DAIRY INDUSTRY REVITALIZATION

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: OTHER GRANTS
• Reporting Frequency: Annual
• Accession No.: 0206227
• Grant No.: 2005-45063-03355
• Proposal No.: 2006-06279
• Project Start Date: Sep 15, 2005
• Project End Date: Aug 31, 2010
• Grant Year: 2006
• Program Code: [PN]- Dairy Industry Revitalization, WI

Recipient Organization
UNIV OF WISCONSIN
21 N PARK ST STE 6401
MADISON,WI 53715-1218

Performing Department
AGRI & APPLIED ECONOMICS

Non Technical Summary
The Wisconsin dairy industry is undergoing a transformation to better compete in the 21st century. Educational assistance with respect to modernizing facilities, complying with environmental regulations, and managing diverse labor resources are needed. Expand the capacity of educational organizations in Wisconsin to identify and address emerging dairy production, marketing, and processing issues. Develop better and more comprehensive educational programs for those involved in the dairy industry including dairy producers and those who work with those producers. Develop educational programs that assist those interested in entering the dairy industry as beginning dairy farmers.

Animal Health Component

100%

Research Effort Categories

Basic

(N/A)

Applied

100%

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
205	6299	3010	10%
603	6210	3100	21%
603	6230	3100	27%
604	6299	3100	42%

Knowledge Area
603 - Market Economics; 205 - Plant Management Systems; 604 - Marketing and Distribution Practices;

Subject Of Investigation
6210 - Farmer cooperatives; 6230 - Marketing systems and sectors thereof; 6299 - Marketing, general/other;

Field Of Science
3010 - Economics; 3100 - Management;

Keywords

modernization

hispanic labor

environmental regulations

low-cost parlors

low-cost housing

beginning farmers

management

management assessment

Goals / Objectives
This dairy industry revitalization project proposal is directing this Special Grant to address a range of issues important to the Wisconsin dairy industry. The specific objectives are to: - 1) Expand the capacity of educational organizations in Wisconsin to identify and address emerging dairy production, marketing, and processing issues. - 2) Develop better and more comprehensive educational programs for those involved in the dairy industry including dairy producers and those who work with those producers. - 3) Develop educational programs that assist those interested in entering the dairy industry as beginning dairy farmers.

Project Methods
A family of projects/activities outlined below will address these objectives. These projects/activities will be identified by background of the issue being addressed, expected outcomes, procedure used to achieve these outcomes, and evaluation plans. The procedures being used to carry out this project and meet the objectives listed above are shown on a project-by-project basis. Each project mini-proposal contains a background statement followed by a set of expected outcomes, the procedure proposed to achieve these outcomes, and an evaluation plan.

