Grow Wisconsin Dairy 30x20
Nicole Breunig
Wisconsin Department of Agriculture, Trade and Consumer
Protection (DATCP)
The Mission
• The mission of DATCP is to serve the citizens of Wisconsin by
assuring:
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The safety and quality of food.
Fair business practices for the buyer and seller
Efficient use of agricultural resources in a quality environment
Consumer protection
Healthy animals and plants
The vitality of Wisconsin agriculture and commerce
Department of Agriculture, Trade and Consumer Protection
Background
• Wis. Act 32 provided an annual appropriation of $200,000 of
the former Dairy 2020 program funding to DATCP following
the disbanding of the Wisconsin Department of Commerce.
• DATCP Secretary Ben Brancel convened dairy discussions with
industry leaders from across the state to better understand
the needs and demands of our farmers and processors.
• Suggestions from these discussions formed the priorities and
services model of Dairy 30x20.
Department of Agriculture, Trade and Consumer Protection
Discussion Collaborators
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Cooperative Network
Dairy Business Association
GrassWorks, Inc.
Professional Dairy Producers of Wisconsin
UW-Extension
Wisconsin Center for Dairy Research
Wisconsin Center for Dairy Profitability
Wisconsin Cheese Makers Association
Wisconsin Dairy Products Association
Wisconsin Farm Bureau Federation
Wisconsin Farmers Union
Wisconsin Milk Marketing Board
Wisconsin National Farmers Organization
Department of Agriculture, Trade and Consumer Protection
WI Dairy Farm Numbers
11,637 dairy farms in Wisconsin as of 4/1/201
Less than half of the number in 1997 (25,000 then)
Graphic and data courtesy of WMMB and USDA/NASS
Department of Agriculture, Trade and Consumer Protection
Milk Production Per Cow is
Increasing
1987 average of 13,816
1997 average of 16,057
2010 average of 20,630
Department of Agriculture, Trade and Consumer Protection
Services to Match
Customer Needs
• Dairy Farm Number Trend Continues
• Herd Size Trend Continues
• Cow Numbers Approximately Steady
• Milk Production per Cow is Increasing
• Distribution of Herds and Milk Production Shifting
• Diversity of Size and Type of Dairy Farms
In Billions of Pounds
WI Annual Milk Production
% Representation by Herd Size
80%
20%
40.5%
59.5%
WI Dairy Industry Trends
• 11,637 Wisconsin dairy farms as of 4/1/2012
• Less than half of the number in 1997 (25,000 then)
• Milk production per cow is increasing
• 2010 average of 20,630
• 1997 average of 16,057
• 1987 average of 13,816
• Shifts in % total milk production by herd size
• In 1997 10% of the herds had more than 100 cows and yielded
32.5% of the milk produced in the state
• In 2007 almost 20% of the herds have more than 100 cows and
are producing almost 60% of the milk volume
Dairy Discussion Goals
• Provide assistance to dairy farmers, without
regard to size or type, focusing on:
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Long-term, sustained operation
Profitability
Maintaining and increasing milk production
Management & operation changes
Business planning
Transition planning
Beginning farmer assistance
Department of Agriculture, Trade and Consumer Protection
Dairy Discussion Items
• Changes among Wisconsin dairy farms
• Changes in economic conditions
• Changes in federal, state, and local budgets
• Need to continue to improve services and
address changing needs
• Identify needs by herd size
• Develop clearinghouse model with DATCP as
starting point to disseminate information and
navigate to resources.
Department of Agriculture, Trade and Consumer Protection
Needs by Herd Size
• According to the Wisconsin Agricultural Statistics Service(WASS)
2010 Dairy Producer Survey, ¾ of surveyed farmers are intending to
be in business in 2015. Based on this number is it important to
recognize the needs of the approximately 9,000 dairy farms in
Wisconsin what will be in business in 2015 and incorporate a dairy
development strategy to help them obtain profitability while
increasing Wisconsin milk production.
• Difficult to put every farm type into a box or place on a line.
