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Promoting the Strength of Minnesota's Agricultural Economy
THIS IS THE CORRECT VERSION OF THE JUNE 17, 2010 ISSUE
Welcome to the MDA Marketing Minute,
the marketing e-newsletter from the Minnesota Dept. of Agriculture |
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Dairy Profit Teams Help Farmers See Savings
Minnesota's Dairy Profit Teams worked with 400 dairy farmers (49,068 cows) across the state to help improve their profitability. Based on
based on farm records analysis, these teams produced a $42,677,000 return on the state's investment in the Dairy Profit Improvement Program - or about $67 for every dollar spent. Significant returns like this don't happen overnight and take time to be fully realized on the farm.
Each Dairy Profit Team is a combination of individuals with a variety of backgrounds and expertise. They work with the farm family to evaluate the current situation of the farm and what the farm family wants to accomplish. They then form a list of recommendations and prioritize the list to help the family meet its goals and objectives. Many farmers are able to make cost savings through reductions in feed costs, lower interest rates or labor expense. Some saw profitability as the result of increased herd size which led to increased milk production, improved milk quality, improved herd health and other management factors. Other significant statistics:
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State's dairy industry made $1.1 million in in-kind contributions to the program
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Enrolled farmers added a total of 3,224 new cows to their herds
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64 new jobs were created
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3,042 farms participated in additional education programs
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Dairy Business Planning Grants Make Expansions, Improvements Possible
MDA's Dairy Business Planning Grant Program awarded almost $184 thousand last year to 42 dairy operations across the state. MDA Project Consultant Dave Weinand says the program assists producers in positioning themselves for the future.
"Some of the grantees use the funding to expand their operations or for debt refinancing," says Weinand. "Other farmers use it for conservation improvements or to transfer the farm's ownership to their children."
Weinand say the grants have allowed others to pay for stray voltage testing and develop a plan to eliminate it from their farm.
Dairy Business Planning Grants cover 50 percent of the cost of developing a business plan, up to a maximum of $3,000. Weinand says if only 75 percent of all grant recipients over the past year decided to go forward with their plans, they would be adding 1,710 more cows into production. He says at a modest production rate (18,000 lbs per cow) and a conservative milk price ($12/cwt), an additional $3,693,600 in gross income would be added to Minnesota's rural economy. That in turn would result in an additional 34 jobs (50 cows = 1 Full Time Equivalent).
The actual grant amount awarded to any applicant is based on fund availability, the viability of the project and the project's economic impact.
Applicants are required to contribute at least 50 percent of the total project costs from sources other than the State of Minnesota.
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AG STATS
The average number of milk cows on farms in Minnesota is 470,000 head, up about 2,000 head from one year ago.
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Cattle Tour Goes West
MDA's Livestock Development Team (LDT) is heavily involved in the West Central Cattlemen's Association which is hosting the annual State Cattlemen's Assoc. Summer Beef Tour and Trade Show. The event is July 13 at the Stevens County Fairgrounds in Morris.
The tour will include visits to eight influential farms and industries in the Morris area including West River Dairy (a dairy milking several thousand cows and utilizing alternative energy solutions), Wulf Limousin Farm (world renowned breeders of high quality beef genetics), and the U of M West Central Research and Outreach center, plus several other feedlots and industries.
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MDA Recruits for Dairy
The MDA's Livestock Development Team (LDT) is ramping up its plans for the World Dairy Expo. The Expo is Sept. 28 - Oct. 2 in Madison, WI and will showcase the finest in dairy genetics and newest technologies available to the dairy industry.
Plan to visit the team at Booth Number(s): MC 23, 24; IL 362.
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