Newburg WIJanuary 28, 2009

Mark W. Mayer, Dairy & LivestockAgent, Green County

David W. Kammel, Biological Engineering, UW-Madison

Wisconsin Dairy Modernization Survey

UW-Extension 2008

30 Counties Represented

104 Surveys Received

99 Surveys In Data Set

General Farm Information

PreModernization

Post Modernization

Herd Size (Milk Cows) 82 203

Average Milk Production /Cow

20,245 lbs. 21,684 lbs.

Acres of Land Owned 351 421

Acres of Land Rented 187 308

Acres/Cow (owned & rented) 6.56 3.59

Full Time Labor Equivalents for Dairy

2.34 4.32

Milk Cows per F.T.E. 35 50

Parlor Construction &Type

55

34

Milking Parlor Construc-tion

Retrofit ConstructionNew Construction

8 11

40312

Milking Stall Type

Flat Barn

Herringbone

Parabone

Parallel

Rotary

n = 92

New vs. Used

5310

1

25

Milking Parlor Stalls

New UsedCombination Home Built

39

28

24

Milking Equipment

New UsedCombination

n = 89 n = 91

Labor for Parlor

37%63%

Labor Supplied for Parlors

FarmerContractor

Average Time For Parlor Conversion:

17 weeks

Range of Time to Convert:

4 to 104 Weeks

Labor Provided for ParlorNew Construction vs. Retrofit

24%

76%

New ParlorsFarmer Contractor

45%55%

Retrofit ParlorsFarmer Contractor

Time for Parlor Conversion

4 8 12 16 20 24 28 32 36 40 44 48 52 10402468

101214161820

Construction TimeWeeks

Weeks

Freq

uenc

y

Parlor Construction &Type

6

8

30

11

Retrofit Construction Stall Type

Flat Barn HerringboneParabone Parallel

3

10

18

3

New Construction Stall TypeHerringbone Parabone ParallelRotary

n = 55 n = 34

Parlor Cost per Milking Stall2008 Dollars

ParlorStall Type

RetrofitConstruction (n=55)

New Constructionn= 31

Flat barn $3,360(n=6)

NA

Herringbone $9,657(n=8)

$18,769(n=3)

Parabone $3,845(n=30)

$6,016(n= 10)

Parallel $7,478(n=11)

$22,361(n=18)

