professional dairy managers of pa annual members meeting
DESCRIPTION
Professional Dairy Managers of PA Annual Members Meeting. Kurtland Farms “Our Top 10 Milestones”. Tim Kurtz Kurtland Farms. 2006 – Profit Team Start. CDE Initiative 125 Cows Prompted by Frustration Need for Outside Resources and Guidance Quality of Life Important!. - PowerPoint PPT PresentationTRANSCRIPT
November Issues Forum
Professional Dairy Managers of PA Annual
Members Meeting
November Issues Forum
Kurtland Farms“Our Top 10 Milestones”Tim Kurtz
Kurtland Farms
November Issues Forum
2006 – Profit Team Start CDE Initiative 125 Cows Prompted by Frustration Need for Outside Resources
and Guidance Quality of Life Important!
November Issues Forum
2007 – Developed 3-Year Strategy
Dairy Alliance Initiative Five-week Hands-on Workshop SWOT Analysis Need for Business Plan Benchmarking Cost of Production
November Issues Forum
Needed Answers What is the long-term
viability of dairying in this community? What is the long-term profitability of current
facilities? What are the bottlenecks & limiting factors? Is there enough land? What are other options for the farm?
November Issues Forum
Immediate Action Steps Short Term:
Ventilation, Sexed Semen, 3X milking, Written SOPs, Amino Acid ration balancing, Shot program
Long Term: Becoming involved in dairy
industry organizations Vital to gain additional
perspective
November Issues Forum
2009 – Began Expansion Exploration
Involved Lending Institution,Engineering Consultant, & Construction Company
Environmental grant availability??? Building site was obvious Extremely tight budget Grants seemed only hope Had to be permitted but not guaranteed
November Issues Forum
2010 – Denied Waiver Required Land Development Plan Added Considerable Cost Lesson learned: Need highest
level of experience on team Jeff Ainslie consulted Started 2-year process of designing economically
viable facility Numerous trade shows, workshops, phone calls,
emails and consultations
November Issues Forum
2011 – Transformation Team Start
Focused on challenges Assisted with engineering &
permitting costs Penn State Extension Feasibility &
Cash Flow Analysis Brought clarity and credibility Brought new level of energy
November Issues Forum
2011 – Operation of Satellite Adjoining Dairy Opportunity for additional cows and feed availability Employees stayed with operation Allowed for more specialized employee
responsibilities
Allowed Us to Keep Replacements & Streamline Labor Force
Within 3 Months of 3X Milking, Added 15 # Per Cow Per Day
2011: Began Relationship With Different Construction Company
May 2012: Manure Storage
& Processing Grant Approved!
November Issues Forum
June 2012 – Began Relationship With New Bank
Financing MostChallenging Part of Project
Always Kept Open Lines of Communication Explored All Options
September 2012: Began
Construction
Best possible environment
November Issues Forum
Is It Worth the Investment?
November Issues Forum
Item Cost
Expansion/Construction Cost:
-- Soft Costs (Engineering, Permitting, Environmental)
$50,000
-- Barn & Milking Equipment Costs $2,070,000
-- Miscellaneous Costs $40,000
Subtotal $2,160,000
Environmental/Manure Grants $866,653
Grand Total $3,026,653
220 Cow Robotic Free Stall Barn, Manure Storage & Processing -- Start
Up: 3/18/13 Goal: 7.8 million lbs. of milk per yr
Does Not Include
Cattle Or Start-Up
Costs
November Issues Forum
Robotic Milking: A Natural Fit
Voluntary milking gives cow more flexibility and lowers stress
Labor skills even more important
Enhances positive consumer attitudes
November Issues Forum
Composted Manure Solids
• Manure recycled via press separator and compost drum
• Clean, comfortable stalls are deep bedded
• Environmentally responsible• Additional revenue stream
November Issues Forum
Precision Advantages
• Accuracy of information• Detection of abnormalities• Analyzable data• Production Efficiencies
November Issues Forum
Too Much Information?
• Need to decide what information is needed, when it is needed and where to find it• Monitor on a broader level • Investigate attentions in
more detailCows have averaged 85 pounds per day for past six months
in robotic barn.
November Issues Forum
Healthy Cows=ProfitTeamwork=Success
• Many skill sets needed.
• Appeals to next generation
• Mission statement values: Profitability, Quality of life, Stewardship, Having Fun, Honor God
November Issues Forum
Future?• 100% robotic • Transition to next
generation of ownership
PATIENCE, PERSERVERENCE, PERSISTENCE!
November Issues Forum
Jeff AinslieTransformation Team Member
Site Planning / Permitting / Engineering
November Issues Forum
Kurtland Farms - Take Homes Lenders talk about the 3
(or now more) C’s of credit In the quest to construct a new dairy facility,
we should be talking about the Four P’s:1)PLANNING2)PATIENCE3)PERSEVERANCE4)PERMITTING
November Issues Forum
PLANNING
No offense to the builders -- but the details of the barn can wait until a landowner knows what he or she can do where on their property.
November Issues Forum
PATIENCE 7/15/10 Timeline Discussed @ Kurtland
July August September October November December January February March April May Oct
NMP DONE
EQIP application DONE - BE SURE EXTENDED
CDE planning grant DONE
CDE Digester Grant App DONE - OTHERS?
CDE Digester Grant Dec ***
Construction Budget Update ?
Feasibility update ************************
Stormwater Plan (Twp)
Site Specific Storage Design
E+S Plans
Water Quality Part II
Credit Ownership Determination
PENNVEST Application *****
PENNVEST Determination ******
OR
Wetlands +/or Nutrient Credit Proposal to DEP *****
DEP Determination *****
Construction (?)
Milking Date (GOAL) XX
****************************************
************************************************************
************************************************************
************************************************************
************************************************************
************************
FY 2010 FY 2011KURTLAND FARM - ROBOTIC DAIRY COMPLEX
November Issues Forum
PERSEVERANCE
PENNVEST: 4th try was a charm! Caernarvon Sewer Authority /
Lancaster CD / others…. Berks Conservations District came
through
PERMITTING It is involved…and likely to get more so… It is complicated…and likely to get more
so… It is different for every project at every
location... It is costly in more ways than one….
November Issues Forum
Kurtland Farms - Take Homes PLANNING
Headlock dimensions can wait – confirm what you can do on your property, and what regulations will apply to you
PATIENCE “My excavator is ready….we’re starting in a
month” – unfortunately, you are probably not… PERSEVERANCE
Stick with it and work with people that will help you get there
PERMITTING It’s a reality – but take the time early on to learn
what rules and regulations actually impact you and your project
November Issues Forum
Fulton Bank PerspectiveFrom Lamar King
November Issues Forum
Agricultural Lending in 2013
Communicate with Your Lender Prepare/Budget/Understand Your
Financials 5 Cs of Credit
Capacity (Cash Flow) Capital Character Conditions Collateral