Source: PENNSYLVANIA STATE UNIVERSITY submitted to
MANAGEMENT DECISION SUPPORT METRICS: DATA-DRIVEN MANAGEMENT CAPACITY THAT PAYS WITH PERFORMANCE FOR U.S. DAIRY PRODUCERS
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0230897
Grant No.
2012-38504-20335
Cumulative Award Amt.
$224,872.00
Proposal No.
2012-03706
Multistate No.
(N/A)
Project Start Date
Sep 1, 2012
Project End Date
Aug 31, 2015
Grant Year
2012
Program Code
[FBMB]- Farm Business Management and Benchmarking Program
Recipient Organization
PENNSYLVANIA STATE UNIVERSITY
208 MUELLER LABORATORY
UNIVERSITY PARK,PA 16802
Performing Department
Agri Economics, Sociology & Education
Non Technical Summary
This project will develop and implement simple and extremely low cost data entry methods accessible on multiple platforms (hard copy forms, mobile, and web) and provide access to users to comparative analysis of essential data streams characterizing operations and the economic environment in which dairy farms operate. Second, the project will develop automated, background capacity to compute current farm-level, economic, performance-oriented benchmarks based on economic peer farm identification drawn from state-of-the-art methods and management decision support metrics (MDSMs) such as profitability, productivity, and efficiency. The project will focus on dairy and related crops (forages, corn and soybean), farm-wide as well as enterprise data and metrics, however also provide capacity to analyze specific aspects such as feed and nutrient management. The project will contribute by advancing data gathering and conducting research on cost of production, farm profitability factors, and farm policy (FBMB obj#2), and improve producer's ability to manage risk emanating from price volatility (FBMB obj#7).
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
6013410301050%
6093410301020%
3073410310010%
3023410310010%
1330210301010%
Goals / Objectives
The goal of the project is to establish an economic sciencebased, state-of-the-art capacity that delivers management decision support metrics (MDSMs) to dairy producers. To ensure this delivery, the project will engage producers, consultants, and associations to develop new capacity that is convenient and timely for producers to access, is drawn from contemporary farm-specific data as well as conditioned by contemporary market data that characterizing the economic environment and conditions faced by the farm manager, and is disseminated through a viral mechanism initiated by the capacity's intrinsic value and supported by convenience of access, clearly apparent benefits of use, and producer-oriented training. Specific objectives of this proposal include: 1) implement new capacity to collect new data streams to support MDSMs for U.S. dairy farms and feed that data into the existing National Center for Farm Management at the University of Minnesota (FBMB obj#1), 2) advance data gathering and conduct research on cost of production, farm profitability factors, and farm policy (FBMB obj#2), and 3) improve dairy producer's ability to manage risk emanating from price volatility (FBMB obj#7).
Project Methods
An essential aspect of management is the identification of opportunities for improving performance. State-of-the-art methods to serve this goal have evolved to go beyond simple comparison to averages across similar sized operations. Excelling in performance can not logically follow from comparison to averages. Instead, current methods for benchmarking identify economic peer operations as the goal for emulation. These economic peers are identified through methods that follow from the simple logic that performance follows from the integrated consideration of processes, economic environment, and opportunities to reduce particular inputs while expanding productivity of limited resources. Data collection will be accessible via hard copy form, web-based forms and smartphone applications that directly feed into a web-based database (obj #2) and this project database will be linked with the NCFM database at University of Minnesota (obj#1). To aid producers, better data analysis and reporting by a combined smartphone app and web based database has the potential to enhance a producers understanding of their specific feed costs, current market environment, and nutrient management strategies. The multiple platform (smartphone & web database) approach is critical to maximize producer engagement.

