Adapting to an Evolving Northeast Dairy Industry

Dr. Tom OvertonProfessor and ChairDepartment of Animal ScienceDirector, PRO-DAIRY program

The only constant is……..

Source: Progressive Dairy from USDA-NASS

Slide courtesy Dr. Andy NovakovicSource: 2017 USDA Census of Agriculture

Source: 2017 Census of Agriculture, USDA-NASS

Source: Progressive Dairy from USDA-NASS

NYS milk production per cow and total milk production, 2007 to 2017

Source: 2017 New York State Annual Dairy Statistics; NYS Dept. of Agriculture and Markets

2017: ~ 623,000 cows ~ 4,400 farms

Slide courtesy Dr. Andy NovakovicSource: 2017 USDA Census of Agriculture

Slide courtesy Dr. Andy NovakovicSource: 2017 USDA Census of Agriculture

Source: 2017 New York State Annual Dairy Statistics;

NYS Dept. of Agriculture and Markets

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Source: Drs. Mark Stephenson and Bob Croppwww.dairymarkets.org

NCOP = (total cash operating costs + calculated depreciation + family living expense) – non-milk farm income

Source: 2018 Farm Credit East Dairy Farm Summary, May 2019

Source: 2018 Farm Credit East Dairy Farm Summary, May 2019

Utilization of milk by class; Northeast Federal Milk Marketing Order

Source: 2017 New York State Annual Dairy Statistics;

NYS Dept. of Agriculture and Markets

NE Precipitation ChangesSummaries provided by Jessica Spaccio, Northeast Regional Climate

Center via Karl Czymmek, PRO-DAIRY

Observed Precipitation Trend: Northeast

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Annual Precipitation in the Northeast1895-2015

Jessica Spaccio, NRCC

Similar annual precip trend at Ithaca:

Jessica Spaccio, NRCC

Observed Trends in 1-day Very Heavy Precipitation

(1958 to 2010)

NOAA/NCDC

Top 1% of 1-day storms: 74% larger over 53 year period

Jessica Spaccio, NRCC

Winter Spring

Summer Fall

Fall precip increasing about ¼” per decade

Seasonal distribution of precip has changed:

Jessica Spaccio, NRCC

NYS dairy industry challenges• Labor, labor, labor…….

• Compliance education and management skills• Technology adoption

• High volatility in milk price to farmer• Fundamental changes in milk price, premiums, etc. making Northeast milk prices more similar to other parts of the

country

• Less able to take advantage of economies of scale compared to some other regions

• Land availability issues (cost, location, distance, quality)

• Ongoing high need for next generation of dairy producers

• Unpredictability of macro-factors affecting ability to produce milk

• Public perception and pressure

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So, how do we adapt to the evolving Northeast Dairy Industry??

New York dairy industry opportunities

• Dairy processing/proximity to population

• Capacity to produce high quality feeds/environment/water availability

• Progressive and entrepreneurial mindset of many producers

• Excellent allied support professionals

• Solid support at Cornell and state levels through funding for agriculture-related programs

• Active industry-level leadership on key issues

Examples of NY dairy industry “workgroups”

• CAFO workgroup

• Animal Well Being Workgroup

• Agricultural Workforce Development Council

• Dairy Issues Team

• Cow Power

• New York Animal Agriculture Coalition

• Partners for a Healthy Watershed

CALS/Cornell research/extension/outreach programs relating to dairy

• PRO-DAIRY

• FarmNet/FarmLink

• Dairy Farm Business Summary and Analysis

• Northeast Dairy Foods Research Center

• Nutrient Management SPEAR program

• Cornell Net Carbohydrate and Protein System Nutrition Model

• Quality Milk Production Services (CVM)

• Milk Quality Improvement Program

• Cornell Program on Dairy Markets and Policy

• Other individual faculty programs

• Cornell Cooperative Extension Regional Specialists and County Educators

• Jason Karszes M.S., Anna Richards and Lauren Hill

• Farm Business Management, Business-focused Discussion Groups, Business Analysis, management educational programs

• Karl Czymmek, J.D.• Field Crops and Nutrient Management/Environmental Policy

• Joe Lawrence, M.S.• Dairy Forage and Cropping Systems

• Curt Gooch, P.E., Peter Wright, P.E. (0.5 FTE), and Jennifer Bockhahn

• Renewable Energy, Manure Systems Engineering; Dairy Facilities; Digital Agriculture

• Robert Lynch, D.V.M.• Dairy Herd Health and Management, online educational

programs

• Debbie Grusenmeyer, M.P.S.• Dairy Youth Programs/Junior Dairy

LEADER/Beginning Dairy LEADER

• Kathy Barrett, M.S.• Dairy Discussion Groups, Winter Dairy Management,

CCE training, online educational programs

• Caroline Potter• Programs Coordinator, Dairy Acceleration Program,

Empire Farm Days

• Julie Berry, M.S. (~0.7 FTE)• Communications

• Thomas Overton, Ph.D.• Professor of Dairy Management and Program

Director

PRO-DAIRY team

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Junior Dairy LEADER youth programs

