DAIRY MANAGEMENT AND ECONOMIC DECISION MAKING

• Sponsoring Institution: State Agricultural Experiment Station
• Project Status: COMPLETE
• Funding Source: STATE
• Reporting Frequency: Annual
• Accession No.: 0220170
• Project Start Date: Aug 1, 2009
• Project End Date: Jul 31, 2014
• Program Code: [(N/A)]- (N/A)

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

Performing Department
Dairy Science

Non Technical Summary
Project: Success for Small Beginning Dairy Farmers- This project will help small beginning dairy farmers manage financial risks via three workshops across Wisconsin. Follow-ups will be established during workshops to later verify and measure positive application of the learning. To facilitate the adoption of new financial risk management strategies, part of the project will involve the creation of a user-friendly computer decision-making suite (i.e., the Wisconsin Benchmark Dairy Ratio tool) which will be used as an instrument of discussion and learning. The Agriculture Financial Advisor (AgFAc) dataset will be the foundation of these computer tools. Related curricula have been delivered across the state using the FAST tools suite from the University of Illinois. Evaluations have indicated that producers have greatly appreciated these trainings, however, they are requesting similar tools be created for Wisconsin's specific conditions. Project: Strategies of Pasture Supplementation on Organic and Conventional Grazing Dairies- Assessment of Economic, Production and Environmental Outcomes: This project is designed to investigate the impacts of pasture supplementation decisions made by Wisconsin organic and conventional grazing dairies on selected economic, production and environmental variables. It is anticipated that organic dairy producers, transitioning producers and even conventional producers will benefit from this project as it identifies the farm level factors that influence pasture supplementation decisions and feed resource management on dairy farms. Project results will be utilized to develop outreach materials and decision aids that will be useful to farmers, extension agents and other agricultural professionals as they assist organic, transition, beginner or grazing dairy producers with farm planning and risk management decisions.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
302	1610	1060	50%
307	3410	3010	50%

Knowledge Area
302 - Nutrient Utilization in Animals; 307 - Animal Management Systems;

Subject Of Investigation
1610 - Pasture; 3410 - Dairy cattle, live animal;

Field Of Science
1060 - Biology (whole systems); 3010 - Economics;

Keywords

financial risk, dairy benchmarking, decision support systems

sustainability of dairy farms systems

Goals / Objectives
Project: Success for Small Beginning Dairy Farmers- This project will train 60 small beginning dairy farmers and help them to apply strategic decision-making regarding financial risks. Project: Strategies of Pasture Supplementation on Organic and Conventional Grazing Dairies- Assessment of Economic, Production and Environmental Outcomes: 1. Identify farm level factors contributing to pasture supplementation decisions on organic and comparable conventional dairy grazing farms; 2.Evaluate the economic, production, and environmental outcomes of pasture supplementation strategies; 3. Develop sustainability indexes to compare within and between organic and conventional grazing dairies; 4. Create decision support aids and consult one-to-one with participating farms on research results to assess long-term production, economic, and environmental sustainability; 5. Disseminate extension information and evaluate effectiveness of dissemination methods and impacts of changes of supplementation feeding strategies to organic, transition or grazing dairy producers with whole farm planning and risk management to optimize human, land, and capital resources for long-term farm sustainability.

Project Methods
Project: Success for Small Beginning Dairy Farmers- To facilitate the adoption of new financial risk management strategies, besides workshops and one-to-one consultations, part of the project will involve the creation of a user-friendly computer decision-making suite (i.e., the Wisconsin Benchmark Dairy Ratio tool). Project: Strategies of Pasture Supplementation on Organic and Conventional Grazing Dairies: Assessment of Economic, Production and Environmental Outcomes: Prospective cross-sectional stratified random sampling of ORG and comparable GRAZ grazing dairies in the state of Wisconsin. To ensure a wide crosssection of farms interested in participation in the project, we will work with a number of stakeholders to develop an invitational mailing, including GrassWorks, the statewide grazing farm organization, local grazing networks (approximately 15 networks currently exist across the state), organic dairy cooperatives such as Organic Valley, other interested farm groups, and the state Department of Ag, Trade & Consumer Protection (WI-DATCP) organic & grazing programs specialist.

