The Latest News from Nobis Agri Science

If you are managing your dairy herd solely from the farm’s financial statements, you may be missing opportunities to maximize profitability.

“Dairy farm finances come as a result of managing the biology of the dairy cow well,” explains Mike Lormore, head of U.S. cattle technical services for Zoetis. “That doesn’t mean you don’t need to have a good financial plan. In today’s market, you absolutely need to understand how to use risk management tools. Ultimately, your financial outcome is going to be the result of the performance of your herd.”

When corn silage is grown to be sold, it is understandable that an agreed-upon price is essential. However, putting a value on corn silage, even when it never leaves the farm is also necessary. Independent business financial consultant, Gary Sipiorski, says that most farms do not put any kind of a cost on planting corn for silage or alfalfa for hay – and they really ought to.

With near-record milk prices this spring, it certainly appears to be a good time to be a dairy producer. The long over-due market turnaround has dairy farmers across the country smiling, but financial experts advise producers to sit down and look through their profit and loss statements to truly understand the strength of their farm’s financial portfolio.

“It is taking 20% longer to get new leaders in place, with 30% higher compensation, including extra considerations such as work location, flexibility, bonuses and equity and on top of that companies have to decide 50% faster since top talent have as many as 3 offers.” David Turner of Kincannon & Reed, the leading search firm dedicated to Food & Agribusiness, recently said this on the U.S. Farmers and Ranchers in Action podcast.

Summer is a great time to do a mid-year check on your financial and business goals.

Its suggested to do mid-year planning in June or July.  You can review the overall performance of your company, progress of your strategies, team development, and plan for a good year end.

The average number of dairy cows per farm continues to increase.

Ironically, as dairy profit margins become tighter, many farms add cows and production to generate minimum levels of income needed to stay in business.

As cow numbers increase, so do labor needs and as a result, most dairy farm owners find themselves in the position of managing employees.

Small changes in managing and feeding cows can make a big impact in a dairy’s milk check. Feed quality and timing, stocking density and feeding supplements are some areas that can impact component levels in milk and deliver a better return on a dairy’s feed investment.

Producers can make a significant impact on their milk checks by increasing milk fat and protein in milk. Changes in feed mixing, frequency and other feed-management strategies can make a notable difference.

The sticker shock of feed prices have been a sucker punch for dairy farmers over the last year, and there doesn’t seem to be much relief in sight. Elevated feed costs have forced some producers to grow more of their own forages this season, including corn silage. While prioritizing growing quality forage is a must, proper feed ingredient storage is equally important, especially during the hot summer months.

The primary reason cows decrease milk production during hot weather is that the cows eat less. Since cows will be consuming less as temperatures increase, increasing the energy density of the diet can in part compensate for the decrease in dry matter intake.

We at Nobis Agri Science (NAS) have a strategy to have “HEAT STRESS” rations ready to implement when the HIGH HEAT INDEXES strike your dairy. Ask your nutritionist to prepare you for the heat with the proper ration.

The term variation has been deemed a negative in our dairy nutrition tribal language. We need to change our language and understanding of this term. “Variation is an opportunity!”

Variation is attributable to different things, with some being really important to cash flow. The economically meaningful variation comes to light when enough data is collected and trends or impact factors are identified. This variation then becomes something that we can manage to our benefit.

First cutting of a perennial hay crop offers the opportunity to capture high quantity and quality, but timely harvest can be met with a number of obstacles. This fact sheet provides links to several current resources to aid in successful decision making for the upcoming season.