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• PRO-DAIRY’s Junior DAIRY LEADER has introduced nearly 500 youth to career opportunities in the dairy industry • 98% of graduates continued their education after high school• 85% attended or are attending college to study agriculture• 56% of these youth indicated that they had not been

planning to pursue agricultural careers or had been undecided

• 31 youth between 16 and 19 years old in 2018-2019 class

• A true “game changer” relative to exposing and developing enthusiasm among youth for agricultural careers

Dairy, Livestock and Field Crop Teams

Positions IncludeDairy SpecialistField Crop SpecialistLivestock SpecialistFarm Business ManagementSmall FarmsPrecision Ag

2008 Teams2018 TeamsPotential

CCE Regional Teams

SCNY Dairy and Field Crops

Janice Degni – dairy crops and manure management

Betsy Hicks – dairy nutrition and management

Mary Kate Wheeler – farm business management

Melanie Palmer – dairy production and management

A. Fay Benson – small farms focus

NWNY Dairy, Livestock and Field Crops

Mike Stanyard – crops, pest management

Margaret Quaasdorff – dairy production management

Ali Nafchi – precision agriculture

Jodi Putman – agronomy, nutrient management, forage quality, hemp,

Libby Eiholzer – bilingual dairy specialist, HR focus

Joan Sinclair Petzen – farm business management

Nancy Glazier – grazing, production management, marketing

CCE Regional Teams

CNY Dairy, Livestock and Field Crops

Kevin Ganoe – field crops specialist

David Balbian– dairy production management

Ashley McFarland – livestock production

Nicole Tommell – farm business management

North Country Regional Ag

Kitty O’ Neill – field crops and soils specialist

Mike Hunter – field crops, agronomy

Lindsay Ferlito – dairy production management

Casey Havekes – dairy production management

Kelsey O’Shea – farm business management

CCE Regional Teams

Southwest NY Dairy, Livestock and Field Crops

Josh Putman – field crops specialist

Katelyn Walley-Stoll – farm business management

Alycia Drwencke – dairy management

Currently searching – livestock and small farms

Top ten characteristics of high performing, resilient dairies

• Know and understand their numbers (financial, efficiencies, etc.) and are very self-aware of the strengths and weaknesses of their business

• Understand that the dairy is a business, make business-based decisions, and are entrepreneurial in approach

• Promote a culture within their teams/employees of continuous improvement

• Focus relentlessly on forage quality

• High emphasis on cow comfort/well-being/health

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Top ten characteristics of high performing, resilient dairies

• Invest in both owners/managers and employees (education, self-improvement)

• Know how to best tap into the expertise of the resources around them (e.g., allied industry and agribusiness, CCE, other programs at Cornell and elsewhere)

• Owners/managers balance short-term decisionmaking and reactive with the need to have a longer-term plan for their dairy

• Open to reconsidering approaches upon availability of additional information

• Are engaged internally and externally within the dairy industry

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Dairy Advancement ProgramSupporting excellence in the New York

dairy industry.

Coordinator: Caroline Pottercjh42@cornell.edu

Funds Available for Services

80% of cost up to:

❑ Record keeping systems – $2,500 for implementation and support of a new, or significant update to, an existing record keeping system.

❑ Operational planning – $2,500 for a farm’s first year of budgeting and planning from an operational perspective.

❑ Business planning – $5,000 for a farm to develop a business plan which may include, but is not limited to, business planning, transition analysis, facility planning and farmstead layout planning.

❑ Continued business planning – $2,500 for continuation of business planning for a farm awarded business planning funds in a subsequent year.

Environmental Planning(NYS DEC Environmental Protection Funds)

Program covers 80% of project costs:

• Up to $6,000 for development of a new CNMP (and CNMPs more than 3 yrs. old), plus first year of service, for herds with less than 300 mature cows.

• Up to $4,500 for the update of a CNMP, plus first year of service for herds with less than 300 mature cows.

Environmental Planning

Program covers 80% of project costs

• Up to $5,000 for design of a single eligible BMP identified in a farm CNMP for farms up to 699 mature cows.

• Up to $10,000 for design of a combination of BMP’s identified in a farm CNMP for farms up to 699 mature cows.

Strategic Focus Groups

• Peer to Peer Groups

• Funding for educators to coordinate and facilitate producer discussion groups.

• Minimum of 7 distinct producers

• Minimum of 2 producer contacts and 1 meeting.

• Advisory Teams

• Funding for advisory teams for individual producers

• 80% of project cost up to $3,000

• Can be applied for by producers or educators on behalf of producer

Thanks!!

tro2@cornell.edu