Cow Housing Facility

6

21

19

111

164

2 row FS barn

3 row FS barn

4 row FS barn

6 row FS barn

8 row FS barn

Bedded pack barn

Compost bedded barnn = 78

Manure Handling and Storage

87

11

1

8

Manure Handling System

Skid Steer /Tractor ScrapeAutomatic ScraperFlushOther

29

31

52

Manure Storage

Daily HaulShort Term StorageLong Term Storage

n = 107 n = 112

Manure Storage and Bedding

47

264

Manure Storage LinerConcrete Earth/Clay Synthetic

51

27

419

Bedding System for Milk Cows

Sand Free Stall Mattress Free Stall

Compost Bedded Bedded Pack

n = 77

n = 101

Replacement Housing

44

43

14

Calf Housing

Calf barnOutdoor Calf HutchesIndoor Calf Hutches

17

68

1

Heifer Housing

Free Stall PenBedded Pack PenCompost Bedded Pen

n = 101 n = 86

Milking System Throughput

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

105

110

0

5

10

15

20

25

PRE POST

Cows Milked/Person/Hour

Freq

uenc

y Mean = 44.1 cows/person/hour Std Dev = 19.79

Mean = 22.7 cows/person/hour Std Dev =11.56

Change = 21.4 cows/person/hour

P = 0.000

Pre and Post Labor Requirements Average Per Cow/Day

**Feeding Milk Cows *Handling Cows **Handling Manure0

0.20.40.60.8

11.21.41.6

1.59

0.75 0.790.65

0.49 0.4

Pre Modernization

Post Modernization

Min

utes

/Cow

/Day

**P= <.001 *P= <.01

Pre and Post Labor Requirements Average Per Cow/Day

**Milking **Maintaining Stalls *Milking Setup/Cleanup0

0.51

1.52

2.53

3.54

4.07

0.80.51

2.09

0.320000000000001

0.320000000000001

Pre Modernization

Post Modernization

Min

utes

/Cow

/Day

**P= <.001 *P= <.01

Reduced Labor Requirements Minutes Per Cow / Day

Total Reduction Per Cow / Year

Milking Setup/Cleanup .19 x 365 =1.16 hours

Milking Time 1.98 x 365 =12.05

Feeding Time per Cow .94 x 365 = 5.72 hours

Handling Cows .26 x 365 = 1.58 hours

Maintaining Stalls .48 x 365 = 2.92 hours

Handling Manure .39 x 365 = 2.37 hours

Totals: 4.24 minutes/day 25.80 hours/year

Economic Impacts from Reduced Labor Per Cow

Reduction/Cow/Year Dollar Impact

Milking Setup/Cleanup 1.16 hours @ $12/Hour = $13.92

Milking Time 12.05 hours @$12/Hour = $144.60

Feeding Time per Cow 5.72 hours @ $12/Hour = $68.64

Time Handling Cows 1.58 hours @ $12/Hour = $18.96

Maintaining Stalls 2.92 hours @ $12/Hour = $35.04

Handling Manure 2.37 hours @ $12/Hour = $28.44

Totals: 25.80 Hours/Cow/Year $309.60/Cow/Year

Cow Benefits Observed

Increased Conception Rates

Lower Culling Rate

Increased Production

Lower SCC

Less Feet & Leg Problems

Overall Cow Health

66%

73%

74%

78%

82%

85%

Ranking of Cow Benefits

Increase Conception Rates

Increased Production

Lower SCC

Lower Cull Rate

Less Feet & Leg Problems

Overall Cow Health

3 3.5 4 4.5 5 5.5 6

4.27

4.34

4.53

4.58

4.65

4.86

Less Important More Important

People Benefits Observed

Increased Family Time

Provided Entry for Next Gen-eration

Increased Profitability

Allowed Business to Continue

Improved Health/Safety of Workers

Improved Working Conditions for Milkers

Reduced Labor Per Cow

78%

80%

82%

86%

88%

93%

96%

Ranking of People Benefits

Increased Family Time

Increased Profitability

Reduced Labor Per Cow

Provided Entry for Future Generation

Allowed Dairy to Continue

Improved Health and Safety for Workers

Improved Working Condition for Milkers

3 3.5 4 4.5 5 5.5 6

4.61

4.85

4.92

5.1

5.13

5.16

5.26

Educational Resources Used

Phone/Email State Specialist

Phone/Email CountyAgent

U.W. Publications, Newsletters, CD's

Farm Shows

Farm Visit by UW State Specialist

Magazines and Newspapers

Farm Visit by County Agent

Extension Meetings/Seminars

Visiting Other Farms/Tours

46%

64%

65%

67%

73%

81%

86%

86%

99%

Ranking of Educational Resources

Magazines and Newpapers

Farm Shows

UW Publications and CD's

Phone/Email to State Specialist/Co Agent

U.W. Seminars and Meetings

Farm Visit by County Agent

Farm Visit by UW State Specialist

Visiting Other Farms/Tours

3 3.5 4 4.5 5 5.5 6

3.91

3.94

4.00

4.12

4.42

4.52

4.62

5.48

Least Useful Most Useful

Professional Resources Used

Professional Design Consultant

Financial Consultant

Nutritionist

Veterinarian

Ag Lender

Builder/Contractor

Other Dairy Producers

Milk Equipment Dealer

UW-Extension Agent/Specialist

30%

33%

64%

66%

76%

85%

86%

89%

93%

Ranking of Professional Resources

Professional Design Consultant

Veterinarian

Financial Consultant

Milk Equipment Dealer

Nutritionist

UW-Extension Agent/Specialist

Ag Lender

Builder/Contractor

Other Dairy Producers

3 3.5 4 4.5 5 5.5 6

3.53

4.00

4.03

4.36

4.52

4.53

4.57

4.73

4.78

UW-Extension Impacted Decisions with Dairy Modernization

78%

22%

Yes No

n = 99Average Planning Time:

23.02 Months Range: 3-120 Months

How Did UW-Extension Help?(27) Assisted in Parlor Location and Design

(20) Organized Tours and Farm Visits to Observe Modernization on other Farms

(15) Presented new Ideas and Options for Parlor Design and Construction

(12) Design and Layout of Cow Housing Including Cow Flow and Stall size

(9) UW-Extension Dairy Modernization Presentations (Meetings and Pasture Walks)

(5) UW Publications (Low Cost Parlor CD and Retrofit Parlor Paper)

(5) Received reinforcement of ideas and plans

(4) Assisted in the Permitting Process

(4) Assisted in Preparing Budget for Modernization Project

(3) Assisted in Manure Handling and Storage plans

(3) County Agents and State Specialists answered all our questions

(3) Assistance with Ventilation

117 Responses

Economic InvestmentSince 1993 (2008 Dollars)

• Milking Parlor Facility– $17,144,281

• Dairy Cow Housing– $30,529,855

• Dry Cow Housing– $1,722,057

• Heifer Housing– $1,610,210

• Calf Housing– $1,480,703

• TMR Feeding– $1,981,566

• Feed Storage– $4,153,360

• Manure handling– $2,149,120

• Manure Storage– $4,536,318

• Total Investment for 99 farms in Survey $65,307,470

Dairy Modernization ImpactsPre

ModernizationPost

Modernization Change

Average Herd Size 82 203 +121

Average Production per Cow (lbs) 20,245 21,684

+1,439

Milk Production per Farm Annually (lbs.)

1,660,090 4,401,852

+2,741,762

Annual Hours of Labor per Cow 51.8 26.0 25.8

Milk Cows / F.T.E. 35 50 15

Modernization Economic Impacts

Change Dollar Impact

Average Increased Milk Income per Cow

+1,439 lbs x $17/cwt

= $245

Ave. Increased Gross Milk Income per Farm

203 cows @ 21684 x .17= $748,315 82 cows @ 20245 x .17 =- $282,215

= $466,100

Increased Annual Milk Income for the State

+2,692,274 lbs. x 99 farms x $.17

= *$45.3 Million

Increased Economic Activity from more Cows per Farm

121 Cows x $17,000 = $2.06 Million

Economic Impact from more Cows in the State

+11,766 cows x $17,000 = *$200 Million

* Total for 99 Herds**UW Department of Agriculture and Applied Economics

Biggest Challenge in Modernization(16) Working with the Contractors/Serving as General Contractor

(10) Deciding what system & number of cows would work best for my farm

(10) Budgeting & Financing for Expenses

(8) Milking in Existing Facilities During Construction

(8) Design of Milking Facility & Housing

(6) Cost Over runs

(5) Finding Good & Knowledgeable Contractor

(4) Manure Storage & Handling

(4) Confidence & Motivation to do it

(3) Permitting Process for Building/Expanding

(3) Getting Honest Opinions from Equipment Dealers

(3) Did too much of my own labor

(3) Changing the Management System of Feeding/Breeding/Housing

What Would You Change?

(14) Wish we would have done the expansion sooner.

(11) Wish we would have made the parlor/freestalls bigger

(6) Start expansion at another site to allow for additional future expansions

(5) Spend more time planning and seeking help in design

(4) Start with new building and equipment right away

(4) Would not start building in the fall, start earlier in the year

(4) Design of Parlor

(3) Add a dry cow and calving facility

(3) Change from mattresses to sand for bedding

(3) Hire a more experienced and honest contractor

Would You Still be in the Dairy Business if you had not

Modernized?

54%46%

Yes No n = 94

Programs and Grants Utilized

Johnes GrantAlliant Grant

WHEDAFocus on Energy

Grow WI

FSA Loan

MVPLand Conservation

NRCS

Dairy 2020

0 5 10 15 20 25 30 35

2

2

4

5

5

8

13

27

27

30

Number of Producers

Full Paper Available on the Dairy Modernization Web Site at:

http://www.uwex.edu/ces/dairymod/cost/index.cfm

Wisconsin Dairy Modernization Survey

UW-Extension 2008

Questions!

How Could Assistance from UW-Extension be Improved ?

87

33222Don't Know/ No Response

Were so Helpful

Keep Doing what your doing

Bring real life dairy experience

More awareness of expanding dairies in the area

Work with NRSC and Government to speed up grant processes

n = 99