Progress 09/15/05 to 08/31/10

Outputs
OUTPUTS: Dairy Farm Modernization & Manure Management: A survey assessed dairy farm facility investments. The farm crisis effect on dairy farms was presented at the Status of WI Ag Conf.Improving Capacities of Dairy Managers by Assessment: Nine Management Assessment Centers were held. Participants were evaluated for management attributes. Participants developed skill improvement plans. Enhance Sustainability of Mature Dairy Operations: A survey of those who sold dairy farms determined if recent facility improvements impacted the value of the property. A report will be developed and presented. Management Education Module Development: Three modules are under development. We will conduct modules for a group of Management Assessment Center (MAC) participants, make changes and offer the program to a broader audience. Modernizing Northern WI Dairy Farms: S. Zimmermann worked with 30 modernizing dairies. He, agencies and businesses planned a North Central WI Dairy Tour, 42 attended. Dairy Modernization Planning Team Support Person: S. Zimmeran continued the Modernizing Northern WI Dairy Farms (above). This extended the number of counties covered by Zimmerman's work. Dairy Modernization Planning Team Support: Five county agents, a specialist, a consultant and a project person conducted 300 dairy modernization farm visits in 35 counties. Modernization planning teams were managed by seven dairy modernization planners. Grow WI Farmers Networks:Three farm transfer workshops were held with 205 attending. PARTICIPANTS: J. Foltz, B. Barham, A. Turnquist, J. Collins,J. Clark, R. Cropp, C. Duley, G. Hadley, S. Huntzicker, T. Jergenson, R. Knapp, J. Vanderlin, J. Zander,S. Zimmerman,D. Kammel, V. Haugen,M. Mayer,K. Bolton, J. Kirkpatrick, K. VanderVelde, M. Bendixen,P. Harris, C. Duley, A. Linnebur, P. Dietmann, K. Bernhardt, G. Hadley, K. Schroeder, N. Anderson, Professional Dairy Producers of WI, , UW River Falls Survey Lab,MAC participants and farm owners/managers,T. Kriegl J. Endress, R. Tigner, L. Tranel, R. Booker, E. Heckman, W. Bivens, S. Nott, P. Taylor, C. Wolf, M. Rudstrom, T. Rickard, J. Grace, T. Noyes, C. Little, J. Kyle, J. Molenhuis, J. Williams, G. Frank, Wisconsin Farm Management Ass'ns , Moore, Stephens, Wurth, Frazer, and Torbet, LLP, Genske, Mulder and Co. LLP, Cornell Univ., Univ. of Florida, Univ. of Maine, Univ. of Maryland, Michigan State Univ., Univ. of Minnesota, Univ. of Vermont Univ. of Wisconsin Ctr. for Dairy Profitability, Z. Miller, P. Dyk, M. Bendixen, A. Bjurstrom, R. Knapp, J. Zander, C. Duley, R. Sterry, B. Larson, S. Gunderson, T. Kohlman, C. Skjolaas, D. Wachter, D. Reinemann, Dairy Farmers, Parlor User Group Team Members,D. Stassin TARGET AUDIENCES: Dairy farmers, agribusiness professionals,County agents, farmers and policy makers, PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Economic Comparison of U.S. Dairy Systems: A comparison of financial performance indicates differences in cost of production and profit margins among regions, graziers and organic herds were competitive with confinement farms in their region, WI dairy farms were competitive with counterparts in other states, and small farms were competitive with large farms. Profitability for organic farms was good. Dairy Worker Training: Seventeen presentations were made in 14 locations to improve dairy work. Dairy Summit: Dairy modernization topics were delivered at a conference. Surveys showed 76% of industry professionals had clients completing modernization projects valued over $25,000. 53% of producers noted Dairy Modernization Events are influential in a decision to modernize.

Publications

• Jesse, E. 2010. "Status of WI Agriculture-2010" UW, Dept. of Ag. & Applied Economics.
• Mayer, M., D.W. Kammel, 2010. Dairy Modernization Works for Family Farms. Journal of Extension. Volume 48. Number 5. Article Number 5RIB7.

Progress 09/15/08 to 09/14/09

Outputs
OUTPUTS: OUTPUTS: About five dairy farm worker training meetings were held with an average of 20 workers per meeting in attendance. The "Gaining the Competitive Edge" series of meeting was held in twelve locations throughout the state. Dairy farmers considering modernizing their farms were counseled about how to install a low cost parlor in their existing stanchion barn and how to design a new freestall barn to house their herds. Results of a survey of custom heifer raisers was reported at the Raising Quality Dairy Heifers Workshop. Returning to the Farm workshops were held for junior and seniors in college. Two hundred and eighty dairy producers who had expanded their operations returned a survey designed to learn of their experiences in the process. A paper and presentations were developed to summarize the results. The "Dairy Herd Health Conference" was held in Stevens Point, WI. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Dairy farm workers are better able to diagnose calf health problems, assist cows with calving, evaluate fresh cow condition and detect problems in fresh cows. Dairy producers will be able to make better decisions about their dairy business and its management. Labor requirements per cow will decrease on many dairy farms allowing producers to manage two to three times as many cows without adding any more labor to the farming operation. Custom heifer raisers better understand how their colleagues raise animals and what the costs of production are. End of session evaluations and a nine month follow up evaluation indicate students improved their knowledge and skills regarding farm succession issues. Fourteen of twenty-five participants reported having made decisions about the farm succession as a result of attending the workshop. Results of the survey found those producers who have expanded in recent years are very positive about their experience. Several said they wish they had done it sooner. One of the most often cited problems during the modernization period was communicating and working with contractors. This should help other producers make the decision to expand.Those attending the "Dairy Herd Health Conference" will be better prepared to ensure and manage the health of dairy cow.

