Wisconsin Dairy Modernization Survey UW-Extension 2008 Newburg WI January 28, 2009 Mark W. Mayer, Dairy & Livestock Agent, Green County David W. Kammel, Biological Engineering, UW-Madison 30 Counties Represented 104 Surveys Received 99 Surveys In Data Set General Farm Information Pre Post Modernization 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 Milking Stall Type Milking Parlor Construction 2 Retrofit Construction 8 New Construction 31 34 40 Flat Barn 11 Herringbone Parabone Parallel 55 Rotary n = 92 New vs. Used Milking Parlor Stalls New Used Combination Home Built Milking Equipment New 24 25 1 53 10 n = 89 Used Combination 39 28 n = 91 Labor for Parlor Labor Supplied for Parlors Farmer Contractor 37% 63% Average Time For Parlor Conversion: 17 weeks Range of Time to Convert: 4 to 104 Weeks Labor Provided for Parlor New Construction vs. Retrofit New Parlors Farmer Contractor Retrofit Parlors Farmer 24% 76% 55% Contractor 45% Time for Parlor Conversion Frequency Construction Time Weeks 20 18 16 14 12 10 8 6 4 2 0 4 8 12 16 20 24 28 32 36 40 44 48 52 104 Weeks Parlor Construction &Type Retrofit Construction Stall Type New Construction Stall Type Flat Barn Herringbone Herringbone Parabone Parabone Parallel Parallel Rotary 11 3 6 10 8 30 n = 55 3 18 n = 34 Parlor Cost per Milking Stall 2008 Dollars Parlor Stall Type Retrofit New Construction Construction (n=55) n= 31 Flat barn $3,360 NA (n=6) Herringbone Parabone Parallel $9,657 $18,769 (n=8) (n=3) $3,845 $6,016 (n=30) (n= 10) $7,478 $22,361 (n=11) (n=18) Cow Housing Facility 2 row FS barn 16 4 6 3 row FS barn 21 1 4 row FS barn 6 row FS barn 11 19 8 row FS barn Bedded pack barn n = 78 Compost bedded barn Manure Handling and Storage Manure Storage Manure Handling System Skid Steer /Tractor Scrape Daily Haul Automatic Scraper Flush Other Short Term Storage Long Term Storage 29 52 87 11 31 8 1 n = 107 n = 112 Manure Storage and Bedding Bedding System for Milk Cows Manure Storage Liner Concrete Earth/Clay Synthetic Sand Free Stall Mattress Free Stall Compost Bedded Bedded Pack 4 26 47 19 4 51 27 n = 77 n = 101 Replacement Housing Calf Housing Heifer Housing Calf barn Free Stall Pen Outdoor Calf Hutches Bedded Pack Pen Indoor Calf Hutches Compost Bedded Pen 1 14 43 17 44 68 n = 101 n = 86 Milking System Throughput 25 Mean = 22.7 cows/person/hour Std Dev =11.56 PRE Frequency 20 Mean = 44.1 cows/person/hour Std Dev = 19.79 15 Change = 21.4 cows/person/hour P = 0.000 10 5 0 0 10 20 30 40 50 60 70 80 Cows Milked/Person/Hour 90 100 110 POST Pre and Post Labor Requirements Average Per Cow/Day 2 Pre Modernization 1.59 Minutes/Cow/Day Post Modernization 1 0.65 0.79 0.75 0.49 0.4 0 **Feeding Milk Cows *Handling Cows **P= <.001 *P= <.01 **Handling Manure Pre and Post Labor Requirements Average Per Cow/Day 4.07 Minutes/Cow/Day 4 Pre Modernization 3.5 Post Modernization 3 2.09 2.5 2 0.8 1.5 0.32 1 0.51 0.32 0.5 0 **Milking **Maintaining Stalls **P= <.001 *P= <.01 *Milking Setup/Cleanup 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 Overall Cow Health 85% Less Feet & Leg Problems 82% Lower SCC 78% Increased Production 74% Lower Culling Rate Increased Conception Rates 73% 66% Ranking of Cow Benefits Overall Cow Health 4.86 Less Feet & Leg Problems 4.65 Lower Cull Rate 4.58 Lower SCC 4.53 Increased Production 4.34 Increase Conception Rates 4.27 3 Less Important 4 5 6 More Important People Benefits Observed Reduced Labor Per Cow 96% Improved Working Conditions for Milkers 93% Improved Health/Safety of Workers 88% Allowed Business to Continue Increased Profitability Provided Entry for Next Generation Increased Family Time 86% 82% 80% 78% Ranking of People Benefits Improved Working Condition for Milkers 5.26 Improved Health and Safety for Workers 5.16 Allowed Dairy to Continue 5.13 Provided Entry for Future Generation 5.1 Reduced Labor Per Cow 4.92 Increased Profitability 4.85 Increased Family Time 4.61 3 4 5 6 Educational Resources Used Visiting Other Farms/Tours 99% Extension Meetings/Seminars 86% Farm Visit by County Agent 86% Magazines and Newspapers 81% Farm Visit by UW State Specialist 73% Farm Shows 67% U.W. Publications, Newsletters, CD's 65% Phone/Email CountyAgent Phone/Email State Specialist 64% 46% Ranking of Educational Resources Visiting Other Farms/Tours 5.48 Farm Visit by UW State Specialist 4.62 Farm Visit by County Agent 4.52 U.W. Seminars and Meetings 4.42 Phone/Email to State Specialist/Co Agent 4.12 UW Publications and CD's 4.00 Farm Shows 3.94 Magazines and Newpapers 3.91 3 4 Least Useful 5 6 Most Useful Professional Resources Used UW-Extension Agent/Specialist 93% Milk Equipment Dealer 89% Other Dairy Producers 86% Builder/Contractor 85% Ag Lender 76% Veterinarian 66% Nutritionist Financial Consultant Professional Design Consultant 64% 33% 30% Ranking of Professional Resources Other Dairy Producers 4.78 Builder/Contractor 4.73 Ag Lender 4.57 UW-Extension Agent/Specialist 4.53 Nutritionist 4.52 Milk Equipment Dealer 4.36 Financial Consultant 4.03 Veterinarian 4.00 Professional Design Consultant 3.53 3 4 5 6 UW-Extension Impacted Decisions with Dairy Modernization Yes No 78% 22% n = 99 Average 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 Investment Since 1993 (2008 Dollars) • Milking Parlor Facility – $17,144,281 • Dairy Cow Housing – $30,529,855 • Dry Cow Housing • TMR Feeding – $1,981,566 • Feed Storage – $4,153,360 • Manure handling – $1,722,057 – $2,149,120 • Heifer Housing • Manure Storage – $1,610,210 • Calf Housing – $1,480,703 – $4,536,318 • Total Investment for 99 farms in Survey $65,307,470 Dairy Modernization Impacts Pre Post Modernization Modernization Average Herd Size Change 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 Average Increased Milk +1,439 lbs x $17/cwt Income per Cow Dollar Impact = $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 +11,766 cows x $17,000 more Cows in the State **UW Department of Agriculture and Applied Economics = *$200 Million * Total for 99 Herds 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? 46% 54% Yes No n = 94 Programs and Grants Utilized 30 27 27 13 8 5 5 4 2 2 0 5 10 15 20 Number of Producers 25 30 35 Wisconsin Dairy Modernization Survey UW-Extension 2008 Full Paper Available on the Dairy Modernization Web Site at: http://www.uwex.edu/ces/dairymod/cost/index.cfm Questions! How Could Assistance from UWExtension be Improved ? 87 Don't Know/ No Response 3 2 2 2 3 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