Progress 08/01/09 to 07/31/14

Outputs
OUTPUTS: Project: Success for Small Beginning Farmers: Activities: A large survey (1,000 mailed questionnaires) with a response rate of 30% (300 completed surveys) was designed and used to understand and address the needs of dairy farmers related to financial and cash flow forecast. A graduate student was partially trained. Events: About 10 workshops/seminars/lecturers were facilitated and delivered during 2010. Products: Two decision support tools: The Wisconsin Dairy Farm Ratio Benchmarking Tool and the Decision Support System Program for Dairy Production and Expansion (http://dairymgt.uwex.edu/projects/success.php#1) were created through the work of this project. Each tool has a video demonstration and detailed documentation for its use. Support in the use of the tools and the implications of the results are also available. The Benchmarking tool uses as underlying data, the financial records from 500+ dairy farms from Wisconsin between years 2000 and 2008 from the Agricultural Financial Advisor (AgFA) from the UW Center for Dairy Profitability (http://cdp.wisc.edu/AgFA.htm). Project: A Sustainable Wisconsin Dairy Farm Financial Management Model: A cash balance projection tool is under development. This tool will support key financial decisions with the object of maintain dairy farm economic sustainability in the long-term. Project: Success for Small Beginning Farmers: Dissemination: A dedicated website has been maintained and updated during the year: http://dairymgt.uwex.edu/projects/success.php#1. This site describes the project in detail and highlights two decision support tools. We have partnered with the Center for Dairy Profitability, Annie's Project, UW-Extension, Accounting firms, and lender community to disseminate the developed tools. 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
Project: Success for Small Beginning Farmers: Change in knowledge: A large audience has been exposed to the project through press releases, workshops, web updates, and dissemination of decision support tools. Responses to our mailed survey indicated that dairy farmers were aware and in tune of the project. An increased use and request for support in the use of the tools is a good indicative that the target publics have improved their knowledge and understanding of the project deliverables. Change in actions: At least 35 dairy farmers have used the expansion modernization tool to assess the impacts of such actions. These farmers requested support in the use of the tool and the implications of the results. We speculate the number of total users of the tool is much larger. To judge from our survey results, 26% of the population of Wisconsin dairy farmers is looking to either expand or modernize their dairy farm operation, from which they would have used or would use either or both of the tools developed by this project.

Publications

• Cabrera, V.E., Janowski, J.M. 2011 (Submitted). Wisconsin dairy business and production survey: Comparison between farms planning to expand and farms not planning to expand. Journal of Extension 00:00.
• Cabrera, V.E., Vanderlin, J. 2010. The Wisconsin dairy ratio benchmarking tool software: http://dairymgt.info/benchmark/.
• Janowski, J.M., Cabrera, V.E. 2010. Decision support system program for dairy production and expansion software: http://dairymgt.uwex.edu/projects/success.php#1.

Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: Project: Success for Small Beginning Dairy Farmers: A decision support tool for benchmarking 15 financial variables of dairy producers based on 500+ Wisconsin dairy records for 8 years has been created and it is in the process of fine tuning. A website dedicated to the project has been launched: http://dairymgt.uwex.edu/projects/success.php. Project: Strategies of Pasture Supplementation on Organic and Conventional Grazing Dairies- Assessment of Economic, Production and Environmental Outcomes: 1) We have hired a student to join the project in Spring 2010. 2) We are reviewing candidates to hire the second person to join us in the project later in 2010. 3) We have created a first draft of a comprehensive survey instrument to collect initial data in participating farms. 4) We have facilitated at least 4 "focus groups" with stakeholders (especially dairy producers) to gain feedback and comments on project progress. 5) We have started exploring the selection process of 50 grazing and 50 organic dairy farms to participate in the study. 6) A website dedicated to the project has been launched: http://dairymgt.uwex.edu/projects/orei.php PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: County-based extension agents, dairy producers, special group of dairy producers: organic, grazers, small and beginning farmers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Project: Success for Small Beginning Dairy Farmers: No outcomes or impacts are reported at this time as the workshops are scheduled to start in 2010. Project: Strategies of Pasture Supplementation on Organic and Conventional Grazing Dairies- Assessment of Economic, Production and Environmental Outcomes: The project has been well disseminated throughout the State of Wisconsin and we are creating an important group of interested stakeholders who are willing to collaborate and provide guidance in the project.

Publications

• No publications reported this period