Publications

• No publications reported this period

Progress 09/15/07 to 09/14/08

Outputs
OUTPUTS: About five dairy farm worker training meetings were held with an average of 20 workers per meeting in attendance. The "Gaining the Competitive Edge" series of meeting was held in twelve locations throughout the state. Dairy farmers considering modernizing their farms were counseled about how to install a low cost parlor in their existing stanchion barn and how to design a new freestall barn to house their herds. Results of a survey of custom heifer raisers was reported at the Raising Quality Dairy Heifers Workshop. Returning to the Farm workshops were held for junior and seniors in college. Two hundred and eighty dairy producers who had expanded their operations returned a survey designed to learn of their experiences in the process. A paper and presentations were developed to summarize the results. The "Dairy Herd Health Conference" was held in Stevens Point, WI. PARTICIPANTS: Numerous state Extension Specialists; County Extension Agents. TARGET AUDIENCES: Dairy producers; leaders within the dairy industry; state and federal agency staff; County Extension Agents; veterinarians; engineers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Dairy farm workers are better able to diagnose calf health problems, assist cows with calving, evaluate fresh cow condition and detect problems in fresh cows. Dairy producers will be able to make better decisions about their dairy business and its management. Labor requirements per cow will decrease on many dairy farms allowing producers to manage two to three times as many cows without adding any more labor to the farming operation. Custom heifer raisers better understand how their colleagues raise animals and what the costs of production are. End of session evaluations and a nine month follow up evaluation indicate students improved their knowledge and skills regarding farm succession issues. Fourteen of twenty-five participants reported having made decisions about the farm succession as a result of attending the workshop. Results of the survey found those producers who have expanded in recent years are very positive about their experience. Several said they wish they had done it sooner. One of the most often cited problems during the modernization period was communicating and working with contractors. This should help other producers make the decision to expand.Those attending the "Dairy Herd Health Conference" will be better prepared to ensure and manage the health of dairy cow.