Progress 09/01/12 to 08/31/15

Outputs
Target Audience:Pennsylvania dairy farm operators, consultants, and extension educators Changes/Problems:At project start, the team had in hand well-developed cash flow and related metrics such as income over feed-cost. The project focused on extending these tools to incorporate cropping, feeding and economic metrics that through monitoring could enhance productivity and profitability. After a thorough review of opportunities for such enhancements, the project focused on extending existing tools and metrics to incorporate feed management indicators. This was accomplished and piloted on a group of participating farms to monitor crop yield and feed quality indicators such as detergent fiber and starch digestibility, milk urea nitrogen and fecal starch. What opportunities for training and professional development has the project provided?Weeks, Holly. Farm-level Evaluation of Implementing Feeding Best Management Practices on Pennsylvania Dairy Farms, Animal Science, MS 01/07/2015. Penn State Dairy Team has presented numerous seminars and workshops for professional development related to use of management tools developed. How have the results been disseminated to communities of interest?Materials and results developed were disseminated through Penn State Dairy Team Extension programs on use of Quick Books, Advanced Cash Flow Management, Plan and Evaluate Cash Flow, and Use of Smart Phone apps developed. Number of producers participating in 2014-15 sessions was417. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? The Penn State Extension dairy team has worked with 143 dairy operations consistently in the past five years to develop cash flow plans, monitor key metrics such as income over feed costs and cost of production. From this group, 50 farms were selected to test corn silage quality, fecal starch and milk urea nitrogen and evaluate its impact on farm profitability and their potential relevance as performance management metrics. Forty-four farms completed their actual cash flow plan for 2013 and sampled their corn silage in the fall of 2013 and spring of 2014. Producers responded to questions related to corn hybrids planted and feeding management practices. Additional farms were added for 2014-2015. The total number of farms completing the project was fifty-six. Farms utilized between 1 to 13 different corn hybrids and the process for selection ranged from the cheapest seed to crop yields. Quality parameters such as neutral detergent fiber and starch digestibility did not routinely factor into the decision process. Farms incorporating best feeding and cropping management practices showed a 5.8 pound milk increase versus their counterparts. Over the two year period milk urea nitrogen and fecal starch levels consistently fell within recommended parameters and there was no association to forage quality or feeding management practices. Average changes in seven-hour starch digestibility fall to spring tended to increase for farms that had the same corn hybrid and same structure during the seasonal sampling period (M=6.5 SD=5.01), which is expected and illustrated in controlled research studies. However, this trend was not observed for farms that had either hybrid blends or that changed hybrid and or structure during the sampling period (M=1.8 SD=4.85). They had more varied changes in starch digestibility and were different than the same farms F(1,50) = 7.135, p=0.01. Forage quality and quantity are the foundation for developing successful and profitable rations. Producers benefit from advisors that understand cropping, feeding and economics to help them make smarter decisions. There are opportunities for producers to examine more closely hybrid selection decisions and evaluate how quality parameters affect animal production and cash surplus.

Publications


    Progress 09/01/13 to 08/31/14

    Outputs
    Target Audience: Farm managers and their consultants are targeted by this project. A series of presentations were provided within the context of more general meetings as well as with specific small group meetings. Changes/Problems: We are finding substantial challenge in design of mobile data entry that will be resilient to changes in operating systems and user preferences and use capability. What opportunities for training and professional development has the project provided? The project developed and implemented a program for training farm managers and consultants to collect and actively benefit from the use of cash flow data. How have the results been disseminated to communities of interest? The program for training farm managers and consultants to collect and actively benefit from the use of cash flow data has been disseminated through Penn State's Extension Dairy Team programming. What do you plan to do during the next reporting period to accomplish the goals? Our work will focus on incorporating decision metrics in the underlying dairy/crop farm choice model, simplifying data requirements, and focusing output presented to users.

    Impacts
    What was accomplished under these goals? A program was developed for training farm managers and consultants to collect and actively benefit from the use of cash flow data. A core element of this program is development of metrics of performance that are sensitive to changes in practices. In many cases, changes in practice are difficult to evaluate as they are implemented in the absence of controls on other aspects of opeating environment that affects performance outcomes. The project has to date developed such metrics and is in process of dissemination and evaluation of their use.

    Publications

    • Type: Other Status: Accepted Year Published: 2013 Citation: K n o w Yo u r N u m b e r s : Cash Flow Planning for Consultants. A program guide.


    Progress 09/01/12 to 08/31/13

    Outputs
    Target Audience: Dairy farm managers, nutrition consultants, and farm business managers. Changes/Problems: Project start was delayed given delayed funds accessibility. Initial potential hires for staffing were lost and new candidates were recruited in August - September from a market that closes in March - April period. New team staff were recruited but could not join the project until late in 2012. What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Nothing Reported What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

    Impacts
    What was accomplished under these goals? A small set of participant farm managers were recruited to provide the basis for case studies of existing practices. Each participating producer was interviewed to establish current use of best management practices and current methods of monitoring feed intake, milk production, and use of key performance indicators (KPIs) such as Income Over Feed Cost (IOFC). Plans were developed for presentation of project analytical products to extension educators, farm consultants, and farm managers. A core group of 30-40 participants was secured and program was developed for presentation.

    Publications