Kentucky University, Agriculture Night, Foot Ball Game SEP 28- OCT 03 National 4-H Dairy Conference and Dairy Judg- ing, Madison WI. OCT 01-04 KDDC Young Dairy Producer Bus Tour, World Dairy Expo, Madison, WI. OCT TBA Dare to Dairy, University of Kentucky Coldstream Dairy, Lexington, KY NOV 08-12 North American International Livestock Show, KY Fair and Exposition Center NOV 14 KDDC Board Meeting, Taylor County Extension Office NOV 21-23 Dairy Challenge, Taylor County Extension Office DEC 04-06 Kentucky Farm Bureau Annual Meeting, Louis- ville, KY