Publications

• No publications reported this period

Progress 09/15/06 to 09/14/07

Outputs
OUTPUTS: Implementing Managerial Accounting as a Base for Decision Making Curriculum for beginning Quickbooks training sessions have been used in three Quickbooks workshops for producers. Assessing Future Educational Curricula Needs for Large Dairy Farms A survey to identify the educational background of large dairy owners in WI was distributed. Technology Adoption and Financial Performance Technology Profile information was collected from approximately 600 dairy farms. Dairy Modernization Activities The Dairy construction database was recently updated to 2007. Dairy modernization planning teams are active statewide with 5 active dairy modernization planners. Modernizing Northern Wisconsin Dairy Farms Sam Zimmermann, has worked with dairies that are modernizing. Milking Parlor User Groups Four dairy manger discussion groups were established. Pressing issues were addressed. Custom Heifer Raising Economic Report A survey was sent to professional heifer raisers in 2006. The survey results were presented at the Raising Quality Dairy Heifers Workshop. Economic Comparison of U.S. Dairy Systems The Dairy Grazing Farms Financial Summary showed WI grazers and confinement dairies are financially competitive with counterparts in Midwest and Northeast states. To test the perception Wisconsin dairies are high cost producers relative to western farms, financial performance data from several states is being compared to WI data. Appropriate Compensation Levels For Middle Dairy Managers A survey of employee compensation on WI dairies was conducted. Skid Steer Safety Program Farm safety is a major concern. Several deaths have been attributed to skid steer accidents in WI. This program fit the needs of English and Spanish speaking skid steer operators. Evaluations indicated the program was a success. Dairy Workers Training Program Materials and training was provided to farms with Hispanic workers. The Dairy Partner newsletter was distributed to 2000 employees on 550 farms and is available on a website. PARTICIPANTS: Implementing Managerial Accounting as a Base for Decision Making -J. Vanderlin, S. Schraufnagel, M. Rahmlow Assessing Future Educational Curricula Needs for Large Dairy Farms - J. Vanderlin, R. Knapp, N. Splett Technology Adoption and Financial Performance - J. Vanderlin, S. Schraufnagel Dairy Modernization Activities - D. Kammel, V. Haugen, J. Zander, D. Wachter, K. Burnhardt, M. Mayer, N. Anderson; Collaborators: UW Platteville, South West Technical College Modernizing Northern Wisconsin Dairy Farms - S. Zimmerman Milking Parlor User Groups - D. Reinemann, R. Bade, Z. Miller, K. Bolton Custom Heifer Raising Economic Rep0rt - D. Schuster, P. Hoffman, T. Kohlman; Collaborators: UW Madison Center for Integrated Agricultural Systems Economic Comparison of U.S. Dairy Systems - T. Kriegl Appropriate Compensation Levels For Middle Dairy Managers - T. Kriegl; Collaborator: Wisconsin Agricultural Statistical Service Skid Steer Safety Program - Z. Miller, M. Hagedorn Dairy Workers Training Program - Z. Miller, M. Hagedorn, P. Dyk, T. Kohlman; Collaborators: Babcock Institute, Hoards Dairyman, and Vita Plus Corporation TARGET AUDIENCES: Implementing Managerial Accounting as a Base for Decision Making - UW-Extension Faculty, Staff, UW County Faculty, Dairy Producers, Ag Businesses/Organizations, Wisconsin Technical College Ag Instructors. Assessing Future Educational Curricula Needs for Large Dairy Farms - UW System Campuses, Dairy Producers with more than 300 Cows, UW County Agents, Extension Specialists Technology Adoption and Financial Performance - Dairy Producers, AgriBusiness Professionals, Farm Financial Managers, Lenders, UW County Agents, Extension Specialists Dairy Modernization Activities - Dairy Producers, AgriBusiness Professionals, UW County Agents Modernizing Northern Wisconsin Dairy Farms - Dairy Producers, AgriBusiness Professionals, UW County Agents Milking Parlor User Groups - Dairy Producers milking cows in parlors, UW County Agents, Extension Specialists Custom Heifer Raising Economic Report - Professional Heifer Raisers, Dairy Producers, AgriBusiness Professionals, Farm Financial Managers, Lenders, UW County Agents, Extension Specialists Economic Comparison of U.S. Dairy Systems - Dairy Producers, AgriBusiness Professionals, Farm Financial Managers, Lenders, UW County Agents, Extension Specialists Appropriate Compensation Levels For Middle Dairy Managers - Dairy Producers, AgriBusiness Professionals, Farm Financial Managers, Lenders, UW County Agents, Extension Specialists Skid Steer Safety Program - Skid steer operators, Dairy Producers Dairy Workers Training Program - Dairy Farm workers including Hispanic workers.