• Diversity isn’t just in farm size. From management styles,
ownership, business planning and many other facets, every farm can
be very different – But they all need basic things…
Needs by Herd Size
Cow #s on farm General description of this size farm Probable future needs
Typical services to be provided by DATCP
20-150
no hired labor
high equity position
not looking to expand
stanchion/tie-stall/pipeline set-up
exit planning
low cost modernization
transition planning
getting started farming
short-term/next generation planning
modernization planning
organic/grazing transition
beginning farmer
151-499
few hired immigrant labor
medium equity position
will expand in future
parlor/free stall set up or robot
how to manage employees
how to manage a business
modernizing/expanding options
business training skills
people management skills
future planning
500+
Immigrant labor
lower equity position
always expanding
always looking at new technology
legal services
financial management skills
investigating new technology
expansion planning
provide resources as requested
provide consultants through grants
provide financing options
Department of Agriculture, Trade and Consumer Protection
Herd Needs by Area
Planning & Preparation
- Business Development
- Financial Analysis
- Transition/Transfer
- Expansion
- Modernization
On farm management
- Herd Health
- Facilities
- Milk Production
- Milk Quality
- Operational Efficiency
Planning and Preparation for Profit
Implementing Clearinghouse
Model
• Establish a client based service delivery system that utilizes a
multi-agency, private-public network for services and referrals
• Identify internal technical assistance areas covered by DATCP staff
• Coordinate list of private service professionals. Including, but
not limited to:
• Financial advisors
• Legal service providers
Department of Agriculture, Trade and Consumer Protection
Clearinghouse Model - Internal
Clearinghouse Model - Farmer
Grow Wisconsin Dairy 30x20
Goal
Improve the long-term viability of Wisconsin’s dairy industry
through services to achieve an annual milk production of
30 billion pounds by 2020 to meet the growing demand of the
marketplace.
Department of Agriculture, Trade and Consumer Protection
Grow Wisconsin Dairy 30x20
Need
• Wisconsin dairy farmers currently only produce approximately
90% of the milk volume needed by the state’s dairy
processors.
• Wisconsin’s milk production grew less than 1% in 2011 to 26.1
billion pounds, which is not on pace to meet the future
demands of the state’s growing processing industry.
• Dairy 30x20 will help secure a strong future for Wisconsin
dairy farmers that will allow our state’s dairy industry to
maintain our diversity.
Department of Agriculture, Trade and Consumer Protection
Grow Wisconsin Dairy 30x20
Objectives
• Provide assistance to dairy farmers, without regard to size or
type, focusing on long-term, sustained operation and
increasing profitability and production.
• Improve profitability through management and operational
system changes, business and legal structure, and herd health
and milk production.
• Beginning farmer assistance.
Department of Agriculture, Trade and Consumer Protection
Grow Wisconsin Dairy 30x20
Services
• Toll-free number 855-WIDAIRY (855-943-2479) for dairy
farmers to call to connect with resources and service provided
for WI Dairy Development.
• Email at GrowWisconsinDairy@wi.gov.
• These resources and services will continue to build and be
available online at GrowWisconsinDairy.wi.gov.
• Electronic Catalog of Network and Contacts to facilitate
clearinghouse function.
Department of Agriculture, Trade and Consumer Protection
Grow Wisconsin Dairy 30x20
Services
• Promote the growth of the dairy industry through research,
planning, and assistance, including grants and loans to dairy
producers. Per Emergency Rule Scope ATCP 161.
• ATCP 161 formed the Grow Wisconsin Dairy Producer Grants
to retain farms, facilitate operational changes, improve
profitability, and yield more milk through.
Department of Agriculture, Trade and Consumer Protection
Grow Wisconsin Dairy 30x20
Grow Wisconsin Dairy Producer Grants
• FY12 Request for Proposal release March 30, 2012
• The grant will be flexible and customizable to meet the needs
of individual farms. Monies from the grant will be used by
farmers to hire consultants and build a team of experts with a
broad range of expertise to address specific business needs on
their operation.
• Each grant is up to $5,000. Cost share payments by the farmer
are required at 20% of the grant amount.
Department of Agriculture, Trade and Consumer Protection
Grow Wisconsin Dairy 30x20
Grow Wisconsin Dairy Producer Grants
• Two types of grants are available
Planning & Preparation Teams to be applied towards business
development and expansion needs. Examples include business planning,
financial analysis, transition planning and farm transfers. The grant money
can also provide assistance with professional services costs related to dairy
farm modernization and expansion efforts such as siting, engineering,
design, layout of new barns, parlors or farm structures.
Dairy Profit Teams to develop an on-farm management team to assist
dairy producers in improving management of existing operational systems
and identify opportunities to improve profit. Topics include new or
appropriate technology implementation, farm growth, financial success,
long-term sustainability, and production enhancing measures.
Department of Agriculture, Trade and Consumer Protection