Impacts
Implementing Managerial Accounting as a Base for Decision Making Participants obtained a good understanding on incorporating financial records into Quickbooks. Assessing Future Educational Curricula Needs for Large Dairy Farms Results will be disseminated by posting on CDP Website, Dairy Team Blog & E-mai.l Technology Adoption and Financial Performance Statistical analysis identified which technology has a positive impact on dairy farm profitability. Two papers were disseminated by posting on CDP Website & e-mail. Dairy Modernization Activities There were 6 regional dairy modernization workshops around the state with an average of 50 participants per site. Modernizing Northern Wisconsin Dairy Farms In 2007, he visited over 45 farms planning new dairies, calf, heifer, dry cow or lactating cow housing or low cost parlors. Milking Parlor User Groups The groups are adopting practices to improve profitability, labor efficiency, and milk quality. Four publications document the findings. Custom Heifer Raising Economic Report A survey was sent to professional heifer raisers in 2006. The survey results were presented at the Raising Quality Dairy Heifers Workshop. Economic Comparison of U.S. Dairy Systems To test the perception Wisconsin dairies are high cost producers relative to western farms, financial performance data from several states is being compared to WI data. Appropriate Compensation Levels For Middle Dairy Managers A report provided a reliable range in value of compensation for salaried managers and hourly rates farm workers. Several county extension agents said this information suited their needs. Skid Steer Safety Program Evaluations indicated the program was a success. Participants mentioned they will be safer and wear seat belts. Media coverage and local enthusiasm for skid steer safety was terrific. The commercial landscaping community expressed interest. Dairy Workers Training Program Evaluations were very positive and new programs generated local media coverage. Over 600 pieces of educational material have been sold in WI, surrounding states and internationally

Publications

• Various authors, 2007, Dairy Farmers Share Custom Heifer Raising Preferences, http://www.cias.wisc.edu/archives/2008/01/15/dairy_farmers_share_cust om_heifer_raising_preferences/index.php.

Progress 09/15/05 to 09/14/06

Outputs
About five dairy farm worker training meetings were held with an average of 20 workers per meeting in attendance. The "Gaining the Competitive Edge" series of meeting was held in twelve locations throughout the state. Dairy farmers considering modernizing their farms were counseled about how to install a low cost parlor in their existing stanchion barn and how to design a new freestall barn to house their herds. Results of a survey of custom heifer raisers were reported at the Raising Quality Dairy Heifers Workshop. Returning to the Farm workshops were held for junior and seniors in college. Two hundred and eighty dairy producers who had expanded their operations returned a survey designed to learn of their experiences in the process. A paper and presentations were developed to summarize the results. The "Dairy Herd Health Conference" was held in Stevens Point.

Impacts
Dairy farm workers are better able to diagnose calf health problems, assist cows with calving, evaluate fresh cow condition and detect problems in fresh cows. Dairy producers will be able to make better decisions about their dairy business and its management. Labor requirements per cow will decrease on many dairy farms allowing producers to manage two to three times as many cows without adding any more labor to the farming operation. Custom heifer raisers better understand how their colleagues raise animals and what the costs of production are. End of session evaluations and a nine month follow up evaluation indicate students improved their knowledge and skills regarding farm succession issues. Fourteen of twenty-five participants reported having made decisions about the farm succession as a result of attending the workshop. Results of the survey found those producers who have expanded in recent years are very positive about their experience. Several said they wish they had done it sooner. One of the most often cited problems during the modernization period was communicating and working with contractors. This should help other producers make the decision to expand. Those attending the "Dairy Herd Health Conference" will be better prepared to ensure and manage the health of dairy cows.

Publications

• Miller, Z. and T. Kohlman. 2006. Herdsmanship for Dairy Farm Workers, Including Fresh Cow Examinations and Assisting Cows with Calving. University of Wisconsin Extension.
• Multiple Authors. 2006. Proceedings of the Gaining the Competitive Edge conference series. University of Wisconsin Extension.
• Brannstrom, Arlin. Wisconsin Dairy Modernization Survey, 2006, University of Wisconsin, Center for Dairy Profitability, September 2006.
• Multiple Authors. 2006. Proceedings of the Dairy Herd Health Conference. University of Wisconsin Extension.